Michael Samonas, Group CFO of SIDMA SA
Why is participating to the European Risk Management Seminar important to you?
As a CFO, Risk Management is a higher priority for me. Companies today are exposed to an ever-more-complex array of risks and uncertainties. Whether driven by geopolitical events, volatile financial markets, technology developments, cybersecurity threats, data privacy concerns, or climate change, coping with accelerating change is no longer an advantage, but a necessity for a company to survive.
Why is the theme “Corporate Risk & Finance: how to finance the ever-growing universe of risk?” relevant in today’s fast-paced world?
Risk is inversely proportional to the value of a company. The finance function as a strategic function (CFO has evolved to a strategic partner) is responsible for safeguarding the financial health and value of the company. Minimizing risk has a cost and financing it is part of our job. Since today companies are exposed to an ever-more-complex risks, financing their coverage is more relevant than ever.
At the Seminar you will be presenting ” The Underestimated Challenge: Risk and insurance communication in a hardening market”, what would you like the audience to remember after your session?
When delivering a risk coverage proposal, the key message should focus 1st on the exposure that is avoided and then on the cost of avoiding it. The decision is based on a cost benefit analysis. The cost is straightforward, but the benefit should be quantified. One proven way is to use a probabilistic approach to assess the exposure of a potential risk. To adopt an expected value mindset and translate risks in probability and outcome terms.
How will the role and responsibilities of the European risk managers evolve in order to achieve the green and digital transition?
Cyber risks and climate change are among the top risks for the years to come. As such, European risk managers will have to identify and assess them. Their role and responsibilities will still be to safeguard company’s assets and reputation. But to respond they will need continuous education and a network of knowledge sharing. I think here comes the role of FERMA.