FERMA highlights risk priorities for companies and announces new Strategic ERM Committee:
- Climate change, cyber threats, supply-chain disruption, and people risks should be top of mind for organisations
- Priorities based on outcomes of FERMA Seminar and ERM Risk Maturity Study
- New committee created to support elevation of risk management function
Brussels, 20 December 2023 –FERMA has produced a list of key risk-related developments that organisations need to prioritise which span climate change, cyber threats, supply-chain disruption, and people risks. The priorities are part of its latest White Paper, “The Roadmap to Strategic Risk Management”, produced in partnership with Marsh.
Based on the outcomes of the recent FERMA Seminar, and reflecting the risk context companies currently operate in, FERMA believes the following developments must be prioritised:
- Expansion from climate-related risks to a wider nature-related perspective both in the EU Corporate Sustainability Reporting Directive regulations and in the recent “Taskforce for Nature-related Financial Disclosures” Guidelines,
- New facets of cyber-related risks deriving from new technologies, notably Artificial Intelligence,
- Supply chain-related risks, their interconnectedness with other risks and their relevance with the company’s strategic objectives,
- Legal consequences and strategic business decisions following geopolitical crises, and
- People risk, in its various forms, such as attractiveness to new generations, and social risk, such as polarisation.
Download the FERMA Seminar 2023 White Paper here.
Discussions at the Seminar, plus findings from the ERM Maturity study compiled in conjunction with Marsh, also underlined the need to enhance aspects of risk analysis and company resilience. The White Paper details those risk-related undertakings that require greater focus, including:
- The balance between short-term and long-term views on risks and opportunities,
- Quantitative risk-analysis approaches and scenario analysis to support decision-making,
- The use of data and deployment of new technologies, even if in “pilot” form, to leverage benefits that enhance the proactive role of risk management in identifying “early warning” signs,
- Risk culture enhancement, strengthening the risk awareness of the first line and general collaboration of key stakeholders on key strategic and emerging risk topics, and
- Alignment of risk communication to the top management and the Board based on business expectations and linked to strategic objectives.
To support its members in these risk endeavours, FERMA has announced the setup of a Strategic ERM Committee. Launching in early 2024, it will provide risk managers with the knowledge, tools, and resources to support their enterprise risk management efforts.
Chaired by Laurence Eeckman, FERMA Board member and Vice President, Group Risk Management at Atlas Copco AB, the committee will operate with a broad remit spanning governance, culture, and communication. Members will share knowledge on processes, methods, and tools to support the development of effective risk strategies and integrated approaches to amplify risk management practices.
Eeckman, who is also Chair of the FERMA Seminar Committee, said: “Discussions at this year’s Seminar centred on the growing relevance of risk management in an increasingly volatile business landscape impacted by geopolitical upheaval, rapid technological advancements, and shifting market forces. Practitioners must be empowered to influence the strategic direction of organisations in a period of such uncertainty. At FERMA, we will support that empowerment through knowledge sharing and promoting best practice.”
Commenting on the new committee, Typhaine Beaupérin, CEO of FERMA, added: “We are excited to announce the FERMA Strategic ERM Committee. The committee will focus on elevating the standing of the risk management profession both at company and European level. We will work to accelerate the evolution of the ERM function as companies strive to keep pace with the fast-changing risk environment and expanding regulatory requirements.”
FERMA, EU, Europe, Strategic Risk Management, Laurence Eeckman, Typhaine Beaupérin
Suzanne Hirst or Nigel Allen
PR agency – Allen & Clapham
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