Whilst these outward pressures are being handled by trustee boards, it is important that they maintain preparedness for potential internal upset too, ensuring the trustee board is present and capable to continue to steer their scheme through the next crisis.

In practice this means that planning, good quality and stable internal governance, and addressing those risks that may occur and prevent the board functioning are key elements of their scheme management.

There are two areas which trustee boards should consider when it comes to this planning.

First off, how will the board function if there is an unforeseen event. Most boards have a clear understanding of the need to monitor their advisers disaster continuity processes and cyber security, to keep their member data safe.

However, the trustees also need to ensure they are prepared for an incident that impacts them directly. This may be a cyber attack on the hardware of the trustees themselves, or the IT infrastructure and programmes they use. Or an incident in the “real world” in terms of a natural disaster, or even more local problems such as a house fire or burglary.

Trustees should look to establish their own Business Continuity Plans, with processes in place, alternative contact details recorded, phone numbers listed, and even consider a dedicated Whatsapp group for communication if normal channels are unavailable. A key consideration is ensuring this plan is held in hard copy as well as online.

The trustee board should also consider the hardware that Trustees hold in terms of laptops, any documentation they may have saved on personal devices, or stored away at home.

The second area that can impact the functioning of a trustee board, and should not be overlooked, is key man risk. Many trustee boards have highly experienced trustees with many years of scheme specific knowledge gathered in their role and often in their previous employment. Robust succession planning is required to ensure that this is not lost forever when trustees step down.

Trustee boards can also be exposed to similar key personnel risk in respect of their advisers. Trustee boards should aim to ensure that the same succession planning that take place for the board members themselves in is place for these key staff members, with robust plans in place for changes in support personnel, scheme managers, and secretariat who ensure the smooth running of the scheme day to day.

Establishing a strong governance framework can help mitigate the risks above.

Ultimately, resilience does not happen by chance. In an environment defined by uncertainty and rapid change, trustee boards that invest time in robust governance, continuity planning, and succession management place themselves in the strongest possible position to respond to disruption. By preparing not only for external shocks but also for internal challenges, trustees can ensure their board remains effective, informed, and capable of guiding their scheme with confidence, whatever the future may hold.

Paul Ratcliffe, Director of Client Services – ZEDRA