Research On Risk Management Of A Company’s Entrusted Occupational Annuity

At present,China’s endowment insurance system is based on a "three-pillar" structure,consisting of basic endowment insurance,enterprise(occupation)annuity,and individual savings endowment insurance and commercial endowment insurance.As the country’s population ages,it is crucial to transition the pension system from a "one pillar dominating"approach to a multi-level system with "three pillars supporting".This will require increasing the proportion of the second and third pillar pension insurance in the overall system,with a particular focus on occupational annuity as an important component of the second pillar.Given the increasing importance of occupational annuity,this research paper examines the risk management practices of a corporate trustee institution that offers occupational annuity services.The paper uses a comprehensive approach that includes inductive analysis,comparative research,and investigation to analyze relevant theories of overall risk management and occupational annuity risk management.The paper also identifies key trends in occupational annuity risk management.Based on this theoretical framework,the paper assesses the fiduciary risk management of the chosen corporate trustee institution,A,in eight key areas:control environment,objective setting,event identification,risk assessment,risk coping,control activities,information and communication,and monitoring.Furthermore,the paper analyzes A’s assessment,response,and control of the five major risks associated with occupational annuity management:market risk,credit risk,operational risk,and liquidity risk.The paper takes into account the unique characteristics of China’s occupational annuity system to provide a detailed assessment of A’s risk management practices in this area.Overall,this research paper provides a comprehensive analysis of occupational annuity risk management in China,focusing on the practices of a specific corporate trustee institution.The paper contributes to the growing body of literature on risk management in the Chinese pension system and provides valuable insights for policymakers and practitioners working in this area.