Tag Archives : ERM

Get prepared for the rimap Examination – useful readings!

rimap_H-logo-certified-RGBThe rimap examination is a written exam with 100 questions based on the rimap Body of Knowledge using recognised sources such as ISO 31000 and COSO ERM framework.

To better prepare for the rimap examination, you will find below the full list of sources that have been used to build the rimap examination for October 2016:

1- COSO Enterprise Risk Management Integrated Framework – Executive Summary – September 2004 – http://www.coso.org/documents/coso_erm_executivesummary.pdf

2-ISO Guide 73:2009 Risk management vocabulary – Preview – 2009 https://www.iso.org/obp/ui/#iso:std:44651:en

3-ISO 31000:2009 Risk management — Principles and guidelines – https://www.iso.org/obp/ui/#iso:std:iso:31000:ed-1:v1:en

4-A structured approach to Enterprise Risk Management and the requirements of ISO 31000 – airmic/alarm/irm – 2010 http://archives.ferma.eu/app/uploads/2011/10/a-structured-approach-to-erm.pdf

5-Audit and Risk Committees – News from EU Legislation and Best Practices – ECIIA and FERMA – 2014 http://archives.ferma.eu/app/uploads/2014/10/ECIIA_FERMA_Brochure_v8.pdf

6-The rimap Code of Ethics http://rimap-certified.org/wp-content/uploads/2016/05/Rimap-Code-of-ethics.pdf

7-Lloyd’s of London Glossary of Terms http://www.lloyds.com/Common/Help/Glossary

8-FERMA website ferma.eu

Remember that the application fee for the rimap certification is included in the Seminar fee package of €150. There will be no additional charge.

FERMA calls on Commission to include enterprise risk management in Non-Financial Reporting Guidelines

The Federation of European Risk Management Associations (FERMA) has told the European Commission that enterprise risk management (ERM) is the best method for companies to approach the new EU requirements for large companies to report on their non-financial or corporate social responsibility risks.

Capture cover consultation

Click above to read the response

This comment is at the heart of FERMA’s response to the Commission consultation on Non-Financial Reporting Guidelines, following article 2 of Directive 2014/95/EU on disclosure of non-financial and diversity information by certain large undertakings and groups. A large proportion of the 4700 European risk and insurance managers represented by FERMA work for companies that are within the scope of the Directive. As skilled specialists, they are responsible for managing the enterprise risk management process.

Under the Directive, which goes into effect in 2017, large public-interest entities, such as listed companies, should disclose in their management report relevant and useful information on their policies, main risks and outcomes relating at least to: environmental matters, social and employee aspects, human rights, anticorruption and bribery issues, and diversity in their board of directors.

FERMA President Jo Willaert said: “It is difficult for specialists in each department to connect different aspects of risk across functions, leaving grey areas where reporting may be incomplete. We, therefore, urge the Commission to recognise in the guidelines the fundamental role of risk managers and the value of ERM methodology in the reporting of non-financial or corporate social responsibility elements, which require a deep understanding of the business model of the organisation.

He added: “Risk reporting is a key element of the risk manager’s role. Because of the cross-functional nature of the risk manager’s mission, he or she is the best placed person in the organisation to provide assurance that the various types of risks, including those related to corporate social responsibility, have been identified and managed.

ERM is defined as a process “designed to identify potential events that may affect the entity, manage risk to be within its risk appetite and provide reasonable assurance regarding the achievement of entity objectives.” It is internationally set out in frameworks, such as the US COSO, and recognised in international standards.

FERMA has also told the Commission that the value of reporting the risks connected with non-financial elements of business conduct goes far beyond concern for reputation management. “Being in control of these risks opens the way for productivity and efficiency gains over the long term. The creation of a complete, company-wide risk management policy, including non-financial aspects, that leads to thorough risk knowledge should be seen as a global decision-making tool for the board,” stated FERMA in its submission.

Ms Typhaine Beaupérin, FERMA CEO: typhaine.beauperin@ferma.eu, tel: +32 (2) 761 94 31
Lee Coppack, press contact: lee@coppack.co.uk, tel: +44 208 318 0330/ +44 7843 089904
All FERMA press releases can be found here.

BELRIM Newsletter February 2014

Table of content

People on Board: our President
Cloud Computing: Revolution or Nightmare
Ladies Mind Risk
Crisis Management
Closed Exchange – Enterprise Risk Management
New Effective Member
New Affiliated Member
Belgian Cyber Risks Security Guide
Risk Manager Framework
COSO Internal Control Continue reading

Insight may come from many angles

By Helle Friberg, FERMA board member and Group Risk & Insurance Manager, Hempel A/S 

Helle Friberg – Ferma Board Member / Group Risk and Insurance Manager at Hempel

To create an ERM strategy – or update an existing one – for your company might at first seem like a rather easy task. As a risk manager, you often have a very clear vision on how important your field of work is for the company, how advanced you think risk management should be in the near future and beyond, and how fast the implementation should be. It is, after all, your daily life and your work, and perhaps even your passion.

I am currently working on refreshing my company’s ERM strategy. In that process, I have experienced that the task is not necessarily as easy as that.

My starting point was all these good ideas about how “ERM matures” and where I believed the company should be in a few years from now. However, you might agree with me that it is an art to get our fellow decision makers (risk management committee, steering committee, top management or the like) to realise that our view on the company’s future ERM is as brilliant as we think ourselves. This is where I found that communication and lobbying skills are two essential tools in the process.

Why would these two skills come in so handy? Well, we all know that when something is communicated in an inexpedient way, we don’t jump up and down in joy and congratulate the messenger. On the contrary, in business life you might trigger all the wrong discussions and end up with no approval and no commitment.

Instead, once you know what you believe is the right thing to do for ERM and the company, it is essential that the message is delivered in a way that appeals to the audience/decision makers. Some get it; some don’t – I know now that I need to work harder on that one.

The level of risk management should at all times be adjusted to the company’s readiness to embrace the current stages of ERM – and this is where the lobbying comes in.

Now that you have these brilliant ideas about the future ERM in your company, a tool to assess the company’s readiness to rise to a higher maturity level could be called “inter-company lobbying”. By that I mean discussing your ideas with members of your decision-making group, getting a feel of what you can expect to achieve in terms of ERM in the busy working environment and the likely possibility of squeezed resources. Also, you get a feeling of how mature the company is in reality compared to the fantastic vision you have for ERM.  The ERM strategy should mirror what the company is prepared to put into the process. Too high goals might easily kill success and that does no good to anybody.

My work reviewing our ERM strategy has just started. However, I feel wiser already – and confident that my committee and I will agree on a good strategy for our company.