Our Business
Risk and opportunity management
Key risks in 2024/25, treatment, opportunities, trend, and outlook
Legend
Risk is low
Risk is medium
Risk is high
Risk is likely to increase
Risk is likely to reduce
Risk is not likely to change
Risk 6: Technology risk
Risk and mitigation
Rapid technological change creates a high risk of obsolescence for businesses, including NSSF. We address this risk through an agile technology strategy, built on the principle of continuous improvement.
Opportunity
Technological change presents opportunities to enhance efficiency and improve customer experience.
Outlook
The pace of technological change is unabated and therefore, the risk of technological obsolescence will remain elevated.
Capitals
Stakeholders
Material matters
Strategic objectives
Risk 7: Financial crime risk
Risk and mitigation
Financial crime risks, such as fraud and money laundering, are inherent in financial transactions. Despite the inherent high risk, we have robust internal controls to prevent and detect fraud or money laundering.
Opportunity
In the rare event of a financial crime incident, it provides an opportunity to review and strengthen the affected controls.
Outlook
We expect this risk to rise as criminals use more sophisticated technology.
Capitals
Stakeholders
Material matters
Strategic objectives
Risk 8: Regulatory risk
Risk and mitigation
Regulatory changes could negatively impact the Fund’s business. We address this risk by monitoring the legislative process and engaging key stakeholders on the legislative process.
Opportunity
Regulatory changes give us the opportunity to streamline our business operations.
Outlook
We do not anticipate major regulatory changes in the short and medium term which will affect the Fund.
Capitals
Stakeholders
Material matters
Strategic objectives
Risk 9: Governance risk
Risk and mitigation
Governance risk is a critical area that we monitor closely. The risk is currently rated low, reflecting our confidence that the fund’s governance systems are sufficiently robust to ensure efficiency, transparency, and accountability in our operations, while driving sustainable value creation for our members.
Opportunity
Stable governance systems give us the opportunity to create substantial value for our members.
Outlook
We do not anticipate escalation of this risk in the short to medium term.
Capitals
Stakeholders
Stakeholders
Material matters
Strategic objectives
Risk 10: Reputational risk
Risk and mitigation
Reputation risk remains a critical area of focus for the Fund. However, it is currently rated low, as the Fund maintained a positive public image throughout the year, with media sentiment averaging 95% during the financial year.
Opportunity
Maintaining a positive image supports member recruitment and underpins the Fund’s growth.
Outlook
We anticipate this risk to remain stable in the short to medium term.
Capitals
Stakeholders
Stakeholders
Material matters
Strategic objectives
