Risk Management in Private Pension Companies and the Case of Turkey

Excessive financial institutions have declared bankruptcy or suddenly lost a large part of their value due to the global financial crisis currently underway. The significance and necessity of risk management function are understood clearly due to the existing financial crisis. Private corporations, executives of regulatory public corporation and academics agree on the importance of operating risk management activities. In relation with this aspect, pension companies have to establish effective and efficient risk management departments in their organizational structure to maintain a safe environment to all stakeholders The purpose of this study, to define risks for pension companies in Turkey as general manner while taking into account of global best practices and to survey risk management level in pension companies which are operating in Turkish Private Pension System Market. The survey (questionnaire) was implemented to employees of the risk management department in private pension and life insurance companies As a result of this research, suggestions and recommendations were made to set up better, efficient and effective risk management system and process in the companies while creating a know-how for risk management.