FERMA urges EU to harness risk management in support of Danish Presidency’s agenda

FERMA has published its Contribution to the Danish Presidency of the Council of the EU, underscoring the vital role of risk management in helping the EU better assess and mitigate the complex risks it faces. By leveraging the expertise of risk managers, the EU can enhance its resilience and boost its global competitiveness.

As Denmark begins its six-month tenure as chair of the Council of the EU, the Federation welcomes the Presidency’s objective of implementing the EU’s Preparedness Union Strategy, while reiterating the importance of addressing the pressing issues of the climate and cyber insurance protection gaps.

In its contribution, FERMA highlights two key policy areas where the risk management community can play a pivotal role in supporting the Danish Presidency’s priorities:

• Crisis preparedness

• Simplification of sustainability and cybersecurity requirements

In support of the Presidency’s goal of implementing the EU’s Preparedness Union Strategy, FERMA emphasises the need to prioritise risk management at all levels of governance. This includes strengthening cross-sectoral and cross-border cooperation, as well as establishing robust tools for crisis preparedness and response. FERMA also advocates for the creation of a permanent Risk Manager function within the European Commission.

The Federation highlights the importance of leveraging the expertise of risk managers in the development of a public-private preparedness task force and in enhancing threat awareness among citizens. To this end, FERMA encourages the establishment of a Europe-wide risk management training programme for public and private sector organisations, drawing on its rimap certification framework.

Considering the proposed development of a Climate Adaptation Plan under the EU’s Preparedness Union Strategy, FERMA reaffirms its support for the European Central Bank and EIOPA’s proposal to establish an EU public-private reinsurance scheme to bridge the climate resilience protection gap.

Recognising the Danish Presidency’s commitment to the "simplification and burden reduction agenda," FERMA underscores the importance of restoring EU competitiveness through regulatory streamlining, particularly in the areas of sustainability and cybersecurity reporting.

As the Presidency advances work on the first Omnibus package while maintaining its green transition goals, FERMA calls on EU co-legislators to provide clear guidance on the need to implement an enterprise risk management (ERM) methodology, led by the risk function, for conducting the double materiality assessment under the Corporate Sustainability Reporting Directive (CSRD).

Furthermore, FERMA highlights the need for a risk-based approach under the Corporate Sustainability Due Diligence Directive (CS3D) when conducting due diligence on first-tier suppliers.

Finally, the Federation welcomes the Presidency’s focus on the effective implementation and simplification of recently adopted EU cybersecurity legislation. This includes the Cyber Resilience Act, the AI Act, and the Digital Operational Resilience Act (DORA), which are key to building a robust, cyber-resilient EU economy. However, it notes the overlapping and sometimes contradictory reporting requirements these introduce and calls for the creation of a single point of entry for cyber incident notification.

Charlotte Hedemark, President of FERMA, said: “The Danish Presidency’s focus on preparedness and simplification aligns strongly with the value risk managers bring as enablers of resilience and competitiveness. As the EU faces multiple challenges, it is imperative that risk management is recognised as a strategic tool to safeguard Europe’s future, reinforce its global standing and ensure its ability to respond to today’s and tomorrow’s challenges.”

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