Explanation

The correct answer is Surplus at risk (Option A).

Key Reasoning:

• Surplus at risk measures the potential shortfall between pension plan assets and liabilities over a given time horizon
• It specifically addresses the concern about assets underperforming liabilities in defined benefit plans
• Option B (Redemption risk) relates to the inability to redeem investments, not asset-liability mismatch
• Option C (Maximum drawdown) measures the peak-to-trough decline in asset value, not the gap between assets and liabilities

Surplus at risk is particularly relevant when assets (equity/real estate) have different risk characteristics than liabilities, creating potential funding shortfalls.