European risk management leaders tout value of financial literacy

As the European Union struggles to rein in its massive sovereign debt crisis, a number of finance leaders and market analysts are urging risk management executives to improve their financial literacy and enhance their qualifications. Leaders from the Federation of European Risk Management Associations asserted that risk managers cannot isolate themselves from global financial turmoil or rapid market changes due to technology. Unlike conditions five years ago, today's risk managers need to enhance their financial literacy and competence for company boards {huh?} and boost their management skills. Jorge Luzzi, risk management director of Pirelli S.p.A, pointed to enhanced communication as a paramount objective for risk managers making credit decisions, even citing the value of social media in such an environment. "He said the association also needs to work on 'delegation with a common brain' and share expertise developed in national associations across the European body," reports Sarah Veysey for Business Insurance. Many companies are beginning to incorporate risk management into their overall corporate strategy, with some appointing risk officers as part of the C-suite.