Monthly Archives: December 2016

FERMA Seasons’ Greetings 2017

 

The Board of Directors and the team of FERMA wish you a happy, healthy and very successful New Year 2017!

Thank you for your continued support in 2016!
 
2017 arrives with even more exciting projects and events to continue building our
truly European risk management community

 

Be with us  in pole position for the FERMA Forum in Monaco

 15-18 October 2017

 

 Looking forward to moving into a FERMAlicious year together !

EXCELLENCE IN RISK MANAGEMENT AWARDS – THE WINNERS

 

The four winners of the 2016 Excellence in Risk Management Awards, presented at a gala ceremony in Brussels on 6 December, expressed their great pleasure at the honour. Their responses highlight FERMA’s aims in creating these awards. Longer interviews with the four winners will appear on the FERMA website next year.

 

Raising the profile of risk managers

The Risk Manager of the Year, Heljo Laukkala,

Vicecre-conferenceawards-4407 President, Corporate Risk Management, Metso Corporation, and a board member of FinnRima, told the audience how he had reached this distinction. “I am grateful to my company Metso Corporation for granting me space to implement and develop risk management practices and processes. I also want to express my humble gratitude to the Finnish risk management associ
ation for the excellent development platform it has beenproviding to all of us as members.”

Heljo concluded his remarks saying, “I especially want to thank FERMA for the valuable network enabling activities that we were just reading about a few years ago. Huge leaps have been taken and valuable unity has been shown.”

Read Heljo Laukkala full interview here

 

Valuing national associations

The winner cre-conferenceawards-4397of the Lifetime Achievement Award, Jana Bicanová, risk manager, and founder and President of ASPAR CZ has been the driving force behind the Czech association since it began in 2007. Jana said: “This is a high point in my professional career and I hope to continue in my work and help continue expanding the risk management community.”

Read Jana Bicanova full interview here

 

 

 

Encouraging young risk managerscre-conferenceawards-4393

The Rising Star of the Year, Pauline Davoust, Risk Manager, Gate Group, and a member of SIRM, said: “We all know it is a difficult environment especially for a young professional. My career in risk management has been very captivating so far, and I have discovered how creative and cross functional this profession is for an organisation’s success. For the past two years, I have been travelling all over the world to supervise various risk management schemes within my company, which was very rewarding and successful thanks to team efforts.”

Pauline’s full interview to come!

 

 

Demonstrating the value of risk management when it is put to the test

Michcre-conferenceawards-4412aël Dehert, who received the Innovative Insurance Programme of the Year Award, described how Brussels Airport Company started examining its insurance process in 2013, considering how best to insure €4 billion in property, extensive liability risks for aviation, business interruption and terrorism. On 22 March 2016, terrorists struck the airport in three locations killing and injuring many. The insurance programme responded as intended. Said Michaël: “I dedicate my award to my colleagues in Brussels Airport, the airport community and the victims of the attacks.”

Read Michael Dehert full interview here

 

 


EU cyber conference: measuring Digital risk management in an industrial group

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Click above to read the intervention

On 14 December 2016, Philippe Cotelle, Head of Insurance Risk Management AIRBUS DEFENCE & SPACE and vice-President of the Cyber Commission of AMRAE the French Risk Management Association, delivered the following intervention at an official event of the Slovak Presidency of the Council of the EU on cyber issues.

On behalf of FERMA, he provided insights on the risk manager role in digital risk management and key recommendations for future EU researches on cyber security.pc1-14-12-2016

 

 

 

 

 

 

logo-sk-pres-2016

 

 

 

More information on the event available at: http://www.eu2016.sk/en/political-and-expert-meetings/conference-on-cyber-issues

 

 

 


Newsletter #74 – All articles

news


KNOWLEDGE CORNER

Cyber risk

Cyber risk handbook (English)

Marsh

here

Facing the cyber risk challenge (English)

Lloyd’s

here

Mastery of Cyber Risk throughout the chain of its value and transfer to insurance 

here

Decision making

Daniel Kahneman (English)

Wharton

here

Earthquake

How to minimise the impact (Italian)

ANRA

here

Europe and Central Asia

Economic Report (English and Russian)

World Bank

here

Financial services

Technology 2020 and beyond: embracing disruption (English)

PWC

here

Risk managers

Airmic status and salary survey (English)

https://www.airmic.com/news/airmic-insurance-spend-rises-salaries-fall

Third party risks

Thomson Reuters (English)

here

here

French publication from Typhaine

Association newsletters

Die Versicherungspraxis (German)

here


New FERMA project officer

FERMA has confirmed Laetitia Fung as project officer. She will be the first point of contact for many members. laetitia-fung

Laetitia’s role includes managing and coordinating the implementation of FERMA projects and providing organisational and administrative support. She is also in charge of the internal and external communication. Before joining FERMA, Laetitia moved to Hong Kong for six years to study Chinese and pursue career opportunities, starting as an account manager for American Express Global Business and then a project manager for Graphisoft Asia, a multinational architectural software corporation.

Laetitia speaks French, English, Dutch and Chinese.

Her contact details are: +32 2 761 94 32 and laetitia.fung@ferma.eu


New working group on cyber risk governance

A new joint working group between FERMA and the European Confederation of Institute of Internal Auditing (ECIIA) will begin work in early 2017, to help companies develop cyber risk governance. This follows a call for experts from among FERMA’s members to participate.cyber-group

Currently, a lack of focus on the risk governance aspect of cyber security in EU laws leaves companies free to organise their risk management. This also means that companies need to devise the functions and methods by which they are going to do this internally.

The working group will propose new methodologies that companies can use. It will assess the requirements for cyber risk governance in light of the two latest EU laws, the NIS Directive and Data Protection Regulation, and focus on essential service industries. It plans to produce a report with group conclusions and recommendations in mid-2017.

FERMA is also contributing to work identified by OECD on a methodology with tools and indicators to measure the effectiveness of digital risk management in businesses. Quantitative rankings for organisation cyber security will be valuable for regulators, investors and business partners, among others.

For more information, contact Julien Bedhouche at the FERMA office: julien.bedhouche@ferma.eu


Environmental Liability: no revised proposal by the EU expected in 2017

There is unlikely to be a revised proposal for the EU Environmental Liability Directive (ELD) in 2017, according to the European Commission document the REFIT Scoreboard 2016.

The REFIT Scoreboard notes that the Commission evaluation published in April 2016 (see Newsletter 71 – May 2016) confirmed the principle that precaution and prevention help to avoid remediation costs, which is in line with FERMA’s consistent views on this subject.

The Commission is now looking for an alignment of national solutions and practices within the framework of the current ELD. In February 2017, it will propose a multi-annual rolling work programme (MAWP) to Member States’ experts and stakeholders in order to improve the interpretation of key concepts and definitions of the Directive.

The MAWP is likely to focus on three areas: improving the evidence base for the evaluation of the ELD, supporting tools and measures for a more even and increasing implementation of the ELD and finally ensuring sufficient availability and demand for financial security to cover environmental liabilities.

About the last point, it is also interesting to note that through the IMPEL network, an association of environmental authorities in Europe, the Commission is still doing some work on the issue. An abstract for a funded project called “Financial Provision – Protecting the Environment and the Public Purse” was published on 19 October 2016.

The abstract contains a description of a two-year project aimed at producing guidelines on the principles of recommended financial provisions. It will include a workshop with regulators from across Europe to share experience, and the development of a practical guide in support of good regulatory process and decision-making in the field of financial provision.

FERMA will monitor the progress of this project and ensure that the conclusions and recommendations are in line with business practices.

FERMA will also provide opinion and advice to the Commission on the proposal to develop an ELD register to collect data on environmental incidents, whether it is established EU-wide or by each national authority.

Last but not least, the European Parliament, throught the Legal Affairs committee will propose an own-initiative report, with only a consultative value but a certain impact over future initiatives from the Commission. First discussions were held at the end of November. The report is likely to be adopted by next September.


Solvency II – First public disclosure in 2017

In 2017, as part of the pillar 3 of Solvency II on disclosure, all (re)insurance companies will disclose to the public for the first time a report on their solvency and fisolvencynancial condition (SFCR). The information provided will be both qualitative and quantitative, meaning not only solvency and capital management items but also the system of governance and the risk profile.

As these reports will be available on the companies’ websites for at least five years after the disclosure date, all market participants will be able to compare the strength of (re)insurance companies operating in the EU.

The first reports for year-end 2016 will be released by 20 May 2017 for solo entities and 1 July 2017 for groups. Some voluntary disclosures may be available before the end of 2016.


Seminar boosts local interest in risk management

The Prime Minister of Malta, Joseph Muscat, made a short presentation at the opening of the Seminar, describing the success of Malta as an insurance domicile and the government’s plans for future development. On the opening of the Seminar’s second day, Malta’s Minister for Finance Professor Edward Scicluna argued that while risk needs to be carefully managed, fear of risk can stifle investment, especially in relation to emerging markets.1720-16-5

Said FERMA President Jo Willaert: “We were delighted that the Prime Minister, Minister of Finance and Professor Jo Bannister, Chairman of the Malta Financial Services Authority, came to the Seminar. It was particularly timely for a European organisation because Malta takes over the Presidency of the Council of Europe in January.”

In addition to the publication of the 2016 FERMA European Risk and Insurance Survey, the programme included additional sessions under the conference themes: leadership, knowledge and education.  Risk manager-only roundtable workshops discussed five topical issues:

  • Business continuity and resilience
  • Digital risks
  • ERM and leadership
  • Financial transparency initiatives and the risk manager
  • Risk management in small and medium sized companies

Three member associations presented their own sessions: the specificity of Malta from host association MARM; risk leadership on the board agenda from Airmic, led by former FERMA President and now Airmic Technical Director Julia Graham, and a cyber risk scenario organised by BELRIM.

The FERMA Seminar 2018 will take place in Brussels.

For more on the 2016 Seminar including pictures and presentations, see http://www.ferma.eu/ferma-seminar-2016/

 Roundtable snapshots

  • “A good plan B five years ago doesn’t apply today. Even at board level, there is an under-estimate about world change.”
  • “Many of our suppliers are SMEs. We need to identify the critical ones in the type of business and know that they are resilient. That includes not transferring risk obligations to them that they may not be able to fulfil.”
  • “How many organisations have done a data classification exercise to identify critical information?”
  • “The risk manager needs to be involved in transformation projects from the beginning.”
  • “It’s now or never to seize the opportunity!”
  • “Corporate insurance buyers are concerned about the impact of events, while providers of products are concerned about cause.”