FERMA identifies key risk priorities and establishes strategic ERM committee

The Federation of European Risk Management Associations (FERMA) has unveiled a comprehensive roadmap for organisations to navigate and prioritise emerging risks.

In collaboration with Marsh, FERMA’s latest White Paper, titled “The Roadmap to Strategic Risk Management,” highlights crucial developments that demand immediate attention.

The identified priorities, shaped by insights from the FERMA Seminar and the ERM Risk Maturity Study conducted with Marsh, include the expansion of climate-related risks to a broader nature-related perspective, the evolution of cyber threats driven by Artificial Intelligence, supply-chain disruption, legal consequences post-geopolitical crises, and various people-related risks such as generational attractiveness and social polarisation.

Acknowledging the evolving risk landscape, discussions at the Seminar emphasised the need to enhance risk analysis and bolster company resilience.

The White Paper underscores critical areas that warrant increased focus, including the balance between short-term and long-term risk views, quantitative risk-analysis approaches, leveraging data and new technologies, enhancing risk culture, and aligning risk communication with top management and strategic objectives.

In response to these challenges, FERMA announced the establishment of the Strategic ERM Committee, set to launch in early 2024.

Chaired by Laurence Eeckman, FERMA Board member and Vice President of Group Risk Management at Atlas Copco AB, the committee will operate broadly across governance, culture, and communication. It aims to equip risk managers with knowledge, tools, and resources to enhance enterprise risk management efforts.

Laurence Eeckman, also Chair of the FERMA Seminar Committee, emphasised the growing relevance of risk management in today’s volatile business landscape.

He stated, “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 practices.”

Typhaine Beaupérin, CEO of FERMA, expressed excitement about the Strategic ERM Committee, noting its focus on elevating the standing of the risk management profession.

She stated, “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.”

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