European risk management benchmarking 2012 to be announced in October
That risk management has changed significantly since 2000 is obvious to anyone with an interest in the subject. Getting more specific is more difficult.
The 2012 Benchmarking Survey conducted by the Federation of European Risk Management Associations (FERMA) has just this objective, and involved risk managers from Airmic and across the continent.
Publication of the results will form the centrepiece of the FERMA Seminar, which will take place in Versailles on 22 and 23 October, and all Airmic members are invited to attend.
Paul Taylor, immediate past chair of Airmic, commented: “I think this is a great survey, though I have to admit an interest in that I have been involved with it.”
FERMA has conducted a benchmarking exercise every two years since 2000, and responses have risen steadily in terms of numbers and geographical spread each year. The questions also have evolved over the 12 years since the survey began and this year focusses on:
- The current status and level of influence of risk management in businesses today, and what stakeholders expect of risk management in the current financial and economic environment.
- Risk managers’ views of the insurance market and what they want from their insurers.
- The added value of enterprise risk management (ERM) and new regulations for risk and corporate governance, especially the 8th European Company Law Directive.
Paul says that for his own company, the results will be useful as a benchmark, particularly in terms of governance. How risk is managed, how it is organised in the company and the level of maturity will all be important findings. He adds, “Some organisations are producing a risk maturity index by which companies can benchmark themselves. If as an outcome, we could develop a risk maturity index based on the questions, it would add value.”
Another argument comes from Paolo Rubini, president of the Italian risk management association ANRA. He sees the results as a badly needed means to raise the position of the risk manager in the corporate hierarchy. “Many of our colleagues are looking at risk management as a possible extension of their activities. This is especially the case for compliance in highly regulated sectors, such as telecoms and energy. Risk management, however, needs to be part of the strategy of the business, and the results of the survey will show that we act as managers at operational level by setting the framework for enterprise risk management,” he explained.
Another former Airmic chair and current FERMA vice president Julia Graham says that because she works for a global law firm and not a company, some of the findings may not be specifically relevant to her work. She really wants to hear the discussion when the results are presented at the seminar. “That's what makes the real difference. The only way to get the most from the results is to be there in Versailles and take part in the debate."
The seminar this year has the theme living and working in a riskier world. The main sessions include panel discussions on the conclusions of the survey: the maturity of risk management practices; governance, ERM and key risks for 2012; coordination of risk management with internal control and internal audit and insurance issues.
In addition, there will be a debate on the main issues for the European insurance market with participation from five of the largest business insurers and three major brokers.
The Seminar is a risk managers only event, and there were already 230 registrations with eight weeks to go.
A badly needed means to raise the position of the risk manager
Paolo Rubini
The only way to get the most from the results is to be there in Versailles and take part in the debate
Julia Graham
