1. Press release
22 October 2012
Risk management is linked to better corporate
performance, FERMA survey finds
Maturity of risk management processes is correlated with
sustainable improvements in corporate performance, the 2012
Risk Management Benchmarking Survey of the Federation of
European Risk Management Associations (FERMA) has
revealed.
The results of the survey, conducted in cooperation with AXA
Corporate Solutions and Ernst & Young, were announced
today (Mon) at the FERMA Seminar being held on 22 and 23
October in Versailles, outside Paris. This is the sixth edition of
the survey, which has taken place every other year since 2002.
The 2012 survey showed that companies with the most
advanced risk management had 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 European 20 countries, the survey
found that:
 28% of companies with advanced risk management
practices reported an EBITDA growth rate of more
than 10%, compared to 22% whose risk management
was classed as mature, 15% for moderate and 16% for
emerging.
 Among companies with an EBITDA growth rate of
more than 20%, three-quarters (74%) have mature or
advanced risk management practices.
The President of FERMA, Jorge Luzzi, said: “We have long
believed that good risk management contributes to sustainable

2. corporate growth. 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 last five years.”
Other key messages from the survey include:
In the current financial and economic climate, top management
wants more information on the risks and risk management of
the business, according to 46% of respondents. In 53% of the
companies with mature or advanced risk management (2010 –
45%), the function now reports to the board, a board
committee or a top executive.
However, the survey found that there is considerable work to
be done before companies across Europe fully understand the
implications of the European 8th Company Law Directive and
integrate them into their business.
When it comes to the insurance market in the current
financial climate, European businesses say they want
sustainable relationships with stable partners. They are not
looking generally to increase risk transfer (17%), but they want
long term arrangements (40%) and more robust insurance
partners (32%). More than half (57%) reported strengthening
their loss prevention activities.
The respondents’ message to insurers is improve efficiency but
don’t forget innovation. They want more efficiency in the
claims settlement process (43%), more tailored policy wording
(36%) and innovative coverage (30%). Neither more capacity
(14%) nor greater geographical coverage (12%) is a high
priority for respondents, which is a measure of the insurance
market resilience following the catastrophe losses of 2011.
Jorge Luzzi said: “We believe the FERMA survey is most
extensive measure of the current state of risk management in
Europe and of commercial insurance buyers’ views of the
insurance market. The findings are valuable, and provide
actionable information for us and our companies.”
He paid tribute to the survey’s sponsors. “We thank AXA
Corporate Solutions and Ernst & Young very much for their
continued support for this survey. It is an important piece of
research and the detailed findings are evidence of the
resources which they have contributed.”

3. Notes to journalists
The 2012 FERMA Benchmarking 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 was 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.
The FERMA Seminar is an event exclusively for risk and
insurance managers and sponsors. It takes place every other
year, alternating with the larger FERMA Risk Management
Forum which is an open to everyone. The next FERMA
Forum will take place in Maastricht in the Netherlands from 29
September until 2 October 2012.
For more information, contact
Lee Coppack
FERMA media coordinator
lee@coppack.co.uk or +44 (0)20 8318 0330 or
+44 (0)7843 089904
Or
Florence Bindelle
FERMA executive manager
florence.bindelle@ferma.eu or +32 (2) 761 94 31
About FERMA

4. The Federation of European Risk Management Associations
(FERMA) brings together 22 national risk management
associations in 20 European countries. FERMA has 4,500
individual members representing a wide range of business
sectors from major industrial and commercial companies to
financial institutions and local government bodies. These
members play a crucial role for their organisations with
respect to the management and treatment of complex risks
and insurance issues.
Member associations are from the following countries:
Belgium (BELRIM), Czech Republic (ASPAR CZ), Denmark
(DARIM), Finland (FinnRiMa), France (AMRAE), Germany
(DVS/BfV), Italy (ANRA), Luxembourg (PRiM), Malta (MARM),
Netherlands (NARIM), Norway (NORIMA), Poland
(POLRISK), Portugal (APOGERIS), Russia (RusRisk), Slovenia
(Sl.RISK), Spain (AGERS and IGREA), Sweden (SWERMA),
Switzerland (SIRM), Turkey (ERMA) and United Kingdom
(Airmic).