Risk managers increasingly involved in corporate strategy and sustainability in a time of transition
FERMA has published today the report of the 2022 European Risk Manager Survey and the eight related countries files in cooperation with PwC France. They confirm that we are in a period of transition in which risk managers are increasingly involved in corporate strategy and sustainability.
The survey has now taken place every other year for 20 years. It represents the most comprehensive picture of the views of professional risk managers across Europe. The 2020 survey was held before the height of the pandemic. The 2022 results reflect the exceptional circumstances that have prevailed since then and remain with us.
Charlotte Hedemark Hancke, chair of FERMA Survey Committee 2022 said: “The results of this 2022 survey show the risk manager is increasingly collaborating with other risk-related functions and consolidating information for the top management, including on strategic topics such as sustainability and digital risks.”
- Click here to download the FULL REPORT in PDF format
- Click here to check The European Risk Manager Profile 2022 with our European Map and results per country
- Click here to download the full set of data
Risk discussions at Board/top management levels are more frequent, and the risk manager’s involvement in corporate strategy and sustainability has consolidated:
61% review strategic risks, 40% contribute to the corporate strategy definition, 40% work on sustainability risks and impacts, and 33% work on different scenarios of the business plan.
We see that risk managers are increasingly involved in sustainability matters and environmental, social and governance (ESG) related risks. More than half (56%) said they were playing or planning to play a significant role regarding ESG risks, compared to 40% in 2020.
Dirk Wegener, President of FERMA, commented: “The survey results also reinforce FERMA’s four priorities in its advocacy work on behalf of its members and individual risk managers across Europe.”
Digital and sustainability
Risk managers are growing in confidence dealing with sustainability issues. In the 2020 survey, 70% cited lack of knowledge as a constraint to contributing on ESG matters. This fell to 29% in 2022.
There has been a 12% increase in collaboration with corporate social responsibility/sustainability; 37% said they work together closely and 3% said it is now a risk management responsibility.
Collaboration between risk management and IT and information security has consolidated over the past few years and is now an established aspect of their work: 60% said they either had regular, close collaboration with IT and information security or had the overall responsibility. Most risk managers are involved in some aspect of managing risks from emerging technologies.
Risk transfer and systemic risk
The ability of organisations to transfer risk remains a concern for corporate insurance buyers in the hard insurance market: 78% reported a significant impact from increased insurance pricing and 71% in terms of reduced capacity.
There has been a steady growth in the interest in captives since the 2018 survey, with 35% saying in 2022 they would use an existing captive and 12% saying they would consider creating a new captive.
Two of the top 3 risks on a 10 year horizon are climate change and environmental change, and natural disasters.
A significant proportion (41%) believe that some operations or locations could become uninsurable.
We will continue to explore these themes at the 2022 FERMA Forum and in our next survey in 2024. The 2022 FERMA Forum Transitioning Together: Risk leadership in a fast changing world will take place in Copenhagen from 9-11 October. See the programme and register here.
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