Risk Manager's Role Evolving To Support Profound Organizational Change

The roles of risk managers across Europe were explored in the ninth European Risk Manager Survey. The survey, conducted by FERMA, PwC France, and Francophone Africa, explored the work of risk managers in supporting the success and sustainability of their organizations.

FERMA said its 2018 European Risk Manager Survey revealed significant evolution in the role of the European risk manager today. A report of the survey drew on the views of 734 risk managers in 29 countries, according to FERMA.

FERMA revealed findings from the survey about European risk managers, as follows.

• 76 percent of risk managers assess risks that could affect the relevance and viability of their organization's strategy and objectives.
• Nearly 70 percent of risk managers act as risk conductors, consolidating information from other risk-related functions to give a clear and comprehensive view to top management.
• Strategic activities such as governance, risk culture, and risk appetite are increasingly part of the risk manager's mission.
• There is a strengthened connection with information technology and information security, which is significant because cyber risks are ranked as the number one threat to future growth.
• 86 percent of risk managers are responsible for developing risk maps, risk identification, analysis, evaluation, prioritization, and reporting.
• Risk managers are increasingly using new technologies to be more predictive and proactive.
• Insurance management practices are largely stable, but insurance managers are considering strategies for the possibility of a harder market.

FERMA said the survey analysis was broken down by country or regional group to provide local results in a European context.

FERMA President, Jo Willaert, said, "We believe that demands for sustainability, good corporate conduct, and rapid digitalization are leading to profound changes in organizations. This survey shows that the role of the risk manager is evolving to meet these changes. He or she has never been better equipped to be a copilot for the board and top management in this transformation."

Françoise Bergé, partner risk assurance and advisory services, PwC France, said, "Risk managers play their role when collaborating with other functions within the organization to provide comprehensive analysis of the risks to the top management and the board. This report helps to understand the current responsibilities and challenges of the European risk managers and to identify emerging good practices."

The 2018 European Risk Manager Report will be available on December 15 on the FERMA website.