For too many organizations, operational risk does not receive the same attention as other risks. This often leads to issues with the IRS and the DOL, including fines and other unexpected costs. Operational risk is defined as any of the specific risks associated with operating a retirement plan, such as vendor and/or staff errors, systems failures, criminal activities and/or fraud, as well as other disruptions of business processes. These issues typically occur due to inconsistent application of processes, non-alignment of procedures with plan documents and the law, non-documented procedures, poor checks and balances, evolving plan designs, and continually changing regulatory frameworks.
Despite often delegating risk-management tasks, retirement plan sponsors remain responsible as fiduciaries for the adequacy of their oversight across all functions and categories. Plan sponsors, their staff, and chosen service providers must maintain a framework to minimize the probability and severity of loss related to operational-risk events. This session will show how a proper framework allows plan sponsors to reduce the probability of operational failures, as well as mitigate the severity of the impact of such failures if they do occur.
PROFESSIONAL DEVELOPMENT CREDITS
CEBS - qualifies for 1 hour of CPE
HRCI - preapproved for 1 HR (General) credit
SHRM - valid for 1 PDC
ASPPA - qualifies for 1 hour of CE