Key Person Risk in Pensions Management
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What is key person risk in pensions management?
Every organisation relies on key individuals to keep operations running smoothly. In pensions management, the pensions manager plays a crucial role in maintaining compliance, governance, and regulatory responsibilities. But what happens if that key person is suddenly unavailable?
Key person risk in pensions management occurs when an organisation depends too heavily on a single individual for critical functions. This creates a single point of failure, exposing the pension scheme to compliance risks, governance gaps and operational disruptions. Unexpected absences due to illness, resignation or retirement can significantly impact regulatory obligations and day-to-day operations.
Without a structured contingency plan, this risk can lead to:
- Delays in regulatory compliance and potential fines
- Gaps in governance and increased financial risk
- Disruptions to member services
- Increased administrative burden on HR and Finance teams
Proactively addressing key person risk ensures long-term resilience, governance stability and operational efficiency.
Why key person risk matters to your business
Finance & HR Directors
Managing a pension scheme is complex, and continuity is non-negotiable. If a key pensions professional suddenly departs, your scheme could face regulatory scrutiny, governance instability, and financial exposure.
Partnering with an experienced, multi-skilled team removes the dependency on one individual, ensuring compliance and peace of mind for your leadership team.
Pensions Managers
We understand the pressure of managing a pension scheme alone. Our role isn’t to take over, it’s to support you. Whether you need governance expertise, compliance oversight or operational support, we act as an extension of your team to ensure continuity and confidence in your scheme’s management.
Partnering with us means you retain control while benefiting from specialist expertise and a structured governance framework.
Mitigating key person risk with outsourced pension management
More organisations are choosing to outsource pensions management to reduce risk, enhance governance and ensure regulatory compliance. This approach provides long-term stability while eliminating the risks associated with relying on a single in-house pensions professional.
Key benefits of outsourcing pensions management
- Guaranteed Business Continuity: Your pension scheme stays on track, no matter what.
- Access to Specialist Expertise: A broad team of experts without the cost of multiple hires.
- Institutional Knowledge Retention: No more gaps in documentation or lost processes.
- Regulatory Compliance & Governance: Stay ahead with proactive expert oversight.
Case study: Reducing key person risk in action
See how one organisation transitioned from a sole pensions manager to a resilient, team-based model.
Discover how outsourcing improved governance, reduced key person risk and gave their pensions manager the support she needed.
How Dalriada can help
At Dalriada, we provide independent, expert pension management services that eliminate key person risk and strengthen your scheme’s operations.
What you can expect:
Client-centric & flexible
Solutions tailored to your scheme’s needs.
Expert-led governance
Extensive in-house pensions management experience.
Collaborative partnership
We work closely with trustees, sponsors, and in-house teams.
Proactive risk management
A structured approach to ensure long-term stability.
With our team-based model, your pension scheme is always in capable hands – without the uncertainty of relying on a single key person.
Safeguard your pension scheme’s future today
If your scheme depends on just one person, it’s time to act. Don’t wait for a disruption to expose the risk.
Let Dalriada help you eliminate key person risk and secure your scheme’s future. Get in touch today to discuss how our experts can help safeguard your pension scheme’s future.
