The report presents the views of risk and insurance professionals and senior executives about a post-pandemic view of resilience management in their organisations across sectors globally in the summer of 2021.
FERMA information paper to OECD in order to propose captive (re)insurance gui...FERMA
As OECD members are moving towards the implementation stage of the BEPS actions proposed in 2015, certain questions of interpretation have arisen for owners of captive insurance and reinsurance companies.
In the interests of consistent implementation and legal certainty for both tax administrations and taxpayers, FERMA is suggesting guidelines to address captive insurance arrangements.
Newsletter Nr. 47 of the Federation of European Risk Management Associations.
CONTENTS:
- FERMA Seminar and Benchmarking Survey
- Out and about: news about FERMA people
- Letter from Brussels
- Views sought on ISO certification
- A request for views on managing natural catastrophes
- Interview with Alessandro De Felice (new FERMA board member)
- FERMA-Lloyd's training
- protection of personal data and privacy
- member association news
Key Points from an article on Joshbersin.com website about a project with the MIT Sloan Management Review and CultureX to find out what HR teams around the world are doing to respond to the COVID-19 crisis
European Risk Management Seminar 2018 - Cyber Report FERMA
Not long ago, it seemed like we could be heading for cybergeddon; the forecasts about the threats from cyber space posed such a threat to the digital revolution. Today, as this report illustrates, we are finding a way to make cyber risk manageable, quantifiable and insurable.
FERMA contribution to the French Presidency agendaFERMA
FERMA thought paper highlights the links between its work and the priorities of the French Presidency in three key areas :
Economic recovery (systemic risks and risk transfer, including captives)
Digital issues (cyber risks and cyber insurance)
Ecological transition (sustainability and insurability)
For each of these categories, FERMA presents the challenges faced by European businesses, explains how risk management contributes to the ambitions of the French Presidency and asks European policymakers for specific measures during this period.
European Risk managers have helped maintain the continuity of their organisations during the pandemic crisis. They have participated in task forces and crisis units, promoted communication, supported new working practices, pursued insurance recoveries where possible and begun work on recovery, according to a survey published by the Federation of European Risk Management Associations (FERMA): https://www.ferma.eu/publication/covid-19-ferma-survey-shows-risk-managers-contributions-to-response-and-resilience/
FERMA information paper to OECD in order to propose captive (re)insurance gui...FERMA
As OECD members are moving towards the implementation stage of the BEPS actions proposed in 2015, certain questions of interpretation have arisen for owners of captive insurance and reinsurance companies.
In the interests of consistent implementation and legal certainty for both tax administrations and taxpayers, FERMA is suggesting guidelines to address captive insurance arrangements.
Newsletter Nr. 47 of the Federation of European Risk Management Associations.
CONTENTS:
- FERMA Seminar and Benchmarking Survey
- Out and about: news about FERMA people
- Letter from Brussels
- Views sought on ISO certification
- A request for views on managing natural catastrophes
- Interview with Alessandro De Felice (new FERMA board member)
- FERMA-Lloyd's training
- protection of personal data and privacy
- member association news
Key Points from an article on Joshbersin.com website about a project with the MIT Sloan Management Review and CultureX to find out what HR teams around the world are doing to respond to the COVID-19 crisis
European Risk Management Seminar 2018 - Cyber Report FERMA
Not long ago, it seemed like we could be heading for cybergeddon; the forecasts about the threats from cyber space posed such a threat to the digital revolution. Today, as this report illustrates, we are finding a way to make cyber risk manageable, quantifiable and insurable.
FERMA contribution to the French Presidency agendaFERMA
FERMA thought paper highlights the links between its work and the priorities of the French Presidency in three key areas :
Economic recovery (systemic risks and risk transfer, including captives)
Digital issues (cyber risks and cyber insurance)
Ecological transition (sustainability and insurability)
For each of these categories, FERMA presents the challenges faced by European businesses, explains how risk management contributes to the ambitions of the French Presidency and asks European policymakers for specific measures during this period.
European Risk managers have helped maintain the continuity of their organisations during the pandemic crisis. They have participated in task forces and crisis units, promoted communication, supported new working practices, pursued insurance recoveries where possible and begun work on recovery, according to a survey published by the Federation of European Risk Management Associations (FERMA): https://www.ferma.eu/publication/covid-19-ferma-survey-shows-risk-managers-contributions-to-response-and-resilience/
The European risk manager report 2020: webinar presentationFERMA
This 2020 edition is the opportunity to deepen four challenges that the Risk Manager is facing today:
his growing role in digital transformation
his contribution to sustainability
tougher insurance market conditions
education and skills evolution
The objective of this report is to launch the discussion on the new challenges posed by the European transition to climate neutrality and digital leadership for Risk Managers. How are the roles and responsibilities of European Risk Managers evolving in the face of this new reality? Are Risk Managers equipped to support their organizations in achieving this double transformation?
Our live webinar was scheduled on Monday 29 June 2020: risk managers from different backgrounds shared their experiences on the below themes and reacted to the results of the survey, in particular before and after the Covid-19 crisis.
The speakers were:
Adriana Cavaliere : Corporate Risk Manager at Skeyes, Belgium
Oliver Wild: Group Chief Risk, Insurance and Internal Control Coordination Officer at Veolia, France
Charlotte Hedemark: Chairman of the 2020 FERMA Survey Committee and Board Member of FERMA
Françoise Bergé: PwC Partner
This new edition of the Cyber Risk Governance Report includes a case study that illustrates how our cyber risk governance model works in practice.
FERMA has made the ongoing digital transformation a priority for our advocacy work for several years now.This is why, in 2017, we launched one of the first European cyber risk
governance models jointly with our European colleagues and internal auditors from the ECIIA.
Events since then have only strengthened our view that corporate governance models will quickly become obsolete if they do not embed governance for cyber risks under the leadership of a risk and insurance professional.
regulatory compliance is complex, ever-evolving and becoming more onerous by the day. highly regulated industries like energy, healthcare and financial services face a number of challenges to remain compliant and, most importantly, sustainable.
The compliance officer – a role historically seen as one that requires skilled technical and quantitative calculations – today requires one to possess strong communications skills in order to communicate risks within banks, broker-dealers, investment advisory firms and other organizations. The compliance officer has to understand the challenges the firm faces today and those it could in the near future. Beyond protecting a firm’s sustainability, reputation and wallet, there are regulatory incentives to evolve this role as well. The US Federal Sentencing Guidelines were amended to reward companies for implementing effective compliance programs by protecting them from criminal liability in the first place. Looking outside of the compliance office, good global supply chain management should also focus on sustainability. Many multinational companies have multitiered global supply chains which are linked together in complex interrelationships across multiple jurisdictions. A problem in one can quickly ripple up and down the chain leading to severe reputational damage. Creating sustainability within the global supply chain goes hand in hand with a thorough Know Your Supplier (KYS) process. Investment in physical infrastructure is vital to sustainable development and the future success of developing economies. Whilst there are global resources available to fund the developing world’s investment needs, there are barriers to unleashing that capital – like, investors’ lack of confidence in fiscal and monetary management and a lack of transparency into government and regulatory processes. However, Big Data and open source standards are facilitating the creation of new benchmarks to guide investors in infrastructure projects. In this issue of Informer we take a closer look at these challenges: their impact on the sustainability of a business; the repercussions that can result from mismanaging them; how understanding them can create opportunities and the innovative ways Thomson Reuters is addressing them to keep you on the right side of regulators and allowing you to move forward with confidence.
Risk Manager, a career central to corporate strategy
The job of Risk Manager is becoming increasingly cross-disciplinary and digital in response to a fast-changing economic and regulatory environment.
44% of respondents can contact the CEO directly
56% of respondents believe their role is increasingly recognised internally
53% of respondents think that the risk manager is becoming the risk conductor by consolidating risk information to give a clear and comprehensive view to the senior management
FERMA European Risk Manager Report 2020: full set of results FERMA
This 2020 edition is the opportunity to deepen four challenges that the Risk Manager is facing today:
his growing role in digital transformation
his contribution to sustainability
tougher insurance market conditions
education and skills evolution
The objective of this report is to launch the discussion on the new challenges posed by the European transition to climate neutrality and digital leadership for Risk Managers. How are the roles and responsibilities of European Risk Managers evolving in the face of this new reality? Are Risk Managers equipped to support their organizations in achieving this double transformation?
Ferma PwC European Risk Manager Report_ full set results 2018FERMA
Risk Manager, a career central to corporate strategy
The job of Risk Manager is becoming increasingly cross-disciplinary and digital in response to a fast-changing economic and regulatory environment.
Argo Group: entry for emerging risk initiative of the year Award 2020FERMA
Adam Seager, Chief Risk Officer of Argo Group demonstrates the context, challenges and solutions he put in place for Agor Group during the time of crisis like the Covid19 pandemic.
European Risk Management Seminar 2018 - Sustainability ReportFERMA
FERMA’s aim in focussing on sustainability in our 2018 European Risk Management Seminar and in publishing this report is to strengthen the risk manager in ensuring the sustainability of our organisations and ultimately our societies.
GDPR & corporate governance: The Role of Internal Audit and Risk Management O...FERMA
This paper is a collaboration between FERMA and the European Confederation of Internal Audit Institutes ECIIA and focuses on the impacts of the GDPR on corporate governance practices in the year following its implementation. Most specifically, it looks at the roles played by internal audit departments and risk management functions.
Webinar: Risk management in a global pandemic - Early lessons learned, EU – U...FERMA
FERMA's joint webinar with RIMS on 1 December provided insights into the way risk managers have experienced and dealt with the global pandemic and its consequences.
FERMA and RIMS teamed up to bring you content from both sides of the Atlantic Ocean. The webinar began with a presentation of the results from FERMA’s COVID-19 survey, and then took a Transatlantic view on commonalities and differences.
Speakers:
Athina Pehrman, Group Risk Manager at Electrolux Professional Group, a sustainability leader in the appliance industry
Melanie Steiner, Board Member, US Ecology, Inc. a leading provider of environmental services to commercial and government entities. Former CRO
Typhaine Beaupérin, CEO of FERMA, moderator.
FERMA ECIIA Cyber Risk Governance report 29 June 2017FERMA
The report, "At the junction of corporate governance and cybersecurity", aims primarily at supporting European organisations in meeting their obligations under the EU General Data Protection Regulation and Network Information Security Directive.
The report calls for the creation of cyber risk governance groups, chaired by the risk manager, to operate across functions within the enterprise. The role of the group is to determine the potential cost of cyber risks across the whole organisation, including catastrophic risk scenarios, and propose mitigation measures to the risk committee and the board. In addition to the risk managers, the group is to be composed of representatives of all key functions at an enterprise level involved in digital risk, notably IT, human resources, communications, finance, legal and the data protection officer (DPO) and chief information security officer (CISO). Internal audit will provide the necessary assurance to the board that the cyber risk controls are operating effectively.
Following the launch in 2015 of a first joint paper “TRAVEL RISK MANAGEMENT 2015: EUROPEAN TRENDS”, FERMA and the International SOS Foundation is pleased to announce the publication of a new paper to help risk managers better mitigate health, safety and security risks for their mobile workers.
The Risk and Control Self Assessment (RCSA) is an integral part of most operational risk management frameworks. RCSAs provide a structured mechanism for estimating operational
exposures and the effectiveness of controls. In so doing RCSAs help organisations to prioritise risk exposures, identify control weaknesses and gaps, and monitor the actions taken to address any weaknesses or gaps.
A well designed and implemented RCSA can help to embed operational risk management across an organisation, improving management attitudes towards operational risk management and enhancing the overall risk culture. In contrast, an inefficient or unnecessarily complex RCSA can damage the reputation of the (operational) risk function and reinforce the perception that
operational risk management is a bureaucratic, compliance-focused, exercise that does not support the achievement of organisational objectives.
Learn more about Risk Management and the essentials with IRM’s level 1 certification.
https://www.theirmindia.org/level1
Level 1 qualified or risk management professionals with 2-3 years of experience can also enroll for level 2 certification.
https://www.theirmindia.org/level2
Visit: https://www.theirmindia.org/
Address: IRM India Affiliate, 907,908,909, Corporate Park II, 9th Floor, VN Puran Marg, Near Swastik Chambers, Chembur Mumbai 400071
Webinar: the role of risk management in corporate resilience FERMA
FERMA and McKinsey will present the findings of our survey into resilience and risk management. The objective is to give risk and insurance professionals a richer understanding of resilience in a strategic and practical way. Two leading risk managers will discuss the results of our survey and will reflect more broadly on the link between risk and resilience. By the end of the webinar, you will be well versed in resilience from an enterprise risk management perspective.
The European risk manager report 2020: webinar presentationFERMA
This 2020 edition is the opportunity to deepen four challenges that the Risk Manager is facing today:
his growing role in digital transformation
his contribution to sustainability
tougher insurance market conditions
education and skills evolution
The objective of this report is to launch the discussion on the new challenges posed by the European transition to climate neutrality and digital leadership for Risk Managers. How are the roles and responsibilities of European Risk Managers evolving in the face of this new reality? Are Risk Managers equipped to support their organizations in achieving this double transformation?
Our live webinar was scheduled on Monday 29 June 2020: risk managers from different backgrounds shared their experiences on the below themes and reacted to the results of the survey, in particular before and after the Covid-19 crisis.
The speakers were:
Adriana Cavaliere : Corporate Risk Manager at Skeyes, Belgium
Oliver Wild: Group Chief Risk, Insurance and Internal Control Coordination Officer at Veolia, France
Charlotte Hedemark: Chairman of the 2020 FERMA Survey Committee and Board Member of FERMA
Françoise Bergé: PwC Partner
This new edition of the Cyber Risk Governance Report includes a case study that illustrates how our cyber risk governance model works in practice.
FERMA has made the ongoing digital transformation a priority for our advocacy work for several years now.This is why, in 2017, we launched one of the first European cyber risk
governance models jointly with our European colleagues and internal auditors from the ECIIA.
Events since then have only strengthened our view that corporate governance models will quickly become obsolete if they do not embed governance for cyber risks under the leadership of a risk and insurance professional.
regulatory compliance is complex, ever-evolving and becoming more onerous by the day. highly regulated industries like energy, healthcare and financial services face a number of challenges to remain compliant and, most importantly, sustainable.
The compliance officer – a role historically seen as one that requires skilled technical and quantitative calculations – today requires one to possess strong communications skills in order to communicate risks within banks, broker-dealers, investment advisory firms and other organizations. The compliance officer has to understand the challenges the firm faces today and those it could in the near future. Beyond protecting a firm’s sustainability, reputation and wallet, there are regulatory incentives to evolve this role as well. The US Federal Sentencing Guidelines were amended to reward companies for implementing effective compliance programs by protecting them from criminal liability in the first place. Looking outside of the compliance office, good global supply chain management should also focus on sustainability. Many multinational companies have multitiered global supply chains which are linked together in complex interrelationships across multiple jurisdictions. A problem in one can quickly ripple up and down the chain leading to severe reputational damage. Creating sustainability within the global supply chain goes hand in hand with a thorough Know Your Supplier (KYS) process. Investment in physical infrastructure is vital to sustainable development and the future success of developing economies. Whilst there are global resources available to fund the developing world’s investment needs, there are barriers to unleashing that capital – like, investors’ lack of confidence in fiscal and monetary management and a lack of transparency into government and regulatory processes. However, Big Data and open source standards are facilitating the creation of new benchmarks to guide investors in infrastructure projects. In this issue of Informer we take a closer look at these challenges: their impact on the sustainability of a business; the repercussions that can result from mismanaging them; how understanding them can create opportunities and the innovative ways Thomson Reuters is addressing them to keep you on the right side of regulators and allowing you to move forward with confidence.
Risk Manager, a career central to corporate strategy
The job of Risk Manager is becoming increasingly cross-disciplinary and digital in response to a fast-changing economic and regulatory environment.
44% of respondents can contact the CEO directly
56% of respondents believe their role is increasingly recognised internally
53% of respondents think that the risk manager is becoming the risk conductor by consolidating risk information to give a clear and comprehensive view to the senior management
FERMA European Risk Manager Report 2020: full set of results FERMA
This 2020 edition is the opportunity to deepen four challenges that the Risk Manager is facing today:
his growing role in digital transformation
his contribution to sustainability
tougher insurance market conditions
education and skills evolution
The objective of this report is to launch the discussion on the new challenges posed by the European transition to climate neutrality and digital leadership for Risk Managers. How are the roles and responsibilities of European Risk Managers evolving in the face of this new reality? Are Risk Managers equipped to support their organizations in achieving this double transformation?
Ferma PwC European Risk Manager Report_ full set results 2018FERMA
Risk Manager, a career central to corporate strategy
The job of Risk Manager is becoming increasingly cross-disciplinary and digital in response to a fast-changing economic and regulatory environment.
Argo Group: entry for emerging risk initiative of the year Award 2020FERMA
Adam Seager, Chief Risk Officer of Argo Group demonstrates the context, challenges and solutions he put in place for Agor Group during the time of crisis like the Covid19 pandemic.
European Risk Management Seminar 2018 - Sustainability ReportFERMA
FERMA’s aim in focussing on sustainability in our 2018 European Risk Management Seminar and in publishing this report is to strengthen the risk manager in ensuring the sustainability of our organisations and ultimately our societies.
GDPR & corporate governance: The Role of Internal Audit and Risk Management O...FERMA
This paper is a collaboration between FERMA and the European Confederation of Internal Audit Institutes ECIIA and focuses on the impacts of the GDPR on corporate governance practices in the year following its implementation. Most specifically, it looks at the roles played by internal audit departments and risk management functions.
Webinar: Risk management in a global pandemic - Early lessons learned, EU – U...FERMA
FERMA's joint webinar with RIMS on 1 December provided insights into the way risk managers have experienced and dealt with the global pandemic and its consequences.
FERMA and RIMS teamed up to bring you content from both sides of the Atlantic Ocean. The webinar began with a presentation of the results from FERMA’s COVID-19 survey, and then took a Transatlantic view on commonalities and differences.
Speakers:
Athina Pehrman, Group Risk Manager at Electrolux Professional Group, a sustainability leader in the appliance industry
Melanie Steiner, Board Member, US Ecology, Inc. a leading provider of environmental services to commercial and government entities. Former CRO
Typhaine Beaupérin, CEO of FERMA, moderator.
FERMA ECIIA Cyber Risk Governance report 29 June 2017FERMA
The report, "At the junction of corporate governance and cybersecurity", aims primarily at supporting European organisations in meeting their obligations under the EU General Data Protection Regulation and Network Information Security Directive.
The report calls for the creation of cyber risk governance groups, chaired by the risk manager, to operate across functions within the enterprise. The role of the group is to determine the potential cost of cyber risks across the whole organisation, including catastrophic risk scenarios, and propose mitigation measures to the risk committee and the board. In addition to the risk managers, the group is to be composed of representatives of all key functions at an enterprise level involved in digital risk, notably IT, human resources, communications, finance, legal and the data protection officer (DPO) and chief information security officer (CISO). Internal audit will provide the necessary assurance to the board that the cyber risk controls are operating effectively.
Following the launch in 2015 of a first joint paper “TRAVEL RISK MANAGEMENT 2015: EUROPEAN TRENDS”, FERMA and the International SOS Foundation is pleased to announce the publication of a new paper to help risk managers better mitigate health, safety and security risks for their mobile workers.
The Risk and Control Self Assessment (RCSA) is an integral part of most operational risk management frameworks. RCSAs provide a structured mechanism for estimating operational
exposures and the effectiveness of controls. In so doing RCSAs help organisations to prioritise risk exposures, identify control weaknesses and gaps, and monitor the actions taken to address any weaknesses or gaps.
A well designed and implemented RCSA can help to embed operational risk management across an organisation, improving management attitudes towards operational risk management and enhancing the overall risk culture. In contrast, an inefficient or unnecessarily complex RCSA can damage the reputation of the (operational) risk function and reinforce the perception that
operational risk management is a bureaucratic, compliance-focused, exercise that does not support the achievement of organisational objectives.
Learn more about Risk Management and the essentials with IRM’s level 1 certification.
https://www.theirmindia.org/level1
Level 1 qualified or risk management professionals with 2-3 years of experience can also enroll for level 2 certification.
https://www.theirmindia.org/level2
Visit: https://www.theirmindia.org/
Address: IRM India Affiliate, 907,908,909, Corporate Park II, 9th Floor, VN Puran Marg, Near Swastik Chambers, Chembur Mumbai 400071
Webinar: the role of risk management in corporate resilience FERMA
FERMA and McKinsey will present the findings of our survey into resilience and risk management. The objective is to give risk and insurance professionals a richer understanding of resilience in a strategic and practical way. Two leading risk managers will discuss the results of our survey and will reflect more broadly on the link between risk and resilience. By the end of the webinar, you will be well versed in resilience from an enterprise risk management perspective.
The State of Enterprise Resilience - Resilience Survey 2015Julian R
A survey of how companies monitor and analyse the risk landscape, organisational risk governance, and the gap between theoretical understanding and practical application.
Aon launches Underrated Threats Report 2015 at FERMA with analysis from Captive Executives. The report unveiled the top 50 risks as well as hidden risks facing organisations today, illustrating the importance of no longer evaluating risk in isolation but considering the relationship of risks to establish and maintain a successful risk management programme
FERMA European Risk and Insurance Report (ERIR) 2016FERMA
FERMA's 2016 European Risk and Insurance Report (ERIR) is gathering the views of more than 600 European risk managers at a time of major changes in Europe.
The findings of this report, combined with FERMA’s mission and strategy, will shape our activities over the next two years.
One of the priorities that our members see for FERMA is to strengthen the professional standing of risk managers in Europe, and FERMA’s professional certification programme rimap® will be an important contribution to achieving that objective.
FERMA’s 2016 European Risk and Insurance Report is a source of valuable information and topics for further discussion to build the profession.
Sustainability has always been at the heart of the role of the risk manager, so that their organisations are resilient to shocks and can continue to fulfil their objectives. In the 21st century, that vision has widened, because companies are increasingly asked to be good corporate citizens and to play a part in our overall adaptation to climate change.
European risk management sustainability seminar reportFERMA
Sustainability has always been at the heart of the role of the risk manager, so that their organisations are resilient to shocks and can continue to fulfil their objectives. In the 21st century, that vision has widened, because companies are increasingly asked to be good corporate citizens and to play a part in our overall adaptation to climate change.
Value Engineering. Measuring and managing risks in the wind energy industryStavros Thomas
As wind turbines number increased around the world, the number of hazardous accidents is also rising, causing critics to question overall safety. A recent study from Anemorphosis Research Group reveals how wind power professionals manage risk, from current areas of concern to anticipated challenges.
Risck intelligence in the energy and resources industry Franco Ferrario
DELOITTE TECHNOLOGIES
Risk Intelligence in the Energy & Resources Industry
Enterprise Risk Management Benchmark Survey Report
Upload by Franco Ferrario CIO Temporary Manager
Nuestro informe Global Risk Landscape 2016 revela que el 87% de los líderes empresariales consideran que
el mundo se ha convertido en un lugar con mayor riesgo. Para la realización de este estudio, que se inició a
comienzos de 2016, BDO ha consultado a 500 altos directivos de las principales empresas de 44 países de
Europa, Oriente Medio, África, Asia y América acerca de lo que consideran que son los mayores riesgos a los que
enfrentan sus empresas en la actualidad y en el futuro.
Para más de la mitad (56 %) de los líderes empresariales encuestados, la mayor amenaza es el aumento
de la competencia, seguida por la desaceleración económica (43%) y la interrupción del negocio (42 %).
La mitigación del riesgo se ha convertido en una cuestión primordial para la mayor parte de las empresas
consultadas, mientras que la creación de valor es visto como el mayor desafío global del futuro.
Since the onset of the global financial crisis in 2008, businesses around the world have faced a barrage of new risk-related challenges.
The macroeconomic environment of recent years, marked by the global financial crisis, fiscal uncertainty in the US and sovereign debt problems in Europe, has also helped to make companies more riskaverse, leading them to swap bold investment decisions for more cautious behaviour and cash hoarding. The tide is turning, however, with most expecting 2014 to mark a return to growth...
People, Planet & Performance: sustainability guide for risk and insurance man...FERMA
On 31 March, FERMA releases the first guide specifically for European risk managers on sustainability risks.
People, planet, performance – The contribution of Enterprise Risk Management to Sustainability provides practical guidance on incorporating sustainability goals into enterprise-wide risk management.
Collaboration of the Year Award winner 2020: Pim Moerman and Rob van den Eijn...FERMA
Philips Global Resilience Platform: Breaking down silo approach of departments by collaborating in multidomain platform making our company more resilient
George Ong, Chief Risk Officer, Northern Ireland WaterFERMA
Nominations for the Public Sector Risk Manager of the Year for the European Risk Management Awards 2020.
George Ong is the Chief Risk Officer for Northern Ireland Water (NIW), a Government Owned Company (GoCo). George joined the business in 2006 with a clear remit of implementing a risk and insurance management system given that the ‘Government Protection’ was to be removed from 1st April 2007. Since then George has worked to adapt, enhance and embed risk management arrangements within NIW, developed partnerships with businesses, communities and institutions to improve resilience for the Company and the community. #euroriskawards
GDPR & corporate Governance, Evaluation after 2 years implementationFERMA
FERMA’s live joint webinar with ECIIA on Monday 28 September gathered more than 300 participants
The objective of this joint webinar was to take stock of where we stand after 2 years of GDPR implementation and the practical consequences on businesses. For this, FERMA and ECIIA (European Confederation of Institutes of Internal Auditing) invited the following speakers:
- Olivier Micol, Head of Data Protection Unit at the European Commission, Directorate-General for Justice. He highlighted key elements of the recent GDPR evaluation report of the European Commission, shared the latest data and feedback from companies and civil society. He also gave an overview of future planned initiatives.
- Jérôme Avot, Group Risk Officer and Data Protection Officer at Faurecia, a global leader in automotive technology.”The GDPR served as a common thread from the start to the end of the project. We feel we have turned what might have been perceived as a constraint into an opportunity. “
- Ralf Herold, Senior Vice President, Corporate Audit BASF, a leading chemical company. He is an expert in GDPR as Germany was a pioneer in this piece of legislation.
Jérôme Avot and Ralf Herold shared their experience as a Risk Manager and DPO and as an Internal Auditor by exchanging on the changes that the GDPR involved within their companies.
https://www.ferma.eu/webinar-replay-gdpr-corporate-governance-evaluation-after-2-years-implementation/
Webinar: Why risk managers should look at Artificial Intelligence now?FERMA
Risk Managers can be key actors in highlighting to the organisation leadership the opportunities and challenges of AI technologies
On 19 May, the objective of this webinar was to discuss:
How AI can be implemented into the risk management practices?
Which opportunities is AI creating for better risk management?
What are the highlights of the European Commission’s risk-based approach to Artificial Intelligence?
Speakers were:
Philippe Cotelle, Head of Insurance Risk Management at Airbus Defence and Space and FERMA Board member, will highlight the key findings from FERMA’s report on “AI applied to Risk Management”.
Irina Orssich and Eric Badiqué are both working for the European Commission as Team leader and Adviser for Artificial Intelligence in the Unit for Technologies and Systems for Digitising Industry. They will present the Commission’s White Paper on AI and the other EU initiatives which aim at strengthening the EU legal framework regarding AI applications, especially in the field of privacy.
GDPR & corporate governance: the role of risk management and internal audit o...FERMA
The webinar discussed the full results and recommendations of a joint project between FERMA and the European Confederation of Institutes of Internal Auditing (ECIIA), to assess how the EU General Data Protection Regulation (GDPR) impacted our professions, one year after its enforcement. This webinar helped to know:
- To which extent the risk manager and the internal auditor are involved in the GDPR corporate implementation
- How GDPR has affected the interactions between risk management, internal audit and Data Protection Officer (DPO)
- What are the best practices and recommendations to embed personal data protection in the risk and audit governance of your organisation
After one year of GDPR implementation, FERMA and ECIIA sent in May a common basis of five questions to their risk and internal audit members.
The objectives were to:
- Evaluate the roles of the risk management and internal audit functions regarding the GDPR and personal data related risks
- Provide a unique insight into the implementation of the GDPR by companies to the European policymakers
Ferma report: Artificial Intelligence applied to Risk Management FERMA
FERMA brought together a group of experts from within and beyond the risk management community to develop the first thought paper about AI applied to risk management.
Their aim was to perform an initial assessment of the potential value of AI to improve enterprise risk management (ERM), and second, to understand how risk managers can be key actors in highlighting to the organisation leadership the opportunities and challenges of AI technologies.
The working group expects that corporate risk management will benefit from AI in several areas. “From its ability to process large amounts of data to the automation of certain risk management repetitive and burdensome steps, AI could allow risk managers to respond faster to new and emerging exposures. By acting in real time and with some predictive capabilities, risk management could reach a new level in supporting better decision making for senior management.”
This paper aims to guide risk managers on applying AI from a basic understanding to developing their own strategy on the implementation of AI. It includes an action guide and a template for risk managers to develop their own AI risk management roadmap.
Webinar: how risk management can contribute to sustainable growth?FERMA
This webinar will help risk management and sustainability practitioners apply enterprise risk management (ERM) concepts and processes to environmental, social and governance-related risks (ESG)
FERMA Webinar: At the Junction of Corporate Governance and Cyber SecurityFERMA
The recommendation for a cyber risk governance model came in a report published 29 June 2018 by the Federation of European Risk Management Associations (FERMA) and the European Confederation of Institutes of Internal Auditing (ECIIA).
FERMA and ECIIA presented their report at a high-level event at the European Parliament with representatives of the EU institutions, the World Economic Forum, risk and audit practitioners from European businesses, and other European stakeholders.
The report, At the junction of corporate governance and cybersecurity, aims primarily at supporting European organisations in meeting their obligations under the EU General Data Protection Regulation and Network Information Security Directive. Recent cyber attacks, however, increased concerns on what the risk experts see as a wider lack of focus on risk governance in cyber security.
More information here:
https://www.ferma.eu/ferma-webinar-junction-corporate-governance-and-cyber-security?type=events
What will you learn from this presentation?
- Compare and assess your own governance of cyber risks against the proposed cyber risk governance model
- Know where you stand in the evolutionary journey towards cyber resilience: reactive, proactive, predictive...
- Define the key stakeholders for cyber security and conditions for success
- Find mechanisms that help leadership determine effective and efficient resource allocation
- Plan for the next move to improve your cyber risk governance
Preparing for cyber insurance - FERMA - Insurance Europe - BIPARFERMA
The guide “Preparing for cyber insurance” outlines how organisations with an interest in accessing cyber insurance can best prepare for discussions with insurance intermediaries and insurers. It also provides tools to help organisations evaluate cyber insurance offers and how they may translate in practice.
1st international edition of the RMIS Panorama with the support of FERMA networkFERMA
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The role of risk management in corporate resilience
1. 2021 Survey Report
21
COUNTRIES
5000
RISK MANAGERS
IN EUROPE
22
MEMBER
ASSOCIATIONS
40+
YEARS
As the single
recognised voice
of European
risk managers
www.ferma.eu
THE ROLE OF RISK MANAGEMENT
IN CORPORATE RESILIENCE
2. 02
About FERMA
The Federation of European Risk Management Associations
brings together 22 national risk management associations in 21
European countries. FERMA represents the interests of nearly
5000 risk and insurance managers in Europe active in a wide
range of business sectors from major industrial and commercial
companies to financial institutions and local government bodies.
More information can be found at www.ferma.eu
3. 03
On behalf of FERMA, I am pleased to present this report that
we have produced with McKinsey & Company. It explores the
contribution of risk management to corporate resilience as we
move forward from the immediate impact of the pandemic
crisis.
Before the pandemic, we knew that risk management and
risk managers had an important role in keeping shocks from
destabilising their companies. The pandemic proved that. Until
this report, however, we had little data on this contribution.
Against this backdrop, FERMA and McKinsey & Company
surveyed risk and insurance professionals and senior executives
across sectors globally in the summer of 2021. Our aim was
to establish a current view of the role of risk and insurance
management in fostering resilience for their organisations.
Today, we see from the report that the majority of participants
feel their organisations are well equipped to manage resilience
overall. At the same time, more can be done. In particular,
these results give the impression that there is work to be done
on improving organisational risk culture, as well as making
resilience more of a strategic priority.
Risk and insurance managers are already involved in this
process in a meaningful way. The findings give us a great
incentive to maintain momentum. We must continue to
underline our worth to our organisations. They also show us
where we can take the initiative by developing in areas such as
foresight capabilities and sustainability.
This survey gives us a foundation for our future work on
resilience. We will also embed resilience into our advocacy
work when we contribute to European projects, across a range
of topics linked to the green and digital recovery, and beyond.
The pandemic has highlighted the importance of good risk and
crisis management and its contribution to resilience, but we
must not be complacent. We continue to face other, potentially
disruptive shocks, for example, from climate change and
cyber risks. Resilience is essential for the success of European
business, and as this survey shows, in this, risk and insurance
managers can be leaders.
Dirk Wegener,
President of FERMA
FOREWORD
Dirk Wegener, President of FERMA
4. 04
EXECUTIVE SUMMARY
The COVID-19 pandemic has put a spotlight on organisational
resilience. As catastrophic events grow more frequent but less
predictable, the need for resilience grows. This need is further
highlighted against the backdrop of increasingly interconnected
and complex risks.
In this context, FERMA and McKinsey & Company surveyed
risk and insurance professionals and senior executives across
sectors globally in the summer of 2021 to collect a current
view of the role of risk and insurance management in fostering
resilience for their organisations.
The responses show that :
• The Coronavirus pandemic accelerated the push for
corporate resilience, though in varying degrees across
sectors and resilience pillars.
• More than 60% of the participants acknowledge resilience
as a top priority or very relevant in strategic decision-
making.
• Risk and insurance managers are involved in resilience in
a meaningful way with further room to lead initiatives.
• 57% of those that responded to the survey feel their
organisations are well equipped to manage resilience
overall. Financial, operational, digital and technological
resilience are considered the most relevant areas across
companies. Foresight capabilities (scenarios and stress
testing) emerge as a core area to strengthen corporate
resilience.
• The risk function and executive teams play a leading role
in building resilient organisations, more than strategy
teams.
• Looking forward, almost three-quarters of the risk
managers surveyed see a clear need for both improving
risk culture and more strongly integrating resilience in
their organisations’ strategy.
5. 05
SURVEY METHODOLOGY AND RESPONDENTS
ACROSS FUNCTIONS ACROSS ROLES
GLOBAL FOOTPRINT
COMPANY SIZE
Revenue in 2020 in euro
Source: Corporate Resilience Survey 2021
1. Some questions were not answered by
all participants, thus n can be different
per question
2. N = 16 for Other in Functions
3. N = 22 for Other in Positions
9%
23%
30%
38%
Other 2
Both Risk Manager
Insurance Manager
64% 23%
5%
8%
2 continents
1 continent
Global
National
11%
21%
14% 26%
28%
5-10bn
>50 bn
1-5 bn
<1bn
10-50bn
12%
31%
38%
10%
8%
Board
Executive
Committee (C-level)
Other 3
Middle Mgmt.
(C-2 & below)
Senior
Leadership (C-1)
In 2021, the Federation of European Risk Management Associations (FERMA) and McKinsey & Company surveyed
risk professionals from a range of industries and countries, about corporate resilience and the impact of the
pandemic. The survey probed for views on the risk function, as well as the present and future status of resilience
in their organisations.
Results reveal the growing importance of risk management and resilience in long-term strategy development. The
results also provide valuable insights on some of the measures needed to further strengthen corporate resilience.
6. 06
LOCATION1
INDUSTRY
7%
7%
8%
22%
7%
20%
18%
10%
Telecoms, Media
Technology
Travel, Logistics
& Infrastructure
Social, Healthcare
(incl. pharma)
& Public Entities
Advanced
industries 3
Banking
Insurance & PE
Global Energy &
Materials
Professional
Services
Consumer &
Packaged Goods
4
SURVEY METHODOLOGY AND RESPONDENTS
1. These locations are the headquarters but all participants are from Europe
2. EU and others include Luxembourg, Austria, Belgium, Denmark, Norway, Portugal, Spain,
Sweden, Switzerland, United States of America, Nepal, Angola, Japan, China, Brazil, and
Argentina
3. Advanced Industries include Advanced Electronics, Semiconductors, Automotive
& Assembly, and Aerospace & Defense
4. GEM includes Basic Materials, Chemicals & Agriculture, Power, Oil & Gas
8%
9%
9%
21%
25%
28% Others 2
France
Italy
Germany
Finland
Netherlands
7. 07 Source: Corporate Resilience Survey 2021
RESILIENCE DEFINITION
HOW DO YOU DEFINE RESILIENCE FOR YOUR ORGANISATION?
We asked survey participants to define resilience as it relates to their organisation. The respondents expressed diverse views, revealing
that resilience is a term used to cover a wide range of elements, action areas, capabilities and objectives.
“Finding opportunities from crises
and threats”
“Advancedcapabilitiesonbusiness
continuity and crisis management,
dynamic scenario analysis and
planning, balance-sheet strength
and operational agility”
“The natural capacity to respond decisively to crises and
potential disruptive events, minimising damages and enhancing
opportunities”
“Ability and strength to continue
the vision of the company
despite setbacks; go from
reactive to proactive; move from
post-strategy to pre-strategy”
“The underwater portion of the iceberg of our risk management
organisation; the capacity of the company to sustain the impact
of events after applying emergency measures; our culture,
our team sense, our leadership, and our feeling that our
organisation is among the best.”
“The readiness to continue to provide products and services
to our customers no matter how much the external context
changes or worsens.”
“To execute our strategy, we need
to make sure that we adapt to
real-life changes—including the
pandemic, energy transition, etc.”
“The ability to resist the impact of
crises and big events; meeting objectives and goals; providing
business continuity and service customers”
8. 08
RESILIENCE AND THE IMPACT OF THE PANDEMIC
The coronavirus pandemic has raised the profile of risk and
insurance management, and corporate resilience.
90% stated that the pandemic made risk and insurance
management more important to their organisations. Of these,
more than 50% said it was to a considerable or great extent.
Only 10% found no direct impact.
The impact of the Coronavirus pandemic on risk
and insurance management
To what extent has the pandemic made risk and
insurance management more important to your
organisation?
36%
39%
16%
10%
Not at all
To some extent
To a considerable
extent
To a great extent
“The pandemic caused us to look beyond one risk
area and toward a corporate-wide view. It forced us
to understand the advantages in moving our stance
from risk management to resilience.”
9. 09 Source: Corporate Resilience Survey 2021
Perhaps unsurprisingly, the areas where most organisations
have taken action during the pandemic are workplace safety
and remote working. Around three-quarters of respondents
have fully implemented changes already in these areas. Only
a handful of organisations have not planned any changes in
these areas.
To what degree has your organisation taken action in these areas of resilience since the pandemic?
Implementation started Planned and budgeted
Implementation completed Not planned
Workplace safety
Remote working
Supply chain
Insurance strategy
Others1
11%
18% 3%
4%
21%
14% 36%
5% 30%
25%
8%
21%
30%
42% 11%
26%
75%
5%
5%
78%
Managing business operations and the supply chain emerged
as key vulnerabilities during the pandemic. While over a quarter
of respondents have already made changes to their supply
chain, over half of the organisations covered in this survey
have either planned or begun implementation of supply chain
changes.
Almost two-thirds of respondents plan to make changes in their
insurance strategy or have made them already. This is likely
linked to hard-market conditions that began to appear 6–8
months before the pandemic. The pandemic worsened these
conditions, and could have led some commercial customers to
consider self-insurance or captives, for example.
1. Other focus areas: Threat intelligence, Controls update, Supervisory Board activities, Higher
self insurance/deductibles, Emerging risk scenarios and corporate contingency planning; N = 20
“We are learning from the crisis, reviewing, for example, our
evaluation process for suppliers. In the past we focused mainly
on financial impact but have since adopted a holistic view,
looking at the geographic footprint, compliance issues, among
other factors.”
10. 10
A simplified overview of the stages of actions relating to resilience in the pandemic:
RESILIENCE AND THE IMPACT OF THE PANDEMIC
In this stage our respondents
were working on workplace safety,
remote work planning and HR/
staff issues. In addition, many risk
managers and Risk Committees
began to have more frequent and
direct interaction with the Board of
Executive Committees.
As organisations spent more time
dealing with the consequences
of the pandemic, changes or
modifications began to be made
to the supply chain, risk transfer/
insurance strategy, as well as on
controls.
This is the stage where some
organisations are now asking the
questions of how to move forward
or how to move to a resilience
path. Work in this area is around
scenario analysis, gathering and
disseminating threat intelligence
and working on contingency plans
and stress tests.
CRISIS MANAGEMENT
AND RESPONSE
CORE ENTERPRISE RISK
MANAGEMENT ACTIONS
FROM RISK TO RESILIENCE
“ We have established a 5-year scenario as an annual exercise.
This is an input for strategy setting to be linked to the en-
terprise performance plan. We develop mitigation actions for
scenarios as part of our strategic objectives. This way, risk is
involved, speaking the same language as strategy.”
“ During the crisis, we led a Risk Committee, sitting with the
Executive committee every week over 3 months. This was an
opportunity for us to demonstrate the value of the risk function
over the longer term.”
Based on the input from risk managers we have illustrated in the simplified graphic below the stages of actions on resilience, with a
selection of examples of actions taken. In practice, it is very likely that these stages are overlapping.
11. 11 Source: Corporate Resilience Survey 2021
To what extent is resilience considered in your
organisation's strategy?
For almost one in six resilience is a top strategic priority. Further,
almost two-thirds of organisations make resilience a strong
focus in their organisation’s strategy. Only 6% of respondents
do not place any specific focus on resilience in the context of
their strategy.
Resilience as part of the strategic process
2 in 5 surveyed are in organisations where risk and insurance
management are a regular feature of strategic discussions.
While there is already strong involvement of the risk function
in strategic discussions there is also room to grow with 13%
not at all involved in these discussions in their organisations.
How much is your risk function involved in
strategy discussions in your organisation?
Results on the use of scenarios and stress-testing techniques
are split. More than half (53%) of executives rarely (or never)
use them in strategic decision making, while 47% do. 12% use
stress testing in every risk and resilience exercise as part of their
strategic process.
How often do you run scenario analysis or stress
tests on key risks as part of your company’s
strategy process or in preparation for strategic
decision making?
ROLE OF RESILIENCE IN STRATEGIC DECISION MAKING
Often
Every time Rarely Never
12% 35% 47%
6%
Mostly
Fully Partially Not at all
10% 30% 47% 13%
To a large extent
Is one of the top priorities To some extent Not at all
16% 46% 32% 6%
12. 12
The survey sought to assess the robustness of structures and processes in each organisation using nine resilience categories. These
included foresight capabilities (scenarios and stress-testing), which enable organisations to simulate and quantify the impact on
business of a general or industry-specific scenario. Results are used to identify resilience areas for reducing potential adverse impact.
Response capabilities to disruptions and crises were also assessed, to discover insights into the ability of organisations to react to
and bounce back from unanticipated shocks.
RESILIENCE AND ITS CORE AREAS
A. Financial resilience High margins, low fixed costs, strong balance sheet, cash reserves,
access to capital market, hedging capabilities
B. Operational resilience Business continuity management, flexible workforce and production,
diversity and the transparency of the supply chain
C. Digital & technological
resilience
Digital strategy and risk management, cyber security, and invention
capabilities
D. Organisational resilience Purpose-driven mindset, openness to change, reskilling capabilities,
lean and agile setup
E. Market position and M&A
capabilities
Strong market position, diverse revenue portfolio, M&A capabilities,
capability edge
F. Reputation, brand, & customer Authentic reputation, brand value, stakeholder trust, social media
savviness
G. Purpose & ESG alignment Environmental, social, and governance criteria embedded in purpose,
vision and strategy; environmental targets; social and ethical standards;
robust governance
H. Foresight capabilities Systematic internal and external information gathering; scenario-
based simulations and stress-testing
I. Disruption & crisis response
capabilities
Criteria to trigger task force setup, crisis response protocols, strategic
adaptation
13. 13
How would you rate your company’s capabilities and the effectiveness of its tools in managing resilience?
Source: Corporate Resilience Survey 2021
10%
32%
48%
9%
Poor Excellent
Very Good
Fair
“The crisis demonstrated that updating contingency plans was
useful. Though we had no specific plans for a pandemic in place,
existing plans and protocols were helpful in managing the
crisis.”
14. 14
The survey probed the dimensions of resilience using three
lenses: the relevance of resilience for organisations, their ability
to manage resilience (capabilities), and the extent of the risk
function’s involvement (scope).
In terms of the areas of resilience that organisations find the
most relevant to them:
• Financial, operational and digital/technological resilience
are considered the most relevant areas of resilience across
most industries. Over 60% of risk managers consider
these three areas of resilience very relevant.
• Foresight capabilities is the area that is ‘least’ relevant in
terms of organisational resilience.
• Disruption and crisis-response capabilities are seen as
more relevant than foresight capabilities, which possibly
reflects the situation most organisations find themselves
in in the context of the pandemic. This finding could
reasonably be expected to change over time.
Relevance:
Which areas1
are most relevant for your
organisation’s resilience?
RESILIENCE AND ITS CORE AREAS
Relevant
Very relevant Somewhat relevant Not relevant
Financial
Operational
Digital &
technological
Organizational
Market position
and M&A capabilities
Reputation, brand
& customer
Purpose &
ESG alignment
Foresight capabilities 2
Disruption & crisis
response capabilities
68% 23% 6%
66% 27% 6%
62% 31% 8%
38% 44% 15%
38% 38% 19%
46% 40% 12%
17%
42% 37%
25% 40% 29%
18%
43% 35%
structural
factors
1. For definitions, refer to page 2.
2. Foresight capabilities refer to stress-testing resilience capabilities, which allows companies
to quantitatively assess the impact on business of a general or industry-specific scenario by
simulating reactions under each. This can then be used to identify resilience levers to reduce
potential adverse impacts.
15. 15
Overall, the majority of risk managers (57%) rate their
organisation’s capabilities and effectiveness of its tools in
managing resilience highly. Only 10% rate their company’s
capabilities at managing resilience as poor. In terms of the
different areas of resilience:
• Over half of those surveyed believe their organisations
currently have effective capabilities to manage resilience
from a financial dimension.
• There appears to be room for improvement around
capabilities to predict events and conduct scenario
analyses and stress-tests to assess potential outcomes.
One-quarter of respondents say that they have no
foresight capabilities currently in place.
• Further only one-third of respondents say they have
effective crisis-management capabilities in place, a
possible insight from the pandemic.
Capabilities:
To what extent do you agree with the
following statement: "We have effective
capabilities and tools in place to manage
resilience in these areas”?
Source: Corporate Resilience Survey 2021
Agree
Strongly Agree Disagree Strongly disagree
52%
38%
40%
45%
56% 6%
48% 11%
33%
29% 56%
58% 6%
11%
11%
8%
41% 48% 10%
27%
33%
59%
24% 46% 25%
56%
Financial
Operational
Digital &
technological
Organizational
Market position
and M&A capabilities
Reputation, brand
& customer
Purpose &
ESG alignment
Foresight capabilities 2
Disruption & crisis
response capabilities
structural
factors
16. 16
Scope:
To what extent is the risk function involved in these resilience areas?
RESILIENCE AND ITS CORE AREAS
The scope of involvement of risk and insurance management
in the different dimensions of resilience varies. Involvement is
highest in the areas of operations, digital and technological and
disruption & crisis response.
For more than 3 in 10 surveyed, risk and insurance management
is not at all involved in market position or reputation, brand and
customer dimensions of resilience.
Risk and insurance managers most often take a leading role
in disruption & crisis response—far more than in any other
resilience area.
Involved to
a large extent
Leading
Involved to
some extent
Not involved
7%
7%
6%
6%
12%
8%
24%
23%
49% 20%
22%
21%
10%
42%
31%
42% 8%
42%
42%
43% 24%
41% 8%
9%
14%
27%
41%
39%
20% 41%
19%
31%
10%
34%
37%
38%
Financial
Operational
Digital &
technological
Organizational
Market position
and M&A capabilities
Reputation, brand
& customer
Purpose &
ESG alignment
Foresight capabilities 2
Disruption & crisis
response capabilities
structural
factors
“In times of crisis, Risk plays an important role to foster res-
ponsible, quick decision making.”
17. 17
Most participants identified the executive team and the risk
function as mainly responsible for resilience and related
coordination within their organisations. This suggests that risk
functions are taking a greater role in managing resilience more
holistically, especially in coordinating with other functions.
In your organisation, which group is primarily responsible for resilience, taking a coordinating role across
the relevant areas?
ORGANISING RESILIENCE
Source: Corporate Resilience Survey 2021
1. Board + Executive (C-level) + C-1 middle-mgmt.
Where does the responsibility for building resilience fall?
To an even greater extent, senior executives (top management)
believe that the executive team and the risk function are driving
resilience.Additionally,theseseniorleadersreportthatfinanceplays
moreofarolethanthebusinessunitsdoinbuildingtheresilienceof
the organisation (reversing the overall results on this point).
Strategy
Risk
Operations
Finance
Business Units
Executive team
Other
No dedicated
responsability
30%
33%
18%
44%
22%
48%
10%
9%
53%
9%
6%
Functions Overall Board, executive and senior leadership1
28%
34%
22%
55%
18%
18. 18
ORGANISING RESILIENCE
Where does the responsibility for building resilience fall?
Most participants revealed broad cross-collaboration within
their organisation around resilience, involving operations,
business units, and finance; the involvement of strategy
remains low.
Top-level management (board, senior executives, and leaders),
Which areas of your organisation most often collaborate with risk on resilience?
collaborate around resilience more closely with finance teams
than other groups do (10% higher than overall collaboration).
The strong collaboration with operations is not surprising, given
the relevance of this aspect of resilience efforts.
1. Board + Executive (C-level) + C-1 middle-mgmt.
Strategy
Operations
Finance
Business Units
Other
59%
47%
49%
30%
10%
Functions Overall
19. 19 Source: Corporate Resilience Survey 2021
The role of the risk function in managing resilience
“Risk Management needs to go beyond
lines of defense. If something happens,
decision lines can be unclear. Corporate
contingency plans need to be translated
into risk governance. How can we
become more proactive? Foresight
is another important dimension.
Companies often have siloed thinking”
“During the pandemic, the full
organisation adopted a risk approach.
Now there is a greater involvement
of the risk function and the mindset
of top management has changed.
The interaction with Operations has
been much more relevant than with
Strategy.”
“It is not enough for the CRO to be part
of the executive team. Relevant is the
CRO’s voice in the team. This depends
on how much the CRO is recognized as
a key collaborator with other functions.
The CRO’s job is to convene, challenge
and provide other perspectives.”
“Risk governance is key. Corporate
governance, board effectiveness,
and CEO's success success are
all linked to the risk governance
model. This means efficient decision
making, driving cultural change, and
developing the right tools.”
20. 20
FUTURE OUTLOOK
Three-quarters of risk managers expect a greater emphasis
put in the near future on improving risk culture and integrating
resilience efforts more deeply in the strategy process.
They do not expect that interactions with external stakeholders,
including regulators, would play an important resilience-
strengthening role. This implies that their efforts at building
and managing resilience will be more inward-directed.
While almost half of the risk managers surveyed will place a
major emphasis on interactions with their board as part of
their efforts on resilience-strengthening going forward, more
than two in five only expect to place a minor emphasis on this
aspect.
At the same time, risk managers emphasize in interviews that
it is essential to educate the Board room about the value of risk
in providing meaningful risk reporting, performing scenario
analyses and challenges, etc. to improve decision-making.
Finally, the recent pandemic crisis produced different lessons,
e.g. in managing supply chain risks, improving fast and informed
decision-making by adapting the risk governance, building a
better data infrastructure etc.
Many risk managers are now using this opportunity to improve
their value proposition and profile across the organisations.
What do risk managers say about their future efforts to strengthen resilience?
“Reporting is an important improvement area. During crises, you
need to get reliable data quickly. Many boards lack oversight on
important risk topics. If companies lack appropriate risk data
systems, top management will make suboptimal decisions. In
our company, we launched an analytics project to combine data
across the group as a priority.”
21. 21
Minor emphasis
Major enphasis No emphasis
In risk culture
In resilience as part of strategic
considerations and the strategy process
In your interactions with your board
In your interactions with regulators
and other external stakeholder
73%
71%
49%
24%
26%
7%
12%
43%
39% 49%
Source: Corporate Resilience Survey 2021
As the risk manager, where do you expect more emphasis to be placed on in the future to strengthen
resilience?
“We need to revisit risk governance. The risk function is on the
road to becoming better understood throughout the organisa-
tion. The board room is still missing out on why Risk has to be an
important contributor to decision making.”