OUR GOVERNANCE:
Corporate governance aligned to King IV principles
Functional governance
Risk governance
The Board is tasked with ensuring the implementation of good corporate governance and the execution of effective risk management practices within the Fund. This is facilitated through the structured roles of various committees such as the Investments and Project Monitoring Committee, Finance Committee, Staff Administration and Corporate Affairs Committee, and critically, the Audit and Risk Committee (ARC), which specifically oversees risk management and financial reporting integrity.
Specific roles, responsibilities and accountabilities for risk management are defined.
Through a comprehensive materiality determination process material matters and emerging risks are identified which could influence the Fund’s business model and its ability to create value in the short, medium, and long term. See our materiality determination process.
Risk management is an integral part of the Fund's operational activities, acting as both a safeguard and a tool for identifying opportunities for value creation. Given the importance of technology and data security, Cyber Security and Information Security risks form a core focus of the Fund's risk management strategy.
The implementation of the three lines of defence model divides responsibilities clearly between risk-taking and risk-control functions, bolstering the overall risk governance structure of the organisation. The ARC plays a leading role in risk and opportunity management and compliance, providing guidance on handling risks according to the Board's direction.
Key elements of the Fund's risk management approach include:
The Board independently assesses top risks regularly, maintains oversight of the Strategic Risk Register, ensures the implementation of strategic projects, and reviews summary reports from both the ARC and Finance Committee. This multi-faceted oversight ensures that risk management remains a cornerstone of the Fund's governance and strategic decision-making processes.
Read more on our risk and opportunity management.
Technology and information governance
The governance of technology and information at the Fund is rooted in the Board Charter, where the Board has the key role of overseeing the Information and Technology Policy, systems, and overall strategy.
The Finance Committee is mandated to assist the Board in fulfilling its oversight responsibility for technology governance, ensuring alignment with our strategic goals.
For governance, the Finance Committee takes the lead on IT oversight, supported by a formal IT governance strategy and framework. Regular IT governance audits further solidify this commitment to secure and responsible technology management.
Aligned with its strategy for digitalisation, the Fund is heavily investing in information security to enhance the efficiency of its operations and communication, capitalising on automation and digital platforms.
At the heart of this technological advancement is the Technology and Enterprise Solutions Department at NSSF. Tasked with utilising technology to extend services, improve customer interactions, and bolster operational efficiency, the department's initiatives include digital expansion for social security, user-friendly digital interfaces, data analytics for customised services, AI integration for better efficiency and decision-making, and forming strategic partnerships for service innovation. See detailed insights from the Chief Technology and Enterprise Solutions Officer here.
We make use of the OctoPAS Pension Administration System for efficient pension administration. Our commitment to upholding secure and stable IT services is evidenced by comprehensive controls and regular security assessments, including penetration tests and vulnerability scans, to safeguard our systems and data.
Compliance governance
The Fund is committed to legal and regulatory compliance, with a particular emphasis on adhering to prudential regulation. The Board oversees compliance governance through the Audit and Risk Assurance Committee, which monitors adherence to laws, regulations, and best practices within the retirement benefits sector.
To govern compliance and service delivery effectively, the Board has instituted comprehensive policies and processes. There is a continuous effort to monitor and proactively engage with regulatory changes and focal areas, ensuring that the Fund remains ahead of developments.
A cornerstone of the Fund's governance is the maintenance of the highest standards, including transparency, accountability, and fairness, to its members, regulators, and all stakeholders. Management plays an ongoing role in tracking the Fund's regulatory compliance, with quarterly reports provided to the Board for review.
The Board has endorsed a Compliance Management Policy and Manual to underpin the compliance infrastructure. This includes regular compliance monitoring to ensure that the Fund not only meets but also anticipates its critical legislative and regulatory obligations.
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