Risk Managers Urged to Address Risks Across Entire Ecosystems

The role of the risk manager is expanding beyond organizational boundaries, according to speakers at the opening day of the Federation of European Risk Management Associations (FERMA) Seminar 2025, held in Zurich, Switzerland. Charlotte Hedemark, president of FERMA, said risk professionals are now expected to address risks across entire ecosystems.

"This year's theme, 'Going Beyond the Value Chain,' reflects the evolving role of risk managers in a world that is increasingly complex, interconnected, and unpredictable," Ms. Hedemark said. "Our responsibilities no longer stop at the boundaries of our organizations. Today, we are called upon to understand and influence risks across entire ecosystems—from suppliers and investors to regulators and society at large."

She described the seminar as an opportunity for collaboration and urged attendees to exchange ideas and build resilience throughout the value chain.

Fiona Watson, vice president of corporate performance and accountability at the World Business Council for Sustainable Development, addressed the growing impact of climate-related risks on global operations.

"Reality, not regulation, is driving the agenda," Ms. Watson said. "Physical climate risks are already disrupting global value chains, eroding profitability, and creating systemic financial instability." She cited projections estimating that climate-related risks could cost businesses up to $1.2 trillion annually by 2050.

"Companies must integrate these environmental realities into decision-making to remain resilient and relevant," Ms. Watson said. "Risk managers have a pivotal role to play in mobilizing executive alignment around physical risk and resilience. For them, resilience is not simply another control mechanism but a strategic capability that underpins long-term value creation."

Sessions on the opening day also addressed the skills required for modern risk managers, including an integrated approach to managing value chain risk and the shift from compliance-based to strategy-focused practices.

Workshops during the 2-day event covered topics such as investor expectations on value chain resilience; the role of captives in supporting environmental, social, and governance goals; and preparation for risks related to climate change and geopolitical developments. Sessions also examined regulatory requirements under the Corporate Sustainability Reporting Directive and the Corporate Sustainability Due Diligence Directive.