IOPS Regional Workshop on Risk-based Supervision for Central and Eastern Europe Region 26-27 July 2010, Warsaw

The IOPS Workshop on Pension Supervision was held in Warsaw, Poland on 26-27 July 2010.

Many IOPS members and pension supervisory authorities in the CEE region are planning to introduce a risk-based approach to supervision. The IOPS has been undertaking a major project on this topic, including the development of a Toolkit to help authorities prepare for such a transition and presenting the risk-based models already developed by some IOPS members. This workshop presented the work of the IOPS in this field and provided an opportunity to learn about IOPS members’ risk-based approaches in more detail.

The workshop addressed high-level topics. The first session of the meeting was devoted to the presentation of the work developed by IOPS in the area of risk-based supervision, as well as an overview of the approach of the Polish Financial Supervision Authority. The second session was devoted to the discussion of how authorities should prepare for the introduction of risk-based supervision. The third session examined approaches to information gathering and risk assessment. The fourth session addressed risk-scoring and how models are actually built. The final session examineed how supervisory responses should be linked to the risk assessments undertaken.

The workshop was targeted at government officials involved in pension supervision and private pension reforms from the Central and Eastern Europe region as well as a selected number of IOPS member countries.

This IOPS workshop for the CEE region was organised within the framework of the IOPS global outreach activities, and in line with the Organisation’s objective to promote the development of efficient national pension supervisory systems throughout the world. This regional workshop was hosted by the Polish Financial Supervision Authority.

Conference materials

Agenda

Session I: Introduction to Risk-based Supervision

• Introduction to Risk-based Supervision and the IOPS Toolkit - Ross Jones, President of IOPS, Vice-Chair of the OECD Working Party on Private Pensions, Deputy Chairman of the Australian Prudential Regulation Authority (APRA)

Session II: Preparation for Risk-based Supervision

• Overview of IOPS Toolkit Module 1 - Ross Jones
• APRA Organisational Structure and Powers - Ross Jones
• Preparing the Supervisory Authority and Pension Industry for Risk-based Supervision - Nzomo Mutuku, Chief Economist and Head of Research and Policy Analysis, Retirement Benefits Authority, Kenya

Session III: Information Gathering and Risk Identification

• Overview of IOPS Toolkit Module 3 - Ross Jones
• Risk Assessments for APRA Regulated Institutions - Merrie Hennessy, Advisor, Policy Development, APRA
• HFSA Information Gathering - Talas Fulop, Head of Supervisory Department, Hungarian Financial Supervisory Authority

Session IV: Risk Scoring

• Overview of IOPS Toolkit Module 4 - Ross Jones
• APRA PAIRS Model - Ross Jones
• HFSA Risk Scoring Model - Tamas Fulop

Session V: Supervisory Response

• Overview of IOPS Toolkit Module 5 - Ross Jones
• APRA SOARS Model / Supervisory Strategies for APRA Regulated Institutions - Merrie Hennessy
• RBA Supervisory Response - Nzomo Mutuku