FERMA unveils paper to boost profile of risk managers
FERMA has a new consultation paper, as part of its ongoing efforts to elevate the maturity of the enterprise risk management (ERM) function within organisations – a discipline it believes remains underutilised and undervalued in some companies.
Titled “Shaping the Future: The Crucial Role of the Corporate Risk Manager”, the paper presents a series of key questions to relevant stakeholders in the risk management community.
It focuses on three critical areas: corporate governance, examining the roles and responsibilities of the risk manager; capabilities, where it proposes a capabilities framework to help clarify the role of the risk manager; and communication, around which it offers guidance on how risk managers can raise their profile and engage more effectively with key stakeholders.
Developed by FERMA’s ERM Committee, the paper builds on the 2023 White Paper “The Roadmap to Strategic Risk Management”. Feedback from this consultation process, which will involve member associations and selected key stakeholders, will inform a subsequent White Paper by the ERM Committee, scheduled for release later this year.
The initiative seeks to help risk managers and senior management address the operational and hierarchical challenges preventing ERM from fully delivering its strategic benefits in an increasingly volatile and interconnected risk landscape.
Dr. Ulrich Adamheit, chair of FERMA’s ERM Committee, said: “The increasing importance of identifying, assessing, and mitigating potential threats to assets and operations means organisations must take every step needed to elevate the ERM function within their strategic hierarchy. This will include reassessing ERM’s position within their organisational structures, establishing more defined roles and responsibilities, and eliminating obstacles to effective strategic engagement.”
Laurence Eeckman (pictured), FERMA Board Member, added: “Through the development of a White Paper, FERMA seeks to bring greater rigour to the definition of the corporate risk manager’s role, clarify its scope, and demonstrate how risk managers can play a more integrated and impactful role in supporting decision-making at all levels. Achieving this will not only strengthen resilience but also enhance a company’s competitiveness in an increasingly demanding business environment.”
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