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Risk Environment & Perspectives
•SEMINAR 2014 •1
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BRUSSELS, 20-21 October www.ferma.eu
Top 10 Risks…
SEMINAR 2014 2
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BRUSSELS, 20-21 October www.ferma.eu
…and 2014 risk dashboard
SEMINAR 2014 3
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BRUSSELS, 20-21 October www.ferma.eu
2014 Risk Mitigation
SEMINAR 2014 4
High risks (importance) with higher Mitigation level : Continuous monitoring
High risks (importance) with lower Mitigation level :
Action required
LO
W
IMP
OR
TA
NC
E
HIG
H
LOW MITIGATION LEVEL HIGH
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BRUSSELS, 20-21 October www.ferma.eu
2014 Risk Mitigation
SEMINAR 2014 5
Are you satisfied by your current level of mitigation ?
Not really! Room for improvement ?
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BRUSSELS, 20-21 October www.ferma.eu
Preferred Risk Management Strategies
From ACCEPT, to REDUCE, and TRANSFER
SEMINAR 2014 6
Strategic and
external risks
Operational and
compliance risks
Operational and
financial risks
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BRUSSELS, 20-21 October www.ferma.eu
Your concerns about EU regulatory matters
1. Data Protection Regulation (DPR)
a. DPR is important especially for the banking and
financial services sector (73,6%).
b. Fines and sanctions (33%), and requirements from the
national regulator (45%) are the main concerns.
c. Only 9% of the respondents perceive the appointment
of a Data Protection Officer, for organisations with more
than 250 employees, as a negative requirement
SEMINAR 2014 7
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BRUSSELS, 20-21 October www.ferma.eu
Your concerns about EU regulatory matters
2. Annual reporting and transparency
a. The country by country reporting seems to be a
problem from a confidentiality view point (49%):
i. It may lead to disclosure of too much information on an
organisation’s strategy
ii. Especially if there is no level playing field with other regions in
the world which are not following the same regulatory trend,
eventually threatening the competitiveness of European
companies
SEMINAR 2014 8
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BRUSSELS, 20-21 October www.ferma.eu
Your concerns about EU regulatory matters
3. Solvency II and captives treatment
a. Quite logically, 60% of captive owners have chosen Solvency II as a regulatory priority for FERMA.
b. According to captive owners, future interest in captives differs : i. If an organization does not own a captive yet, 77% of current captive
owners responded that Solvency II will decrease its interest to create one due to heavier rules and requirements.
ii. But if an organization does already own a captive, involvement of this captive in the next 2 years will increase or at least stay identical (94% for traditional lines of cover, 80% for non-traditional lines of cover)
c. Results in line with FERMA argumentation: i. Rising costs for the use of captives (88%)
ii. Fewer options to transfer risk (75%)
d. But 55% are seeing Solvency II as a useful incentive to implement risk management policy to reduce losses
SEMINAR 2014 9
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BRUSSELS, 20-21 October www.ferma.eu
Evolving Risks
Cyber Liability
EU Data Protection Directive – postponed until at least 2015
Increased workforce mobility. The “Internet of Things”
Use of big data analytics. Increased use of cloud computing
Environmental Liability
Changes in environmental regulatory landscape in Europe and
globally
Prospect of increasing enforcement in respect of environmental
damage
SEMINAR 2014 10
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BRUSSELS, 20-21 October www.ferma.eu
Emerging Risks “Emerging Risks are risks which may develop or which already exist and
are continuously evolving. They are characterized by a high degree of
uncertainty in terms of impacts and likelihood, and have a substantial
potential impact on Insurance business lines”. *
SEMINAR 2014 11
*CRO Forum 2013
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Thanks for your support !