1. Risk Management by Businesses Seminar on Financial Services Florence Bindelle Executive Manager of Ferma September 16,2005

2. Seminar on Financial Services, Sofia, September 16th, 2005 Ferma a quick presentation…  Federation of European Risk management Associations  13 associations, 12 countries,, 4800 members  Belgium - BELRIM  Denmark - DARIM  France -AMRAE  Germany - BfV & DVS  Italy - ANRA  The Netherlands - NARIM  Portugal -APOGERIS  Russia - RusRisk  Spain - AGERS  Sweden - SWERMA  Switzerland - SIRM  UK - AIRMIC  Individual Members – Poland, Canada, US, Monaco, Czech Republic, Turkey, India, Bulgaria

3. Seminar on Financial Services, Sofia, September 16th, 2005 Objectives  Widen and raise the culture of Risk Management throughout Europe, by information sharing & educational and research projects  Represent the interests of European industry with respect to Risk management issues and be part of the decision making process at the European level  Develop and maintain contacts with other European Business Associations such as:  CEA (European insurers association)  BIPAR (European brokers association)  UNICE (European industry representatives)

4. Seminar on Financial Services, Sofia, September 16th, 2005 Recent achievements  Environmental Directive –Avoidance of mandatory insurance –Participation in experts group  Reinsurance Directive –Specific status for Reinsurance captives has been negotiated  Brokers remuneration –Discussions for recommendations with CEA and BIPAR  Development of a European course in Risk Management - Prorim qualification (Professional in Risk Management )

5. Seminar on Financial Services, Sofia, September 16th, 2005 Why there is a need for risk management?  Impact of risks is greater than ever  New regulations apply  Legal implications for executives  Stakeholders want to know –Shareholders –Clients –Public –Employees –Administrations –NGO’s –…–…

6. Seminar on Financial Services, Sofia, September 16th, 2005 What has changed in Risk management  Much higher visibility with direct involvement of Executive committee and Board of Directors  Scope of Risk has considerably widen  New structures where risks are being analyzed : Risk committees, CRO, audit committee, Disclosure committee  Disclosure, Reporting, Communication

7. Seminar on Financial Services, Sofia, September 16th, 2005 How should a company proceed to develop a risk management approach?  The Risk Management Standard

8. Seminar on Financial Services, Sofia, September 16th, 2005 How should a company proceed to develop a risk management approach?  Risk Assessment  Risk Analysis (Internal & External) –Risk identification –Risk Description –Risk Estimation –Risk Profile

9. Seminar on Financial Services, Sofia, September 16th, 2005 How should a company proceed to develop a risk management approach?  Risk Evaluation  Risk Treatment  Risk Reporting and Communication  Monitoring and review of the risk management process

10. Seminar on Financial Services, Sofia, September 16th, 2005 Predictions for the future  A separation between RM and Insurance purchasing  Director of Insurance will report to Procurement Director  Risk managers are cooperating with Internal auditors and other corporate functions  Companies will have to cope with new uninsurable risks  Internal reporting on risk issues will become more sophisticated  New communication tools will be developed

11. Seminar on Financial Services, Sofia, September 16th, 2005 RM opinions on insurance practices and offers  Risk transfer to the traditional insurance market seems the preferred way for traditional risks  This vision has remained relatively stable  New risks create some expectations from the insurance industry  Claims management is considered as the heart of the insurers services, brokers being preferred partners for most of other services  International and good rated insurance companies have a key role to develop towards the well risk managed corporate clients  A significant part of the risk managers are still looking for advices to optimize their insurance programs  Contract certainty

12. Seminar on Financial Services, Sofia, September 16th, 2005 Come to the FERMA RISK MANAGEMENT FORUM 2005! Lisbon 2-5 October WWW.FERMA-ASSO.ORG Contact in Bulgaria: Mr Stoian Lilov (BTC): stoian.lilov@btc.bgWWW.FERMA-ASSO.ORG

13. Seminar on Financial Services, Sofia, September 16th, 2005 Thank you for your attention!