1、in partnership withFERMA European Risk Manager Report 2020We are pleased to present the results of the 2020 European Risk Manager Survey.The survey has taken place every other year since 2002 and represents the widest available picture of views of professional risk managers across Europe.The publica

2、tion of the 2020 Survey is taking place in exceptional circumstances.Before the outbreak of the Covid-19 virus,we could have looked at these results and said risk management in Europe was continuing to develop along familiar lines.Cyber risks were ever more dominant,and economic instability was stil

3、l an important issue.But risk managers were also increasingly concerned about the sustainability of their organisations in the long term and the consequences of climate change and natural catastrophes.The insurance market was hardening,and alternative forms of risk transfer and finance,including cap

4、tives,were already becoming attractive.If we did this survey today,the results would show some changed priorities.The economic damage resulting from the pandemic would almost certainly be at the forefront of risk managers concerns for their organisations in the immediate and medium term.Furthermore,

5、as the crisis has accelerated the digital transformation,cyber risk would also be a short-term priority.The trend evidenced in the survey about the risk managers continuous involvement in the digital transformation of their organisations and their own functions should intensify.Although immediate at

6、tention will focus on recovering from the pandemic,sustainability will remain a key issue and source of opportunities as well as risks.Environmental threats and geopolitical disruptions could lead to more crises in the near future.The survey shows that risk managers look forward to playing a growing

7、 role in sustainability and want to become better equipped to do so.It is today a necessity.As questions arise about the capacity of ERM to identify the relevant risk scenarios and insurance to help deal with the crisis,we believe that it is also an opportunity to heighten awareness of the value of

8、sound risk management.What the survey does show us and this would not change is that the risk manager is increasingly well qualified to participate in the discussions and contribute to the resilience of his/her organisation as we learn the lessons of Covid-19.The importance of professional education

9、 and qualifications for risk managers has never been higher.Dirk Wegener,President of FERMACharlotte Hedemark Hancke,Chairman of the 2020 FERMA Survey Committee and Board Member of FERMAJean-Pierre Hottin,Lead Partner Risk Assurance and Advisory Services,PwC Franoise Berg,Partner Risk Assurance and

10、Advisory Services,PwCFERMA European Risk Manager Report-2020|1ForewordTOP RISKSTWO-THIRDS OF RISK MANAGERS HAVE A QUALIFICATION IN RISK MANAGEMENTSURVEY RESPONDENTSFERMA European Risk Manager Report-2020|3 2|FERMA European Risk Manager Report-202032%59%1/3Key findingsSector of activity 54%Industry 2

11、9%Financial services 13%Services 4%Public sectorof risk managers are women.have more than 10 years experience.of respondents are solely dedicated to Enterprise Risk Management(ERM)activities,1/3 perform both ERM and Insurance Management(IM)activities and 1/3 are specifically dedicated to insurance a

12、ctivities.work in large listed or privately held organisations.80%Climate related risks are increasingly important in the long term.COVID-19On January 9,2020,the Chinese health authorities and the World Health Organisation officially announced the discovery of the coronavirus.The survey to collect t

13、he data for this report was sent to risk managers throughout Europe on January 28,2020.At the time,the coronavirus outbreak had not spread massively in Europe.The survey was online until March 13 and when asked about the most critical threats to their organisations growth prospects,14 respondents sp

14、ecifically commented on the emerging Covid-19 crisis and 1 respondent mentioned a“world epidemic”as the most critical threat.Pandemic had not been included in the survey as a specific option,but a comment field allowed respondents to include other threats.The intensity of the crisis that Europe and

15、the world is facing today brings to the fore the need to better assess and address systemic scenarios arising from digital,demographic,environmental and geopolitical changes.The risk manager is well positioned to contribute to this work,thanks to his/her growing role in aligning risks and strategy a

16、nd in business continuity management.Top 5 risks within the next 12 months Cyber threats Uncertain economic growth Availability of key skills Data fraud or theft Over-regulationTop 3 risks within the next 3 years Cyber threats Speed of technological change Uncertain economic growthTop 3 risks within

17、 the next 10 years Climate change and environmental damage Changing customer behaviour Extreme weather events77%of risk managers say that a recognised certification matters in practising risk management and rank internal recognition as the first benefit of a certification.Do you have a specific qual

18、ification in risk and/or insurance management?YesNo64%36%INTEGRATING ENVIRONMENTAL SOCIAL GOVERNANCE(ESG)RELATED RISKS SHOULD BE THE FOCUS IN THE COMING YEARS FOR RISK MANAGERS WITH REGARD TO SUSTAINABILITYTOUGHER INSURANCE MARKET CONDITIONSRisk managers concerns regarding the four following insuran

19、ce market topicsLimitations and exclusions on emerging specific risksChange in marketconditionsConcentrationof insuranceNew regulations10%12%88%90%32%68%59%41%ConcernedNot ConcernedIs the risk manager playing a specific role regarding ESG-related risks in their organisation?NoYesPlan to13%60%27%9%6%

20、0%10%20%30%40%50%60%70%80%90%100%41%43%10%10%36%45%Risk managers interactions with IT and information security teamsInformation securityITNo relationship/involvementOccasional collaborationUnder the risk managers responsibilityRegular,close collaboration based on a clear mandate37%39%24%How do you d

21、eal with risks arising from emerging technologies?Identification and assessment of risks prior to adoption of new technologies by the businessIdentification and assessment of emerging technologies used by the businessAnalysis and remediation of any insurance coverage gapsA GROWING ROLE IN DIGITAL TR

22、ANSFORMATIONFERMA European Risk Manager Report-2020|5 4|FERMA European Risk Manager Report-202078%of the risk managers involved in sustainability are contributing to the development of ESG reports(risk mapping,extra-financial reporting),and 22%are ESG coordinators within their organisations.Many fac

23、e challenges integrating ESG risks into ERM risk analyses.The main ones are the difficulty of scoping sustainability risks(81%)and the limited knowledge of sustainability risks(70%).40%of risk managers are playing or are planning to play a specific role regarding ESG-related risks.Industry is the 1s

24、t sector of activity that currently uses captives(41%)and plans to use a captive within the next 2 years(43%)Increased attractiveness of captives:+28%A strong and stable relationship with the IT and information security teams.67%of the risk managers use in their activities innovative technologies:da

25、ta analysis,data visualisation,process automation and/or artificial intelligence.The main obstacles to the use of new technologies are the heavy investments they represent for the function(55%)and the lack of perceived added value for the function(52%).58%use web-based applications35%use data visual

26、isationUse of common technologies:Cyber threats were identified by 69%of the risk managers using innovative technologies as one of the most critical risk to their organisations growth prospects.53%use data analysisFERMA European Risk Manager Report-2020|7 6|FERMA European Risk Manager Report-2020Con

27、tentsForeword .1Key findings.2Contents.6Methodology and survey respondents.8|Methodology .8|Profile of respondents .9How did risk managers see risks in 2020 prior to the Covid-19 crisis?.14|Top 5 critical threats to the organisations growth prospects within the next 12 months.15|Top 15 critical thre

28、ats within the 12 next months.16|Top 3 critical threats within the next 3 years and next 10 years.17Part I:The risk managers growing role in the digital transformation.18|Innovative risk management practices continue to develop.18|Risk management contributes to the digital transformation of organisa

29、tions.21|Focus on cyber threats.23Part II:The risk managers contribution to sustainability.24Part III:The risk manager facing hardening insurance market conditions.26|Tougher insurance market conditions are risk managers top concern 26|The rise of captives confirmed.27|Insurance management purchasin

30、g contrasted.30 Part IV:The risk managers education and the increasing importance of certification.32|Qualification in risk management.32|Certification.33Part V:The risk managers presence and interaction within the organisation.36|Levels of interaction with the 3 lines of defence.36|The risk manager

31、s presence at a strategic level of the organisation.39The data in this report were collected from an anonymous web-based survey distributed through FERMAs 22 member associations and the PwC European network between January and March 2020.Responses were received from 764 respondents in 34 countries a

32、ggregated into 3 clusters:The dominance of Western European responses(76%)limited the ability to draw conclusions based on geography.We also acknowledge that the comparatively strong response from France and limited response from the UK could affect certain aspects of the results.(See presentation o

33、f survey respondents profile next page).The survey included 56 questions divided into 6 categories:European Risk Manager Profile(13 questions);Insurance Management and Captives(10 questions);Risk Management and Strategy(10 questions);Risk Management and Sustainable Economy(4 questions);Risk Manageme

34、nt and Innovation(12 questions);Risk Management and Other Lines of Defence(7 questions).Some questions are triggered by the answers to others.Thus,the number of respondents can vary from one question to another.In addition,some questions allowed multiple choices,so the responses may add up to more t

35、han 100%in some cases.The report comprises a detailed description of the survey respondents,a summary of how risk managers saw risks in 2020 prior to the Covid-19 crisis,analysis of answers to the sets of questions listed above and country files summarising the data per country(some countries were g

36、rouped when the number of respondents was not significant).France(including Monaco:21%of respondents)Nordic countries(Denmark,Finland,Norway,Sweden:17%of respondents)Benelux(Belgium,Netherlands,Luxembourg:17%of respondents)Mediterranean countries(Cyprus,Greece,Malta,Portugal,San Marino,Spain,Turkey:

37、13%of respondents)Italy(including Vatican City:11%of respondents)Germany(7%of respondents)Central and Eastern Europe(Albania,Armenia,Austria,Bulgaria,Czech Republic,Georgia,Hungary,Kazakhstan Lithuania,Romania,Russia and Slovenia:6%of respondents)United Kingdom and Ireland(4%of respondents)Switzerla

38、nd(4%of respondents)Western Europe:Belgium,Cyprus,France,Germany,Greece,Ireland,Italy,Luxembourg,Malta,Monaco,Netherlands,Portugal,San Marino,Spain,Switzerland,UK,Vatican City Central and Eastern Europe:Albania,Armenia,Austria,Bulgaria,Czech Republic,Georgia,Hungary,Kazakhstan,Lithuania,Romania,Russ

39、ia,Slovenia,Turkey Northern Europe:Denmark,Finland,Norway,Sweden|Methodology|Profile of respondentsMore than half of the respondents are risk managers in the industry sector,while financial services represent one-third of the sample.Services other than financial(13%)are under-represented in the surv

40、ey considering their increasing weight in the economy.The public sector represents 4%of the sample(about 30 respondents in total).Therefore,these responses cannot be considered as representative.The sample includes mainly risk managers from large(listed or privately held)organisations.In small and m

41、edium size companies,risk management responsibilities are often covered by the CFO or legal officer.Distribution by sector of activityIndustryFinancial servicesServicesPublic sector54%29%13%4%|Sectors and types of organisationsFERMA European Risk Manager Report-2020|9 8|FERMA European Risk Manager R

42、eport-2020Methodology and survey respondentsRespondents by region71%Western EuropeCentral and Eastern EuropeNorthern Europe76%17%7%What is the size of your organisation?Large(250 staffheadcount,50 mturnover)Small(250 staff headcount,50 m turnover)What is the type of your organisation?Listed entityPr

43、ivately held entity(incl.family owned)Branch of a listed entityGovernment entityNot for profitEntity owned by venturecapitalistsIn 2020,the split between the 3 profiles is balanced.Some of the survey questions are specifically addressed to one profile,so the answers are representative of the profile

44、 and the related risk management activities.Risk management teams consist of 1 full time equivalent(FTE)for 34%of ERM departments and 29%for IM departments.37%of ERM departments and 33%of IM departments have 2 to 3 FTEs.Enterprise risk management(ERM)profile:oriented towards overall risk management

45、of the organisation.Business risks are identified,analysed,treated and reduced;Insurance management(IM)profile:oriented towards insurable risks,including loss prevention and risk transfer;Mixed ERM/IM profile:works on insurance,loss prevention and wider risk management issues.There is a balance betw

46、een operational and strategic activities in the top six activities in the scope of risk managers ERM(or ERM/IM)responsibilities.Developing risk maps,embedding a risk culture within the organisation and implementing an ERM framework are the top 3 activities of the risk manager.43%of ERM(or ERM/IM)ris

47、k managers are involved in crisis management and business continuity planning,which are increasingly at the centre of organisations strategy to deal with cyber-attacks,terrorism and now the global spread of Covid-19.The development of strategic activities by ERM risk managers observed in 2018 has gl

48、obally stabilised on risk culture,strategy and risk appetite.However,the proportion of risk managers in charge of the alignment and integration of risk management as part of business strategy decreased from 75%to 67%.|Three profiles of responsibility|ERM activities13%80%7%37%35%8%12%4%4%ERMIMERM/IMT

49、otalWestern EuropeCentral and Eastern EuropeNorthern Europe33%33%38%34%35%35%30%36%32%32%32%30%FERMA European Risk Manager Report-2020|11 10|FERMA European Risk Manager Report-20200%50%100%81%111277%72%67%67%57%43%40%37%22%19%6%1.Development of risk maps:risk identification,analysis,evalu

50、ation,prioritisation and reporting2.Development,implementation,and assessment of risk culture across the organisation3.Definition of the Enterprise Risk Management governance,framework,processes,and/or tools4.Design and implementation of risk controls/prevention5.Alignment and integration of Risk Ma

51、nagement as part of business strategy6.Definition of the risk appetite strategy/statement7.Development and embedding of business continuity management/emergency management/crisis management/incident response8.Assistance to other functional areas in contract negotiation,project management,acquisition

52、s and investments9.Definition of compliance(management,framework,embedding and assurance)10.Design and implementation of risk financing strategy and association solutions11.Analysis of capital projects and delivering business plans12.OtherStrategic activitiesOperational activitiesWhich of the follow

53、ing activities are under your responsibility?IM risk managers scope of activities is well established.However,the survey highlights an increasing role in the definition of compliance(32%in 2018 against 40%today).40%of IM risk managers are involved in crisis management and business continuity plannin

54、g,showing the important role played by insurance in the mitigation strategies of organisations.|IM activitiesThe average proportion of women risk managers is unchanged with 32%in 2020 compared to 31%in 2018.The sectors where women are the least represented are sport,media and entertainment(1%),gover

55、nment(1%)and consumer goods(1%)and the ones where they are the most represented are manufacturing(10%)and banking and financial services(17%).The youngest age group has the greatest proportion of women.Women represent 52%of risk managers under 30 years old,while they are only 16%among those more tha

56、n 60 years old.MaleFemale32%68%Gender breakdown by ageMaleFemaleLess than 30 years oldBetween 31 and 35 years oldBetween 36 and 45 years oldBetween 46 and 55 years oldBetween 56 and 60 years oldMore than 60 years old52%42%34%30%29%16%48%58%66%70%71%84%Risk management is still a profession for the ex

57、perienced,with 64%between 36 and 55 but the average age reduced since 2016.Younger risk managers,those under 36,made up 17%of the respondents in 2020 compared to 15%in 2018.The most experienced risk managers work in the IM and ERM/IM fields with respectively 68%and 66%of respondents having more than

58、 10 years experience.The ERM function experience level is more even.A focus on education is presented in part IV of this report.What is your age?Between 36 and 45 years old Between 46 and 55 years oldBetween 56 and 60 years oldMore than 60 years oldLess than 30 years oldBetween 31 and 35 years old30

59、%34%10%8%5%12%|Professional experience in risk management|Age and genderFERMA European Risk Manager Report-2020|13 12|FERMA European Risk Manager Report-2020Insurance policy managementClaimshandlingInsurable loss preventionDefinition of the insurance management governanceDevelopment and embedding of

60、 business continuity management/emergency management/crisis management/incident response programmes and solutionsDefinition of compliance(management,framework,embedding and assurance)Activities under the IM risk manager responsibility in 202089%80%79%65%40%40%How many years of relevant professional

61、experience in risk and/or insurance management do you have?More than 10 yearsBetween 5 and 10 yearsLess than 5 yearsERMERM/IMTotalIM20%14%18%14%41%30%30%66%68%59%22%19%How did risk managers see risks in 2020 prior to the Covid-19 crisis?Between 2018 and 2020,multiple events disrupted the European ri

62、sk climate:economic and political developments,technological changes and growing environmental pressures among them.This was before Covid-19.The survey asked risk managers to select and rank the major threats to their organisations growth prospects at different time horizons(12 months,3 years and 10

63、 years).The results are presented as follows:Top 5 short-term risks,compared below to previous surveys(2016 and 2018);Top 15 short-term risks,highlighting their evolution from the previous survey and the new risks identified;Two Top 3 risks:a medium-term and a long-term perspective.Two risks remain

64、on top of priorities over the years:the uncertainty around economic growth and the pace of regulatory change.Cyber threats,which entered the Top 5 in 2018 at pole position,remain the most critical concern in 2020.In the 2020 Top 5,two new threats reached the highest level of concern of risk managers

65、:the availability of key skills and the data fraud or theft.The first draws attention to the difficulty of attracting,developing and retaining the skills required to adapt to new technologies and ways of working.The second highlights the threats related to the expansion of data management and use.Th

66、e Covid-19 crisis heightens the importance of the top concerns of risk managers:There has been a spectacular increase in cyber-attacks exploiting the increased number of digital connexions during the confinement and the potential vulnerabilities of people working from home.Uncertain economic growth

67、was already in evidence before Covid-19.During the pandemic,many businesses stopped their operations or significantly reduced activity.European economies shrank during the first quarter with an economic recession predicted.While out of these 5 principal risks,cyber threats are present in all sectors

68、 of activities,uncertainty of economic growth was more marked in the industry and services sectors(respectively 33 and 23%of respondents)before Covid-19.|Top 5 critical threats to the organisations growth prospects within the next 12 months*Public sector is less representative as only 4%of responden

69、ts(refer to survey sample).Top 3 of the risks for the next 12 months by sector of activity38%38%42%26%26%50%29%51%23%33%47%19%Financial servicesPublic sector*ServicesIndustryCyber threatsAvailability of key skillsData fraud or theftUncertain economic growthFERMA European Risk Manager Report-2020|15

70、14|FERMA European Risk Manager Report-2020Top 5 risks in 2020 Cyber threats Uncertain economic growth Availability of key skills Data fraud or theft Over-regulationTop 5 risks in 2018 Cyber threats Uncertain economic growth Geopolitical uncertainty Over-regulation Changing consumer behaviourTop 5 ri

71、sks in 2016 Economic conditions Business continuity disruption Political,country instability Non-compliance with regulation and legislation Competition“With external threats in the spotlight and the post-pandemic economic situation yet to come,the risk manager is at the intersection between risks an

72、d opportunities more than ever.”FERMA|Top 15 critical threats within the 12 next months|Top 3 critical threats within the next 3 years and next 10 yearsThis radar highlights 2 new risks in 2020:Extreme weather events Natural disaster A CEO Perspective:The 23rd CEOs survey1 which gathers the opinions

73、 of 1581 CEOs in 83 countries,shows that CEOs and risk managers have a common and increasing worry about climate change and environmental damage.There was a 25%increase in the number of CEOs“extremely concerned”about this subject between 2019 and 2020.Indeed,the green transition is becoming a major

74、point of focus in Europe.“No matter where CEOs look or from where they are looking,the path forward is fraught with uncertainty.And uncertainty weighs on growth.In the past two years,the percentage of CEOs who believe global GDP growth will decline has increased tenfold(from 5%to 53%).In every regio

75、n,CEOs report increased pessimism.And in almost every region,they show significantly diminished confidence in their own organisations 12-month revenue growth prospects.CEOs are more sanguine about the prospects for the coming three years;however,confidence levels are still at a low not seen since 20

76、09.Over-regulation remains the top threat,but concern is also rising over uncertain economic growth,as well as over trade conflicts,climate change and cyber.”The 23rd PwC CEOs Survey1 23rd CEOs Survey:https:/ 3 risks within the next 3 years Cyber threatsSpeed of technological changeUncertain economi

77、c growth18%18%17%Climate change and environmental damageChanging customer behaviourExtreme weather events17%11%10%Top 3 risks within the next 10 yearsThis medium-and long-term risk ranking shows that the risk managers have 2 major concerns:In the medium term,digital transformation as a result of the

78、 speed of technological change and cyber threats,in a context of economic uncertainty;In the longer term,the transition towards a sustainable environment with a major accent on environmental damage,climate change and extreme weather events.These broad issues also relate to changes in customer behavi

79、our that 11%of risk managers see coming in the next 10 years.As such topics are prevalent,complex and transversal,ERM is diversifying risk mapping to address them through a specific risk assessment exercise.This highlights a trend away from compliance-led risk mapping to a resilience-led risk mappin

80、g,which the current global pandemic crisis is expected to amplify.Risk mapping remains one of the most important activities on the risk managers agenda.Risk maps conducted at corporate level and for certain business units have increased,while the top down approach slightly decreased.Data privacy and

81、 strategic risks are subject to specific risk mapping and relate to digital transformation,as well as the transition towards a sustainable environment.The proportion of risk managers mapping CSR risks has increased slightly(from 8%in 2018 to 11%).This is consistent with their identification of clima

82、te change and environmental damage(17%)and extreme weather events(10%)as among the most critical threats within the next 10 years.In addition,the pressure from regulators in the context of the European Green Deal and the EU sustainable finance strategy pushes companies to increase the disclosure of

83、their sustainable activities.To what extent does your organisation prioritise risks by mapping them?Top down and bottom upCorporate levelTop downCertain business unitsStrategic risksCorruption risksSecurity risksData privacy risksCSR risks34%29%23%14%12%11%18%15%56%Top 5 risksTop 10 risksTop 15 risk

84、sGrowing risks since 2018New riskEconomic and political risksTechnological risksSocial risksEnvironmental risksSocial instabilityAvailability of key skillsChanging consumer behaviorClimate change and environmental damageData fraud or theftCyber threatsUncertain economic growthGeopoliticaluncertainty

85、Over-regulationExchange rate volatilitySpeed of technological changeExtreme weather eventsNatural disasterAsset bubbles in a major economyBrexitFERMA European Risk Manager Report-2020|17 16|FERMA European Risk Manager Report-2020Part I:The risk managers growing role in the digital transformationWhil

86、e the risk management function is moving forward with its own digital transformation,risk managers are also involved and more recognised as part of their companys digital transformation.The use of innovative technologies such as data analysis,data visualisation,process automation and artificial inte

87、lligence(AI)is increasing.Such innovations make it possible for risk managers to manipulate large amounts of data,perform more analysis with larger samples and bring out increasingly useful information.Therefore,they can better appreciate how risks are interconnected and be more proactive and predic

88、tive.The financial services sector is leading this digital transformation:79%of respondents in this sector use at least one innovative technology compared to 64%in other services and 62%in industry.Yet,digital transformation is not universal.So far,34%of the respondents bring none of the 4 technolog

89、ies listed into their daily work.|Innovative risk management practices continue to developof the risk managers interviewed use at least one of these four technologies.67%Use of data analysis,data visualisation,process automation and artificial intelligence by sector of activity(1/2)None of the four

90、innovative technologies usedOne of the four innovative technologies usedTwo of four innovative technologies usedThree of four innovative technologies usedThe four innovative technologies used0%5%10%15%20%25%30%35%40%45%38%21%36%34%25%27%31%30%29%37%21%25%17%21%17%11%16%13%13%21%3%3%3%0%6%AllIndustry

91、Financial servicesServicesPublic sector*Data analysis technologiesData visualisation technologies Process automation technologiesArtificial intelligence technologies0%10%20%30%40%50%60%70%AllIndustryFinancial servicesPublic sector*ServicesUse of data analysis,data visualisation,process automation an

92、d artificial intelligence by sector of activity(2/2)53%52%62%54%43%35%30%44%46%38%28%26%36%29%23%8%6%4%12%12%*Public sector is less representative as only 4%of respondents(refer to survey sample).*Public sector is less representative as only 4%of respondents(refer to survey sample).FERMA European Ri

93、sk Manager Report-2020|19 18|FERMA European Risk Manager Report-2020Process automation is used by 28%of the respondents,around 30%in Western and Central and Eastern Europe and 19%in Northern Europe.48%of risk managers have process automation skills within their teams.For 20%of them,the analysis is c

94、arried out by the central corporate team support,for 16%,the IT department oversees this new technology,and for 16%the company calls on an external service provider to manage this aspect.8%of risk managers are now using AI technologies and this figure is similar in all the geographical areas in Euro

95、pe.The AI solutions used by risk managers and their teams are the following:1.Algorithms(63%)2.Machine learning(54%)3.Text mining(15%)4.Speech recognition(12%)5.Visual recognition or computer vision techniques(12%)6.Natural language processing(2%)In 2020,the main new technology used by risk managers

96、 to perform their risk/insurance activities is data analysis with 53%.This figure increased by 9%compared to 2018.54%of risk managers have data analysis skills within their teams.In 21%of cases,the company calls on an external service provider to manage this task.For 17%,the analysis is carried out

97、by the central corporate team support,and for 7%,the IT department oversees this new technology.Data visualisation is the second most used technology with 35%of respondents.This is an increase of 20%compared to 2018.In Northern and Western Europe,35%of the risk managers use data visualisation to per

98、form their risk/insurance activities compared to 46%in Central and Eastern Europe.Data visualisation is mostly used for the following purposes:1.Continuous monitoring using risk indicators dashboard(60%)2.Interactive risk mapping visualisation(45%)3.Continuous monitoring using action plan dashboard(

99、28%)FERMA report:Artificial Intelligence(AI)Applied to Risk ManagementThis paper aims to guide risk managers on applying AI from a basic understanding to developing their own strategy on the implementation of AI.It includes an action guide and a template for risk managers to develop their own AI ris

100、k management roadmap.Source:https:/www.ferma.eu/publication/artificial-intelligence-ai-applied-to-risk-management/Yet,this development in the use of data is slow compared to global predictions.Risk managers face obstacles that currently limit their ability to take full advantage of digital transform

101、ation.The 2 most important of these obstacles are the heavy investment it represents for the function(for 55%of the respondents),and the lack of perception of the added value for the function(for 52%).Most risk managers continue to use locally based IT tools,such as software for governance,risk mana

102、gement and compliance.The main applications are reporting activities such as risk registers,mapping and dashboards.Even if these uses still predominate,newer technologies such as blockchain,Internet of things and drones,are growing.Web based applications(questionnaire,risk mapping,etc.)DataanalysisD

103、atavisualisationProcessautomationInternetof thingsArtificial intelligenceDronesBlockchainOtherA large panel of technologies are used by risk managers to perform their activities53%35%28%9%8%6%3%2%58%of the risk managers using innovative technologies identified cyber threats as one of the most critic

104、al risks to their organisations growth prospects.69%As organisations face pressure to innovate,a considerable number of risk managers are helping them to manage risk exposures from new initiatives before adoption and to strike the right balance between risk and reward.The proportion of risk managers

105、 helping their organisation by identifying and assessing the risks prior to adoption of new technologies is stable(37%in 2018 and in 2020).Slightly more risk managers help with the identification and assessment of emerging technologies used by the business(39%in 2020 vs 36%in 2018)|Risk management c

106、ontributes to the digital transformation of organisationsHow do you deal with risks arising from emerging technologies?37%39%24%Identification and assessment of risks prior to adoption of new technologies by the businessIdentification and assessment of emerging technologies used by the businessAnaly

107、sis and remediation of any insurance coverage gapsFERMA European Risk Manager Report-2020|21 20|FERMA European Risk Manager Report-2020*Public sector is less representative as only 4%of respondents(refer to survey sample).To help manage those risks,risk managers maintain a stable and high level of c

108、ollaboration with IT(43%have close collaboration and 6%have the activity within their team)and information security teams(45%of them have close collaboration and 10%have the activity within their team).The detail and level of interactions between risk managers and other functions is described in par

109、t V.Risk managers interactions with IT and information security teams43%45%36%41%6%10%10%9%ITInformation securityRegular,close collaboration based on a clear mandateOccasional collaborationUnder the risk managers responsibility(now or for an extensive period of time)No relationship/involvement“Digit

110、al transformation is taking place in all companies across all sectors of the economy.The Covid-19 crisis has emphasised and extended this development to an unexpected level from which there will be no turning back.More than ever,risk managers have a leading role in promoting a risk approach to antic

111、ipating scenarios of exposure to cyber risks when this crisis is overcome.”Philippe Cotelle,Head of Insurance Risk Management at Airbus Defence and Space and FERMA Board member|Focus on cyber threatsCyber risks are the first concern for risk managers in 2020,increasing by 30%since 2018.The 2018 FERM

112、A Survey showed that digital risks,especially cyber risks and data protection,were already a top priority for risk managers.In the 2020 survey,they are the top concern in all sectors.Data fraud/theft entered the top 5 this year,while the risk managers interviewed ranked risks from the speed of techn

113、ological change at number 7.The Covid-19 pandemic directly aggravated the cyber threat.Many attacks occurred from the beginning of the crisis,challenging organisations with the need to face more than one systemic risk at the same time.Sector of activityCyber threats ranking 2018 Cyber threats rankin

114、g 2020Industry31Financial services21Services11Public sector*21FERMA/ECIIA report:At the junction of corporate governance&cybersecurityFERMA and the European internal auditors organisation ECIIA published a second edition of their guidance for corporate governance and cyber security.The report offers

115、 European companies a cyber-governance model and the latest edition includes a case study showing the model in operation.Source:https:/www.ferma.eu/update-ferma-eciia-cyber-risk-governance-report*Public sector is less representative as only 4%of respondents(refer to survey sample).Cyber threats are

116、the 1st concern in 2020 for risk management regardless of the sector of activity.FERMA European Risk Manager Report-2020|23 22|FERMA European Risk Manager Report-2020Part II:The risk managers contribution to sustainabilityNoYesPlan to13%27%60%Is the risk manager playing a specific role regarding ESG

117、-related risks in their organisation?An encouraging 40%of respondents say they are playing or are planning to play a specific role regarding environmental,social and governance-related risks.ESG issues are closely linked with the transition to sustainability in the European Green Deal.The chart belo

118、w provides insights on the 5 greatest challenges for risk managers in integrating ESG into the risk management process.These numbers demonstrate that while risks related to ESG issues,especially the environment,are considered as significant concerns over the next 10 years,risk managers say they are

119、currently not sufficiently equipped to address them.The first challenge faced by risk managers is the difficulty of qualifying or defining sustainability risks(81%).This relates directly to the second challenge raised by 70%of the respondents:the limited knowledge of sustainability risks and the dif

120、ficulty of measuring and quantifying their impacts.This is a complex process that requires internal data about the companys activities and resources and expertise that are not necessarily available in risk management teams.The omission of opportunities,the third obstacle,may indicate that many organ

121、isations treat ESG predominantly as a compliance task to meet increased non-financial disclosure obligations and CSR requirements.As such,ESG may not come within the scope of the risk managers activities.The fourth challenge seems to confirm this finding and indicates the need for risk managers to h

122、ave a closer relationship with the CSR department in order to play a wider role.Currently,only 25%have a close collaboration with the CSR department or have the CSR function within their scope of activity(35%in 2018).29%of the risk managers interviewed have no collaboration with this department(24%i

123、n 2018).In part V,the interactions between risk managers and the other functions are highlighted.They demonstrate that those with CSR are too weak to enable close working and sharing knowledge on such major transformation.The last challenge faced by the respondents is the lack of support from the Bo

124、ard and top management.The transition from simple awareness of the need for green transformation to effective business decisions is still ongoing with different levels of maturity among organisations.These challenges are evidence that when a threat is becoming major and strategic,companies should ad

125、just their internal governance to allow appropriate ownership and management of the risks.Additionally,while risk managers are involved in strategic subjects that have implications in the short term,such as digital transformation(refer to part II),they may be less involved in issues that top managem

126、ent regards as long term.of the risk managers involved in sustainability are contributing to the development of ESG reports(risk mapping,extra-financial reporting)and 22%are ESG coordinators within their organisations.78%1st(81%)2nd(70%)3rd(55%)4th(51%)5th(43%)Difficulty qualifying sustainability ri

127、skLimited knowledge of sustainability risksOmission of opportunitiesLimited collaboration between ESG and ERM specialistsLack of support from Board and Top ManagementRisks managers interactions with CSR sustainability/Sustainable development20%46%5%29%Regular,close collaborationbased on a clear mand

128、ateOccasional collaborationUnder the risk managersresponsibility(now or foran extensive period of time)No relationship/involvement2 The Global Risks Report 2020 by the World Economic Forum(WEF)https:/www.weforum.org/reports/the-global-risks-report-2020.In this specific case,the environmental risk in

129、cludes the following risks:Climate change and environmental damage,extreme weather events,natural disaster.3 23rd CEOs Survey:https:/ the respondents are currently developing a risk map dedicated to Corporate Social Responsibility(CSR)risks.11%Environmental risk is one of top concerns for European r

130、isk managers for the years coming,in line with the Global Risks Report 2020 from the World Economic Forum2 and The 23rd PwC CEOs Survey3.The 2 new risks entering the Top 15 identified by the 2020 FERMA survey are environmental:extreme weather events and natural disaster.Yet moving to a sustainable e

131、nvironment will bring many challenges and drive actions.European Sustainable Finance policies require financial services companies to assess sustainability risks.In the context of the Green New Deal,risk managers from all business sectors can be involved in managing the potential financial consequen

132、ces of such risks,but also in taking advantage of opportunities generated by the transformation to sustainability.Furthermore,the Covid-19 crisis demonstrates the need to consider and better address systemic risks and notably climate-related risks(identified this year as top long-term threats by ris

133、k managers).However,as the pandemic crisis turns into a severe economic,it may affect the ability to finance the environmental transition.FERMA European Risk Manager Report-2020|25 24|FERMA European Risk Manager Report-2020“Managing sustainability is not limited to mitigating the financial impact of

134、 natural catastrophes.Risk managers can also play a role in developing sustainability within their organisations.”FERMA“This drop-in interaction since 2018 may be evidence that when there is a specific CSR function,risk managers are less likely to be involved.”FERMA“We can expect more practical acti

135、ons in the near future,following the current crisis,and an acceleration of thinking around the environmental challenge.”FERMAPart III:The risk manager facing hardening insurance market conditions|Tougher insurance market conditions are risk managers top concernRisk managers concerns regarding the fo

136、ur following insurance market topicsConcernedNot ConcernedLimitations and exclusions on emerging specific risksChange in market conditionsConcentration of insuranceNew regulations90%88%68%41%10%12%32%59%Risk managers with an IM profile regard limits and exclusions of emerging/specific risks in insur

137、ance contracts(90%)and change in market conditions(88%)as their main concerns about the insurance market.The market was already hardening before the pandemic.Premiums had increased while coverages were contracting,with the Covid-19 outbreak adding even more pressure.Insurers are expected to add more

138、 restrictions and exclusions in property and casualty insurance policies.Some of major risks discussed in this report are likely to be affected by these tougher conditions.Additionally,recent mergers and acquisitions among insurers and brokers are concerning IM profile risk managers about the concen

139、tration of the market and potentially reduced choice.In this context,risk managers will focus on two main changes in relation to insurance programmes:Strengthen loss prevention activity(60%):highest increase in loss prevention activity since 2014.This demonstrates a desire for reduction of the compa

140、nys exposure and balance sheet protection;Negotiate long-term agreements or roll-overs(53%),which suggests that risk managers expect further changes in pricing levels and wish to invest in a long-term relationship with their insurers.43%in 201650%in 201452%in 2018Intend to negotiate long-term or rol

141、l-over agreements with their insurersWill strengthen their loss prevention activity54%in 201660%in 202053%in 202043%in 201444%in 2018The analysis of the risks confronting European companies and the hardening insurance market highlight the growing concerns of risk managers regarding emerging risks an

142、d their need for viable solutions.|The rise of captives confirmed76%46%27%16%8%Over the next 2 years,what will be your strategy with regard to risks which are difficult to place on the insurance market?Risk retentionUse alternative risk transfer vehiclesUse an existing captiveCreate a captive insura

143、nce/re-insurance companyOtherFERMA European Risk Manager Report-2020|27 26|FERMA European Risk Manager Report-2020While risk retention and alternative risk transfer vehicles are seen as the main methods for dealing with a shortage of capacity for emerging/specific risks,the use of captives is the st

144、rategy that increased the most in 2 years.In 2018,15%of respondents were considering using captives.Now 43%are considering this solution.Indeed,in 2020:27%of risk managers say they will continue to use an existing captive by 2022 for difficult to place risks(1%in 2018)16%plan to create a captive ins

145、urance/re-insurance company(14%in 2018)This finding demonstrates the attractiveness of captives when risks are difficult or very expensive to place on the insurance market.It reinforces FERMAs emphasis on the value of captives as a genuine risk management tool for organisations.37%of risk managers c

146、ontinue to show confidence in captives(use a captive dedicated to their company or share a captive with other organisations).Risk managers answers to the question about their expectations of their captives activities over the next 2 years confirm the view of captives as a valuable tool to manage tra

147、ditional and non-traditional lines that are difficult to cover.The respondents believe that their captives will be more important across all lines of business.Use of captives for non-traditional lines of cover(e.g.cyber threats,employee benefits,etc.)56%22%19%3%More importantIdenticalNot coveredLess

148、 importantUse of captives for traditional lines of cover(e.g.general liability,property damage,etc.)More importantIdenticalNot coveredLess important53%34%9%4%Organisations using a captive or planning to use one within the next 2 years by sector of activityOrganisations using a captiveOrganisations p

149、lanning to use a captive within the next 2 yearsIndustryFinancial servicesServicesPublic sector*41%43%36%39%20%10%10%37%The captive,a collaboration between ERM and insurance management?A captive is an efficient risk management tool that can bring together ERM and insurance management methodologies,e

150、specially in the need for a clear understanding of risk exposure to drive risk and insurance management decision-making.In a hard insurance market,risk managers may have to make sensitive decisions about financing more risk with a captive because of the markets underwriting restrictions or pricing.H

151、ardening insurance market conditions should put ERM/IM synergies high on any organisations agenda,especially for all questions around the use of captive companies.How much self-insurance can we take?How do we differentiate a“must-have”from a“nice-to-have”cover?What is the actual exposure and how doe

152、s it match the insurance markets price for it?As ERM assesses the exposure and allows the organisation to set its risk appetite,it is crucial for ERM and IM to efficiently liaise and assess these questions holistically.In doing so,they can provide their entire organisation with a way to expand and m

153、utualise group risks,build relevant experience data,leverage discussions with traditional insurance markets and offer added value to customers.FERMA Perspectives:Captives in a Post-BEPS World explains how multi-national organisations can use captives effectively for their risk management programme i

154、n a modern regulatory environment.*Public sector is less representative as only 4%of respondents(refer to survey sample).Industry is the main sector of activity that currently uses captives but also the 1st sector that plans to use a captive within the next 2 years.The financial services are closely

155、 following,and services sector organisations are moving towards this solution as only 20%are currently using a captive but 37%plan to use one within the next 2 years.FERMA European Risk Manager Report-2020|29 28|FERMA European Risk Manager Report-2020The limits of insurance cover that organisations

156、buy can be different from the perceived risks.What overall limit does your organisation benefit from per annual aggregate,independent of sublimits for the following types of insurance?Cyber risk coverageDirectors and Officers liabilityEnvironmental impairment liabilityErrors and omissions/profession

157、al liabilityProduct liabilityPublic liability35%35%17%9%4%8%37%23%24%8%27%40%18%8%7%24%39%18%11%8%20%22%22%18%18%10%26%23%21%20%Not covered300M EURDespite the high ranking of cyber threats and data fraud and theft in the top 5 risks for the next 12 months,35%of respondents bought no stand-alone cybe

158、r coverage and stand-alone cyber risks policies had the least coverage for limits above 50 million.For D&O more than half(56%)purchase limits of 50 million or more.“Insurance has been an efficient tool to finance the consequences of risks over the last 20 years,but the hardening market makes it less

159、 cost-effective for organisations.The shortage of insurance capacity for some exposures will also push risk and insurance managers to explore other ways for financing risks.Within this context,the use of captive(re)insurance companies will undoubtedly rise.Captives allow companies to buffer insuranc

160、e market conditions thanks to a risk financing based on the technical premium for low-to medium-impact risks.The pricing consequently gives more weight to the unique risk performance of the organisation than the insurance market typically does.”Laurent Nihoul,General Manager Group Head of Insurance,

161、ArcelorMittal,Group Finance and FERMA Board memberFERMA European Risk Manager Report-2020|31 30|FERMA European Risk Manager Report-2020|Insurance management purchasing contrasted10%“As a result of the impact of COVID-19,we expect organisations will look for higher limits for their D&O coverage.”FERM

162、APart IV:The risk managers education and the increasing importance of certification|Qualification in risk managementRisk managers confirm the added value of a specific qualification and recognition of the importance of certification.Two-thirds of risk managers have a qualification in risk or insuran

163、ce management:67%have a university or business school degree and 50%have a professional education.20%have both:a university or business school degree and professional education.The proportion of risk managers having a professional education diploma is similar across Europe.The proportion of risk man

164、agers with a university or business school degree is greater in Western Europe with 45%than in Northern Europe where it drops to 28%.This figure is broadly in line with 2018,where 80%of respondents acknowledged the importance of certification.Other certifications mentioned include IRM,GARP,ARM and C

165、EFAR4.*multiple answers were possibleUniversity or business school degreeProfessional educationOther67%50%3%What is your specific qualification in risk and/or insurance management?|Certificationof respondents have a certification or plan to apply for one.Among them,54%have or plan to get FERMAs rima

166、p.44%The age group between 36 and 55 years old represents 66%of the sample.This indicates that majority of risk managers who already have some experience are interested in certification.Which certification risk managers have or plan to have by ageLess than 30 years oldBetween 31 and 35 years oldBetw

167、een 36 and 45 years oldBetween 46 and 55 years oldBetween 56 and 60 years oldMore than 60 years old0%10%20%30%40%50%60%70%80%90%100%4%6%15%17%32%34%36%31%9%10%4%3%FERMA CertificationAnother Risk Management Certification4 IRM:Institute of Risk Management;GARP:Global Association of Risk Professionals;

168、ARM:Associate in Risk Management;CEFAR:“Certificat de formation en assurance et gestion des risques”FERMA European Risk Manager Report-2020|33 32|FERMA European Risk Manager Report-2020Do you have a specific qualification in risk and/or insurance management?YesNo64%36%say that a recognised certifica

169、tion matters in practising risk management.77%FERMA rimap certification5 provides an independent confirmation of risk management professional competences and experience.It is a European standard developed by European risk managers and recognised by FERMAs 21 risk management member associations.A con

170、tinuous dynamic learning path awards CPD(Continuous Professional Development)points for participating in FERMA licensed events.Sebastian Bregning,Senior Risk Manager,Danske Bank A/S DENMARK“Overall,rimap is very relevant and valuable because it gives risk managers a common reference point when we ta

171、lk to each other and even with people in the insurance industry.It is a good benchmark from which to drive the risk management agenda across the organisation and industry.There is increasing demand from risk managers to create value and that value is not limited to savings on the insurance budget.Ri

172、map provides a vocabulary and framework so that we can be efficient in communicating our intentions and expectations.”Frederic Lycops,Corporate Risk Manager,Recticel BELGIUM“I see rimap as an investment,not only in my career and my future as a risk professional but also as an investment for the comp

173、any I work for.It is proof to internal and external stakeholders that people who work within risk management in the company have a certain standard and knowledge of principles of risk management.”Nick Purkis,Senior Risk and Insurance Manager,LeasePlan THE NETHERLANDS“Its that really nice balance of

174、Enterprise Risk and Insurance Risk and its quite unique in the qualifications structure.This brings together two areas that sit together really well but are usually not associated with the course.”Risk managers who recognise the importance of certification rank the internal recognition it provides a

175、s its greatest benefit.This demonstrates the key challenge for the profession to demonstrate its added-value within the organisation.The second advantage of the certification is the development of skills,such as the application of innovative technologies.IM risk managers learn to deal with new risks

176、,while ERM profile risk managers expand their understanding of a changing insurance market.Improved remuneration was considered the least important of the benefits,but as this chart shows,it is especially relevant for risk managers at the beginning of their careers.It is less significant at the top

177、end of the remuneration scale because certification is comparatively recent.The small number of the risk managers at this level are among the most experienced and so may not have taken certification.The details of risk managers remuneration are specified in the country files as average figures are n

178、ot relevant.Improves internal recognition of the function and gains credibility from stakeholdersHelps develop operational skillsImproves employabilityHelps develop your professional networkImproves the remunerationWhat are the 5 most important advantages of a recognised certification in risk manage

179、ment?1st(79%)2nd(77%)3rd(58%)4th(55%)5th(31%)What is your total annual remuneration(including bonus and all compensation)?150K14%15%36%33%30%27%20%17%13%22%12%8%With a certificationWith a specific qualification Without a specific qualification“FERMA,within its vision of a world where risk management

180、 is embedded in the business model and culture of organisations,created rimap Certification as a continuous and dynamic learning path for risk managers educational needs.After 4 years,rimap has been established as a prestigious professional risk management qualification that brings significant value

181、 to its holders.Senior risk managers recognise the importance of being up-to-date with the evolving risk landscape.Rimap also allows them to deepen the strategic aspects of their role,relationships with other functions and their reports to the C-suite.For young people who want to begin a career as r

182、isk managers,rimap adds value by improving their employability and remuneration and developing a professional network.”Isabel Martinez Torre-Enciso,Vice President CEU GROUP,Vice Dean at the Autonomous University of Madrid and FERMA Board member5 FERMA rimap certification:https:/www.ferma.eu/rimap-ce

183、rtification/FERMA European Risk Manager Report-2020|35 34|FERMA European Risk Manager Report-2020Part V:The risk managers presence and interaction within the organisation|Levels of interaction with the 3 lines of defenceDifferent levels of interaction between various functions continue:First rank pa

184、rtners with whom the risk management function has a regular or very close relationship,based on a clear mandate;Second rank partners with whom the risk management function has a more distant relationship and occasional collaboration;Third rank partners with whom relationships can be improved,as ther

185、e is little or no relationship or involvement.Connections and collaboration with all lines of defence are essentially stable.Compared to 2018,slightly more risk managers think that the development of other risk-related functions(compliance,data,cybersecurity,safety and security,etc.)has no impact on

186、 their role(19%in 2018 against 22%today).At the same time,13%of respondents indicate that the risk manager is losing control over specific areas of risk,little changed since 2018.Risk managers in Europe have well-established relationships with operations,finance,legal and IT.The proportion regularly

187、 or occasionally interacting with them has stabilised at a high level(around 85%).More generally on average,75%of risk managers have regular or occasional relationships with the first line of defence.Third line of defense First line of defenseSecond line of defenseOthers third parties assurance enti

188、tiesRegulatorsInternal auditExternal auditTreasuryMergers&acquisitionsSourcingHuman resourcesITOperationsLegalFinance*Crisis management/business continuitymanagementSafety/securityQualityInternal controlEthics/complianceInformation securityStrategic planning businessInvestment and investor relations

189、CSR sustainability/sustainabledevelopmentof risk managers interviewed act as a risk conductor within their company consolidating information from other risk-related functions to give a clear and comprehensive view to the top management61%The first line of defence:collaboration with finance,legal,ope

190、rations and IT remains important1Regular,close collaboration basedon a clear mandateOccasional collaborationUnder the risk managers responsibility(now or for an extensive period of time)No relationship/involvement53%55%55%43%31%37%34%33%24%23%20%46%36%35%43%35%47%41%41%31%30%30%8%9%9%6%6%5%5%4%4%4%3

191、%8%6%6%10%23%12%25%20%38%36%29%OperationsITFinanceStrategic planning businessInvestments and investors relationsTreasuryCSR sustainability/sustainable developmentLegalHuman resourcesMergers and acquisitionsSourcing/procurementFast decreasing interaction 2020 vs 2018*Finance includes first line activ

192、ities as accounting and reporting as well as financial control which is part of the second line.|Development of the impact of other risk-related functions on the risk managers roleFERMA European Risk Manager Report-2020|37 36|FERMA European Risk Manager Report-2020Internal audit remains an important

193、 partner for the risk manager to provide assurance of the effectiveness of the mitigation plans.The third line of defence:relationship with internal audit is strong3Regular,close collaboration basedon a clear mandateOccasional collaborationUnder the risk managers responsibility(now or for an extensi

194、ve period of time)No relationship/involvement11%40%26%41%10%6%5%6%35%35%42%35%45%19%28%18%Internal auditExternal auditRegulatorsOther third parties assurance entities|The risk managers presence at a strategic level of the organisationThe risk management function is usually located at head office lev

195、el.This situation not only enables risk managers to have a global vision of the whole organisation,but also to have access and interaction with other functions as required,and with most of the top management.Three-quarters of risk managers assess strategic risks,unchanged since 2018,but some have as

196、sumed significantly more strategic responsibilities:(76%in 2018)of risk managers assess risks that could affect the relevance and viability of their organisations strategy and objectives.74%(47%in 2018)of risk managers assess risks related to the different strategies considered by their organisation

197、 during its strategy definition.60%(41%in 2018)of risk managers assess risks related to the non-alignment of their organisations strategy with its mission,vision and core values.59%17%9%12%12%10%27%6%13%21%15%10%14%39%37%32%32%36%32%28%40%35%41%45%37%Ethics/complianceInternal controlSafety/securityI

198、nformation securityCrisis management/business continuityQualityA reinforcement of the relationships with ethics and compliance and information security was expected,as a result of regulations such as the Non-Financial Reporting Directive and the General Data Protection Regulation(GDPR).However,this

199、does not emerge from the survey.Risk managers saying that they have occasional collaboration with these functions is unchanged,but regular and close collaboration appears to have diminished.The second line of defence:close relationships continue2Regular,close collaboration basedon a clear mandateOcc

200、asional collaborationUnder the risk managers responsibility(now or for an extensive period of time)No relationship/involvementFERMA European Risk Manager Report-2020|39 38|FERMA European Risk Manager Report-2020In 2020,only 8%of the risk managers say that there is no mechanism in place to formally r

201、eport about risk management,and the same proportion say that they do not have any contact with the CEO.44%of the respondents can contact the CEO directly and 28%indirectly through their superior.There is no significant difference between ERM and IM risk managers.However,64%of ERM managers formally p

202、resent to the Board of Directors and/or top management several times a year while it is only 22%of IM managers.Overall,ERM profiles are more represented on top level committees,and significantly more on audit committees,than IM profiles.|ERM managers represented on|IM managers represented on|ERM/IM

203、managers represented onAudit Committee 48%Board Committee39%Board Committee27%Board Committee34%Risk Committee60%Risk Committee51%Risk Committee44%Executive Committee47%Executive Committee29%Executive Committee35%Audit Committee 25%Audit Committee 32%|Reporting and representation 40|FERMA European Risk Manager Report-2020Contact us for further informationin partnership withenquiriesferma.euwww.ferma.euCopyright 2020 FERMA,in partnership with PwC