Amrae goes local and targets smaller firms

Ahead of Europe’s largest risk management gathering that runs from 6 February and is being held in Lyon, AMRAE’s president, Gilbert Canaméras, spoke to Commercial Risk Europe about the association’s priorities in 2013. The choice of Lyon as host for the meeting gives a hint of some of the actions that will occupy Mr Canaméras and his team during the course of this year. The biggest city in the southeast of France is famous not only for its glorious food, but also for being home to a large number of competitive mid-sized companies that have been identified by AMRAE as an important target for its activities. One of the main sessions on the opening day will be dedicated to a roundtable discussion on the role of mid-sized companies in the Lyonnaise region. This focus reflects AMRAE’s aims to help companies of a limited size boost their risk management processes, not least because they constitute a big part of the supply chains on which all members of the association rely.hideSupply chain risk of course has become a top concern for large corporations following the natural catastrophes of 2011 and the wave of bankruptcies that have hit Europe during the financial crisis. “Large firms increasingly need to transfer some risks to the contracts that they sign with their suppliers, which are often mid-sized companies,” Mr Canaméras told CRE. “Therefore mid-sized companies need to be prepared to face this challenge. All of us need to share the same risk management culture.” But proper risk management requires the deployment of economic and human resources that many smaller companies cannot always afford. So their involvement in the process implies the creation of processes that match their capabilities, he added. “The idea is not that mid-sized companies must implement the same kind of risk management structures that large firms have in place. But we can provide them with the main guidelines and we are trying to develop less costly tools that will help them to meet the risk management requirements that big clients are including in their tenders,” Mr Canaméras remarked. “AMRAE’s training sessions, consultants and brokers can be very helpful to them.” Risk management can also prove a valuable tool for mid-sized companies looking to expand their business. For instance, being able to prove that they have methods in place to reduce exposures to a variety of risks could help these firms raise funds in a tough financial market. AMRAE has been stressing such advantages of risk management as it actively tries to bring more mid-sized companies into its fold. This recruitment drive is one of the reasons why the association, in addition to taking the Rencontres to Lyon, is preparing to create a physical presence in the region. “There are many high quality mid-sized companies not only in Lyon, but also in Grenoble, Saint-Etienne and other towns nearby, and we want to be close to them,” Mr Canaméras said. Many mid-sized companies are also those with the most potential for growth when France and the rest of Europe finally emerge out of the current economic quagmire. Large companies similarly want to benefit from an eventual economic recovery, and AMRAE is striving to make sure that their members are fully engaged in this process. The idea that risk management must not be seen as a profession only called upon when times are hard and things go wrong lies at the heart of the Rencontres this year. “We want to stress the point that risk managers are deeply involved in the growth of their companies and that risk management brings added value,” Mr Canaméras said. Therefore, the main theme of the Rencontres is ‘Growth and risk management’, with several activities stressing how risk professionals can add value to their firms. “When a company is looking for growth, it is the right opportunity for a risk manager to help it select the risks it wants to take and benefit from the opportunities that this offers,” the AMRAE president added. “The main goal of companies is to grow, and risk managers must help them.” The organisation of such a big event, with three days of activities, is a year-long job for AMRAE’s permanent office, with the support of the association’s Scientific Commission. The programme for 2013 includes topical issues such as the aforementioned supply chain risks, as well as cyber risks, political risks and international expansion. But the meeting is far from the only task currently being tackled by AMRAE. This year, for instance, the association has prioritised participation in high-level negotiations with the government and other stakeholders about the future of GAREAT, the country’s terror reinsurance pool. “Until now, only the insurers and the government were involved in the discussions about the GAREAT system,” Mr Canaméras pointed out. GAREAT was renewed for a further five-year period at the turn of the year. There were some small changes to its structure that now includes slightly higher limits after which the state-owned reinsurance company, CCR, takes over the losses. But there has been pressure for further changes. APREF, the reinsurance association, for example, has been urging for further guarantees to protect the balance sheet of insurance and reinsurance companies in France should a major terrorist attack take place. Other stakeholders, like AMRAE itself, would like to see in place a system that brings more benefits to the companies that are insured by the pool. Therefore the inclusion of some of France’s largest commercial insurance buyers in discussions over the pool’s future has been welcomed by Mr Canaméras. “This is very important and a very good sign, as AMRAE is recognised as a party to these negotiations,” he said. AMRAE is also working with Ferma, the Federation of European Risk Management Associations, to help develop a European certification for the risk management profession. The association is keen on strengthening its relationship with Ferma, a desire met in October of last year when France hosted a seminar jointly organised by the two entities. Not happy with just one large event per year, AMRAE has also decided to replicate a successful event of last June, when it hosted a groundbreaking meeting between risk managers and human resources professionals. This time around the meeting will take place in July in the town of Reims, in the heart of the region that produces France’s celebrated champagne wine. “We certainly have lots of activities this year,” Mr Canaméras said. Which is certainly reason for toasting with a nice glass of bubbly.

Amrae goes local and targets smaller firms

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