FERMA’s has today published its Contribution to the Hungarian Presidency of the Council of the EU which focuses on two core elements of the Presidency’s Programme – the ambition to make Europe more competitive and the intention to reinforce Europe’s defence policy.

In the document, FERMA emphasised the key role that the Presidency must play in promoting the competitiveness of European industry, while stating that this undertaking will require “a holistic approach”. The Federation added that “attention must be paid to the simplification of the regulatory maze to keep European companies competitive”.

Supporting regulatory implementation

As part of this simplification process, FERMA called upon the Hungarian Presidency to focus efforts on supporting the implementation of adopted legislation concerning the green and digital transition – in particular the EU AI Act, the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD) and Solvency II.

The Federation also stated: “FERMA is supportive of the Antwerp Declaration calling for ‘a new spirit of law-making’. FERMA calls on the Hungarian Presidency of the EU to keep this ethos at the core of its work, including any new initiatives, towards making Europe more competitive.”

Focusing in more detail on AI-related developments and the implementation of the EU AI Act, FERMA amplified the important function the risk profession must have. It noted: “Risk managers play pivotal roles within their organisations and society, leveraging the potential of AI, while ensuring its safe, ethical and fair use,” adding, “Their participation in AI-related policymaking is crucial, particularly in discussions relating to the liability regime governing AI.”

Maintaining the focus on cybersecurity

Recognising the Hungarian Presidency’s commitment to maintaining dialogue on cybersecurity, FERMA called for “a shift in focus from prioritising cyber crisis management processes, to emphasising preparedness first”, stating that it hoped such a move could be reflected in dialogue relating to the EU Cybersecurity policy.

Reiterating the need for the EU to consider establishing a cyber reinsurance pool or backstop mechanism to provide financial resilience against a catastrophic cyber event, the Federation stated: “FERMA values a multistakeholder approach and advocates for a joint taskforce led by the European Commission, EIOPA, and ENISA to work on the practicalities for setting-up such a system.”

FERMA also urged the Presidency to adopt a risk-based approach to addressing Europe’s increasing exposure to crises to help ensure operational continuity and minimise disruptions. With expectation of further impacts in the latter half of 2024, it suggested that: “the EU provides tools, like funds and guidance, to help businesses manage supply shocks during crises or emergencies.”

Charlotte Hedemark, President of FERMA, said: “The Hungarian Presidency has set ambitious goals and FERMA is committed to supporting it. While there is much focus on the challenges the EU faces, it is important we equally recognise the significant opportunities for progress that exist. The risk management community has a fundamental role to play in capitalising on these opportunities and FERMA will be an active participant in dialogue with the Hungarian Presidency.”