He invited presidents and board members representing some of the European risk management associations to give their views of developments in these areas and the kind of challenges that their members are facing.
In respect of ERM, not surprisingly those countries with relatively few large multinational companies have the furthest to go. Generally, corporate governance initiatives have been one of the key drivers for ERM. With the concept involving so many different aspects of a company's activities, there was also discussion on who should lead coordination of risk management across the group and where the dividing line lies between internal audit, the legal department and the risk manager.
Where companies have established an ERM culture, risk transfer is just one tool in their artillery. Nevertheless, risk managers are concerned to see greater disclosure and transparency in respect of remuneration, as well as improved efficiency to provide contract certainty.
- Sue Copeman - Editor, StrategicRISK
The Presidents' Roundtable clearly highlighted the common challenges faced by European risk managers today. Confronted with the key issues of reputation, governance and regulatory risk, the growth in ERM is not surprising. This poses a particular challenge for insurance companies who increasingly need to focus on ensuring that risk transfer continues to offer a solution in many areas and adds real value to the risk manager's portfolio of strategies.
It was also clear from the discussion that multinational companies expect insurers to adopt a global approach, applying common principles and standards throughout their operations - to offer a seamless service, irrespective of geographic location. In addition, risk managers are concerned at the shrinking number of insurers who are prepared to write global industrial risks and the security of some of those involved.
Disclosure and transparency in all aspects of the risk transfer process were also raised as key factors in the risk manager's decision-making process. The need for a close relationship between insurers and clients, the former acquiring a more in-depth understanding of the insured's business, is also key and can play a significant part in the development of new products, which respond to the evolving needs of risk managers and the organisations they represent.
Andrew Kendrick - Chairman and CEO, ACE European Group
PRESIDENTS' ROUNDTABLE PARTICIPANTS
Thierry Van Santen, president, FERMA, chair of the discussion
Lars Andersen, president, DARIM
Marie-Gemma Dequae, president, BELRIM
Jose Manuel Dias da Fonseca, president, APOGERIS
Andrew Kendrick, chairman and CEO, ACE European Group
Eberhard Knebel, board member, DVS
Geoff Lingham, deputy chairman, AIRMIC
Jeff Moghrabi, managing director Italy, ACE European Group
Olivier Sorba, president, AMRAE
Victor Vereshchagin, president, RUSRISK.