Risk Management – How Important is a Tailored Strategy?

Project Risk Management

Is your organization considering implementing a new pension software solution? Or perhaps you are already in the middle of the implementation process? If so, it is important to take into consideration the many risks associated with projects of this scale. These initiatives generally will take years to complete and will cost millions of dollars. Risks that are not identified early can manifest as critical problems late in a project, causing significant delays and budgetary overrun.

It is important to look at the risks both internally and externally in multiple areas that could potentially derail your implementation and harm your organization’s reputation.

What are the key areas on which you should focus?

Most consulting firms in the industry will provide risk management guidance that will generally apply to your organization. However, a tailored approach – one that takes into consideration lessons learned from decades of experience with system implementations within your industry – can be the difference between an implementation in which all industry-specific risks have been identified, monitored, and handled versus one that does not.

Linea recognizes 3 key areas for a pensions system implementation.

1. Organizational Risks

Key considerations:

• Do you have a robust change management strategy that will help you maximize the return on investment for the project?
• Does your organization have a cybersecurity plan to mitigate the risk of data breaches?
• Do you have a plan in place to address the reputational risk to your system?
  

2. Project Risks

Key considerations:

• Who are the vendors in the industry, and which one is right for you? What are the areas that you should be focusing on during procurement?
• Are your requirements detailed enough to provide enough information to a vendor so they can accurately understand the scope of the implementation and bid appropriately?
• Do you have a succession plan in place to mitigate the risks of key personnel retiring or leaving during the implementation?
• Are you going to handle data conversion internally or hire a vendor? If you hire a vendor, when should they start?
• Are you able to dedicate resources to the project without having a drastic impact on normal production levels? If you do not have adequate resources to commit to the project, how will you handle that?
  

3. Pension-Specific Risks

Key considerations:

• Do you have a plan to ensure that the system that is delivered matches the system your organization requested? Does the system meet your intended objectives?
• Are you updating your member-facing web portal? If so, how do you plan on managing the impact that it will have with your members?
• Do you have a communication strategy to ensure your employers are willing to work with you to ensure accurate reporting with a potentially new reporting format?
• Will your benefit calculations change throughout the life cycle of the project? If so, how will you manage these changes mid-project?

Have questions? Linea can help.

Linea has been helping our clients with tailored risk management strategies that have led to successful system implementations since our inception over 20 years ago. If you are in the process of implementing a new system or are considering starting one, contact us to see how we can help.