AMRAE’s Barometer finds ERM is on the march

The results of AMRAE's fourth Barometer of Risk Managers also show that members are increasingly involved in managing emerging threats such as cyber. At the same time a growing number of risk managers enjoy direct access to CEOs and other top management. However, the survey finds that risk professionals' involvement in crisis management remains limited. The ratio of risk managers involved in teams that deal with crises has fallen from previous versions on the Barometer. The Barometer is carried out every two years. The survey, carried out by PwC, suggests that the responsibilities of French risk managers are moving towards broader risk management. Of the 188 professionals surveyed, 31% are only in charge of insurance and prevention, the same ratio deals with ERM alone, while 38% oversee both activities. In 2013, the ratios were 42%, 19% and 39% respectively.hideImportantly, 36% of respondents said that they report to their CEOs and a further 26% to CFOs. In 2013 only 18% of respondents reported to their CEOs. ERM risk managers tend to occupy higher positions in their companies than insurance-focused practitioners. More than half of all respondents (54%) said that awareness of risk management is increasing within their companies. The most common background of French risk managers is a business degree, owned by 31% of respondents, followed by law (24%) and engineering or other scientific qualifications (22%). Specific risk management degrees are becoming more common among young risk managers and are held by 33% of respondents below 35 years of age. This compares to 2% among those in the 46 to 55-age bracket. 39% of those risk managers surveyed have more than 10 years of experience in the field, compared to 44% in 2013. Among ERM-focused risk managers, more than half have less than five years of experience, compared with 18% of those who deal only with insurance. Although the survey evidences the growing role played by French risk managers it suggests they are less involved in crisis management. In 2013, 44% of those surveyed declared that they were members of their companies' crisis management teams, compared to 27% this year. Only 8% of respondents lead their companies' crisis management teams. A significant 44% of respondents said that they have no responsibilities other than risk management and insurance, but 29% are also involved with internal controls, 13% with compliance and 10% with internal audits. More than 60% of the respondents said that they work with risks linked to human resources, IT and frauds. 37% of the French risk managers said they lead their companies' efforts to deal with the fraud risk. "Frauds are a very important issue for us today," said AMRAE's vice-president François Malan during the presentation of the survey in Paris. "It is worth also noting that political risks were our third most cited risks in 2013, but this year it has fallen to twelfth." The survey also finds that the typical French risk manager is male and aged between 46 and 55 years, earning an average of €84,000 a year, or €108,000 if they are a head of department. Female heads of risk earn, on average, 15% less than their male counterparts and 28% less if they are a general risk manager. Women are less represented in risk leadership positions, the Barometer reveals, although the survey finds they make up a higher percentage of the overall French risk management profession than two years ago.

AMRAE’s Barometer finds ERM is on the march

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