FERMA, the Federation of European Risk Management Associations, represents the interests of risk managers across Europe, and in her opening speech at the FERMA Forum in Madrid, President Charlotte Hedemark urged them to adapt, improve, and innovate to tackle the fast-changing risk environment.
In her address at the FERMA Forum 2024, Charlotte Hedemark emphasised the need for organisations to rethink their risk management strategies.
She highlighted the importance of moving from a reactive approach to one that is more proactive, collaborative, and strategic in response to emerging risks.
“The theme of this year’s Forum is: Join the Risk Revolution,” Hedemark added. “This encapsulates the idea of embracing a transformative approach to risk management and reflects the shift in mindset from old-school, reactive methods of managing risks to a more proactive, strategic and integrated approach.”
Attendees were urged to foster a culture in organisations where risk management is integrated into all business areas, ensuring that every colleague recognises the importance and value of proactively managing risks to capitalise on potential opportunities.
“The idea of revolution encourages us to think about how we adapt, enhance and where necessary reinvent our approach to address rapidly emerging risks, like cyber threats, climate change and the potential challenges of AI,” she continued.
“It also incites risk managers to step into a more collaborative, strategic role, becoming central to their organisations, working across functions and with leadership, contributing both to long-term resilience and to growth.”
Hedemark noted that this year’s FERMA Forum, with over 2,800 attendees and more than 75 exhibitors, was the largest to date, showcasing the Federation’s progress in its 50-year history.
In describing the theme as “a call to action,” she urged practitioners to engage in reshaping and redefining risk management to address the challenges of a more complex and interconnected world.
“Risk managers today are faced with the twin challenges of responding to immediate, short-term shocks at the same time as integrating longer term concerns, like adapting to climate change and the green transition,” Hedemark said.
She highlighted that the role of risk managers is already evolving, as emphasised by this year’s FERMA Global Risk Manager survey, launched at the Forum.
Conducted in partnership with PwC, the survey assesses the industry every two years and now includes responses from risk management association members worldwide, expanding its scope beyond Europe.
She further added: “The new risk environment calls for a holistic approach – and the survey shows us that the modern risk manager is dealing with both insurable and, increasingly, uninsurable risks like sustainability, climate change, cyber security, regulatory compliance and the social aspects of ESG policies.”
She noted a significant increase in the number of risk managers assessing ESG risks since the last survey. Additionally, 91% of respondents indicated their involvement in corporate strategy, highlighting the shift from an operational to a strategic role for risk managers.
However, the FERMA President expressed concern that over half of the surveyed risk managers worry that certain risks or activities may soon become uninsurable, with climate change, cyber-attacks, and supply chain risks being the primary concerns.
Hedemark thanked the profession’s insurance partners for their continued support, saying: “But let’s now move beyond dialogue into action on some of these critical risk areas to help to find risk transfer solutions. And let’s start that here, at the Forum.”
The President highlighted FERMA’s vital role in connecting, influencing, and empowering the risk management community while raising the profession’s profile across Europe and beyond.
Recently, the Association released its 2024-2029 Policy Manifesto, “Making Europe Risk-Ready for a Brighter Future,” outlining four priorities for EU policymakers and how FERMA can assist. It also published EU policy notes to support risk managers in implementing key legislation.
Hedemark emphasised FERMA’s commitment to equipping risk managers with essential tools and frameworks to navigate the evolving risk landscape, noting the creation of new Foresight and ERM Committees for trend analysis and strategic planning.
“FERMA will continue to provide a platform for dialogue on some of the thornier issues of the day, bringing all stakeholders around the table to discuss topics including ways to close the cyber and climate protection gaps and insurance for transition-related activities, among others,” she noted.
The FERMA President highlighted the Federation’s efforts to enhance professionalism in the risk management sector through the Rimap certification process and to create pathways for young talent entering the industry.
She welcomed students from the Universidad Autónoma de Madrid and Université Paris-Dauphine, thanks to FERMA’s partnership with the European University College Association and its member associations.
Reflecting on the rapid evolution of the risk management profession over the past 50 years, she concluded: “The strategic actions we are taking at FERMA reflect our commitment to addressing the needs of risk managers across Europe, while navigating this change and readying ourselves for the next 50 years.”
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