Risk management is linked to better corporate performance, FERMA survey finds
Maturity of risk management processes is correlated with sustainable improvements in corporate performance, the 2012 Risk Management Benchmarking Survey of the Federation of European Risk Management Associations (FERMA) has revealed.
The results of the survey, conducted in collaboration with AXA Corporate Solutions and Ernst & Young, were announced today at the FERMA Seminar being held on 22 and 23 October in Versailles, outside Paris. This is the sixth edition of the survey, which has taken place every other year since 2002.
The 2012 survey demonstrated that companies with the most advanced risk management showed the strongest level of growth for the past five years, as measured in terms of earnings before interest, taxes, depreciation and amortisation (EBITDA).
From a record number of 809 responses from risk and insurance managers in European 20 countries, the survey found that:
- 28% of companies with advanced risk management practices reported an EBITDA growth rate of more than 10%, compared to 22% whose risk management was classed as mature, 15% for moderate and 16% for emerging.<(li>
- Among companies with an EBITDA growth rate of more than 20%, three-quarters (74%) have mature or advanced risk management practices.