FERMA reframes risk as a driver of value
FERMA has published a new white paper, setting out its vision of a new European ecosystem where risk management is a cornerstone of sustainable success and risk managers are empowered with best practice governance frameworks and continuous capability development.
The white paper, titled ‘Building Organisational Value Through Strategic Risk Management - A European perspective’ and produced by the ERM Committee, encourages a shift from a purely threat-focused approach to one that emphasises value creation.
It focuses on the role of Corporate Risk Management (CRM) and the CRM leader, emphasising the value of best practice governance frameworks and capability development in enabling risk managers to support informed decision making.
Key recommendations include:
• Clearly defined ERM within each organisation, outlining principles that are flexible enough to adapt to different contexts.
• Development of practical tools, templates and illustrative examples to support organisations in tailoring ERM to their specific contexts.
• The maintenance of Risk Universes - structured frameworks that define the full scope of risk categories and themes to consider when performing risk assessments.
• Provision of guidance to better integrate the identification and assessment of opportunities within the ERM process, to promote a shift from a purely threat-focused approach to one that emphasises value creation.
Ulrich Adamheit (pictured), ERM Committee chair, said: “This white paper builds on the work of the FERMA ERM Committee and the insights gathered through a consultation. Its aims include outlining the core capabilities required for a modern Corporate Risk Manager (CRM), proposing a European Shared Capability Framework, and advocating for a professional development and certification model that supports consistency, mobility and recognition across Europe. Through these recommendations, FERMA aspires to build a European ecosystem where risk management is a cornerstone of sustainable success.”
The paper, which was developed from a consultation process with FERMA members, also outlines the core capabilities required for modern CRM. The consultation emphasised that rather than being viewed as a technical or compliance function, CRM should be recognised as a strategic capability that supports enterprise-wide resilience and growth. The white paper includes ‘10 Golden Rules of Corporate Risk Management’ designed to support this.
FERMA chief executive Laurent Nihoul said: “FERMA seeks to support the risk profession as a critical success factor in building resilient European organisations. This white paper presents risk management as not merely a defensive mechanism, but as an integrated system that both protects and enables value creation. Collaboration among governance, management and assurance functions ensures that roles and responsibilities reflect a shift from a control-oriented mindset towards a proactive approach—where risk, opportunity and strategy are managed in harmony to sustain long-term enterprise resilience.”
To read ‘Building Organisational Value Through Strategic Risk Management - A European perspective’, contact FERMA.
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