Quantify fiduciary breach exposure across 12 duty categories, generate risk scores by vendor and decision, and create audit-ready documentation for DOL/litigation defense
Your CFO approved a PBM renewal based on a 20-minute broker presentation. No independent analysis. No competitive bidding. No fee transparency. Three years later, a participant sues for breach of fiduciary duty under ERISA §404(a)(1)(B). The plaintiff's actuary quantifies $8.7M in excess costs. Your D&O carrier settles for $4.2M. The board asks: "Why didn't anyone flag this?"
Our ERISA Fiduciary Risk Scoring Engine evaluates every vendor decision against 12 fiduciary duty categories (prudent process, fee reasonableness, conflicts of interest, etc.), assigns risk scores (0-100), generates audit-ready documentation, and creates litigation defense packages that demonstrate compliance with ERISA §404 standards.
Fiduciary Risk Scoring Algorithm// Evaluate decision against ERISA duties FOR each vendor_decision IN [PBM, TPA, stop_loss, consultant]: // Duty 1: Prudent Process (ERISA §404(a)(1)(B)) prudent_process_score = EVALUATE: - RFP issued to ≥3 vendors? (25 points) - Independent fee analysis? (25 points) - Performance benchmarking? (25 points) - Committee documentation? (25 points) // Duty 2: Fee Reasonableness (§408(b)(2)) fee_reasonableness_score = EVALUATE: - All fees disclosed? (20 points) - Indirect compensation identified? (20 points) - Fee-for-service vs. % of assets? (20 points) - Benchmark against market rates? (20 points) - Value delivered justifies fee? (20 points) // Duty 3: Conflicts of Interest conflict_score = DETECT: - Vendor-consultant relationship disclosed? (30 points) - Hidden revenue streams identified? (30 points) - Fiduciary vs. non-fiduciary roles clear? (20 points) - Independent oversight in place? (20 points) // ... 9 more duty categories ... // Composite risk score total_score = WEIGHTED_AVERAGE(all duty scores) risk_level = CLASSIFY: IF total_score < 40: "Critical — immediate remediation required" IF 40-60: "High — board review recommended" IF 60-80: "Moderate — monitor and document" IF > 80: "Low — adequate fiduciary protections" // Generate defense package IF litigation_filed OR audit_notice: COMPILE: - Decision chronology with timestamps - Committee meeting minutes - Independent analyses performed - Vendor comparison spreadsheets - Fee disclosure documentation - Conflict mitigation measures OUTPUT: DOL_audit_response_package.pdf
Quantify fiduciary breach risk. Generate audit-ready documentation. Build litigation defense packages. Stop reacting to lawsuits—start proving prudent process proactively.
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