Tag Archives : integrated risk management

Cyber security is an enterprise risk, FERMA tells the European Commission

Cyber security requires an enterprise-wide approach, and the risk manager’s role is to help the company achieve effective, data-based enterprise risk management, the Federation of European Risk Management Associations (FERMA) has told the European Commission.

Click above to read the FERMA response to the Commission’s consultation on public-private partnerships in cyber security

Click above to read the FERMA response to the Commission’s consultation on public-private partnerships in cyber security

In its response to the Commission’s consultation on public-private partnerships in cyber security concluded last week, FERMA stated: “Businesses have difficulties with reaching a basic level of protection often due to a lack of risk insights and data driven risk mitigation.”

FERMA President Jo Willaert, commented: “The boards of organisations need to understand that cyber risk is not only an IT risk; it is an enterprise risk. In that respect, we advocate a central role for the risk management function. Without being an IT specialist, the risk manager provides expert advice to support the board and the CEO. He or she is working hand in hand with the operational units such as IT, legal and internal audit.”

FERMA stressed that this overview of cyber risks across an organisation, including into the supply chain, is critical especially with the development of the Internet of Things. Using  scenario-based analysis, the risk manager can quantify the overall cyber risk exposure and validate mitigation strategies on an enterprise basis.

FERMA also argues that public intervention is necessary in order to help organisations cope with the challenge of cyber risks. It urges the development of:

  • A framework for the clarification of cross-border liabilities in cyber incidents;
  • A global set of rules for cyber risk assessment that would safeguard confidentiality in incident disclosure and insurance claims;
  • The incorporation of cyber risk governance in legislation and guidance to create an integrated approach to the threats from top to bottom of the organisation.

Jo Willaert said: “Cyber threats are now of a systemic nature. Businesses, governments and insurers, therefore, need to collaborate. We must act now.”

CONTACTS
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.


FERMA welcomes Global Risks Report 2016 call for a culture of integrated risk management

Click here to access the Global Risks Report by the World Economic Forum

Click here to access the Global Risks Report by the World Economic Forum

The Federation of European Risk Management Associations (FERMA) welcomes the call in the Global Risks Report 2016 for a culture of integrated risk management to create resilience a world that is facing risks which are manifesting themselves in new, often unpredictable and potentially very harmful ways.

FERMA strongly supports the view stated in the report that an integrated culture of risk management – the beliefs, norms and values that underpin daily actions – must span the whole organisation, including its supply chains. It cannot afford to have different policies, operating procedures and managers for different types of risk. Instead all parts of an organisation must work collaboratively on risk management through integrated planning.

FERMA President Jo Willaert said: “As risk managers, one of our principle roles is to see that risks are managed across the organisation and support the board and senior management in embedding and maintaining a transparent risk culture. We therefore welcome the conclusions of the Global Risks Report 2016, which underlines the need for companies, organisations and governments to follow a holistic approach to risk management so as to build resilience at national and global levels.

The Global Risks Report is published annually by the World Economic Form. The 2016 edition is available at http://www.weforum.org/reports/the-global-risks-report-2016

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.