Risk Management ‘Linked to Improved Corporate Performance’
Maturity of risk management processes is correlated with sustainable improvements in corporate performance, according to the 2012 Risk Management Benchmarking Survey of the Federation of European Risk Management Associations (FERMA).
The results of the survey, conducted in collaboration with AXA Corporate Solutions and Ernst & Young, were announced at the FERMA Seminar held 22-23 October in Versailles, outside Paris. This is the sixth edition of the survey, which has taken place bi-annually since 2002. The 2012 survey demonstrated that companies with the most advanced risk management showed the strongest level of growth for the past five years, as measured in terms of earnings before interest, taxes, depreciation and amortisation (EBITDA).
From a record number of 809 responses from risk and insurance managers in 20 European countries, the survey found that:
“We have long believed that good risk management contributes to sustainable corporate growth,” said FERMA president, Jorge Luzzi. “Now we have clear evidence that there is a correlation. This is a particularly important finding in light of the pressures on corporate results during the past five years.”
Other key messages from the survey include:
The survey took place between 20 April and 17 June 2012. It took the form of an online questionnaire which was open to members of the FERMA member associations and other approved risk and insurance managers. An independent, third party organisation managed the questionnaires and analysed the results.
There were a total of 809 replies, although not all respondents answered every question. The companies represented cover a wide range of industry sectors. Most are large or very large; 55% have an annual turnover above €2bn; 59% have more than 5,000 employees; 45% have operations in more than 20 countries and 54% are listed on at least one stock exchange.