The word risk invokes a range of responses. The timid (or wise, depending on your point of view) think of risk as something to be avoided—or at least minimized. The more aggressive see risk as an opportunity and look for rewards to be reaped. We see risk as something to be analyzed; quantified where possible; and, most importantly, understood. In the realm of public pension plans, a lack of understanding of the numerous risks is evident.
Public pension funds face several general risk categories: economic, actuarial, operational/administrative, and fiduciary.
This whitepaper will focus on the economic and actuarial risks. Download it here.