The findings of a study into European risk management practices were announced at the biannual Ferma seminar in Brussels today.
The Federation of European Risk Management Associations, Ernst & Young and AXA Corporate Solutions investigated the practices of 269 European
companies.
The results suggest several factors have contributed to the development of risk management in Europe.
According to the study, the introduction of regulatory regimes and corporate governance legislation alongside maturity in risk management were the driving forces behind risk management growth.
The study analysed factors, which underline businesses' risk management strategy together with reaction to changes in the insurance market, and
expectations of risk finance providers.
Three-quarters of the companies in the survey have a formally defined risk management policy and risk management process.
A further 36% documented the risk management process. Risk mapping, the findings imply, is the most common first step in implementation.
Ferma president Thierry van Santen said that use of the risk management standard, adopted by Ferma, had begun to spread.
The standard created a framework for companies to deal with their risks in a systematic and complete way in the context of the other functions of the business, he said.
Partner of Ernst & Young in charge of risk management Pierre-Alexandre Bapst said: "Among the companies affected by these requirements, 60% stated that the risk manager makes a direct contribution to the work necessary to meet them.
"Half make a direct link between risk management and internal audit."
The study suggested companies were not preoccupied with the negative consequences of risk – there were positive effects too.
Businesses report having an optimisation of operational efficiency and improvements in decision-making processes.
More than half of British and German companies kept their risk management and insurance departments separate.
French businesses, however, tended to run combined operations, said the study.
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
