On 3 and 4 October, FERMA will reveal the results of its 2016 FERMA European Risk and Insurance Survey – and risk managers will be able to see how their profession has developed over the past 10 years.
FERMA launched the first pan-European benchmarking survey in 2001-2. By 2006, the survey questionnaire was generating answers from 460 companies and their risk managers. The FERMA Survey had become a real expression of the views of European risk managers and a benchmarking tool for them.
Since then, the survey has become more sophisticated with each edition. The FERMA European Risk and Insurance Report, which gives the results, is a real tool for risk managers throughout Europe to benchmark their companies’ risk management and their own roles. Comparing the 2016 results with 2006 will show how risk management has developed over these 10 years.
Jo Willaert, the President of FERMA, encourages all FERMA members to participate in the 2016 survey. “Risks have changed dramatically over this period. Risk management is now a true added-value in achieving the goals of every company, as new and exceptional exposures become a daily reality. The more answers to the survey, the more representative the voice of the risk managers will be in the European decision process.”
Ten years ago some experts were jittery about the inflated US mortgage market and soaring stock markets, but this was still the world before the financial crisis. Terrorism had already shocked the world with the attacks on the World Trade Centre in New York and on Madrid in 2004. Corporate scandals, mainly but not entirely in the United States, were making corporate governance a big issue. Legislation that followed, especially the US Sarbanes-Oxley Act, had given a new impetus to enterprise risk management.
In 2006, the FERMA Survey revealed that European risk managers saw operational risks and the business environment as the most important risk categories for their companies. Financial risks were lower down the list of priorities – and cyber risks were not even mentioned, only data systems.
Marie-Gemma Dequae, who was President of FERMA in 2006 and is now FERMA’s scientific adviser comments: “In the 2006 survey, we see a more internal, technical focus on risk management policy and practices, without talking about embedding risk culture into all levels of the organisation.
“The relationship with top management and board was not a significant point of the survey in 2006. External reporting of risk and risk management was gradually developing, but the risk manager was not always actively involved in the process. While in 2006 there was a call for European solutions to address new risks (like terrorism) for the first time, in 2016 we expect that a large part of the survey will deal with EU priorities,” she says.
In terms of insurance, the sensitive issues 10 years ago were disclosure of broker remuneration and timely delivery of documents. Making more use of freedom of services was cited, rather than global programs.
|The most important risk categories 2006|
Jo Willaert concludes: “The 2006 FERMA Survey shows us where we have come from. The results of the 2016 Survey will provide useful comparisons for you and your own organisation and pointers for the future. I encourage all FERMA members to take part.”
The objectives set by the first FERMA Survey in 2002 are unchanged today:
- Identify risk management best practices in Europe;
- Benchmark current risk management practices;
- Start building a benchmarking tool to track the evolution in the application of enterprise risk management in Europe;
- Provide a valuable tool for risk managers to benchmark and possibly upgrade their own organisation.