AXA Corporate Solutions and Ernst & Young (E&Y) have sponsored the FERMA Risk Management Benchmarking Survey since it began in 2000. FERMA put some questions to Jean-Pierre Letartre, President E&Y France, Maghreb and Luxembourg.
Will you tell FERMA members a little about Ernst & Young’s interest in risk management?
Risk management is a growing issue for our clients, whether they are audit committee members, CEOs, CFOs or risk managers. Many organisations are not getting full value from their investments in risk management because their risk processes are not fully integrated with the decision-making process and because critical data and information are not sufficiently shared.
We look to help them in various ways, for example integrating risk management in the process of making decisions on budgets, strategic plans, investments, projects and so on, the mapping of major risks and the creation and diagnosis of business continuity and crisis management plans. We also publish regular reports and studies for our clients and partners.
Have you seen a growth in interest in risk management among your clients since the financial crisis and if so in what aspects?
The crisis has, indeed, highlighted the need for our customers to reinforce their decision-making processes, to better secure their business models and key investments. Audit committees also increasingly challenge companies’ risk management systems, requiring more risk mapping, remediation plans and risk governance.
E&Y has been a sponsor of the FERMA Benchmarking Survey since the beginning. How does E&Y draw value from it?
This survey gives us a comprehensive overview of risk management practices in Europe in terms of governance, methodology, tools and communication. It allows us to better understand market trends and the different levels of maturity regarding risk management of companies across Europe.
How does operational risk management consulting fit into the E&Y practice as a whole?
Depending on the risk typology identified in the risk mapping, the multidisciplinary nature of our firm allows us to seek the most relevant skills and expertise in other service lines, such as human resources, information technology, accounting and so on.