Tag Archives : non-financial reporting

Risk Conversation at Board level: 5th webinar with ecoDa and AIG – Transparency

5th joint webinar with FERMAand ecoDa/AIG dedicated to transparency in our series “Risk Conversation at Board level”

Increased Risk Reporting Requirements

09 March 2017 from 14:00 – 15:30

Click above for more details and complete biographies

Our webinar will illustrate how risk managers can support their boards in expressing the risk appetite of the organisation and provide input in the ‘annual report’ process. The EU system will be compared to the US approach.

  • role of the risk manager as a strategic advisor when it comes to respond to Board questions on transparency requirements (risk reporting, reputation…)
  • role of the risk manager about the quality of the reported data about risks, their identification, collection and assessment

A strong disclosure regime that promotes real transparency is a pivotal feature of market-based monitoring of companies and is central to shareholders’ ability to exercise their shareholder rights on an informed basis.

Over the past years, transparency has largely been the leitmotiv for regulators to require additional disclosures that goes beyond the financial and operating results of the company.

What are the costs of not being prepared (regulatory risk, reputation risk)?



  • Helle Friberg, FERMA board member
  • Alexandra Lajoux, Chief Knowledge Officer Emeritus, National Association of Corporate Directors
  • Daniel Lebègue, President of Transparency International France
  • Eric Miller, Head of EMEA tax advisory at AIG


Expert view: Questions to ask to identify and remove modern slavery from business

Expert view: Non-financial reporting

The Thomson Reuters Foundation describes the issue of modern slavery for business and lists questions for risk managers to ask.

Modern slavery is a $150 billion industry affecting 45.8 million people worldwide according to the 2016 Global Slavery IndexIt may exist in your enterprise. This is, perhaps, not surprising if we consider the complexity of modern supply chains.

Governments around the world have enacted a raft of laws and updates to tackle the modern slavery industry and ensure transparency – from the EU Non-Financial Reporting Directive, the UK Modern Slavery Act, and the US Trade Facilitation and Enforcement Act and proposed Business Supply Chain Transparency on Trafficking & Slavery Act.

This is an essential part of the solution, but it is ultimately up to companies themselves to act.  What should you as a risk manager be asking?


Expert view:

Questions to ask to identify and remove modern slavery from business

 The Thomson Reuters Foundation, the charitable arm of Thomson Reuters, has launched the Stop Slavery Award, a business-friendly initiative to recognise companies that transparently disclose information about their supply chains and take concrete steps to remove instances of forced labour. It will be awarded for the first time in November 2016.

All companies applying for the award completed a detailed questionnaire, an extremely useful starting point for any risk manager wanting to be more aware of the issue.

The questionnaire aims to highlight best practices relating to corporate commitment and reporting, together with performance measurement, business partner engagement, training, risk assessment, business authentication, and investigation and remediation.

Key questions for risk managers to ask:

  • Have you developed partnerships with other businesses, NGOs or government actors to gain a better understanding of the risks faced by workers at your operations or within your supply chain?
  • Do you complete risk mapping, risk analysis and due diligence to identify and prioritise the risk of slavery at your operations and within your supply chain?
  • Does your risk assessment go beyond your direct (first-level) business partners?
  • Do you have a defined approach to addressing or mitigating risk, where a possible or probable risk of slavery is identified?
  • Do you conduct unannounced “spot audits” or inspections at your own operations? Do you conduct unannounced “spot audits” or inspections at your suppliers’ operations?
  • Do you engage a third party to carry out or assist with the audits or inspections? Are your audits or inspections tailored to take account of local or regional differences, including more prevalent risks?
  • Do you require your business partners to report on risks and remedial steps taken to eradicate slavery at their respective operations?

To download the full questionnaire and view all questions pertaining to risk assessment, business authentication, and investigation and remediation, click here.

The Thomson Reuters Foundation acts to promote socio-economic progress and the rule of law worldwide. It does so through its four key programmes: journalism training and media development, coverage the world’s under-reported stories, its global pro bono service TrustLaw, and the Trust Women conference.


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.

FERMA and ECIIA respond to new corporate transparency requirements

FERMA and the European Confederation of Institutes of Internal Auditing (ECIIA) have responded to increased EU requirements for more corporate transparency with a new joint guidance document on the 8th Company Law Directive which was launched at the Seminar.

The new document “Audit and Risk Committees: News from EU Legislation and Best Practices” examines specifically how these committees should support their board and be supported by the two professions: risk managers and internal auditors. Continue reading

FERMA and ECIIA respond to corporate transparency requirements with launch of new guidance document

The Federation of European Risk Management Associations (FERMA) and the European Confederation of Institutes of Internal Auditing (ECIIA) have responded to increased EU requirements for more corporate transparency with a new joint guidance document on the 8th Company Law Directive launched today at the FERMA Seminar.

Audit and risk committees are on the frontline of the transparency rules enacted by the EU over the last five years. Continue reading