FERMA’s Charles Low considers how the groundbreaking report on preparedness by former Finnish president Sauli Niinistö could further raise the profile of risk management.
2024 was a year rich in reports and policy recommendations within the EU.
But for FERMA, one particular development stood out – the publication of the Niinistö report on strengthening EU civil and military preparedness, released on 30 October.
Titled ‘Safer together, A path towards a fully prepared Union’, the report was commissioned by European Commission president Ursula von der Leyen, and written by former Finnish president Sauli Niinistö.
Its aim is to provide recommendations on how to strengthen EU resilience and preparedness in the face of an ever more complex and challenging risk landscape, which encompasses exposures ranging from natural catastrophes and geopolitical upheaval to hybrid threats by malicious foreign actors and the potential for future pandemics.
Inspired by the Finnish ‘total defence’ concept, the report adopts an all-hazards, whole-of-government and whole-of-society approach to preparedness.
For this reason, its comprehensive list of recommendations gives a role to every part of society – including to the private sector, whose “preparedness and resilience is vital to ensuring the continuity of vital governmental and societal functions”.
IMPROVED PUBLIC-PRIVATE COORDINATION
Niinistö’s recommendations for the private sector are too numerous to all be mentioned here.
However, the report notably calls for new public-private coordination mechanisms to develop a common understanding of risks, and also for systematically involving private sector stakeholders in the making of preparedness policies and emergency planning.
Moreover, it argues for the establishment of common preparedness frameworks and standards to enhance the resilience of EU businesses, especially in critical sectors.
“Recommendations are not regulations, but the Niinistö report will directly shape future EU policies.”
Last but not least, the report recommends developing a comprehensive EU stockpiling strategy to incentivise coordinated public and private reserves of critical inputs, in order to ensure their availability in all circumstances.
Why is this important? Recommendations are not regulations, but the Niinistö report will directly shape future EU policies.
Commissioner Hadja Lahbib, responsible for crisis management and preparedness, is tasked with building on the report to develop and implement a European Preparedness Union Strategy, which will follow the same all-hazards, whole-of-government and whole-of-society approach.
The report is also likely to influence commissioner Wopke Hoekstra’s work on a new European Climate Adaptation plan.
AMPLIFYING THE ROLE OF RISK MANAGEMENT
Risk managers, especially those working in strategic or dual-use industries, should pay close attention.
Risk management requirements are likely to be integrated in all kinds of general and sectoral legislation in the future, and risk professionals should engage with their national risk management associations and FERMA.
We encourage risk managers to use the discourse around preparedness to raise their profile, both within their organisation and in the larger public sphere.
“Risk managers, especially those working in strategic or dual-use industries, should pay close attention.”
The Niinistö report has put risk management on the agenda of policymakers in Brussels, opening a window of opportunity for risk managers to make their voices heard.
FERMA will continue to advocate on their behalf for the effective risk management practices required on the path towards a more resilient and competitive EU economy.
Our focus is on ensuring that EU enterprises are given the necessary tools, as guidelines or funds, in order to cope with supply shocks in times of crisis or emergency. We will also advocate for the inclusion of enterprise risk management in the framework of the coming European Preparedness Union Strategy.
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