The Federation of European Risk Management Associations (FERMA), in collaboration with Marsh, surveyed the attendees at this year’s FERMA event and combined the responses with key takeaways from workshops to create this must read report that is packed with valuable insight and informative data.
The white paper, The Roadmap to Strategic Risk Management, covers a range of topics that organisations should include in their thinking such as climate change, cyber threats, supply-chain disruption, and people risks as it discusses how to strategically plan to best mitigate risk.
What are the priorities in strategic risk management?
FERMA believes the following developments must be prioritised:
- Expansion from climate-related risks to a wider nature-related perspective both in the EU’s Corporate Sustainability Reporting Directive and in the “Taskforce for Nature-related Financial Disclosures” guidelines.
- New cyber-related risks emerging from new technologies, such as Artificial Intelligence.
- Supply chain-related risks, their interconnectedness with other risks and their relevance with the company’s strategic objectives.
- Legal consequences and strategic business decisions following geopolitical crises.
- People risk, in its various forms, such as attractiveness to new generations, and social risk, such as polarisation.
Key topics covered in the report
Read more about key topics analysed in detail in the report, such as:
- The balance between short and long-term views on risks and opportunities.
- Quantitative risk-analysis approaches and scenario analysis to support decision making,
- The use of data and deployment of new technologies, even if in pilot form, to leverage benefits that enhance the proactive role of risk management in identifying early warning signs.
- Risk culture enhancement, strengthening the risk awareness of the first line and general collaboration of key stakeholders on key strategic and emerging risk topics.
- Alignment of risk communication to the top management and the board, based on business expectations and linked to strategic objectives.