Recently appointed vice president of Ferma and risk management director at GDF Suez, Michel Dennery, outlines his Top three risks

Credit risk

The depressed economic situation continues and there is no end in sight. It’s now obvious that 2012 will not bring the economic recovery that many were hoping for. We can expect that a number of companies, especially small and medium sized businesses, will experience difficulties with payments possibly even leading to bankruptcy. Credit risk will increase in 2012.

Country risk

The situation in the Middle East remains unstable even if the regime changes present an improved perspective for the region. Country risk is difficult to foresee in these countries in terms of their economies and their commercial activities. In Europe, the populations of many countries are feeling the effects of the economic crisis and subsequent austerity plans. Strikes and forms of civil unrest could present serious opposition to governmental decisions, temporarily blocking business activities.

Natural catastrophe risk

According to certain studies the intensity of major natural catastrophes is increasing and in turn are generating more and more damages. Of course these kinds of disasters can’t be prevented but analysis of the effects of recent catastrophes can help risk managers better prepare themselves to mitigate this risk.