Survey reveals many risk managers are still unaware of the impact of the directive

Greater balance needed in European regulationa says Lord Adair Turner

European risk managers remain unaware about the impact that the 8th European Company Law Directive will have on their organisations, according to findings from the Federation of European Risk Management Associations (FERMA) European Risk Management Benchmarking Survey 2012.

The survey, which sought to track the development of risk management across Europe since 2010, found that 44% of respondents have no understanding of the impact of the 8th European Company Law Directive. Alarmingly, this figure revealed that there had been no increase in awareness since 2010.

Just over one-quarter (26%) of respondents said they believed the directive was not applicable to their organisation, despite its requirements on risk management, internal control and audit.

The results are all the more startling due to the fact that FERMA issued a two-part practical guidance on the directive in 2011.

Speaking to StrategicRISK about the findings, FERMA president Jorge Luzzi said that cutbacks as a result of the financial crisis were probably to blame: “It is essential that companies put in the time and energy to understand the medium- to long-term impacts that the EU 8th Directive will have on the way they do business.”