29 December 2021

Giancarlo Fancel: Focus is on climate risk and the cyber threat

Generali's group CRO Giancarlo Fancel reviews the key ERM developments of 2021 and his outlook for 2022

What has been the most positive ERM development for Generali in 2021?

Giancarlo FancelWe have focused on two main topics this year. The first one was building a climate change risk framework, and the second was implementing the plan at group level for our cyber risk framework.

Our challenge next year is to share the climate risk framework at local level with Generali's local CROs in order to ensure coherence. We are also working very closely with Generali's investments and underwriting teams on climate risk.

With investments, in Europe, I think Generali is number one in terms of the amount of green bonds issued.

For cyber risk, we have a three-year plan to ensure we are building a strong cyber risk framework and security.

What emerging risks you are most concerned about?

I am not so concerned about inflation as I think it is uncommon to have an environment where we have inflation with a low interest rate environment. But we do have to manage this situation. Therefore, I hope that governments will be able to manage inflation and the low level of interest rates.

I am also quite concerned about the recovery of the pandemic because in Europe the situation is becoming quite traumatic.
In Italy, the good thing is that the percentage of people vaccinated is very high. This is good because Italy is usually not considered best in class!

What is your working pattern in the new normal?

Our approach at head office level, starting from 4 January 2022, means people can have up to three days of remote working.

In my opinion, it is very important to rebuild personal relationships between colleagues. It is true we have achieved all our targets, but the level of stress on people that are remote working is very high. The main risk is that we lose brand identity.

If you had one wish for 2022, what would it be?

I have only one strong wish for 2022: that Covid-19 will end across the world.