WHERE WE ARE

22 member associations in 20 countriesOver 4300 individual members who are responsible for risk management and/or insurance in their organisations

OUR MEMBER ASSOCIATIONS

Our Purpose

Co-ordinate, promote and support the development

and use of risk management, insurance

and risk financing in Europe

Be a significant stakeholder in the decision making

process at the European level on risk management,

insurance and risk financing

Leading risk management and insurance across

Europe

Top 10 2014 2012 Mitigation level Satisfaction level

1. Political – Government intervention, legal & regulatory changes

2. Reputation and brand

3. Compliance with regulation and legislation

4. Competition n.c*

5. Economic n.c*

6. Market strategy, client n.c*

7. Planning and execution of strategy

8. Human resources / key people, social security (labour)

9. Quality (design, safety & liability of products & services)

10. Debt, cash flow n.c*

THE FERMA RISK 2014 MAP

High Medium Low*n.c not comparable

The Voice of European Risk and Insurance Managers

European Risk and Insurance Report

Embedded activities

• Insurance management and claims handling and insurable loss prevention

• Development of risk maps

• Assistance to other functional areas in contract negotiation, project management, acquisitions and investments

• Design and implementation of risk controls / prevention

Trend

• Development and embedding of business continuity management

• Alignment and integration of risk management as part of business strategy

• Development and integration of risk culture across the organization

PLANNED ACTIVITIES

Trend

Reporting at Top Management level

A strong interaction with Top Management / Board48% of Risk Managers present RM activities several times a year

Top 3 reporting lines

RM function IM function

CFO 22% 31%

Board of Directors 18% 12%

CEO 17% 12%

Widespread use of risk mapping

• Reporting at CFO level 22% with sector variations

• Board of Directors/Supervisory Board level primary reporting line of the ‘Automotive’ , ‘Banking and Financial Services’ sectors

• In small companies reporting to the Board of Directors / Supervisory Board most commonly shared practice

• Reporting at CEO level mostly observed in the ‘Healthcare’, ‘Pharmaceuticals’ and ‘Real Estate’ sectors

CFOs REMAIN PRIMARY REPORTING LINE FOR RISK MANAGERS ACROSS EUROPE

Areas for reflection

What is the right organisation for Risk fonctions?

Risk and Audit Committee responsibilities

1. Review risk management systems2. CRO or equivalent3. External audit4. Relationship and coordination5. Report annually on the effectiveness and efficiency of risk

management in the organization6. Review annually the performance and terms of reference

of the Committee in order to determine whether it is functioning effectively by reference to best practices

7. Oversee the integrity of the financial reporting process and financial reports

8. Review the efficiency of internal control and risk management systems

9. Review and appraise the audit activities: independence, objectivity and effectiveness of the audit process

10. Supervise the internal audit function

Audit and Risk CommitteesNews from EU Legislation and Best Practices

Source: Audit and Risk Committees - News from EU Legislation and Best Practices 2014

THREE LINES OF DEFENSE

Source: Audit and Risk Committees - News from EU Legislation and Best Practices 2014

FERMA Certification

The aim is to certify the competence of Risk Managers

• Certification and Accreditation launched in parallel • Certification application through

• online submission • file review • interview

• Certified Risk Managers will be part of an Alumni • Longer long term two certification levels planned• First Awards at the 2015 FERMA Forum • FERMA will accept applications globally

The Profession of Risk Leaders

• ACCREDITATION: verifying that third-parties can demonstration its competence to carry out specific conformity assessment tasks

• CERTIFICATION: verifying that individual candidates have adequate credentials to practice the risk management discipline

By the Certification Process FERMA will set up an standard to evaluate the candidate skills along with other pillar such as experience, ethics and CPD.

FERMA CERTIFICATION