Decision Makers
Luxembourg

How has ALRiM evolved over the past quarter century?

When the Luxembourg Association of Risk Management (ALRiM) was founded 30 years ago, it focused mainly on the activities of banks’ and, later on, investment funds’ risk managers. Its members were mainly risk managers. Since then, functions such as administrators, front, middle, and back office workers have been represented by the members, bringing different perspectives and concerns to discussions. And this keeps evolving! ALRiM was pleased to host the World Economic Forum's (WEF) Global Risk Report presentation. Recent presentations have illustrated the broadening risks scope. Accordingly, today, ALRiM sees its mandate as also encompassing new concerns such as environmental, social, and governance (ESG), as well as cyber risks that impact all actors in society and the economy. ALRiM's scope is thus broader than just financial risks and represents the concerns and perspectives of its members.

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Is there a single issue that has helped determine ALRiM's direction?

Risk management has moved beyond the risk management department and has become essential in every organisation, at all levels. Risk management has become an integral part of governance. It encompasses a much broader scope than its past focus on financial risks. ALRiM has become a well-known and recognised player in the Luxembourg financial centre, and its main mission is to promote a risk management culture for all players in the centre and for all types of companies.

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"Alrim now includes board members and people from a wider range of business sectors, reflecting the generalization of risk management as a key component of governance."

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How is ALRiM seeking to develop an awareness of the need for risk management?

ALRiM promotes the major idea that risk management is not a cost center but adds value; that its members seek to manage risk, not minimize it. As president of ALRiM, Luc Neuberg saw his mandate as broadening the debate about risk beyond the purely financial to include societal risks. ALRiM is a centralized depositary of sources and information but shuns any elitism, seeking to be open to everyone. ALRiM works with many associations, co-organizes and addresses important conferences such as risk for banks, risk for the funds. Another extremely important way ALRiM promotes risk management is through training at all levels, including continuous training, which is a key element in developing the culture. The recent launch of the Risk Academy in collaboration with GFR (Global Fund Risk) marks an important milestone in this educational mission.