Global risk management association to set certification standards

The global body for risk management associations is to launch an international standard for the certification of risk managers.

The International Federation of Risk and Insurance Management Associations (IFRIMA) will oversee and approve the global risk professional framework and code of conduct, which will then be implemented by local risk manager associations.

FERMA, PARIMA and RIMS are all understood to be in advanced discussions about launching their regional versions, which will be based on the international governance standards but with variations for the local operating environment.

IFRIMA board member and FERMA president Julia Graham said this was the first time that a global benchmark had been set for risk managers.

“This is the way that the profession is converging and raising its game,” she said.

But Graham stressed that FERMA was not turning into an examination body.

“What we’re doing is taking details of an individual’s professional qualifications, academic qualifications and experience – validating those if we feel we need to – and putting people through a process of application at a regular and advanced level.

“The important thing we’re doing is we’re recognising that people come to the profession from very different professional backgrounds.”

FERMA’s model, which others are likely to emulate, will involve various risk management certifications – which are currently being piloted – accreditation for professional academic bodies, and licenses for groups that provide ongoing professional development.

The full details of the model will be announced at the FERMA conference in Venice, Italy, in October.

PARIMA president Franck Baron said the group was “very serious about professional certification” and was in discussions with FERMA to ensure that any certification it launches is compatible.

RIMS president Rick Roberts also said the association was looking at launching a risk management certification next year.

Roberts also announced at the RIMS Australia conference in Melbourne this week that RIMS would soon launch its new information network tool, Opis.

“What Opis will allow you to do is save time searching for content you need, connect you with others that are interested in the same topics no matter where in the world they’re located, and bridge knowledge across experience levels and generations,” Roberts said.

“We are now able to recommend customised content and connections based on your skillset, your level of expertise and your level of interest.”

The new tool is currently in pilot stages, but is schedule to launch next month.

Risk managers up their game

The announcements are part of a growing global push to improve the standards of risk management and recognise the increasingly important role it plays in achieving strategic business objectives.

Graham said: “Well risk-managed businesses make more money, it’s as simple as that. Those with advanced approaches to risk management are more profitable than those who have unsophisticated approaches.

“We should just get to grips with the fact that the world has moved on and we’re now in a new era of revolution. But the difference is that the new normal is more sophisticated and more challenging … so are we as risk managers up to that more sophisticated and challenging new world? In some cases, absolutely, and in other cases, possibly not.

“If we’re going to take this journey and be the type of risk managers for tomorrow’s business I think risk managers have got to change. We’ve got to change our skillset; we’ve got to change how we use that skillset. We need to up our game.”