Brunner, GregoryHinz, RichardRocha, Roberto2012-05-252012-05-252008-01https://hdl.handle.net/10986/6474This paper provides a review of the design and experience of risk-based pension fund supervision in several countries that have been leaders in the development of these methods. The utilization of risk-based methods originates primarily in the supervision of banks. In recent years it has increasingly been extended to other types of financial intermediaries including pension funds and insurers. The trend toward risk-based supervision of pensions is closely associated with movement toward the integration of pension supervision with that of banking and other financial services into a single national authority. Although similar in concept to the techniques developed in banking, the application to pension funds has required modifications, particularly for defined contribution funds that transfer investment risk to fund members. The countries examined provide a range of experiences that illustrate both the diversity of pension systems and approaches to risk-based supervision, but also a commonality of the focus on sound risk management and effective supervisory outcomes. The paper provides a description of pension supervision in Australia, Denmark, Mexico and the Netherlands, and an initial evaluation of the results achieved in relation to the underlying objectives.CC BY 3.0 IGOACCOUNTINGACCOUNTING STANDARDSACCURATE INFORMATIONADVERSE PRICE MOVEMENTSASSESSMENT OF RISKASSET ALLOCATIONASSET BASEASSET CLASSASSET CLASSESASSET LIABILITY MATCHINGASSET PRICESASSET-LIABILITY MANAGEMENTASSET-LIABILITY MISMATCHESBALANCE SHEETBALANCE SHEETSBANKING SYSTEMBASIS POINTBENEFICIARIESBONDBOND PORTFOLIOBUSINESS PLANCALCULATIONCALL OPTIONSCAPITAL ADEQUACYCAPITAL ALLOCATIONCAPITAL REQUIREMENTCAPITAL REQUIREMENTSCENTRAL BANKCONTRIBUTIONCONTRIBUTION ARRANGEMENTSCONTRIBUTION SYSTEMCONTRIBUTIONSCORPORATE BONDSCORPORATE GOVERNANCECREDIT RISKCREDIT RISKSCREDIT STANDINGCRISIS MANAGEMENTCURRENCYDEFERRED COMPENSATIONDEPOSITSDERIVATIVESDISCLOSURE REQUIREMENTSDISCOUNT RATEDIVERSIFICATIONDOMESTIC BONDSDOMESTIC EQUITIESDOMESTIC EQUITYEFFICIENT INVESTMENTEQUITIESEQUITY INVESTMENTSEQUITY MARKETEQUITY RETURNSEURO MARKETFAIR VALUATIONFINANCIAL CRISISFINANCIAL INDUSTRYFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL INSTRUMENTSFINANCIAL INTERMEDIARIESFINANCIAL POLICYFINANCIAL POSITIONFINANCIAL RISKFINANCIAL RISKSFINANCIAL SECTORFINANCIAL SERVICEFINANCIAL SERVICE PROVIDERSFINANCIAL SERVICESFINANCIAL STABILITYFINANCIAL STATEMENTSFINANCIAL SYSTEMFINANCIAL SYSTEMSFIXED INCOMEFIXED INCOME INVESTMENTSFIXED INCOME PORTFOLIOFIXED INCOME PORTFOLIOSFOREIGN CURRENCYFOREIGN EQUITIESFOREIGN EQUITYFUND MANAGERSFUND PERFORMANCEGOVERNMENT BONDSGOVERNMENT SECURITIESHOLDINGSINCOME INSTRUMENTSINDIVIDUAL ACCOUNTSINFORMATION SYSTEMSINFORMED DECISIONSINSTITUTIONAL INVESTORSINSURANCEINSURANCE COMPANIESINSURANCE INDUSTRYINTEREST RATEINTEREST RATE RISKINTEREST RATE RISKSINTEREST RATE SWAPSINTEREST RATESINTERNAL AUDITSINTERNATIONAL BANKINVESTINGINVESTMENT PATTERNSINVESTMENT POLICIESINVESTMENT REGIMEINVESTMENT RISKINVESTMENT STRATEGIESLABOR FORCELEGAL OBLIGATIONLIABILITYLIFE INSURANCELIFE INSURANCE COMPANIESLIQUID ASSETSLIQUIDITYLONG-TERM INTERESTLONG-TERM INTEREST RATEMARGIN REQUIREMENTSMARKET ANALYSISMARKET ANALYSTSMARKET COMPETITIONMARKET CONDITIONSMARKET DEVELOPMENTMARKET DEVELOPMENTSMARKET DISCIPLINEMARKET LIQUIDITYMARKET PARTICIPANTSMARKET RISKMARKET VALUEMARKET VALUESMARKET YIELDMATURITYMINIMUM CAPITAL REQUIREMENTMINIMUM CAPITAL REQUIREMENTSMORTGAGEMORTGAGE BONDSMORTGAGE LOANSMORTGAGESOCCUPATIONAL FUNDSOLDER WORKERSOTHER ASSETSPARENT COMPANIESPENSIONPENSION COMPANIESPENSION FUNDPENSION FUND SUPERVISIONPENSION FUNDSPENSION PLANPENSION PROVIDERSPENSION SCHEMESPENSION SYSTEMPENSION SYSTEMSPENSIONERSPENSIONSPERFORMANCE MEASUREMENTPORTFOLIOPORTFOLIOSPRIVATE LOANSPRIVATE PENSIONPRIVATE PENSION FUNDSPRIVATE PENSION PLANSPROBABILITYPUBLIC DEBTPUBLIC DEBT STOCKPUBLIC SECTOR BONDSRATE OF RETURNRATE OF RETURNSRATES OF RETURNREAL ESTATEREGULATORY AUTHORITYREGULATORY FRAMEWORKREGULATORY STANDARDSRESPONSIBILITIESRETIREMENTRETIREMENT BENEFITSRETIREMENT INCOMERETIREMENT SAVINGSRETURNRISK ASSESSMENTRISK ASSESSMENT PROCESSRISK CAPITALRISK CONTROLRISK CONTROLSRISK EXPOSURERISK EXPOSURESRISK FACTORRISK FACTORSRISK MANAGEMENTRISK MANAGEMENT STRATEGIESRISK MANAGEMENT SYSTEMRISK MANAGEMENT SYSTEMSRISK PROFILERISK SCORERISK SCORESSENIORSMALLER FUNDSSOCIAL INSURANCESOCIAL INSURANCE SYSTEMSSOLVENCYSTAKEHOLDERSSUPERVISION OF BANKSSUPERVISION OF PENSION FUNDSSUPERVISORY AGENCIESSUPERVISORY AGENCYSUPERVISORY AUTHORITYSWAPSWAP CURVETAXTAX LAWSTRADITIONAL FINANCIAL INSTITUTIONSTRANSPARENCYTRUSTEETRUSTEESUSE OF DERIVATIVESVALUATIONVARIABLE RATEWITHDRAWALYIELD CURVEWorld Bank10.1596/1813-9450-4491