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Creating an international network in risk management education

marcus

Marcus Feldt is Specialised Client Director for the Stockholm School of Economics

Through rimap®, FERMA is building the first network of risk management education providers and risk managers across Europe. Marcus Feldt of the Stockholm School of Economics Executive Programme explains the expectations for this new network.

The Risk Management Diploma offered by the Stockholm School of Economics (SSE) Executive Education is one of the
first six education programmes in risk management to receive accreditation from rimap.

Through rimap®, FERMA is building the first network of risk management education providers and risk
managers across Europe. Marcus Feldt of the Stockholm School of Economics Executive Programme explains the
expectations for this new network.

leading research body within finance, economics,general management and leadership. Our sub-brand IFU
specialises in insurance education, and SSE Executive Education believes this new network will provide a solid
framework for continued work on professional and academically relevant education within the risk
management area.

The network will contribute to a more coherent and improved basis of competence, where knowledge sharing and best practice occur between education bodies and FERMA. We expect this new relationship to raise the level of awareness and knowledge about risk management at every level in the public sector and business world.

Contribution to the development Our aim is to broaden our scope of courses to cover every significant aspect of risk management. That means traditional fields and fundamentals, but mainly new and topical subjects. The development of the risk management portfolio will have two drivers. One is the day-to-day work done by Executive Education/IFU in
creating courses and seminars in current risk management subjects, such as cyber risks, culture and governance. Second is cooperation through SWERMA with networking activities and discussions to remain relevant to its members and have an updated educational offering.

We have been working closely with SWERMA for more than five years and have a joint agenda in developing the whole risk management profession This applies not just to the role itself, but even more to awareness at top management and board level of the potential of risk management as a strong tool for developing companies, other organisations and, to a great extent, society.

In ten years
Our belief is that the risk management profession, or rather professions, will become more formalised in many areas, such as in financial services. A more precise specification of many risk roles will also occur, given new regulations
and authorities’ recommendations, as risk management organisations mature. From the enterprise risk management perspective, we believe there will be further integration and formalisation of organisational functions working
with risks within many organisations.

This will increase the scope for risk managers who will have to work more closely with other second line entities, as well as first line and business representatives. In this role, they will be not just highlighting compliance and
security issues but also driving business development and adding value to their organisations.

Thanks to this development, we believe that the profession will gain a higher acceptance and recognition
in many organisations, including from the board of directors and top management.


Expert Views: the changing aspects of managing terrorism risk

Terrorism has been a threat for some years and materialised sadly in France several times in 2015. We are facing a situation where victims of an attack in France (whatever their nationality) will be indemnified by state funds, either existing or through free access to medical services which was recently decided.

Anne-Marie Fournier, board member of AMRAE and Risk Manager of luxury brands group, KERING

Anne-Marie Fournier, board member of AMRAE and Risk Manager of luxury brands group, KERING

Employers have to take decisions on the protection of employees and security departments in industrial or commercial services companies decide on most appropriate measures depending on location, activity, reputation, etc. Most industries are checking more carefully all persons entering their locations and probably also checking many sensitive areas like for example crucial data of the company.

Regarding property damage and consequential business interruption (PD/BI), insurers underwriting PD/BI covers have an obligation to provide terrorism cover. As a counterpart of this mandatory cover, insurers access a global reinsurance scheme administered by GAREAT, a pool launched on 1 January 2002. GAREAT organises the tariff and reinsurance of this exposure with the commercial insurance market and through French state funds for “unlimited treaties” reinsured through the Caisse Centrale de Réassurance.

Unfortunately GAREAT has no dedicated reserves, as all premiums are transferred to the market reinsuring the terrorism exposures. As a consequence, there is a limited possibility of action in order to answer current needs for cover for “financial losses” without property damage. For example, activities that closed by prudence in the days following the recent attacks cannot benefit from business interruption cover if they have not suffered any property damage.

There are many activities with large numbers of visitors or participants which have cancelled activities and closed locations by prudence and have no insurance for these financial losses.

AMRAE would encourage this system to be reconsidered in order to leave the commercial market free to deliver the cover that it does elsewhere. There is hardly any other mandatory state schemes for terrorism insurance in the world; (many are optional.) The state-backed scheme could then concentrate on losses which cannot be obtained from commercial markets: nuclear, biological and chemical (NBC), pure financial losses, unlimited cover over €2B, etc.

Additional resources:
AMRAE resilience attentats (French)