Risk
The Board governs risk in a way that enables the Fund to sustain and optimise its strategy and objectives.
Outcomes supported
Risk and opportunity governance
Risk and opportunity management are integral to how the Fund creates and protects value for its members. In line with King V™ Principle 8, the Board oversees both through an ERM framework supporting strategic and financial objectives. Supported by the ARC, it ensures that risks, opportunities, and resilience are embedded in decision-making in a dynamic operating environment.
A risk appetite dashboard that evaluates both risks and opportunities in support of strategic and financial objectives.
A Combined Assurance Model that provides a holistic view of risk control measures.
An Enterprise-wide Risk Management Framework accompanied by a comprehensive policy.
The requirements of this principle are demonstrated with what NSSF has in place:
Enterprise risk management
Governance approach
An Enterprise Risk Management Framework and Risk Appetite Framework integrate risk and opportunity management with strategic and financial objectives under ARC oversight.
Key outcomes
Consistent evaluation of risks and opportunities across the Fund.
Value created
Improved decision-making and alignment with strategic objectives.
Strategic risk oversight
Governance approach
The Board and ARC monitor key risks through regular reporting, risk appetite reviews, and the strategic risk register.
Key outcomes
Ten key risks are monitored quarterly, including cyber, strategic, market, interest rate, financial crime, governance, regulatory, reputational, compliance and technology risks.
Value created
Enhanced resilience and proactive management of emerging risks and opportunities.
Cyber and technology risk
Governance approach
Cybersecurity, technology, and information risks are integrated into the ERMF and subject to ongoing monitoring and assurance.
Key outcomes
Improved oversight of a rapidly evolving risk landscape driven by digital transformation and AI.
Value created
Protection of information assets, operational continuity, and stakeholder trust.
Risk culture and accountability
Governance approach
Risk management is embedded through the Three Lines Model, defined accountabilities, and ongoing risk awareness initiatives.
Key outcomes
A previous risk-awareness survey found 97% of employees understood risks linked to their roles, 93% confirmed regular control assessments and 94% agreed these strengthened controls.
Value created
Stronger risk ownership, accountability, and organisational resilience.
Business continuity and resilience
Governance approach
Business continuity and disaster recovery capabilities are regularly tested for operational resilience.
Key outcomes
Disaster recovery testing in FY2025/26 confirmed the Fund can meet its recovery time objectives.
Value created
Enhanced resilience and ability to maintain critical services during disruptions.
Combined assurance
Governance approach
A Combined Assurance Model, supported by Enterprise Risk Management, Internal Audit and management, oversees material risks and controls.
Key outcomes
Improved visibility of risk exposures and the effectiveness of mitigation measures.
Value created
Greater confidence in governance, risk management, and internal controls.
Opportunity management
Governance approach
The Fund evaluates opportunities from technological innovation, market developments, and strategic initiatives within its approved risk appetite.
Key outcomes
Opportunities such as AI adoption, digital transformation and strategic partnerships are assessed alongside associated risks.
Value created
Sustainable growth, innovation, and long-term value creation for members.
The Fund's integrated approach enables it to anticipate and respond to uncertainty while pursuing opportunities that support long-term value creation. Strong Board oversight, a mature risk framework and a robust risk culture leave the Fund well positioned to achieve its objectives and safeguard member interests.
Area for future focus
Formalise AI governance policy; continue embedding risk culture through training. Read more about risk and opportunity management.