F ID I N E WS that its business is in good financial shape. Accordingly, EY and FIDI have developed a unique, tailor-made solution to assess the risk of a FIDI Affiliate not being creditworthy: the EY Credit Risk Barometer (EY CRB). This tool analyses a companys financial statements for the previous year and returns a single value to indicate the creditworthiness of an Affiliate. Based on three ratios solvency, liquidity and profitability this assessment reduces one of the major risks a company faces: the financial risk. FF: EY is leading a workshop at the next FIDI Conference in Amsterdam. What will it be about? KYB: Risk management to identify and control threats in the moving industry. In a nutshell, risk management is the process of identifying, assessing and controlling threats to an organisations capital and earnings. These threats or risks could stem from a wide variety of sources, including financial uncertainty, legal liabilities, strategic management errors, accidents, and natural disasters. In our workshop, we will focus on operational risk management in the moving industry. The main reason to include a nancial assessment in FAIM 3.2 is that customers expect a FIDI Afliate to be able to demonstrate its business is in good shape FF: Will you continue to manage the FAIM audit account for EY from Israel? KYB: Absolutely! I have seen this amazing programme grow into the most important quality certification in the global moving industry. This certification is evidence of the credibility of the FAIM Compliance Procedure and the valuable cooperation between EY and FIDI. EYs role through the onsite audits, quality reviews and support to the FAIM Coordination Centre (FCC) has contributed to the reliability and legitimacy of the FAIM label. It gives assurance to end customers like me that their most important personal possessions will arrive safely at their destination. As a quality executive, I will also be personally performing in some audits in the new FAIM 3.2 programme. I believe this updated certification will go a long way towards improving quality and will mitigate the risks in the global world today. FF: Can you explain the importance of the new Financial Assessment requirement, from EYs point of view? KYB: This requirement was implemented as a pilot, for a period of two years, from January 2019, without consequences for FAIM certification or membership. There are many business reasons to include a financial assessment into the FAIM Standard. The main one is that your fellow Affiliates, business partners, and private and corporate customers trust, expect, and even demand that a FIDI Affiliate as a FAIM-certified mover is able to demonstrate 38 FF289FebMar19 pp36-39 EY interview.indd 38 FF: What exactly is operational risk management? KYB: Operational risk is defined as the risk of loss resulting from inadequate or failed internal processes, people and systems, or external events. Based on EYs latest survey, the top 10 operational risks in 2017 were: 1. Cyber risk and data security 2. Compliance with local regulations 3. Outsourcing 4. Credit risk 5. Organisational change 6. IT failure 7. Anti-Money Laundering (AML) and sanctions compliance 8. Fraud 9. Physical attack 10. Geopolitical risk The new FAIM 3.2 programme, together with the Financial Assessment requirements, will allow FIDI Affiliates worldwide to mitigate most of these risks. Yet, a structured process of operational risk management would be necessary to tailor and address each firms individual risk. FF: What should we expect from the workshop? KYB: In general, all risk management processes follow the same five basic steps: 1. Identifying the risk 2. Analysing it 3. Evaluating or ranking the risk 4. Treating it 5. Monitoring and reviewing Each industry is different, and the moving industry has its own characteristics, as well as specific risks. Based on that as well as EYs experience, trends in the moving market, new compliance requirements, and the implementation of FAIM 3.2 and its Financial Assessment we will guide workshop participants through the operational risk process, using an example from the moving industry. Hopefully, they will be able to use this knowledge later in their own companies. WWW. F I D I . OR G 23/01/2019 16:39