Analytical substantiation and description of non-state pension fund risk assessment model «fora»

Abstract

This article describes automated model «FORA» that was developed to implement the requirements of Instruction of Bank of Russia N 4060 [1] and to provide risk assessment driven by business of non-state pension fund (NPF): mandatory pension insurance and private pension provision. The model is based on the requirements of the legislation of Russian, international standards and best practices, as well as currently available in NPF data sets and reporting formats. The article covers the mathematical model of «FORA», describes the tools and functionality of the model, gives recommendations on the use of counted financial indicators in order to ensure a risk-based management, decisions making and formulate possible further directions of development of the model.