LONDON, 21 August 2009 Pension schemes are starting to expand their risk management practices to include non-financial, operational and strategic risks. Aon, the leading risk management and employee benefits consultant, has pioneered use of “enterprise risk management” (ERM) within pension schemes to help achieve its covenant and strategic goals in volatile times.

Traditionally, companies and trustees have focused on the financial risks of a pension scheme in isolation to the wider operational risks they face. ERM is a specialist approach to risk management that considers threats and opportunities across an entity that could impact upon the successful delivery of strategic objectives and formulates methods of minimising the risks identified.

By introducing ERM expertise to pension scheme management, pension scheme managers and actuaries are gaining an extra string to their bow to help identify, assess and manage the risks that could prevent the scheme from paying member benefits in full, or have an adverse effect on the sponsoring company such as:
· historical data difficulties
· legal interpretation
· technology failures
· the introduction of new legislation, regulation or accounting standards.

The ERM pensions platform enables regular and accurate reports from trustees giving both the company and pension scheme members the confidence that risks threatening the payment of their benefits or the sponsoring company are being managed.

Commenting on the initiative, Marcus Hurd, head of corporate solutions at Aon Consulting, said: "ERM has a key role to play in the future of pension scheme management. A holistic approach to risk management is critical to the performance and operation of the pension scheme. The ERM framework structures a diverse collection of risks in a coherent and manageable way. Our combined strengths at Aon are far more powerful than they would be in isolation."

Steven Harmer, senior consultant at Aon Global Risk Consulting, added: “The delegation of duties to external providers does not absolve the trustees and company of their responsibilities. It is important for companies and pension scheme trustees to understand all of the risks that they face.  By integrating a framework for financial and operational risk, trustees and sponsoring companies can work together more efficiently to both address pension risks effectively and identify business opportunities.”

Ends
For more information contact:
Alexandra Lewis
020 7882 0541
Alexandra.lewis@aon.co.uk
http://aon.mediaroom.com

About Aon
Aon Corporation (NYSE: AOC) is the leading global provider of risk management services, insurance and reinsurance brokerage, and human capital consulting. Through its more than 37,000 colleagues worldwide, Aon readily delivers distinctive client value via innovative and effective risk management and workforce productivity solutions. Aon's industry-leading global resources and technical expertise are delivered locally through more than 500 offices in more than 120 countries. Named the world's best broker by Euromoney magazine's 2008 Insurance Survey, Aon also ranked highest on Business Insurance's listing of the world's largest insurance brokers based on commercial retail, wholesale, reinsurance and personal lines brokerage revenues in 2008. A.M. Best deemed Aon the number one insurance broker based on brokerage revenues in 2007 and 2008, and Aon was voted best insurance intermediary, best reinsurance intermediary and best employee benefits consulting firm in 2007 and 2008 by the readers of Business Insurance. For more information on Aon, log onto www.aon.com

About Aon Consulting
Aon Consulting Worldwide is among the top global human capital consulting firms, with 2008 revenues of $1.358 billion and more than 6,300 professionals in 229 offices worldwide.  Aon Consulting works with organisations to improve business performance and shape the workplace of the future through employee benefits, talent management and rewards strategies and solutions.  Aon Consulting was named the best employee benefit consulting firm by the readers of Business Insurance magazine in 2006, 2007 and 2008.  For more information on Aon, please visit www.aon.mediaroom.com.

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