8th edition of the FERMA benchmarking survey
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In collaboration with EY, AIG, XL Catlin, Marsh and CHUBB Jeudi 30 mars 2017 - Lyon FERMA Benchmarking Survey 8 th Edition
Transcript of 8th edition of the FERMA benchmarking survey
In collaboration with EY, AIG, XL Catlin, Marsh and CHUBB
Jeudi 30 mars 2017 - Lyon
FERMA Benchmarking Survey 8th Edition
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FERMA Risk Management – Benchmarking Survey 2016 – 8th EditionIn collaboration with
FERMA Benchmarking Survey 8th Edition
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FERMA Risk Management – Benchmarking Survey 2016 – 8th EditionIn collaboration with
Intervenants
Sébastien RimbertDirecteur Associé
Risk Advisory EY
Paris
Florent MideyDirecteur Associé
Risk Advisory EY
Lyon
Gaëlle LarchevèqueDirecteur contrôle interne et audit
Groupe April
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FERMA Risk Management – Benchmarking Survey 2016 – 8th EditionIn collaboration with
Introduction
103responses
634responses
►Eight biennal benchmarking survey conducted by the Federation of European Risk Management Associations (FERMA).
►The survey received 634 responses and was conducted from April to June 2016.
►Focus on the French market
►16,2% of the panel
240responses
►Focus on small and medium enterprises
►38% of the panel have revenues less than €1 billion
2 European perspective
European insights on risk management practices1
1. European insights on risk management practices
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FERMA Risk Management – Benchmarking Survey 2016 – 8th EditionIn collaboration with
Risk Management reporting lines
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
Global
France
ETI
18,8%
17,5%
22,9%
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FERMA Risk Management – Benchmarking Survey 2016 – 8th EditionIn collaboration with
Insurance Management reporting lines
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
35,0%
40,0%
Global
France
ETI
20,4%
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FERMA Risk Management – Benchmarking Survey 2016 – 8th EditionIn collaboration with
Risk/Insurance Managers’ roadmap ETI Market
Top embedded activities
1. Development of map of risks: risk identification,
analysis, evaluation, prioritization and reporting
2. Insurance management and claims handling / insurable
loss prevention
3. Assistance to other functional areas in contract
negotiation, project management, acquisitions and
investments
Activities planned for 2016-2017
1. Development and embedding of Business
Continuity Management / Emergency Management
/ Crisis Management / Incident response programs
and solutions
2. Design and implementation of risk
controls/prevention
3. Alignment and integration of risk management as
part of business strategy
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FERMA Risk Management – Benchmarking Survey 2016 – 8th EditionIn collaboration with
7%
13%
37%
42%
10%
24%
18%
48%
11%
22%
16%
51%
Emerging Moderate Mature Advanced
2012 2014 2016
Risk Management interactions with Top Management
There is no
mechanism in
place to
formally report
about risk
management
GRAPH CAPTION
Emerging Moderate Mature Advanced
Meets Board
and/or Top
Management
members on a
requested
basis
Formally
presents to the
Board of
Directors and
Top
Management
once a year
Formally
presents to the
Board of
Directors and
Top
Management
several times
per year
45%
ETI Position 2016
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FERMA Risk Management – Benchmarking Survey 2016 – 8th EditionIn collaboration with
Organisational Model
Organisational model between Risk Management, Insurance Management, Internal Control and Internal Audit
French market position – 2016
11,0%
23,8%7,7%
15,8%
All functions together ina single department
All functions separate in four differentdepartments
Risk and Insurance Management together
Risk Management and Internal Control together
Internal Audit separate
Insurance Managementseparate
29,1%
20,4%
9,7%
20,4%
12,6%
7,8%7,7%
38,9%
11% - Full panel
Top 3 – ETI organisational model
1- Risk and Insurance Management
together (26%)
2- All functions separate in four
different departments (21%)
3- All functions together in a single
department (18%)
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FERMA Risk Management – Benchmarking Survey 2016 – 8th EditionIn collaboration with
Organisational Model
Relationships between Risk Management, Insurance Management, Internal Control and Internal Audit: basic coordination but room for improvement.
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FERMA Risk Management – Benchmarking Survey 2016 – 8th EditionIn collaboration with
5%
16% 17%
62%
8%
15%
22%
55%
11%14%
26%
49%
0%
10%
20%
30%
40%
50%
60%
70%
Emerging Moderate Mature Advanced
2012
2014
2016
Risk mapping deployment
No such
approach has
been put in
place yet
GRAPH CAPTION
Emerging Moderate Mature Advanced
Only for certain
business units /
categories of
risks
On a global
corporate level
only (strategic,
financial and
operational)
From corporate
level down to
divisions and
business units
57,3%
29,1%
10,7%
2,9%
38%
26%
French market position – 2016 ETI Position 2016
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FERMA Risk Management – Benchmarking Survey 2016 – 8th EditionIn collaboration with
IT/GRC tools
Scenario Analysis 34%
Legend 2016
2014
Risk appetite and tolerance 35%
Claims analysis 45%
Risk quantification (Evaluating the probability of a risk event occurrence and effect) & Risk modelling
46%
Monitoring of risk mitigation actions / controls 49%
Risk mapping 55%
Risk registers 52%
Risk reporting / Risk dashboards 57%
22,3%
26,2%
35,0%
30,1%
36,9%
51,5%
40,8%
45,6%
French market position - 2016
28%
31%
45%
French market position – 2016 ETI Position 2016
2. European perspective
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FERMA Risk Management – Benchmarking Survey 2016 – 8th EditionIn collaboration with
Top 10 risks (1/2)French market
Full Panel Risk vs French market - 2016
Top 10 Risk in 2016 – Full Panel Top 10 Risk in 2016 – French marketFrench market VS Full
Panel Risk position
#1 Economic conditions Business continuity disruption
#2 Business continuity disruption Cyber-attack / data privacy
#3 Political, country instability Economic conditions
#4 Non-compliance with regulation and legislation Political, country instability (crisis, war, regulatory changes)
#5 Competition Competition
#6 Reputation and brand Fraud, Bribery and Insider Dealing
#7 Cyber-attack / data privacy Non-compliance with regulation and legislation
#8 Market strategy, clients Market strategy, clients
#9 IT systems and data centers Interest rate & Foreign exchange
#10 Interest rate and foreign exchange Quality of products & services (design, safety & liability)
Equal to Full Panel
Above Full Panel
Under Full Panel
Specific Risk in Top 10 for the French market
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FERMA Risk Management – Benchmarking Survey 2016 – 8th EditionIn collaboration with
Top 10 risks (2/2)French market
Business continuity disruption
Cyber-attack/data privacy
Economic Conditions
Political country instability (crisis, war, regulatory changes)
Competition
Non-compliance with regulation and legislation
Fraud, Bribery and Insider Dealing
Market strategy, clients
French Market
Interest rate & Foreign Exchange
Quality of products & Services (safety & liability)
Legend High
Low
Medium
Full Panel
Mitigation Satisfaction Level
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FERMA Risk Management – Benchmarking Survey 2016 – 8th EditionIn collaboration with
Top 10 risks (1/2)ETI market
Full Panel Risk vs ETI market - 2016
Top 10 Risk in 2016 – Full Panel Top 10 Risk in 2016 – ETI marketETI market VS Full Panel Risk position
#1 Economic conditions Economic conditions
#2 Business continuity disruption Business continuity disruption
#3 Political, country instability Non-compliance with regulation and legislation
#4 Non-compliance with regulation and legislation Political, country instability (crisis, war, regulatory changes)
#5 Competition Reputation and brand
#6 Reputation and brand Market strategy, clients
#7 Cyber-attack / data privacy Human resources / key people, social security (labour)
#8 Market strategy, clients Competition
#9 IT systems and data centers IT systems and data centers
#10 Interest rate and foreign exchange Cyber-attack / data privacy
Equal to Full Panel
Above Full Panel
Under Full Panel
Specific Risk in Top 10 for the ETI market
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FERMA Risk Management – Benchmarking Survey 2016 – 8th EditionIn collaboration with
Top 10 risks (2/2)ETI market
Economic Conditions
Business continuity disruption
Non-compliance with regulation and legislation
Political country instability (crisis, war, regulatory changes)
Reputation and brand
Human resources/ key people, social security (labour)
Market strategy, clients
Competition
ETI Market
IT systems and data centers
Cyber attack/ data privacy
Legend High
Low
Medium
Full Panel
Mitigation Satisfaction Level
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FERMA Risk Management – Benchmarking Survey 2016 – 8th EditionIn collaboration with
Risks’ level of satisfactionETI market
What are the five risks for which ETI Risk Managers are the most/least satisfied in terms of mitigation?
Highest level of satisfaction
1. Business continuity disruption
2. Noncompliance with regulation and legislation
3. Reputation and Brand
4. Economic growth/slowdown
5. Market strategy
Lowest level of satisfaction
1. Digital transformation
2. Corporate social responsibility, Human Rights and Ethics
3. Terrorism
4. Strategy execution and transformation programs
5. Security
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FERMA Risk Management – Benchmarking Survey 2016 – 8th EditionIn collaboration with
European risk mapFull Panel
In collaboration with EY, AIG, XL Catlin, Marsh and CHUBB
Merci
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Enquête Gouvernance – EY - 2016
►Vous souhaitez une présentation détaillée de l’étude sur votre secteur ?
(Manufacturing, Energy / utilities, Consumer goods, Retail, Pharmaceuticals and Life Sciences, Transportation / logistics)
►Contactez-nousFlorent Midey
Executive Director
Risk Advisory
Tel.: +33 4 78 63 16 33
Mobile: +33 6 82 55 73 61
In collaboration with EY, AIG, XL Catlin, Marsh and CHUBB
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Contacts
Florent Midey
Executive Director
Risk Advisory
Tel.: +33 4 78 63 16 33
Mobile: +33 6 82 55 73 61
