On 10 July 2015, a collaboration between ecoDa, FERMA and AIG, brought together directors, risk managers and insurers from across Europe to share perspectives on the quality of the Risk conversation at Board level and to generate ideas for improving it.
Through a mix of expert panels and Q&A sessions, the half-day conference in Brussels looked at two broad themes:
How do companies organise,inform and prioritise the Board level conversation on risk?
- In what ways do risk managers and directors interact and communicate? What processes and structures work most effectively?
- What do Boards and risk managers expect of each other? Are those expectations reasonable and what does good look like in the relationship?
- What are the comparative advantages of audit and risk committees as the forum for addressing risk issues in a company?
- What level of competence and awareness of risk do directors need to have to fulfil their obligations?
Are companies correctly identifying the most important emerging risks?
- How are risks identified and defined?
- What tools are available to Boards in selecting which risks to prioritise and focus on?
- How valuable is structured scenario planning?
- How can input from risk experts and scientists be managed most effectively?
- How can Boards proactively manage emerging risks in the light of new regulation, governance and enterprise-wide risk management?
The conference is taking place at a time when the fast pace of innovation is showing the limitations of the risk management processes in place in many companies.
Managing risk in an increasingly globalized, dynamic and complex context demands new thinking and approaches. Getting the conversation on risk right is an existential imperative for companies today.
This major conference highlighted the importance of the dialogue and partnership between risk managers and directors. It provided participants from both sides of the debate with essential insights into how that partnership can be made successful.