FERMA unveils EU policy manifesto

The Federation of European Risk Management Associations (FERMA) has released its EU Policy Manifesto which presents its priorities for the policymakers in the EU Institutions for the next institutional mandate (2024-2029) and outlines how the Federation can contribute to these.

The Policy Manifesto, “Making Europe risk ready for a brighter future”, details four pillars which FERMA believes EU leaders must address to help bolster the overall resilience of the Europe Union. These are:

• Simplifying the regulatory maze to keep European companies competitive

• Supporting the transition to net-zero by taking a risk management approach

• Building a more cyber secure and resilient EU

• Bolstering the EU’s preparedness and response capabilities for future crises

These priorities have been established following a survey and comprehensive discussions with FERMA members.

The Manifesto raises concerns regarding the proliferation of EU rules and requirements over the last five years. While highlighting positive developments such as the adoption of risk-based approaches in policies and the use of risk assessments to guide policymakers’ decisions, FERMA believes simpler rules and simplified processes will help EU enterprises remain competitive.

To address this, FERMA has called upon policymakers to task the Fit for Future Platform (F4F) with providing the European Commission with clear and actionable recommendations on areas where thematic policies overlap or can be simplified. Further, it has proposed supporting the implementation of adopted legislation in concert with impacted stakeholders, including providing clear implementation guidance.

The Manifesto highlights positive initiatives in the transition to net zero such as the EU Climate Risk Assessment but urges amplification of the role of the risk manager in the process and raises concerns regarding the lack of insurance coverage to support companies in making the transition.

FERMA has proposed that the European Commission set up an Expert Group on Climate Protection Gaps to generate policy recommendations for the next EU Adaptation Strategy. It has also proposed that the European Parliament’s Committee on Economic and Monetary Affairs hold a hearing on the challenges of securing insurance coverage to facilitate the net-zero transition. FERMA believes the lack of relevant cover is severely limiting the EU’s ability to meet climate targets and must be addressed at parliamentary level.

The Manifesto also flags the importance of continuing to focus on cyber prevention and risk management in a dramatically altered digital threat landscape. FERMA therefore urges a greater focus on the need to quantify cyber exposures more accurately, particularly as AI and cybersecurity issues increasingly overlap.

FERMA has called upon policymakers to develop common EU cybersecurity standards building on ENISA’s “Cybersecurity for SMEs” report, while also proposing revisions to the EU Cyber Security Strategy, integrating cyber risk management and insurance into the review. Further, the Federation highlights the need for an assessment into the feasibility of an EU cyber reinsurance pool, or alternative mechanism for catastrophic cyber risks.

The final Manifesto priority centres on enhancing geopolitical resilience by prioritising risk management on all fronts and establishing robust crisis preparedness and response tools through enhanced cross-border collaboration. This lends support to the ‘Preparedness Union’ recently proposed by Finland to the European Commission.

In addition to calling for the establishment of a permanent risk manager function or Executive Risk Officer within the European Commission, FERMA has asked policymakers to invite the Federation to join the EU Foresight Network. Further, it has urged the EU to provide more tools, funds and guidelines to help enterprises cope with potential supply shocks during times of emergency.

Commenting on the Policy Manifesto, Charlotte Hedemark, president, FERMA, said: “The incoming EU leaders are facing a risk landscape of almost unparalleled complexity heightened by growing geopolitical tensions, ongoing economic uncertainty, and the constantly expanding cyber threat. Our Manifesto aims to promote risk-focused solutions to help elevate resilience and boost competitiveness across the EU and apply FERMA’s comprehensive risk expertise to drive positive action on these four critical pillars.”

Typhaine Beaupérin, the chief executive of FERMA, added: “We will use our Manifesto to provide a robust basis for productive discussions between the incoming EU leaders and FERMA. Acting on behalf of 23 risk associations in 22 European countries, representing over 5,600 risk professionals, the Federation is committed to facilitating constructive, risk-focused dialogue with policymakers that leads to decisive action across these four priority areas of regulation, the net-zero transition, cyber resilience, and crisis preparedness.”

Did you get value from this story?  Sign up to our free daily newsletters and get stories like this sent straight to your inbox.