The Federation of European Risk Management Associations (FERMA) represents the risk management profession at European level
We bring together 21 risk management associations in 20 European countries, representing nearly 4800 risk managers active in a wide range of business sectors from major industrial and commercial companies to financial institutions and local government bodies. We provide the means of coordinating risk management and optimising the impact of these associations at a European level.
We promote communication among our members and within International Federation of Risk and Insurance Management Associations (IFRIMA) of which FERMA is a member: http://www.ifrima.org/
What is Risk Management?
In today’s competitive business environment, Risk Management – which is defined as “managing the threats and opportunities to our businesses within acceptable risk tolerances” – plays a vital role in the success of all businesses.
Risk Managers bring their professional expertise to this discipline and to corporate governance. Increasingly throughout Europe, organisations employ Risk Managers, whose function embraces risk identification and mapping, risk control and
risk financing, including insurance.
Historically in financial institutions, risk functions such as legal, compliance, audit, credit risk and market risk were managed in separate organisational silos. Operational risk was generally the responsibility of business units as part of their daily activities. Risk management was focused primarily on financial, predictable and quantifiable risks related to loss prevention. Since the 1980s, risk management has evolved to include corporate governance, alignment to strategic objectives, capital adequacy and stakeholder value. Additionally, regular discussions on risk management started appearing on corporate board agendas.
In 2003 FERMA has adopted the Risk Management Standard to establish a uniform pan-European approach to risk management procedures sets out a strategic process, starting with an organisation’s overall objectives and aspirations, through to the identification, evaluation and mitigation of risk, and finally the transfer of some of that risk to an insurer.
What do Risk Managers do?
The risk manager supports the company to achieve its objectives. He or she identifies and assesses risks that could threaten the realization of these objectives or prevent the business from taking advantage of opportunities. The risk manager works with his or her colleagues to keep the company’s exposure to risk within the agreed risk appetite. He or she acts as a coordinator, educator and communicator. The risk manager’s profile is largely determined by the structure to which his actions will apply. Experienced based, this position must allow adaptation to a multitude of professional cultures (financial, legal, technical, commercial,…) and be combined with an attitude to communicate and convince.