FERMA Newsletter 46


Published on

Federation of European Risk management Association Newsletter 46

Published in: Business, Economy & Finance
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

FERMA Newsletter 46

  1. 1. Newsletter N°46 March 2012 Letter from BrusselsBe part of the most Since I have been with FERMA, Isignificant European have never experienced such an active and committed board whererisk management survey! each member is enthusiastic about his or her project: Cristina Cristina Martinez Martinez on the benchmarking survey, Michel Dennery on the Seminar, Igor Mikhaylov on theHow important is it for you to be part of the UK and Ireland, of AXA Corporate Solutions certification, Peter den Dekker onmost significant report on European risk says, “We find it a very useful source of the Forum, Arnout van der Veermanagement today? This is the question knowledge. It gives us a view not just onFERMA is asking European risk insurance but on the role of the risk manager on finance and Julia Graham onprofessionals ahead of the launch of the and how it is developing. We see ISO 31000 and 31004.2012 risk management benchmarking survey expectations of risk management rising in Jorge Luzzi is juggling with hison 16 April. the current financial and economic climate, agenda to participate and speakThis will be the sixth such FERMA but with more and more pressure on at major conferences all over thebenchmarking survey, and the partners, AXA resources. It is affecting how risk managers world to spread the good wordCorporate Solutions and Ernst and Young, do their jobs and how they place insurance.” (Kazakhstan, Montenegro…). Hewant to surpass the record number of 782 Paul does not complain that answers to is also is the first president to visitresponses in 2010. “The value of the survey insurance questions do not always flatter the the European Parliament. Thedepends on the numbers who respond,” industry. “Such constructive criticism is the team is also proud that Mariestates Cristina Martinez, FERMA board best criticism. It shows us the direction we Gemma Dequae has beenmember and a member of the survey team. need to go in and where we can improve.”This year the survey has been redesigned to To increase the responses to an ever more appointed as a board member ofmake it quicker to answer and even more representative level, the partners are the Belgian bank and insuranceeffective to use with fewer, more concisely encouraging all professionals with an company Belfius (see page 3 forworded questions. The online questions will interest in the management of risk within the full story) and Scientificbe available in five languages: English, their organisation to reply. This means not Advisor at FERMA. I hope BelfiusFrench, Italian, Polish and Spanish. Toluna, just FERMA members but their bosses and is as proud to have her at FERMAan independent survey organisation, will colleagues in functions like internal audit and as we are at FERMA to have heragain conduct the survey and analyse the treasury. at Belfius.results. Says Cristina, “We ask FERMA members to I am pleased that we have a largeFERMA have chosen as the title this year: ask their colleagues, too. For instance, if the auditorium at the VersaillesSpotlight on Risk Management in Your risk management function has been Congress Centre for the SeminarCompany: Show the Value! Cristina says, decentralised, we want them to involve the“We have put ourselves in the footsteps of other people who are now participating in the in October. Based on the successthe risk management professional, and management of risk.” of the Seminar badges that weasked ourselves how we can provide a She concludes with this encouragement: distributed at the annualpractical tool which helps them to take “The FERMA benchmarking survey is the Rencontres de l’AMRAE, it seemsdecisions and gives true comparisons so risk most significant study of risk management in that every French risk manager ismanagers can see how they differ or how Europe today, it is the only one launched by planning to attend!they are similar to others in their country or risk managers and focuses on risksector of activity.” management day to day. All FERMA Florence BindelleThe survey has three principal objectives, members and their colleagues should be Executive Managershe explains. First, to find out the status and part of this exciting work.”level of influence of risk management inbusinesses today, and second, to get a Benchmarking survey in a nutshellbetter understanding of what stakeholdersexpect of risk management in the current  Launch date: 16 Aprilfinancial and economic environment. The  Available in five languages: English,third aim is to assess the added value of French, Italian, Polish and SpanishERM and new regulations on risk and  Results announced: 22 and 23 October at thcorporate governance, especially the 8 the FERMA Seminar in Versailles, FranceEuropean Company Law Directive.Paul Lowen, Regional Commercial Manager For news of the seminar, see page 3. FERMA Newsletter N°46 ●March 2012
  2. 2. FERMA welcomes its newest member : LuxembourgProfessionals in Risk Management, or PRiM incorporated in a large and internationalfor short, the Luxembourg risk management network will help us extend our knowledgeassociation, is the newest member of FERMA, exchanges and develop more efficiently our New Boardbringing the total membership to 22 local activities. In turn, we will do our best to memberassociations from 20 countries. The FERMA share with FERMA our main features which areboard approved PRiM’s application on 29 a deep involvement in financial risk The enlargement ofFebruary. management matters and the specific skills of a FERMA thanks to PRiM’s major European reinsurance captive domicile.” membership has resultedThe Grand Duchy of Luxembourg, to give its in an increase in the sizefull title, has an influence that far exceeds its PRiM’s objectives include: of the FERMA board frommodest 2,586 sq km size and population of  To provide a forum for networking and 10 to 11. Alessandro De Felice,516,000. Luxembourg is an important exchange of information between risk Risk Manager ofinternational financial centre and captive management professionals Prysmian, previously ainsurance domicile. In 2011, the country’s  To explore opportunities for Luxembourg substitute, will now be abanking sector consisted of 143 credit professional associations full member of the board.institutions from over 20 countries, and with  To contribute actively to the institutional This decision will need toover 240 licensed reinsurers, mostly captives. and regulatory world in the Luxembourg be confirmed by thePRiM started in 1997, and not surprisingly its financial sector general assembly in June.principal focus is the financial sector. Its 220  To share experience and lessons with riskmembers come not only directly from the risk professionals from other industriesmanagement functions in banking, insurance,  To provide risk management training inaudit and consulting, but also from a broad support of the Global Association of Riskrange of related roles such compliance, Professionals (GARP) Financial Riskinternal audit, or operational and general Management Program and to broaden thismanagement. educational stream of activity forThe President of PRiM, Marco Zwick, said: Luxembourg risk professionals“PRiM is delighted to join FERMA and to addLuxembourg to the European risk PRiM publishes a quarterly newsletter which ismanagement map. We hope that being available on its website: www.prim.lu Alessandro De Felice A FERMA voice on ISO implementation FERMA has received liaison status to the international group which is in the process of producing a practical guide to the implementation of the ISO 31000 risk management standard. Vice President Julia Graham is FERMA’s representative and can make proposals and comment on preliminary reports and drafts of the new document, which will be ISO 31004. She will be pressing the case to have issues that particularly interest FERMA included in ISO 31004, such as risk management education and suitable standards for small and medium sized businesses. Although in her FERMA role Julia is not able to vote, she does have a vote as one of two official representatives named by the UK national standards body BSI, to the group drafting ISO 31004. Julia was closely involved in the preparation of ISO31000, published in November 2009 and now a widely accepted standard. Two further publications followed: supporting standard ISO 31010, which is a technical document wholly focussed on risk assessment, and Guide 73 which deals with the vocabulary of risk management. Two international meetings have already taken place on ISO 31004, which involved the creation of working groups to draft individual sections and discussion of their proposals. A third is planned in Sydney in September when the group will consider a first draft of the whole document. Julia Graham Publication of a final version is likely to be in 2013 or 2014, according to Julia. She explains, “Taking part is a real labour of love. We want ISO 31004 to show how the risk manager can take the high level document ISO 31000 and apply it in every day working life.”Page 2 FERMA Newsletter N°46 ●March 2012
  3. 3. Welcome Florence The President makes wavesFlorence Reculez has joined the LatAm Insurance Review has named FERMAFERMA office team to provide President Jorge Luzzi a top ten industry leader in Latinorganisation and administrative America. “He continues to make waves in the LatAmassistance. She will be insurance industry today, most notably through hisresponsible for the daily efforts, via FERMA, to effect change with regard to thesecretarial tasks, new Brazilian reinsurance rules,” says the citation.correspondence and the In London, Jorge gave a keynote address on theorganisation of board and subject of captives and emerging risks at the annualgeneral assembly meetings and Captive Live conference organised by Captive Review. Jorge Luzziconference calls.Florence worked as an assistantfor international association ofPublic Transport UITP for more Seminar programme is taking shapethan three years, where she wasin charge of contact with A committee under Vice President Michel extensive grounds. The programme will beginmembers, organisation of Dennery is now putting the programme for the with lunch on Monday 22 October andmeetings, speaker management 2012 FERMA Seminar in place. The seminar conclude at 17.00 on Tuesday October 23.and correspondence. will be the venue for the announcement of the The national FERMA member AMRAE will results of the important FERMA risk host a French night on Monday. management benchmarking survey, as it has More details will be available in future editions… they did it again! been for the last 12 years. of the newsletter and on the FERMA website. At the same time, the content of the seminar is growing in breadth. The programme will have Registration will start in April and will be free for risk and insurance managers - make sure three streams: risk management in the you book your seat! European Union, enterprise risk management and from insurance to assurance, which fit with the three sections of the benchmarking survey. As a risk managers’ event, the FERMA Seminar is an ideal opportunity for members to network. The Versailles Congress Centre, where the seminar will take place is within sightThis is the ‘before’ picture of theteam led by FERMA board of the World Heritage Versailles palace and itsmember Peter den Dekker(centre) which again tackled thedifficult Viking Run, an 80km Belgian government appoints FERMA advisor as directorskating race from Uppsala to to state owned bank and insurerStockholm. What began as anidea to promote the 2011 The Government of Belgium has appointed Marie Gemma Dequae, scientific advisor to theFERMA Forum in Stockholm Federation of European Risk Management Associations (FERMA) and a past president of thecould become an annual outing, federation, as an independent director of the state-owned Dexia Bank Belgium and its staccording to Strategic Risk editor subsidiary Dexia Insurance Belgium (Since 1 March the new name is Belfius Bank andNathan Skinner (left) who has Insurance).taken part on both occasions. Marie Gemma is one of nine independent directors on the new board of the company. She willThis year everyone got a medal. focus particularly on the three lines of defence aspect of the bank’s governance, covering operational management through risk management and internal audit to external audit. She commented: “My main focus will be on the three lines of defence as set out in banking andTalking risk insurance directives. Although financial techniques and insurance contracts and wordings are important, these activities all need to come under the overall risk management process. This ismanagement something I can contribute to the board, together with an ability to give a client’s perspective, since Dexia Belgium is a retail bank.”FERMA members are great at Since retiring as risk manager for the Bekaert, the Belgium-based technological leader innetworking at the Forum and advanced solutions based on metal transformation and coatings, Marie Gemma has beenSeminar. Please continue during active as a director and risk management advisor in the country’s public and social profitthe rest of the year by joining us sectors.on the FERMA Risk Talk group She was president of FERMA between 2005 and 2009 and has now become its scientificat LinkedIn: advisor providing support on issues such as corporate governance. Her work with FERMA includes the preparation of two guides on the risk management and internal audit provisions of thhttp://www.linkedin.com/groups/ the 8 European Company Law Directive in collaboration with FERMA Vice President MichelFERMA-Risk-Talk-3720602 Dennery.Page 3 FERMA Newsletter N°46 ●March 2012
  4. 4. AROUND THE ASSOCIATIONSNearly 2,000 attend theannual AMRAE RencontresFERMA’s General Secretary Pierre Sonigoremembers well the first Rencontres or annualencounters of the new French association DARIM reaches 25AMRAE. First, because he was then president ofone of the two French risk management The Danish association DARIM beganorganisations which were engaged to marry and th the celebrations for its 25 anniversaryform this new organisation, and second, he on 2 February, 25 years to the daysuggested the name. that its founding members held the first general assembly. One of thoseThere were about 180 people at that meeting in founders, Jann Winther Christensen, aBordeaux in the winter of 1992. In February 2012, former FERMA board member and thAMRAE held its 20 Rencontres and attracted a President of DARIM, took part in therecord attendance of 1,985 to the seaside resort meeting and reception held at theof Deauville. Among those taking part were all the association’s home in theAMRAE presidents for the last 20 years. Confederation of Danish Industry headquarters in Copenhagen. Jann WintherGilbert Canameras, the new AMRAE Presidentwanted the Rencontres to become increasingly Jann explains that in 1986, risk management was in its early stages ininternational. An impressive plenary session held Denmark. He was one of the country’s first full time risk and insurancein English (a first at the Rencontres!), included managers, working a company that later became part of the house waresEvan Greenberg, Chairman and CEO of ACE, group Danisco. Global policies were new, and the small community of riskGreg Case, President and CEO of Aon Corp., managers could see the value of creating an association to shareAxel Theis Chairman of Allianz GCS and experience.Christian Hinsch Chairman of HDI Gerling. A discussion about whether to admit service providers took a few months to resolve – in favour of risk managers only – and DARIM began with 17 “It was a milestone, members in February 1987. By the end of 1988, the number had grown to with a good mix of 48. Today, there are 67 members, which Jann says is a good figure nostalgia and thought considering the amount of consolidation that has taken place in Danish provoking ideas for industry. the future” comments The reception was just the first event that DARIM has planned for the year. Pierre. The next will be a visit to the Swiss Re Centre for Global Dialogue in Zurich on 8-9 March. DARIMs annual seminar will this year take place 13 and 14 September where DARIM continues the celebrations and has invited members of the Scandinavian association SWERMA and NORIMA to join them. Pierre Sonigo The annual general assembly will take place on 12 June.On to 2013 Belgium (BELRIM) The next dates in the BELRIM diary are a seminar on social media risks onThe last FERMA Forum in Stockholm in October 27 March at ING in Brussels and one on risk in Brazil, Russia, India and2011 was a great success. Now it’s time to begin China (BRICS) on 25 April at Trifinance, Brussels. The general assemblyon 2013 and plan the next Forum in Maastricht in will take place on 7 June.the Netherlands. The “Programme and content”Forum committee 2013 will gather for a firstmeeting in March. FERMA Vice President JuliaGraham is responsible for the programme, andboard member Peter den Dekker is looking after Czech Republic (ASPAR CZ)the sponsors’ committee under Jorge Luzzi’sleadership. In January ASPAR CZ had a very successful training seminar for members.Members with ideas for topics, events and The ASPAR CZ 2012 Conference will take place on 27 March at thespeakers should contact them through Silke Panorama Hotel, Prague, with the theme of corporate insurance and riskHuber in the FERMA office at management.silke.huber@ferma.euPage 4 FERMA Newsletter N°46 ●March 2012
  5. 5. AROUND THE ASSOCIATIONSGermany (bfv) Spain (IGREA)BfV, the German Association of Captive Brokers & Companies, IGREA will present its guide to good practice in claimswill hold its bi-annual general meeting in Wiesbaden on 22 and handling to the Spanish insurance market on 23 April in23 March. Madrid.Luxembourg (PRiM) Sweden (SWERMA)PRiM is holding its annual joint risk management conference SWERMA is holding its annual risk forum on 29 March at thewith the Association of the Luxembourg Fund Industry in Van der Nootska Palace in Stockholm. Presentations includeLuxembourg on 18 April 2012. The programme includes topics guidance in defining and presenting the cost of risk byrelated to undertakings for collective investment in transferable Kenneth Miger, Risk Manager, Securitas, and greatersecurities (UCITS), depository risk and liability, and risk transparency in accounting for risk by Anders Karlsson, Headmanagement considerations under the Alternative Investment of Internal Control, Swedbank and Hakan Molin, Partner,Fund Managers Directive and for specialised investment funds. Ernst & Young. There will be a concluding panel discussion –A panel discussion will consider an inside and outside view on Do we have transparent insurance mediation?risk management. The full conference programme will bepublished on www.prim.lu. Switzerland (SIRM)Malta (MARM) SIRM has fixed its general assembly to take place on 9 May inThe official launch of the Malta Association of Risk the Basel Zoo, in a particular insurance and risk managementManagement (MARM) will take place on 30 March 2012 with context, with lunch in the zoo restaurant. Another importantaddresses from the President of FERMA, Jorge Luzzi and the activity will be the Open SIRM Forum, scheduled on 6 and 7President of MARM, John Schembri. November in Pfäffikon SZ. Throughout the year, the SIRMMARM began its activities in July 2011, and one of its first Committee is continuing with the association reformactions was to become a member of FERMA. The six founding programme and the other activities decided by members.members are today its officers: John Schembri; Ian EdwardStafrace, Vice President; Andre Farrugia, Secretary; JohnO’Dea – PRO, Mario Genovese, Treasurer and Simon Grima –technical/educational matters.. United Kingdom (Airmic) Airmic has completed the first stage of an exercise to create aNetherlands (NARIM) market owned compliance database for global insurance programmes. A request for proposals from potential service“What’s Next” is the theme of the NARIM Congress 2012. It will providers produced a healthy response, and Airmic is nowtake place on 7 and 8 June, at the Bel Air Hotel in The Hague, evaluating the options. The planned database will providewhen members will consider what will the rapidly changing territory-by-territory details of insurance regulations. Airmic isfuture bring to them. The full programme will be available on administering the initiative on behalf of several market bodies,the NARIM website www.narim.com. and has been grateful for active support from FERMA. Airmic has also begun a cyber-risk research programme to investigate the insurance products on offer and identify gaps.Spain (AGERS) The results will be unveiled at Airmic’s annual conference in June. http://airmicconference2012.com/Represented by Angel Escorial, Director General of Riskia,AGERS participated in the Spanish delegation at the meetingin Dublin to discuss the ISO 31000 implementation document,ISO 31004. The next meeting of the group will take place inSydney in September 2012. To tell FERMA about association events, past or future,The 23rd annual AGERS conference will take place on 30 May contact Silke Huber in the FERMA office:at the auditorium of Mutua Madrileña in Madrid. silke.huber@ferma.euPage 5 FERMA Newsletter N°46 ●March 2012
  6. 6. EUROPEAN NEWSPresident meets the Commission Things in commonFERMA President Jorge Luzzi held his first meeting with Karel A meeting between FERMA representatives, the Europeanvan Hulle, Head of the European Commission Insurance and insurance association Insurance Europe and Lloyd’s foundPensions Unit, in January to discuss insurance issues. FERMA a number of interests in common. FERMA President Jorgeis a recognised stakeholder and has one or two general Luzzi, General Secretary Pierre Sonigo and Executivemeetings a year with the Commission. Manager Florence Bindelle took part in the discussions.Jorge indicated that the continuing delays to the progress of They agreed that there should be a common positionSolvency II through the European Commission and Parliament between FERMA and Insurance Europe on regulatoryare affecting captives. FERMA says they will remain in protectionism of insurance and reinsurance taking place inregulatory limbo between the old systems and Solvency II until it countries like Brazil, Argentina and India.is transposed into national law. The Commission is reviewing Co-insurance remains under scrutiny. The Europeanequivalence regulation with two of the largest captive domiciles, Commission has hired consultants to follow up the results ofBermuda and Guernsey, in addition to Japan and Switzerland. the business insurance inquiry and see if market practicesFERMA is still pressing for inclusion of large risks in the have changed, as the Commission wishes. FERMAInsurance Mediation Directive 2 (IMD2), although the discussion supports Insurance Europe’s position that co-insurance ishas reached European Parliamentary level. FERMA wants to not a threat to competition and capacity, and the two agreedhave the transparency principle agreed with the intermediaries’ to co-operate on this issue and raise their views with theorganisation BIPAR in 2010 incorporated into the directive and consultants. There may be a discussion on the subject atapplied to industrial risks as well as consumers. the FERMA Seminar in Versailles in October.Jorge was also able to present FERMA’s views on developments The views of the two organisations, however, diverged onon the restrictive reinsurance regulations in Brazil which went the subject of the Insurance Mediation Directive 2 (IMD2).into effect about a year ago. The European insurance FERMA believes it should include large risks, but Insuranceassociation Insurance Europe (former CEA) has also protested Europe argues that it is more related to mass consumerabout the restrictions and the Commission is discussing the protection and not business customers. Insurance Europesubject with the Brazilian authorities. understood that the transparency protocol agreed between FERMA and the European intermediaries’ organisation BIPAR would protect commercial insurance buyers, but Leading the Risk Profession – IRM Forum FERMA argues that it is voluntary and unenforceable. 23-25 April 2012, Manchester Flood, storm, earthquake and drought We all know that the world is changing and that risk management is changing, too. It is a The European Commission has published a consultative paradox to see that the growth of risk paper on natural catastrophe risks in Europe: Risk management is often stimulated by big claims, relevance and Insurance Coverage in the EU. which may appear to be its failure. The evolution of risk This report is the result of a conference, organised the management and the risk profession (‘from counting risk to Internal Market and Services Directorate in October, in making risk count’) in this changing and challenging world is the which FERMA participated. The scope of the project is to basis of research by Professor Anette Mikes of Harvard assemble information on natural catastrophes across Business School. European member states and on current insurance Professor Mikes will be one of the many speakers at the Institute of Risk Management (IRM) Forum ‘Leading the Risk Profession’ practices. in Manchester from 23 - 25 April 2012. She will talk about The analysis is intended to provide food for discussion and managing the multiple dimensions of risk. ultimately give the basis for future European Commission The different streams of the seminar are: enterprise risk initiatives to promote an efficient market for flood, storm, management, public sector and not-for profit, practical risk earthquake and drought insurance. solutions, business resilience, future risk, governance, risk and FERMA intends to provide comments on the new report. compliance, financial services and new thinking. The deadline for responses is 31 May. More information on this interesting IRM conference can be http://ec.europa.eu/internal_market/insurance/docs/natural- found on: http://irmforum.org/ catastrophes/jrc_report_on_nat_cat_en.pdf FEDERATION OF EUROPEAN RISK MANAGEMENT ASSOCIATIONS - FERMA AISBLThis Newsletter is produced by FERMA. If you have any questions concerning this Newsletter, please contact Florence Bindelle at FERMA on +32 2 761 94 32 –email: florence.bindelle@ferma.eu© Copyright 2012 FERMA. All Rights Reserved. No distribution or reproduction of this issue or any portion thereof is allowed without our written permission except by therecipient for internal use only within the recipients own organisation.Page 6 FERMA Newsletter N°46 ●March 2012