Ferma urged not to reinvent the wheel on certification as RMIA offers hand

He has invited his European counterparts to adopt RMIA's accreditation system to save time and duplication of effort. Although clearly receptive to a more joined up approach in this critical area, Mr Whitehorn remains sceptical that a global risk management professional qualification is achievable in the near term. Although desirable, it is likely to remain the holy grail for the profession for some to come, he said. Ferma announced last July that it hopes to deliver a professional qualification for risk managers that can augment existing national member qualifications and provide individual risk managers with a proof of professional competence and practical experience that is recognised across Europe.hideIt hopes the certification scheme will provide independent confirmation that holders of the accreditations have a high level of knowledge and experience in risk management. Ferma said that the aim of the plan is to put risk management on a similar standing to other professions such as law and accounting. Speaking at Ferma's 2012 seminar in October, Jorge Luzzi, President of Ferma, said the project is one of the most important projects for the federation currently. He added that Ferma is more than aware of similar developments in Latin America driven by Alarys, in the US by Rims and in Australasia by RMIA. "There is growing interest in this area and, in a way, we need to join forces because this is an important area," said Mr Luzzi. And so it appears that Ferma may well be receptive to Mr Whitehorn's call for them to take a look at RMIA's accreditation scheme that has been running for over ten years. "Ferma is about to embark on all this research and it has already been done. So it's reinventing the wheel," Mr Whitehorn told Commercial Risk Europe. "So rather than doing that why don't they say the RMIA has this scheme and adopt that-the work has already been done. We have had that in place for over ten years-it's an official accreditation," he added. Mr Whitehorn said he has already contacted Mr Luzzi with his offer of help. He was though keen to point out that RMIA's two certifications are very much focused on risk management rather than insurance buying and questioned which of the two disciplines Ferma is actually trying to address. The RMIA's Certified Risk Management Technician (CRMT) accreditation is aimed at operationally-focused managers of risk and/or specialist risk practitioners starting the transition to more senior roles. Its Certified Practicing Risk Manager (CPRM) accreditation is aimed at those that manage risk at a strategic level and gives them professional recognition as a licensed risk practitioner. "If you manage a strategic enterprise risk management programme you can become a CPRM. If you are a health and safety risk manager, or finance risk manager, on the operational side you can become a CRMT, which means you know one piece of the jigsaw puzzle but you don't necessarily know how to fit the jigsaw puzzle together," explained Mr Whitehorn. "What we do for CPRMs is say give us a portfolio of evidence based on these competencies. Insurance would be one part of that but it is also about things like how do you influence the board and so on. It's not easy, lots of people get knocked back," he added. RMIA's twin approach appears to be along the same lines as Ferma's plans for Europe where it intends to introduce two certificates-professional and specialist. A working group at Ferma, headed by board member Julia Graham, Chief Risk Officer at law firm DLA Piper and Michel Dennery, Ferma Vice President and Deputy Chief Risk Officer, Audit and Risks Division at GDF Suez, have said that certification would be experience-based and include evidence of risk managers' previous professional development and education. Specialist certification would also involve formal education and examination by accredited organisations, it explained, and would be aimed at risk managers who are at an earlier stage in their careers or individuals who have risk management as part of a wider role. The professional certificate will be aimed at risk managers who already work at a senior level. Ferma has limited resources and would need to partner with expert organisations to deliver such a complex and important project, said Ms Graham at the federation's 2012 seminar in Versailles. The IRM has therefore been invited to discuss the possibility of it running the actual course and to help with its formation. Ernst & Young had been invited to pitch for the project management element of the effort, she explained. Whilst the RMIA appears keen to help Ferma in its efforts and the European federation acknowledges the need for closer global cooperation on certification schemes, Mr Whitehorn believes a global risk management accreditation is some way off. "Put it this way, as a holy grail it would be wonderful to have an international accreditation but in practice to actually get there seems fanciful," he said. He pointed out that other industries, such as accounting, do not have a global qualification but rather a set of recognised accreditations. "To have one global certification or qualification looks difficult. It took us six years to get international agreement on ISO 31000 so can you image how long it would take for a qualification," he added. "I think it's going to be an evolution rather than a revolution. RMIA already has its CPRM and CRMT accreditation programmes, RIMS have their own and so do some others. But I assume that if Ferma end up developing their own accreditation programme then there will probably be a time in ten to fifteen years down the track when we can all come together and say let's have an international version. Ifrima should play a proactive role to facilitate this," said the RMIA president.

Ferma urged not to reinvent the wheel on certification as RMIA offers hand

Want to read this article?

Read Next

AXA P&C increases premiums by 7% as rates rise at AXA XL

Hong Kong and Shanghai to cooperate on captives and ILS

Swiss broker Kessler names head of special risks

Supply chain cyber risk concentrated in 15 top vendors with ‘below average’ cybersecurity

Four in five non-EU companies to align with CSRD

AXA P&C increases premiums by 7% as rates rise at AXA XL

Hong Kong and Shanghai to cooperate on captives and ILS

Swiss broker Kessler names head of special risks

Supply chain cyber risk concentrated in 15 top vendors with ‘below average’ cybersecurity

Four in five non-EU companies to align with CSRD

Want to read this article?

Read Next

AXA P&C increases premiums by 7% as rates rise at AXA XL

Hong Kong and Shanghai to cooperate on captives and ILS

Swiss broker Kessler names head of special risks

Supply chain cyber risk concentrated in 15 top vendors with ‘below average’ cybersecurity

Four in five non-EU companies to align with CSRD

Related Articles