First European risk management certificates to be awarded in Venice this October

The federation’s president Julia Graham told Commercial Risk Europe in an exclusive interview that she believes the Certification Programme will help establish risk management as a true profession rather than a discipline and raise the influence of risk managers as risk leaders at the boardroom and top management level. "The original objective of the project was to create a framework for the formal and ongoing recognition of professional achievement and experience, and we have done that. Ferma will become the recognised body that sets the standards for being a risk manager. It is a fantastic achievement in such a short space of time carried out by a group of dedicated teams and individuals," she said. There will be three categories of Certified Risk Manager: Founder, Advanced and Passport. Founder Certified Risk Managers will form a unique community of the pioneers who will take the work completed by the Ferma Steering Committee and stress-test it over the coming months.hideThese individuals will be Ferma board members, national association presidents as of 1 May and those who have taken part in the certification sub-committees covering knowledge, experience, continuous professional development, code of ethics and the business model. At the Forum, Ferma will also launch the Advanced Certified Risk Manager category. The normal process to certification will require an agreed level of education and experience and the successful completion of an online examination. For those with more than 30 years of risk management experience, there will be a 'fast track' option for certification available only until 2016. This will give these risk managers the opportunity to bypass the examination requirement by preparing a dissertation on an agreed subject. In 2016, Ferma will then launch the third category of certification, known as the Passport. This is set at an introductory level but follows principles similar to those of the Advanced Certification category. It will also require a combination of knowledge, experience and the successful completion of an examination. Ms Graham conceded that when the project was unveiled at the Versailles Seminar in October 2012 many in the market did not think that it would be possible to hit the October 2015 target. Many feared that the complexity and scale of the project would be compounded by national rivalries between associations and existing educational bodies and other basic problems such as agreeing a definition of risk and insurance management and what to do about experienced risk managers who had 'trained on the job’. But Ms Graham told Commercial Risk Europe that there had been a 'fantastic team effort' by the Ferma Certification Steering Committee led by Ferma board member and vice president Michel Dennery. The other members of the committee are board member and deputy president Jo Willaert, board member Isabel Martínez Torre-Enciso, Ferma executive director Florence Bindelle and EU Affairs representative Julien Bedhouche. Ms Graham also pointed out that the 'pioneering work' carried out by former secretary general Pierre Sonigo and previous president Marie-Gemma Dequae as well as contributions from representatives of national associations, the associations themselves and other professional bodies, which have all enabled Ferma to reach the final lap, should not be forgotten. The Ferma president added: "Ferma is in this space for the long term and we know that over time the programme will continue to evolve and develop." Risk managers will be delighted to hear that Ferma has decided to cap the price of the certification programme to make it affordable and accessible. The charge for an Advanced Certification will be €300, for the Passport it will be €200 and the annual renewal fee will be €100. Risk managers who take part in Commercial Risk Europe's annual European Risk Frontiers survey and the Ferma European Risk and Insurance Survey consistently comment that lack of recognition of the true value that risk and insurance management can bring to the table is one of their greatest challenges. "We talk about relevance and how to ensure that we are at the heart of decision-making. This enables it. We need this because it is what sets you apart and gives recognition to others that you can work at the highest level. If you want to present your risk strategy to the board, then your credibility will be enhanced because you are a certified risk manager," said Ms Graham. Asked why a risk manager should aim for certification, the Ferma president said that the answer is simple: it will help give the risk manager credibility among their colleagues and bosses and enhance their ability to have a real impact on decision-making. "We think that employers will be keen," she continued. "Certification will allow the organisation to demonstrate that its risk managers are qualified and experienced to provide risk management to a widely recognised level of confidence. It will thus help increase the organisation's reputation and credibility with other stakeholders and third parties, including suppliers and regulators. "National associations will derive financial benefits from the certification programme, but more importantly it will strengthen their position and help drive membership growth. So the risk manager, the employer and the associations can all work together for a common purpose, which is really positive and a big step forward for the profession," added Ms Graham. Once individuals have attained their certificate, they will be required to carry out continuing professional development (CPD), based on a points system managed online, and comply with the Ferma Code of Ethics. Educational bodies such as business schools, universities and risk management education institutions will be accredited to provide the education and training. Other organisations such as conference organisers, brokers and insurance companies that offer knowledge and training to risk managers can be licensed to provide CPD. "We want Ferma to be the body that sets the standards for the profession; therefore, we are going to evaluate and accredit what individuals know and what they do with this knowledge via examinations, CPD and a code of ethics," explained Ms Graham. Working out how to accommodate the wide range of individual experience and education among risk managers is one of the trickiest elements of the project. "Experience is important but we have to know what you do with it and how it is applied. Some people have huge experience but less formal education. Others have amazing qualifications but little practical experience. The system has to reflect this diversity if we want to be treated as a profession," Ms Graham said. In conclusion, the Ferma president was keen to credit all the hard work that volunteer individuals at Ferma and outside the federation have provided to reach this goal. "A big thanks to everyone involved. It has been a fantastic effort. We have also had great support from other risk management associations around the world who are very interested and associations in other fields who have happily helped by sharing their knowledge and experience. This has been a real team effort," said Ms Graham.

First European risk management certificates to be awarded in Venice this October

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