FERMA European Risk Management Seminar 2018

Rimap Exam

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Securing our future through Responsible Business Conduct

Part 1 : Adapting to climate change: risks and opportunities

• EU Strategy on Climate Change and the use of insurance in adaptation
• Political and market perspective

Part 2 : Responsible business conduct - risks and opportunities

• Report on Member States’ implementation of Non-Financial Reporting Directive
• Response from the market

Workshops:

Managing Environmental Liability Directive (ELD) exposures

Over the last 15 years, the Environmental Liability Directive (ELD) has shaped the market for environmental impairment insurance (EIL). The European Commission now recognizes the insurance offer as sufficient, but there is still political pressure for mandatory financial schemes to cover the most extreme scenarios of environmental impairment accidents and insolvency risks. Risk managers, therefore, need to be able to justify their company’s mitigation strategies for environmental incidents. The session will help you to:

• Understand the current state of the EIL market and the trends for the next 5 years
• Determine what EIL insurance is most appropriate for your organisation  
• Discover what financial solutions other than insurance are available
• Balance loss prevention and financial protection for your largest environmental loss scenarios. 

Risk mapping in CSR - could it become widespread?

Mandatory risk mapping is a central element in the new French law on the duty of corporate vigilance. It is just the latest example of a requirement by European governments for companies to align their strategy and activities, especially through their supply chains, with societal expectations for ethical corporate behavior. The session will analyse the implications of CSR risk mapping for the risk managers and the impact on “traditional” ERM risk mapping techniques. This session will allow you to:

• Understand what type of risk mapping the regulator wants and the differences with “traditional” ERM risk mapping
• Learn how to integrate new transparency requirements into your existing ERM risk mapping
• Determine what it is mandatory and what it is desirable
• Become a partner with the compliance function on risk disclosure
• Raise the profile of the risk management function by demonstrating the value of ERM techniques for new transparency requirements.

Climate change - the risk manager's contribution to adaptation to this new paradigm

Climate change is now at the forefront of business risks, and the ability of businesses to adapt will become a factor of success in the next decades. By working across functions, corporate risk managers have an opportunity to support their organisations in embedding climate logic into the business. Doing so will help reduce the impact of weather-related events in terms of physical damages and business interruption, and add value and attractiveness to the company. The session will allow you to acquire the knowledge to:

• Position yourself as an actor in climate change adaptation by making the case of a professional risk management approach for climate‐related events
• See examples of accessible and actionable climate-related data and how to apply them in your risk management practices
• Determine what external climate change expertise is needed for your organisation
• Consider what financial solutions, including risk transfer, are suitable for your organisation.

Welcome Reception

Introduction: Cybergeddon or a manageable risk?

• Presentation of the FERMA/ECIIA cyber risk governance report
• Preliminary findings of the OECD/FERMA joint survey on Digital Security Risk Management
• Work of the CRO Forum on taxonomy

Workshops:

Deep dive into cyber insurance

The purpose of this session is to provide risk managers with tools to address the purchase of cyber insurance in this evolving market. The round table discussions will help risk managers develop their understanding of the information needed from the tender process to claims management so they can optimise coverage and recoveries for their organisation. Key questions include:

• Which stakeholders within the organisation need to be involved in the tender/ placement process?
• What information do we need to gather for the placement process?
• How do we balance the carrier’s need for information with the feasibility of gathering that information?
• How do we determine the right limits to purchase?
• What makes a cyber claim successful?

Applying lessons learned

Two exceptional guest speakers will share their experience of large-scale cyber attacks on their companies in 2017. The risk managers of Maersk and Telefonica will describe their level of preparation before the incident, the way they managed the crisis and the lessons learned.

By attending this session, you will learn how to:

• engage with your key business partners and coordinate with non-technical teams in HR, legal, operations and top management
• anticipate future crises with the right governance and processes to improve theresilience of your organisation
• embed insurance within the cyber crisis management
• position yourself during the crisis and the remediation phase to restore the business

Quantification of cyber risks

This session will introduce a method for quantifying cyber risks through a practical and lively exercise. Participants will be given hypothetical cyber catastrophic scenarios based on a fictional company. They will apply the methodology to these scenarios, including by working collaboratively across the organisation to define what inputs are needed, such as the number of affected clients and business interruption duration. Finally, the exercise will lead to a calculation of the potential financial impact of the cyber disaster on the organisation.