Risk managers’ role expanding in France finds AMRAE survey

It further finds that the risk function is spreading among mid-sized companies as a result of the current financial crisis. The survey identified a growing involvement of risk managers in high-level committees. 36% of those surveyed said that they are currently members of their firms' operational risks committees, compared to 26% in 2011. The ratio reaches 43% in the case of internal audit committees, compared to 33% two years ago. Additional evidence of risk managers' expanded role can be found in the fact that 60% of respondents said that they are only two hierarchical levels below their CEOs, against 47% who said the same in 2011.hideThe ratio of risk managers who answer directly to CEOs reached 16% this year. This number is especially high among ERM-focused professionals at 23%. Among those surveyed, 42% said that they are mostly involved in the purchase of insurance and risk prevention. Just 19% are in charge of ERM programmes only, while 39% are responsible for both activities in their companies. The proportion of risk managers in the latter group has increased compared to previous surveys. 27% of respondents have worked in risk management for more than 15 years. A further 17% have more than 10 but less than 15 years of experience in the sector. The proportion of experienced professionals is higher among those focused on insurance, while more than half of ERM specialists have less than five years of experience in the field. Remuneration levels remain stable compared to 2011, with average wages ranging between €101,000 and €120,000, not including variables, which on average amount to 21% of their salaries. The survey points out that the typical French risk manager is 40 years old and male, although the participation of women in the profession has increased over recent years. In the previous survey, carried out in 2011, 77% of the risk managers taking part were male, a number that has fallen to 72% this year. Industrial, environmental and fraud risks are the issues with which French risk managers most commonly have to deal. But they remain generally uninvolved in the management of strategic risks, according to the survey. The survey also finds that fewer risk managers find themselves in internal competition against other risk departments such as internal audit and control. "In 2009, 27% of the risk managers surveyed believed that those departments were in competition against them," noted François Malan, a member of AMRAE's board, during a presentation of the survey in Paris. "Today, 4% think they face competition from internal controls and 3% from internal audit. That is a strong sign that, today, there is a partnership with those functions going on." An increased awareness over the role of risk managers in French companies has also been identified by another survey released by AMRAE that deals with the perceptions of risk by the heads of human resources departments. More than one out of every four respondents said that their companies have a risk management department. The number may not sound impressive, but it marks a clear improvement over the 16% reported in a similar survey last year. Also, almost 70% of the respondent companies were SMEs that are historically less likely to maintain a dedicated risk management department. The HR survey was commissioned in preparation of the second meeting between risk management and HR professionals, organised by AMRAE and ANDRH, a human resources association. The conference will take place in Reims, France, on 2 and 3 July.

Risk managers’ role expanding in France finds AMRAE survey

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