FERMA released today (Monday 30 May 2022) the results of the 2022 European Risk Manager Survey conducted in partnership with PwC France in a live webinar from 1 to 2 pm CET.
The FERMA Survey has taken place every other year since 2001/2002 and this is the first one to be completed since the pandemic. Exceptional circumstances have happened since the last survey in 2020. What is the impact on the risk manager’s priorities and ways of working?
There were more than 500 responses from 27 countries.
UPDATE: Full report and country sheets available here
The biggest threats for businesses in 2022 are linked or amplified by the global pandemic and Ukrainian crisis: cyber threats, supply chain & disruption failure, geopolitical uncertainties, and uncertain economic growth notably with the increase in raw material, energy costs, and the issue of their availability as well as the inflation.
Cyber-attacks continue to be at the top of mind in the short (12 months) and medium-term (3 years), while risks related to sustainability are two of the top three risks in the long term (10 years) with climate change the number 1 risk and natural disaster number 3.
Results show the triple crunch in buying insurance protection that risk managers face:
- 78% are heavily impacted or face a major impact in terms of increase in premium
- 71% in terms of reduction in capacity
- 63% in terms of limitations and exclusions on specific risks
As a consequence, risk managers are adapting their insurance strategy over the next 2 years focussing on risk retention (73%), using a captive (35%), creating a captive (12%), and using alternative risk transfer vehicles (29%). The interest in captives has gone up significantly over the past 5 years from 15% in 2018 to 47% today.
In addition, 41% of the respondents believe that some of their company’s activities or locations will become uninsurable in the future illustrating the growing difficulty to insure risks that are seen as systemic (e.g.. cyber, climate change).
The risk management profession
- 91% of Risk Managers are involved in corporate strategy either fully, mostly, or partially
- A growing number of risk managers is playing or planning to play a specific role regarding ESG-related risks in their organisations (56% against 40% in 2020) and 82% collaborate with the CSR/Sustainability department with 32% having a close interaction against 20% in 2020.
- More than half the risk managers work closely with IT and information security on cyber risks or have it within their team. More than one-third of risk managers are directly involved in the management of risks related to the adoption of new technologies by their organisation.
Download the full set of data HERE
FERMA’s intention is to provide a better understanding of the evolving role, the stakes, and the activities of Risk Managers on a national and European level.