Risk managers conferring with CEOs on the increase

BRUSSELS, Belgium--Most risk managers surveyed by the Fédération Européen de Risk Management Associations say they now report to chief financial officers, their companies' board or chief executive officer, and say that board-level sponsorship of risk management is on the increase.

According to FERMA's benchmarking survey on risk management, published at the association's seminar in Brussels, Wednesday, 44% of risk managers said that risk management within their organization was sponsored by the company board, while 34% said it was sponsored by the CEO.And 46% said they report directly to the CFO of their company, in addition to reporting to the board--24%--or CEO--27%.The survey, conducted by Ernst & Young and AXA Corporate Solutions, drew 460 responses from risk managers across Europe.

Half of the risk managers surveyed said they currently map risks at a global corporate level, and almost half, 48%, said the risks covered by the risk management department is the "widest possible", while 34% said their department covers operational risk only and 16% insurable risk only.