Risk Management by Businesses

1. Risk Management by Businesses Seminar on Financial Services Florence Bindelle Executive Manager of Ferma September 16,2005

2. Belgium - BELRIM • Denmark - DARIM • France -AMRAE • Germany - BfV & DVS • Italy - ANRA • The Netherlands - NARIM • Portugal -APOGERIS • Russia - RusRisk • Spain - AGERS • Sweden - SWERMA • Switzerland - SIRM • UK - AIRMIC • Individual Members – Poland, Canada, US, Monaco, Czech Republic, Turkey, India, Bulgaria Ferma a quick presentation… • Federation of European Risk management Associations • 13 associations, 12 countries,, 4800 members

3. Objectives • Widen and raise the culture of Risk Management throughout Europe, by information sharing & educational and research projects • Represent the interests of European industry with respect to Risk management issues and be part of the decision making process at the European level • Develop and maintain contacts with other European Business Associations such as: • CEA (European insurers association) • BIPAR (European brokers association) • UNICE (European industry representatives)

4. Recent achievements • Environmental Directive • Avoidance of mandatory insurance • Participation in experts group • Reinsurance Directive • Specific status for Reinsurance captives has been negotiated • Brokers remuneration • Discussions for recommendations with CEA and BIPAR • Development of a European course in Risk Management - Prorim qualification (Professional in Risk Management )

5. Why there is a need for risk management? • Impact of risks is greater than ever • New regulations apply • Legal implications for executives • Stakeholders want to know • Shareholders • Clients • Public • Employees • Administrations • NGO’s • …

6. What has changed in Risk management • Much higher visibility with direct involvement of Executive committee and Board of Directors • Scope of Risk has considerably widen • New structures where risks are being analyzed : Risk committees, CRO, audit committee, Disclosure committee • Disclosure, Reporting, Communication

7. How should a company proceed to develop a risk management approach? • The Risk Management Standard

8. How should a company proceed to develop a risk management approach? • Risk Assessment • Risk Analysis (Internal & External) • Risk identification • Risk Description • Risk Estimation • Risk Profile

9. How should a company proceed to develop a risk management approach? • Risk Evaluation • Risk Treatment • Risk Reporting and Communication • Monitoring and review of the risk management process

10. Predictions for the future • A separation between RM and Insurance purchasing • Director of Insurance will report to Procurement Director • Risk managers are cooperating with Internal auditors and other corporate functions • Companies will have to cope with new uninsurable risks • Internal reporting on risk issues will become more sophisticated • New communication tools will be developed

11. RM opinions on insurance practices and offers • Risk transfer to the traditional insurance market seems the preferred way for traditional risks • This vision has remained relatively stable • New risks create some expectations from the insurance industry • Claims management is considered as the heart of the insurers services, brokers being preferred partners for most of other services • International and good rated insurance companies have a key role to develop towards the well risk managed corporate clients • A significant part of the risk managers are still looking for advices to optimize their insurance programs • Contract certainty

12. Come to the FERMA RISK MANAGEMENT FORUM 2005!Lisbon 2-5 OctoberWWW.FERMA-ASSO.ORGContact in Bulgaria: Mr Stoian Lilov (BTC): stoian.lilov@btc.bg

13. Thank you for your attention!