IOPS Regional Workshop on Risk-Based Supervision for the Latin American Region: 8-9 September 2011, Lima, Peru

 

The IOPS Regional Workshop on Risk-based Supervision for the Latin American Region was held in Lima, Peru on 8-9 September 2011. This IOPS workshop 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 workshop was hosted by the Superintendencia de Banca, Seguros y AFP of Peru.

Objective

The IOPS has been undertaking a major project on the topic of risk-based supervision, including the launch in 2010 of the IOPS Toolkit for Risk-based Supervision (RBS). The toolkit assists supervisory authorities in preparing to transition to RBS, whilst also presenting risk-based models already developed by other IOPS members. This workshop aimed to present 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 was broken down into two days. Day one presenting the IOPS Toolkit for Risk-based Supervision and discussing the various issues related to RBS, including various country experiences. The second day of the Workshop was focused around a case study and more interactive activities.

The first session of the Workshop on day one introduced the IOPS Toolkit for Risk-based Supervision, and focus on Module 1 thereof. The session discussed the challenges to introducing RBS, presenting the experiences of Mexico and Chile.  Session II of the Workshop focused on risk identification and risk indicators. Modules 2 and 3 of the IOPS Toolkit were presented, followed by the Mexican and Chilean experiences of risk identification in practice.
Session III presented Module 4 of the IOPS Toolkit, concerned with risk scoring. A representative from the Australian Prudential Regulation Authority of Australia (APRA) presented their PAIRS model for risk scoring, followed by a presentation of the Mexican risk scoring method.
Module 5 of the Toolkit was discussed in Session IV of the Workshop. This session focused on Supervisory Response, with a representative from APRA presenting the SOARS model. A speaker from Chile discussed the Chilean experience in choosing supervisory tools.
Day two of the Workshop was dedicated to an interactive case study examining how risk-based supervision can be applied in practice. Delegates were asked to react to problems encountered with a particular pension fund, with lessons learnt derived from the discussions held though the day.

Participants

The workshop was targeted at government officials involved in pension supervision and private pension reforms from the Latin America region as well as a selected number of IOPS member countries. Attendance at the Workshop was by invitation only.

Workshop documents:

Information note (English)

Information note (Spanish)

Agenda

 

Session I: Introduction to and Preparation for Risk-based Supervision

Introduction to the IOPS Toolkit and Module 1 – Ross Jones, APRA, Australia

Challenges to introducing RBS – David Plascencia Perdomo, CONSAR Mexico

Challenges to introducing RBS – Solange Berstein, Superintendent Pensions, Chile

Session II: Risk Identification and Focus + and Risk Indicators

IOPS Toolkit Modules 2 and 3 – Taliya Cikoja, IOPS Secretariat

Risk Identification in practice – David Plascencia Perdomo, CONSAR Mexico

Risk Identification in Practice– Solange Berstein, Superintendent Pensions, Chile

Session III: Risk Scoring

Overview IOPS Toolkit Module 4 –  Taliya Cikoja, IOPS Secretariat
APRA PAIRS Model – Ross Jones, APRA, Australia
Risk scoring – David Plascencia Perdomo, CONSAR Mexico

Session IV: Supervisory Response

Overview IOPS Toolkit Module 5  – Taliya Cikoja, IOPS Secretariat
APRA SOARS Model / Supervisory Strategies for APRA Regulated Institutions – Ross Jones, APRA, Australia
Choosing Supervisory Tools – Solange Berstein, Superintendent Pensions, Chile