We need to look at the bank/ insurance company credit rating,share price and CDS to establish the likelihood and impact for our risk register. 

As I was commenting on the investment strategy, the Treasurer's handbook brought to my attention the need to investigate for risk register for the counterparty default and how much of the investment will be recoverable in the case of default. I also need to check whether we insured in such case to cover our pension liabilities. 

Direct debit terms for new customers implemented so all invoices unless disputed are taken within 14 days allowing for reduced bad debts.

Existing clients also on monthly direct debits and those not are required to provide regular updates to the credit controller. Any updates missed the account manager then schedules a review with the client.

Cash paid is signed off by a manager and double checked before going to the bank. Deposits are signed at each stage so the last signature is responsible for any missing monies.

Credit checks on all clients are performed annually for existing clients and at the time of a new client.

I cover Counterparty Default Risk (CDR) in Standard Formula, and this article provides a basis overview