Afleveringen
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Welcome to RIMScast. Your host is Justin Smulison, Business Content Manager at RIMS, the Risk and Insurance Management Society.
In this episode, Justin interviews Morgan O’Rourke and Hilary Tuttle of RIMS Risk Management Magazine for the Q4 Edition Risk Year in Review. They discuss the biggest risk events we’ve seen in 2024, including natural disasters following climate change and even the recent murder of the UHC CEO. They give their forecasts for 2025, with cybersecurity being an expanding area of risk, combined with AI, and regulatory changes likely under the new administration.
Listen for categories of risk your organization is sure to face in the coming year.
Key Takeaways:
[:01] About RIMS.
[:14] Public registration is open for RISKWORLD 2025! RIMS wants you to engage today and embrace tomorrow in Chicago from May 4th through May 7th! Register at RIMS.org/RISKWORLD and the link in this episode’s notes.
[:30] About this episode, coming to you from RIMS headquarters in New York. This episode is our special 2024 finale! Hilary Tuttle and Morgan O’Rourke of RIMS Risk Management Magazine will join us to discuss the top trends and stories from 2024 and what to expect in 2025.
[:58] RIMS-CRMP Virtual Workshops On February 19th and 20th, there is a two-day virtual workshop for the RIMS-CRMP led by former RIMS President Chris Mandel and presented by the RIMS Greater Bluegrass Chapter, the 2024 RIMS Chapter of the Year.
[1:20] The next RIMS-CRMP-FED Exam Course will be held from February 4th through the 6th, 2025. Links to these courses can be found on the Certification page of RIMS.org and through this episode’s show notes.
[1:36] RIMS Virtual Workshops! Gail Kiyomura of The ART of Risk Consulting will host the “Fundamentals of Insurance” virtual workshop on February 19th and 20th, 2025.
[1:50] We’ve got ERM on our minds. On February 26th and 27th, Elise Farnham of Illumine Consulting will lead “Applying and Integrating ERM”. The “Managing Data for ERM” course will be hosted by Pat Saporito, starting on March 12th, 2025.
[2:12] A link to the full schedule of virtual workshops can be found through the RIMS.org/education/online-learning pages. A link is also in this episode’s show notes.
[2:25] Interview! The Q4 edition of RIMS Risk Management Magazine is my favorite of the year! It is The Year in Risk edition. We’ll have a chance to revisit all the risk highlights from 2024.
[2:42] Here to discuss what made the cut and trends we need to look out for in 2025 are RIMS Director of Publications and Risk Management Magazine Editor in Chief, Morgan O’Rourke and Risk Management Magazine Managing Editor, Hilary Tuttle.
[3:01] There is so much to discuss from cyber security to executive safety. As a show of appreciation to the RIMScast audience and subscribers worldwide, we’ve got so much great content in one huge episode, as opposed to spreading it out over two episodes.
[3:18] You don’t have to wait, it’s all here for you at once! Let’s get to it!
[3:30] Morgan O’Rourke and Hilary Tuttle, Welcome back to RIMScast!
[3:39] Morgan and Hilary are here to discuss The Year in Risk, which is the title of the Q4 edition of RIMS Risk Management Magazine. How does 2024 stand out from other years?
[4:04] Morgan starts looking back at the year’s events in October. He recalls the bridge collapse in Baltimore in March. There are always going to be hurricanes and natural disasters. There are always going to be cyber attacks. It’s just a matter of what flavor they are this year.
[5:15] Morgan categorizes big risk events. There are accidents, like the bridge in Baltimore that affect shipping, and natural disasters, including storms, earthquakes, and record heat. 2024 is the hottest year on record, with the hottest day in recorded history, July 22.
[6:38] The AXA Future Risks Report lists climate change as the number one risk. Climate change brings natural disasters to places that don’t normally see them, like wildfires in the Northeast.
[7:55] Hilary says there were a few hundred fires in New York City this year. The NYFD had to put together its first brush fire task force. In the first two weeks of November, they had 271 fires. Canada has had a terrible year for fires, continuing from its 2023 fire season.
[9:25] Climate change puts everybody at risk. The risk landscape expands so that everybody’s in the game. Paraphrasing Flannery O’Connor, Hilary says 2024 was a disaster in truth everywhere. Disasters are not new but they are occurring in different places and times than before.
[10:22] There were 11,000 fires in the Northeast this year, largely in October and November. It’s a different season and in a different region. The traditional risk models are thrown out the window.
[10:49] Morgan comments that this year we saw the earliest category 5 hurricane formed: Beryl in June. We’re starting to throw out more of the parameters for when you need to be prepared for something.
[11:21] We are seeing more geopolitical conflict, supply chain issues, and risks that didn’t seem impactful in regions that seemed stable and reliable. Thirty percent of shipping goes through the Red Sea. Shipping is 90% of the supply chain.
[11:55] Hilary says in the last year and a half, shipping through the Red Sea has become an untenable and sometimes uninsurable risk. Our standard expectations for doing business are going out the window or being upended. This has become more of a problem this year.
[12:42] There are risks we itemize as the things that are causing problems. Then there are bigger-picture risks you don’t necessarily identify when you’re thinking about your problems.
[13:01] You’re thinking about supply chain disruption and natural catastrophes and business interruption, but not about the climate change that may cause them.
[13:42] Morgan says people have to focus on the problem that’s in front of them. You have to deal with the acute issues before you can deal with the systematic ones. It’s hard to solve systematic problems.
[14:28] Morgan sees polycrisis as interconnected risks. Hilary sees the word as an easy way to allude to something that has been happening for a long time. She can’t think of a time in which you truly faced only one risk without having to think of multiple interconnected risks.
[17:35] Morgan edited the new RIMS Executive Report, “Understanding Interconnected Risks” authored by RIMS Strategic and Enterprise Risk Management Council members Michael Zuraw and Tom Easthope.
[17:48] The paper is available only for members until February 12th, 2025. Then it will be publicly accessible.
[18:16] Morgan says the key for the paper is in its practicality about how you should go about prioritizing risks and understanding where they connect within your operations to communicate with departments and executives and implement risk mitigation. It’s actionable.
[19:30] Morgan considers that the value of RIMS membership and Risk Management Magazine is in learning what to do about risks.
[20:02] Hillary objects to the term polycrisis. It over-intellectualizes a problem to the detriment of focusing on how to solve it or what to do about it.
[20:58] Plug Time! RIMS Webinars! Hub International continues its Ready for Tomorrow Series with RIMS. On February 20th, they will host “Ready for the Unexpected? Strategies for Property Valuation, Disaster Recovery and Business Continuity in 2025”.
[21:23] More webinars will be announced soon and added to the RIMS.org/webinars page. Go there to register. Registration is complimentary for RIMS members.
[21:34] RIMS is now accepting nominations for all awards other than Risk Manager of the Year 2025. The submission deadline is Monday, January 6th, 2025. To receive a RIMS award, all winners must be active members and in good standing.
[21:54] These awards are the Diversity, Equity, and Inclusion Chapter Leadership Award, the Harry and Dorothy Goodell Award, the Volunteer of the Year “Heart of RIMS” Award, the Richard W. Bland Memorial Award, the Chapter of the Year Award, the Rising Risk Professional Award, the Risk Management Hall of Fame, and the Cristy Award.
[22:32] You can find more information about the awards through the About Us page of RIMS.org or the link in this interview’s show notes.
[22:40] Nominations are also open for the Donald M. Stuart Award which recognizes excellence in risk management in Canada. Links are in this episode’s show notes.
[22:51] Back to our Year in Risk Interview with Morgan O’Rourke and Hilary Tuttle of RIMS Risk Management Magazine!
[23:16] Justin brings up the recent shooting and killing of the UHC CEO. Morgan was at the same hotel but didn’t hear about it until he had walked to the office.
[23:46] If RIMS Risk Management Magazine had been a print publication, this event would not have been included. Being a digital publication, Risk Management Magazine was able to cover it.
[23:59] Hilary starts with executive safety and employee safety. She speaks of reputation risk and monitoring social media discussion. For most who commented on social media, this murder was no surprise. UHC had a tremendous failure of reputation risk and public listening.
[25:28] Hilary was saddened but not surprised by the incident. She calls privatized health insurance in the United States a horror show. You can’t let cashing those executive incentive checks blind you to public response.
[26:27] Morgan says it’s amazing to see that public sentiment was decidedly unsympathetic, but it’s not unexpected. Hilary mentions the rates of medical debt in the U.S. Hilary saw an outpouring of approval of the murder, which is an awful response to have.
[27:15] If you’re in a position where that is the public sentiment around your organization, you need to fire your PR firm and think very seriously, not only about how you’re conducting business but about how you’re communicating with the public. That is a huge reputation failure.
[27:47] Some health insurance companies have trimmed down or removed their executive team pages to make them less identifiable in public. It’s a safety issue. You want to be very careful about how much you post about individual people.
[28:43] From a cyber security perspective, nothing you put on the internet is private or innocuous. If you are an insurance executive who likes to go hiking at Mount Whatever, maybe that’s not information you want to put on the internet.
[29:31] Hilary sees this situation as reminiscent of Big Tobacco as an industry. She believes there is an awareness that there is a certain amount of evil being done among executives in this industry. She says perhaps there is a social reckoning to be had in that.
[30:06] Plug for The Spencer Educational Foundation! Spencer’s goal to help build a talent pipeline of risk management and insurance professionals is achieved in part by its collaboration with risk management and insurance educators across the U.S. and Canada.
[30:24] Since 2010, Spencer has awarded over $3.3 million in general grants to support over 130 student-centered experiential learning initiatives at universities and RMI non-profits. Spencer’s 2026 application process will open on May 1st, 2025, and close on July 30th, 2025.
[30:48] General grant awardees are typically notified at the end of October. Learn more about Spencer’s general grants through the programs tab of SpencerEd.org.
[30:59] Let’s Return to the Conclusion of my Interview with RIMS Risk Management Magazine’s Morgan O’Rourke and Hilary Tuttle!
[31:11] Justin asks about AI and cyber security in 2025. The Cybersecurity and Infrastructure Security Agency (CISA) has noted that there will be an increase in breaches and the creativity of attacks.
[31:38] They have a revised Revised National Cyber Incident Response Plan that is available for public comment. Hilary agrees that there will be more AI embedded in cyber attacks in 2025. It is already being used to power attacks and in the detection of attacks.
[32:01] AI is also being used effectively in different forms of exploiting humans with ChatGPT and better phishing emails. It is being used to write better malware that is harder to detect.
[32:25] Moody’s Outlook expects a significant intensification of cyber risk in 2025, from the number of cyber incidents that are occurring and the sophistication and impact of cyber risk. Companies are getting better at detecting cyber attacks and doing basic cyber security.
[33:19] Cyber criminals are getting better, too. The attacks will be harder to detect or more severe in scope. Hilary calls social engineering an interesting art. Like journalism, you have to find the approach that successfully gets the information you are looking for out of humans.
[34:38] Morgan describes an old social engineering attack with a recording of a baby crying in the background, and a “harried mom” trying to get into an account without her password, trying to craft a persuasive argument. Gen AI might do all this in one step and be relatively successful.
[36:01] Hilary mentions that at the DEF CON hacker’s conference, there is a social engineering village. Their “Capture the Flag” is a contest to do just what Morgan described. There are bulleted lists of the types of information you are trying to get in an allotted time.
[37:02] Morgan says it’s not like the fast-typing hackers seen in the movies. You get the information through conversation.
[38:05] Hilary says one of the downsides of automation is the tremendous proliferation in the number of attacks that are being launched. Ransomware attacks grew 70% last year and are on track to double their 2022 levels by the end of 2024.
[38:29] Moody’s and QB Canada both came out with reports anticipating 5,200 ransomware attacks around the world in 2025, from 2,500 in 2022. It’s easier to launch attacks at scale against multiple organizations at once. The attacks are more sophisticated and damaging.
[39:01] The ransomware attacks are asking for significantly more money. Fewer companies are paying ransoms because they have backups and plans in place. Average ransomware payments are going up. Last year, ransomware payments passed $1.1 billion for the first time.
[39:26] The companies that pay ransom are feeling more compelled and are in a tougher spot so they are paying larger ransoms.
[39:48] Morgan points out that paying the ransom doesn’t solve the problem. Change Healthcare had the largest healthcare data breach in U.S. history. They paid $22 million in ransom but didn’t get the data back. Some attackers will keep extorting you or just take your money and run.
[40:36] The FBI has said don’t pay ransomware. You can’t trust criminals.
[40:43] Hilary mentions three ransomware threats: holding a network captive, holding data captive, and holding sensitive information captive. This is triple extortion. If you are the victim of a ransomware attack, go in with the expectation that that is the situation.
[41:55] Hilary forecasts that 2025 will be a colorful year. There is a tremendous amount of uncertainty in pretty much everything. It will be an interesting year, politically. It will be a very interesting four years, from a regulatory perspective.
[42:22] In terms of severe weather, disasters, and cyber, it feels like there will be more, and more, and more events.
[42:51] Morgan thinks the biggest thing is the change in administration and the priorities. ESG has been downscaled. A lot of companies are moving off of DEI initiatives, based on the shift in administration and the feeling that DEI will not be as popular.
[43:16] The regulations concerning a lot of ESG may no longer be in play. The federal guidelines are not going to be what they were in any aspect.
[43:39] President Biden in 2023 issued an Executive Order with guidelines and restrictions on AI. Donald Trump has said he’ll probably rescind that. Donald Trump seems to be aligned with a lot of the tech companies for less regulation of AI. Fingers crossed it doesn’t make things worse!
[44:33] Hilary knows several organizations are particularly concerned about some of the potential risk impacts of taking away many of the consumer protections and other regulations that do a tremendous amount to curb risk. That could increase the risk landscape for many.
[44:55] CISA has cautioned that this could have a disastrous impact on cyber security. A lot of regulations that keep organizations safer are potentially on the chopping block under the new administration. Hilary thinks that’s probably true in some other industries. It will get risky.
[45:30] It has been a pleasure to see you both! I appreciate your time. The RIMS Risk Management Magazine Year in Review is now available at RMMagazine.com. Quick Plug! We’re looking for submissions from the risk profession. See the contribution guidelines.
[46:01] Reach out to Hilary and Morgan. Especially if you’re a risk professional, we want to hear your ideas. Morgan says we’re only as strong as our contributors in the risk management community. Give us what you’ve got!
[46:21] Special thanks again, as always, to Morgan O’Rourke and Hilary Tuttle of RIMS Risk Management Magazine for joining us here on RIMScast! The Risk Management Year in Review Edition is now live at RMMagazine.com. A link is in this episode’s show notes.
[46:41] We look forward to checking back with Morgan and Hilary for the mid-year update in 2025.
[46:48] More RIMS Plugs! You can sponsor a RIMScast episode for this, our weekly show, or a dedicated episode. Links to sponsored episodes are in our show notes. RIMScast has a global audience of risk and insurance professionals, legal professionals, students, business leaders, C-Suite executives, and more. Let’s collaborate and help you reach them! Contact [email protected] for more information.
[47:35] Become a RIMS member and get access to the tools, thought leadership, and network you need to succeed. Visit RIMS.org/membership or email [email protected] for more information.
[47:52] Risk Knowledge is the RIMS searchable content library that provides relevant information for today’s risk professionals. Materials include RIMS executive reports, survey findings, contributed articles, industry research, benchmarking data, and more.
[48:09] For the best reporting on the profession of risk management, read Risk Management Magazine at RMMagazine.com. It is written and published by the best minds in risk management.
[48:23] Justin Smulison is the Business Content Manager at RIMS. You can email Justin at [email protected].
[48:30] Thank you all for your continued support and engagement on social media channels! We appreciate all your kind words. Listen every week! Stay safe!
Mentioned in this Episode:
RIMS Risk Management Magazine
RIMS DEI Council
Nominations open for RIMS 2025 Awards! (Through Jan. 6, 2025)Nominations for the Donald M. Stuart Award
Spencer Educational Foundation — General Grants 2026 — Application Dates
Contribute to RIMS Risk Management Magazine / Submission Guidelines
“RIMS Executive Report: Understanding Interconnected Risks”
RIMS-Certified Risk Management Professional (RIMS-CRMP)
RIMS Webinars:RIMS.org/Webinars
“Ready for the Unexpected? Strategies for Property Valuation, Disaster Recovery and Business Continuity in 2025” | Sponsored by Hub International | Feb. 20, 2025
Upcoming Virtual Workshops:
“Stay Competitive with the RIMS-CRMP” | Presented by the RIMS Greater Bluegrass Chapter
February 19‒20, 2025 | Instructor: Chris Mandel
“Applying and Integrating ERM” | Feb. 26‒27
“Managing Data for ERM” | March 12, 2025
“Fundamentals of Insurance” | Feb. 19‒20, 2025
See the full calendar of RIMS Virtual Workshops
RIMS-CRMP Prep Workshops
Related RIMScast Episodes:
“Big Shifts with John Hagel, RIMS ERM Conference Keynote”
“2024 Mid-Year Risk Update with Morgan O’Rourke and Hilary Tuttle”
“2023 Risk Year In Review with Morgan O’Rourke and Hilary Tuttle”
“Live from the ERM Conference 2024 in Boston!”
“Maintaining an Award-Winning ERM Program with Michael Zuraw”“Applying ERM Theory with Elise Farnham”
“On Risk Appetite and Tolerance”
Sponsored RIMScast Episodes:
“Simplifying the Challenges of OSHA Recordkeeping” | Sponsored by Medcor (New!)
“Risk Management in a Changing World: A Deep Dive into AXA's 2024 Future Risks Report” | Sponsored by AXA XL
“How Insurance Builds Resilience Against An Active Assailant Attack” | Sponsored by Merrill Herzog
“Third-Party and Cyber Risk Management Tips” | Sponsored by Alliant
“RMIS Innovation with Archer” | Sponsored by Archer
“Navigating Commercial Property Risks with Captives” | Sponsored by Zurich
“Breaking Down Silos: AXA XL’s New Approach to Casualty Insurance” | Sponsored by AXA XL
“Weathering Today’s Property Claims Management Challenges” | Sponsored by AXA XL
“Storm Prep 2024: The Growing Impact of Convective Storms and Hail” | Sponsored by Global Risk Consultants, a TÜV SÜD Company
“Partnering Against Cyberrisk” | Sponsored by AXA XL
“Harnessing the Power of Data and Analytics for Effective Risk Management” | Sponsored by Marsh
“Accident Prevention — The Winning Formula For Construction and Insurance” | Sponsored by Otoos
“Platinum Protection: Underwriting and Risk Engineering's Role in Protecting Commercial Properties” | Sponsored by AXA XL
“Elevating RMIS — The Archer Way” | Sponsored by Archer
“Alliant’s P&C Outlook For 2024” | Sponsored by Alliant
“Why Subrogation is the New Arbitration” | Sponsored by Fleet Response
“Cyclone Season: Proactive Preparation for Loss Minimization” | Sponsored by Prudent Insurance Brokers Ltd.
“Subrogation and the Competitive Advantage” | Sponsored by Fleet Response
RIMS Publications, Content, and Links:
RIMS Membership — Whether you are a new member or need to transition, be a part of the global risk management community!
RIMS Virtual Workshops
On-Demand Webinars
RIMS-Certified Risk Management Professional (RIMS-CRMP)
RISK PAC | RIMS Advocacy
RIMS Strategic & Enterprise Risk Center
RIMS-CRMP Stories — Featuring RIMS Vice President Manny Padilla
RIMS Events, Education, and Services:
RIMS Risk Maturity Model®
Sponsor RIMScast: Contact [email protected] or [email protected] for more information.
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About our guests:
Morgan O’Rourke, RIMS Director of Publications and Risk Management Magazine Editor in Chief
Hilary Tuttle, Managing Editor, Risk Management MagazineSocial Shareables (Edited For Social Media Use):
There were 11,000 fires in the Northeast this year, largely in October and November. It’s a different season and in a different region. The traditional risk models are thrown out the window. — Hilary Tuttle
There are always going to be hurricanes and natural disasters. There are always going to be cyber attacks. It’s just a matter of what flavor they are this year. — Morgan O’Rourke
In the last year and a half, shipping through the Red Sea has become an untenable and sometimes uninsurable risk. Our standard expectations for doing business are going out the window or being upended. — Hilary Tuttle
People have to focus on the problem that’s in front of them. You have to deal with the acute issues before you can deal with the systematic ones. — Morgan O’Rourke
For most who commented on social media, the murder of the UHC CEO was no surprise. UHC had a tremendous failure of reputation risk and public listening. — Hilary Tuttle
Phishing is not like the fast-typing hackers seen in the movies. They get the information through conversation. — Morgan O’Rourke
Nothing you put on the internet is private or innocuous. If you are an insurance executive who likes to go hiking at Mount Whatever, maybe that’s not information you want to put on the internet. — Hilary Tuttle
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Welcome to RIMScast. Your host is Justin Smulison, Business Content Manager at RIMS, the Risk and Insurance Management Society.
In this episode, Justin interviews Carrie Frandsen, the ERM Director of the University of California and a RIMS-CRMP Commissioner. Justin and Carrie discuss all things ERM. In particular, Carrie explains the purposes of ERM, what constitutes success in an ERM Program, and how to start an effective ERM Program in your organization.
Listen for ideas on fitting ERM into your organization’s daily processes and decision-making, with resources to set you on the path to ERM success.
Key Takeaways:
[:01] About RIMS.
[:14] Public registration for RISKWORLD 2025 is now open! RIMS wants you to engage today and embrace tomorrow in Chicago from May 4th through May 7th! Register at RIMS.org/RISKWORLD and the link in this episode’s notes.
[:30] About this episode, coming to you from RIMS headquarters in New York. We will be joined by Carrie Frandsen, for some ERM motivation. She is the system-wide ERM Director for the University of California and a RIMS CRMP Commissioner.
[:58] The next RIMS-CRMP Exam Prep Virtual Workshop will be held on December 17th and 18th.
[1:09] On February 19th and 20th, there is a two-day virtual workshop for the RIMS-CRMP led by former RIMS President Chris Mandel and presented by the RIMS Greater Bluegrass Chapter, the 2024 RIMS Chapter of the Year.
[1:27] The next RIMS-CRMP-FED Exam Course will be held from February 4th through the 6th, 2025. Links to these courses can be found on the Certification page of RIMS.org and through this episode’s show notes.
[1:42] RIMS Virtual Workshops! Gail Kiyomura of The ART of Risk Consulting will host the “Fundamentals of Insurance” virtual workshop on February 19th and 20th, 2025.
[1:57] We’ve got ERM on our minds. On February 26th and 27th, Elise Farnham of Illumine Consulting will lead “Applying and Integrating ERM”. “Managing Data for ERM” will be hosted by Pat Saporito, starting on March 12th, 2025.
[2:18] A link to the full schedule of virtual workshops can be found through the RIMS.org/education/online-learning pages. A link is also in this episode’s show notes.
[2:29] Interview! Our guest today is one of the most enthusiastic people I know on the topic of ERM! She is Carrie Frandsen, the system-wide ERM Director of the University of California. She’s also a RIMS CRMP Commissioner.
[2:48] Carrie is here to talk about all things ERM. Whether you want to build a program from the start or you want to enhance an existing program, this is the mind that you want to tap into! We are thrilled that she’s here. Let’s get to it!
[3:03] Carrie Frandsen, Welcome to RIMScast!
[3:13] Carrie says she is a true ERM geek! With enterprise risk management you need the ability to think organization-wide.
[3:25] Not just to think organization-wide but you need to be able to think about the world and how things that are changing in the world, like politics, economics, and sociological changes, impact your organization. Then you have to get other people excited about that.
[3:42] You need to be able to partner with people inside your organization, like internal audit, compliance, and health and safety, all the different groups that are second-line, and help them get excited about building an enterprise-wide view of risks across the organization.
[4:03] Once you’ve got your second line of defense, you can build that risk committee to democratize risks across the organization. Everybody can see the risks in their silo and how things impact each other across different units.
[4:36] Carrie says the primary goal of enterprise risk management is to enhance an organization’s ability to anticipate and mitigate risks effectively while maximizing those opportunities for value creation.
[4:49] ERM helps organizations make more risk-informed decisions. It helps improve resilience and removes obstacles to achieving strategic objectives.
[5:06] ERM is part of the governance and management of an organization. Know what could impact you from outside the organization as well as things that are changing in your policies, procedures, and processes. Make sure those are effective to continue achieving your objectives.
[5:37] ERM can provide an early warning on risks and the effectiveness of controls. When you’re using ERM in decision-making, it can help you to challenge assumptions before decisions are made. It can help you to set the frame for the decision and help you consider the alternatives.
[6:02] ERM can help you ensure that appropriate actions are taken to reduce your risks. It helps the organization to learn and adapt.
[6:14] Healthcare organizations do root cause analysis, a good risk assessment technique to figure out how to make negative outcomes not happen again. There are a lot of risk assessment techniques that can help you, depending on the situation your organization is working on.
[6:42] Culture is how things are done. A risk-aware culture is essential for a successful ERM implementation. It fosters an environment where risk is openly discussed and employees feel comfortable in identifying and reporting potential risks without fear of repercussions.
[7:08] This allows organizations to address issues proactively before they escalate. If you have a risk-aware culture, risks and risk assessments are integrated into decision-making and risk is considered at all levels of decision-making from strategic planning to operational activities.
[7:29] This helps to ensure that risk is a key factor in every management decision. Employees can take ownership of risk management.
[7:38] The University of California has a motto: “ERM means Everyone’s a Risk Manager.” Individuals doing their day-to-day work in their area of expertise are the ones who know best what their risks are and how to manage their risks.
[7:58] Our role as risk managers is to support these employees by giving them training in ERM, and risk assessment tools, and letting them talk to other people about risks that may impact them that aren’t in their area. That distributed approach enhances the effectiveness of ERM.
[8:18] A risk-aware culture promotes continuous learning where lessons from past incidents are shared and used to improve future risk management practices.
[8:36] At the top level of ERM are the board and leadership. They set the tone for the organization’s risk culture. They need to understand the dynamic risk environment in which the organization operates. They need to know of rising risks so they can make good decisions.
[9:06] At the day-to-day level, where the work happens, is the risk owner. That’s the person with the accountability and authority to manage that risk.
[9:18] The business unit level is where risk management and control processes take place. An organization’s risk is inseparably connected to its objectives. The responsibility for managing risk can’t lie with anyone other than the person who’s responsible for achieving those objectives.
[9:36] Good risk management is everybody’s responsibility. What does the Risk Manager do? The risk leader provides the infrastructure, tools, coaching, leadership, and resources.
[10:08] Resources can be anything from software to workshops to all sorts of things to help people identify, manage, monitor, and report on the risks.
[10:20] Risk managers can champion a risk-intelligent culture across the organization. Risk-intelligent culture is a term coined by Deloitte in a white paper.
[10:46] Risk managers are the ones who champion the integration of ERM into existing policies, structures, and processes. They get the risk committees going, they make sure that the issues get escalated to leadership, and that policies, procedures, and controls are improved.
[11:07] Risk Managers facilitate proactive risk thinking. They conduct risk sensing and report on emerging risks. An ERM person is a generalist. They don’t manage a particular area but check in with everybody about rising risks and report that information. They have people tracking risks.
[11:55] We have a new political landscape and changes in society. There are always new health issues arising. As long as there’s somebody in an organization paying attention to conditions, the ERM person’s role is to make sure those things get considered at the leadership level.
[12:19] A Risk Manager can provide a structured discipline for the consideration of risk in decision-making. They can lead risk workshops. They can make sure a risk-assessment process is built into regular management meetings. They can support risk-mitigation activities.
[12:46] Risk Managers can support mechanisms to provide timely risk information to decision-makers.
[12:54] Plug Time! RIMS Webinars! Hub International continues its Ready for Tomorrow Series with RIMS. On February 20th, they will host “Ready for the Unexpected? Strategies for Property Valuation, Disaster Recovery and Business Continuity in 2025”.
[13:14] More webinars will be announced soon and added to the RIMS.org/webinars page. Go there to register. Registration is complimentary for RIMS members.
[13:25] RIMS is now accepting nominations for all awards other than Risk Manager of the Year 2025. The submission deadline is Monday, January 6th, 2025. To receive a RIMS award, all winners must be active members and in good standing.
[13:45] These awards are the Diversity, Equity, and Inclusion Chapter Leadership Award, the Harry and Dorothy Goodell Award, the Volunteer of the Year “Heart of RIMS” Award, the Richard W. Bland Memorial Award, the Chapter of the Year Award, the Rising Risk Professional Award, the Risk Management Hall of Fame, and the Cristy Award.
[14:23] You can find more information about the awards through the About Us page of RIMS.org or the link in this interview’s show notes.
[14:31] Nominations are also open for the Donald M. Stuart Award which recognizes excellence in risk management in Canada. Links are in this episode’s show notes.
[14:43] Back to the Interview about all things ERM with Carrie Frandsen!
[15:01] For ERM success, you need to have a framework for taking the steps to integrate risk management more into your existing activities and functions. Organizations are already managing risk. ERM gets more people to consider and talk about risk in their decision-making.
[15:34] ERM success factors include strong leadership buy-in, a culture of risk awareness, and open communication.
[15:45] When you’re getting started, you want to develop a clear ERM vision. Start where you are and build your business case and your implementation roadmap.
[15:58] Your implementation roadmap starts with a gap analysis between what you are doing well with risk management and where you can make improvements. The vision is what you see in five years of doing X.
[16:17] Based on those areas where you want to improve your ERM approach, you build your business case and lay out your implementation roadmap. Bring it to your leadership and that improves your leadership buy-in.
[16:32] Then you need to define your enterprise risk management roles and accountabilities. They’re often straightforward. The person in charge of an area is the risk owner of that area. Just take the time to define those roles.
[16:50] Sometimes when you map out risk accountabilities, you see that for some enterprise risks, there’s not one person who’s responsible for it because it covers a few areas or reaches across the whole organization.
[17:08] The pandemic was a good example of that. It doesn’t fit in any one area of responsibility. Building accountability for things that go across areas is always a challenge.
[17:21] Consider how you will develop your risk assessment and mitigation resources for risk owners. What are they already doing and what tools do they need? That’s where you engage those risk owners and work directly with them to provide them with resources.
[17:40] Make ERM an integral part of your operational processes and decision-making. Look at your existing processes and meetings to see where you can build risk assessment into them. You can’t be everywhere. You want to build that in as a normal part of processes.
[18:04] Ensure that the organization and its people are regularly monitoring risks and learning from those experiences.
[18:21] As you get started with ERM, get your hands on some material and read about enterprise risk management. Get some familiarity with it. You want to become a trusted advisor and be that ERM expert as much as you can.
[18:44] To begin doing ERM, engage leadership, risk owners, and your second line of defense. Start doing your gap analysis which starts with conversations. Ask leadership what they hope and expect from enterprise risk management.
[19:03] When talking with leadership, you generally want to work to become a trusted advisor. You want to focus on the biggest risks. Ask people what they care about and what they’re working on. That will help inform assessing your organization’s current ERM capabilities.
[19:24] In your ERM plan, figure out how to integrate ERM into strategic decision-making and everyday management actions. Identify where, when, and how, key decisions are made. Work to embed risk assessment into those decision-making activities.
[19:47] Carrie suggests using a decision quality chain. Form a risk committee. Risk committees facilitate the identification, analysis, and mitigation of risks. You want people that are at the director level and the same reporting level.
[20:09] You want a representative from every area for an enterprise-wide view. You want a good forum where people can bring up their issues or concerns, build a shared understanding of the organization’s risks, and provide recommendations to leadership on significant issues.
[20:35] Effective risk governance depends on timely and relevant risk information so your exposures can be monitored and managed. Information needs to be communicated to the right people at the right time and in the right ways for people to make risk-informed decisions.
[21:02] Carrie recommends using new ERM material. In addition to ISO 31000, ISO recently published Risk Management — A Practical Guide that helps with the steps of implementing ERM. Norman Marks has a helpful blog and wrote a book, World-Class Risk Management.
[21:43] Carrie used World-Class Risk Management as an assignment in her ERM Certificate program classes through UCLA Extension. She teaches the first two classes, The Foundations of Enterprise Risk Management, and The Designing and Implementing an ERM Program.
[22:16] Carrie’s partner Carol teaches the Advanced Techniques class.
[22:33] The ERM Certificate Program aligns with the RIMS-CRMP so that once you’ve taken all the classes, you’re well-positioned to sit for and pass the RIMS-CRMP.
[22:47] Special thanks to Carrie Frandsen for joining us. A link to her ERM Q&A interview from 2021 is in this episode’s show notes. Many of the resources she mentioned are in the show notes as well as links to RIMScast and RIMS Risk Management Magazine coverage of ERM.
[23:11] As always, visit RIMS Risk Management Magazine at RMMagazine.com.
[23:17] Next week, our 2024 Finale will feature an interview with the editors of RIMS Risk Management Magazine, Morgan O’Rourke and Hillary Tuttle.
[23:26] More RIMS Plugs! You can sponsor a RIMScast episode for this, our weekly show, or a dedicated episode. Links to sponsored episodes are in our show notes. RIMScast has a global audience of risk and insurance professionals, legal professionals, students, business leaders, C-Suite executives, and more. Let’s collaborate and help you reach them! Contact [email protected] for more information.
[24:13] Become a RIMS member and get access to the tools, thought leadership, and network you need to succeed. Visit RIMS.org/membership or email [email protected] for more information.
[24:32] Risk Knowledge is the RIMS searchable content library that provides relevant information for today’s risk professionals. Materials include RIMS executive reports, survey findings, contributed articles, industry research, benchmarking data, and more.
[24:48] For the best reporting on the profession of risk management, read Risk Management Magazine at RMMagazine.com. It is written and published by the best minds in risk management.
[25:03] Justin Smulison is the Business Content Manager at RIMS. You can email Justin at [email protected].
[25:11] Thank you all for your continued support and engagement on social media channels! We appreciate all your kind words. Listen every week! Stay safe!
Mentioned in this Episode:
RIMS DEI Council
RIMS-Certified Risk Management Professional (RIMS-CRMP)
RIMS-CRMP Stories — Featuring RIMS Vice President Manny Padilla!
Nominations open for RIMS 2025 Awards! (Through Jan. 6, 2025)
Nominations for the Donald M. Stuart Award
“ERM Q&A with Carrie Frandsen: ERM at the University of California System”
RIMS Webinars:RIMS.org/Webinars
“Ready for the Unexpected? Strategies for Property Valuation, Disaster Recovery and Business Continuity in 2025” | Sponsored by Hub International | Feb. 20, 2025
Upcoming Virtual Workshops:
“Stay Competitive with the RIMS-CRMP” | Presented by the RIMS Greater Bluegrass Chapter
February 19‒20, 2025 | Instructor: Chris Mandel
“Applying and Integrating ERM” | Feb. 26‒27
“Managing Data for ERM” | March 12, 2025
“Captives as an Alternate Risk Financing Technique” | Dec. 17‒18
“Fundamentals of Insurance” | Feb. 19‒20, 2025
See the full calendar of RIMS Virtual Workshops
RIMS-CRMP Prep Workshops
RIMS-CRMP Prep Workshops
Related RIMScast Episodes:
“Risk Quantification Through Value-Based Frameworks”
“Live from the ERM Conference in Boston!”
“Maintaining an Award-Winning ERM Program with Michael Zuraw”
“Applying ERM Theory with Elise Farnham”
“On Risk Appetite and Tolerance”
“Big Shifts with John Hagel, RIMS ERM Conference Keynote”
“Contract Review’s Role in Risk Management”
Sponsored RIMScast Episodes:
“Simplifying the Challenges of OSHA Recordkeeping” | Sponsored by Medcor (New!)
“Risk Management in a Changing World: A Deep Dive into AXA’s 2024 Future Risks Report” | Sponsored by AXA XL
“How Insurance Builds Resilience Against An Active Assailant Attack” | Sponsored by Merrill Herzog
“Third-Party and Cyber Risk Management Tips” | Sponsored by Alliant
“RMIS Innovation with Archer” | Sponsored by Archer
“Navigating Commercial Property Risks with Captives” | Sponsored by Zurich
“Breaking Down Silos: AXA XL’s New Approach to Casualty Insurance” | Sponsored by AXA XL
“Weathering Today’s Property Claims Management Challenges” | Sponsored by AXA XL
“Storm Prep 2024: The Growing Impact of Convective Storms and Hail” | Sponsored by Global Risk Consultants, a TÜV SÜD Company
“Partnering Against Cyberrisk” | Sponsored by AXA XL
“Harnessing the Power of Data and Analytics for Effective Risk Management” | Sponsored by Marsh
“Accident Prevention — The Winning Formula For Construction and Insurance” | Sponsored by Otoos
“Platinum Protection: Underwriting and Risk Engineering's Role in Protecting Commercial Properties” | Sponsored by AXA XL
“Elevating RMIS — The Archer Way” | Sponsored by Archer
“Alliant’s P&C Outlook For 2024” | Sponsored by Alliant
“Why Subrogation is the New Arbitration” | Sponsored by Fleet Response
“Cyclone Season: Proactive Preparation for Loss Minimization” | Sponsored by Prudent Insurance Brokers Ltd.
“Subrogation and the Competitive Advantage” | Sponsored by Fleet Response
RIMS Publications, Content, and Links:
RIMS Membership — Whether you are a new member or need to transition, be a part of the global risk management community!
RIMS Virtual Workshops
On-Demand Webinars
RIMS-Certified Risk Management Professional (RIMS-CRMP)
RISK PAC | RIMS Advocacy
RIMS Strategic & Enterprise Risk Center
RIMS Events, Education, and Services:
RIMS Risk Maturity Model®
Sponsor RIMScast: Contact [email protected] or [email protected] for more information.
Want to Learn More?
Keep up with the podcast on RIMS.org, and listen on Spotify and Apple Podcasts.
Have a question or suggestion? Email: [email protected].
Join the Conversation!
Follow @RIMSorg on Facebook, Twitter, and LinkedIn.
About our guest:
Carrie Frandsen, Systemwide Enterprise Risk Management Director, University of CaliforniaRIMS-CRMP Commissioner (and RIMS-CRMP holder)
ERM Certificate Program at UCLA Extension
Social Shareables (Edited For Social Media Use):
You need to be able to partner with people inside your organization, like internal audit, compliance, and health and safety, all the different groups, and help them get excited about building an enterprise-wide view of risks across the organization. — Carrie Frandsen
The primary goal of enterprise risk management is to enhance an organization’s ability to anticipate and mitigate risks effectively while maximizing those opportunities for value creation. — Carrie Frandsen
A risk-aware culture promotes continuous learning where lessons from past incidents are shared and used to improve future risk management practices. — Carrie Frandsen
As you get started with ERM, read about enterprise risk management. Get some familiarity with it. You want to become a trusted advisor and be that ERM expert as much as you can. — Carrie Frandsen
Effective risk governance depends on timely and relevant risk information so your exposures can be monitored and managed. Information needs to be communicated to the right people at the right time and in the right ways. — Carrie Frandsen
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Zijn er afleveringen die ontbreken?
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Welcome to RIMScast. Your host is Justin Smulison, Business Content Manager at RIMS, the Risk and Insurance Management Society.
In this episode, Justin interviews Caroline Shleifer, Founder and CEO of RegASK about the RegASK report, “The 2025 State of Regulatory Affairs and Compliance Report.” Justin and Caroline discuss how regulatory affairs professionals see AI adding the most value in three key areas of their day-to-day activity: augmentation, automation, and acceleration. Caroline shares some examples of these areas of AI. The report highlights AI and ESG as areas of increasing regulation. Caroline shares how risk management professionals can best prepare for the unique challenges these emerging regulatory areas present.
The report suggests that AI solutions could transform regulatory affairs work, particularly in summarizing and adapting requirements to specific organizational contexts. Caroline offers her thoughts on risk management roles evolving alongside this AI adoption in regulatory affairs.Listen for ideas on leveraging AI tech to stay current with the evolving regulatory landscape.
Key Takeaways:
[:01] About RIMS.
[:14] Member registration for RISKWORLD 2025 is now open! General registration opens on December 4th. Visit RIMS.org/RISKWORLD.
[:25] About this episode, coming to you from RIMS headquarters in New York. Our topic is AE adoption and regulatory risks with the Founder of RegASK, Caroline Shleifer.
[:49] The next RIMS-CRMP Exam Prep Virtual Workshop will be held on December 17th and 18th.
[1:00] On February 19th and 20th, there is a two-day virtual workshop for the RIMS-CRMP led by former RIMS President Chris Mandel and presented by the RIMS Greater Bluegrass Chapter, the 2024 RIMS Chapter of the Year.
[1:18] The next RIMS-CRMP-FED Exam Course will be held from February 4th through the 6th, 2025. Links to these courses can be found on the Certification page of RIMS.org and through this episode’s show notes.
[1:34] RIMS Virtual Workshops! Elise Farnham of Illumine Consulting recently joined us here on RIMScast. On December 17th and 18th, she will host “Captives as an Alternate Risk Financing Technique”.
[1:49] Gail Kiyomura of The ART of Risk Consulting, will host the “Fundamentals of Insurance” virtual workshop on February 19th and 20th, 2025.
[2:00] This is the last week to sign up for “Managing Data for ERM”, hosted by Pat Saporito on December 12th. Registration closes on December 11th.
[2:12] A link to the full schedule of virtual workshops can be found through RIMS.org/education/online-learning pages. A link is also in this episode’s show notes.
[2:26] Interview! The adoption of Artificial Intelligence in an enterprise’s operations, workflows, and processes is on our members’ minds. AI presents its own unique set of regulatory risks. My guest today is here to discuss insights about AI adoption.
[2:46] She is Caroline Shleifer, the CEO and Founder of RegASK, which recently released “The 2025 State of Regulatory Affairs and Compliance Report.” She is here to discuss some of the trends that she noticed from the surveys of senior executives and business leaders.
[3:04] She shares her perspective on the upside potential of AI adoption and ways that risk professionals can work alongside regulatory professionals to ensure everything runs smoothly and above board. We’ve got data, trends, and perspectives to explore.
[3:21] Caroline Shleifer, Welcome to RIMScast!
[3:49] RegASK’s new report is “The 2025 State of Regulatory Affairs and Compliance Report.”
[4:15] Caroline worked for years in the life science and consumer product industry, helping them scout innovation in ingredients and technology and helping them put it on the market.
[4:47] Doing that, Caroline realized that many times there was a challenge in understanding which regulations applied or in being caught off guard by a regulation they were not aware of. Sometimes these regulations prevent businesses from launching a product as they plan.
[5:28] It’s important to understand and catch up with the fast-moving regulatory environment. The challenge is understanding what applies to an organization well in advance so there are no delays or non-compliance. This is a recurring challenge for small and large companies.
[6:00] Caroline looked at the technology used in the banking and finance systems to help with compliance. She wondered why not apply that technology to the consumer product and life science industry to develop a product to help the regulatory affairs team stay current.
[6:35] About six years ago, Caroline founded RegASK, starting small with her clients in the consumer products and consumer health industry. She expanded it progressively to larger geographies and industry verticals.
[7:06] Caroline respects risk professionals as they deal with challenges that are often overlooked by other business units. When the work is well done, no one sees it, as it seems seamless. No one sees the day-to-day work behind the scenes to prevent non-compliance.
[8:02] Risk professional teams are usually understaffed. The risk of non-compliance can range from stopping a product from being imported to stopping a clinical trial or having a big financial impact.
[8:45] Sometimes the compliance manager is the default risk manager and wears many hats.
[9:33] When Caroline formed RegASK, she saw something like AI was coming. She didn’t see how quickly it would come. Things that took RegASK years to develop a few years ago, take less than a year to develop now. RegASK has accelerated its roadmap due to recent developments.
[10:49] According to the RegASK report, 38% of regulatory affairs professionals feel at risk of non-compliance due to unawareness of specific regulations. That agrees with the feedback RegASK gets from its clients.
[11:21] It’s very challenging to understand every regulation. RegASK provides the curation of regulatory information and helps pass the information to the right teams at the right moment with the right language, including what the impact and risk may be for different business units.
[12:27] The report says 27% of senior executives expect regulatory risks to have the biggest impact on businesses in 2025. Everyone should be aware of these risks and be attentive to understanding the landscape and what is happening around them.
[13:17] Monitor regulatory agencies. Learn where and how to collect information and who should get the information you collect. Get training for the regulatory affairs team and the broader company on how to collect, summarize, and convey this information.
[14:04] The third point is to understand that now you have some technology that can help in this process. Understand what your needs are and adopt AI technology to some aspects of your workflow to solve some critical challenges you have.
[14:34] Understand what your workflow is. If you digitalize a process that is not optimal, you end up with a suboptimal digitalization and outcome. Study your current process and challenge it to see how it could be improved. Understand where technology can be leveraged in your process.
[15:10] RegASK helps companies to understand their workflow and how it can be improved. Caroline recommends picking the right partner to help you. Caroline notes that RegASK has been featured in a Gardner industry report on regulatory agencies and technology solutions.
[16:18] Plug Time! RIMS Webinars! On Thursday, December 12th, our final RIMS Webinar of 2024 will be presented by OneTrust: “Staying Vigilant: 7 Practical Tips for Ongoing Third-Party Risk Monitoring”.
[16:35] More webinars will be announced soon and added to the RIMS.org/webinars page. Go there to register. Registration is complimentary for RIMS members.
[16:47] RIMS is now accepting nominations for all awards other than Risk Manager of the Year 2025. The submission deadline is Monday, January 6th, 2025. To receive a RIMS award, all winners must be active members and in good standing.
[17:07] These awards are the Diversity, Equity, and Inclusion Chapter Leadership Award, the Harry and Dorothy Goodell Award, the Volunteer of the Year “Heart of RIMS” Award, the Richard W. Bland Memorial Award, the Chapter of the Year Award, the Rising Risk Professional Award, the Risk Management Hall of Fame, and the Cristy Award.
[17:44] You can find more information about the awards through the About Us page of RIMS.org or the link in this interview’s show notes.
[17:52] Nominations are also open for the Donald M. Stuart Award which recognizes excellence in risk management in Canada. Links are in this episode’s show notes.
[18:04] Back to the Interview with Caroline Shleifer!
[18:20] Justin likes the part in the report that zeroed in on AI in regulatory risk management: augmentation, automation, and acceleration, three areas where AI will add value to daily activity.
[19:10] Caroline says these are the key areas where the technology can support regulatory risk professionals. She gives an example of augmentation. AI can take the capture of regulatory change and augment it with external information that can come into play.
[19:40] You can augment your initial data with additional feedback from your internal team’s experience and external experts. With technology, you can easily collaborate and have information in one place and integrated into your workflow.
[20:29] Acceleration is about speeding up your workflow. Instead of searching multiple databases and websites, AI technology can leverage the search much faster. You type a question to get sources of information and then converse intelligently with the system.
[21:12] Automation handles mundane repetitive tasks. You can automate searching for regulatory agency information.
[22:01] The report also highlights ESG as an area of increasing regulation internationally. ESG regulations demand increased transparency and focus on sustainability practices, labor rights, corporate governance, environmental regulations, and more.
[22:45] There is a broad spectrum of additional regulations and directives you have to look at and monitor. It’s evolving quickly.
[23:00] The first thing is to integrate ESG into the risk framework. Establish an ESG-specific risk management process such as a governance compliance check, supply chain audit, and so forth.
[23:17] The second aspect is the reporting and disclosure using robust reporting tools. Look at the mandatory disclosure requirements. Make regular improvements in your reporting.
[23:41] Reporting requires collaboration across functions, such as sustainability, HR, corporate governance, and other teams to align on the ESG initiatives versus regulatory expectations. It’s across the organization. Collect and then disseminate the information across the organization.
[24:09] Finally, monitoring the evolving global ESG standards, emerging social responsibility regulations, and environmental and sustainability regulations. There is a lot to take care of and companies are not always well-equipped to do so. It requires a lot of attention and structure.
[24:54] Regulatory affairs professionals are collecting the regulatory changes and requirements for compliance. They summarize them and highlight the potential impacts and risks for the company. For instance, regulation around packaging can put a supply chain at risk.
[25:24] This information needs to be passed on to the risk management and compliance decision-makers. These are early signals they get much faster than when they waited for the information to be processed manually. That can give them more time to prepare the response.
[26:14] This data-driven decision-making helps teams prepare better for compliance and active risk identification.
[26:33] RegASK has about 35 employees and a global community of about 2,000 spread across more than 120 countries.
[27:11] Caroline credits technology such as Teams and Zoom for helping RegASK continue to function during COVID-19. It’s super easy to collaborate remotely now and be productive. When she needs to meet in person, Caroline enjoys meeting with different teams in different places.
[28:01] Caroline thinks remote work brings some additional energy and creativity with teams being in various countries and regions.
[28:14] Caroline uses AI in her work. She uses it day-to-day in testing RegASK’s products and functionality, sales process, and drafting marketing materials. Now it’s how you adapt AI rather than do you adapt AI. How can you leverage it efficiently in a very specific use case?
[29:07] After the creativity and value added by humans, AI is helping in different processes.
[29:20] Special thanks again to Caroline Shleifer of RegASK for joining us here on RIMScast. “The 2025 State of Regulatory Affairs and Compliance Report” is now publicly available. A link is in this episode’s show notes.
[29:37] I’ve also listed links in this episode’s show notes to RIMS and Risk Management Magazine reporting and coverage of AI and AI adoption. Check it out!
[29:50] More RIMS Plugs! You can sponsor a RIMScast episode for this, our weekly show, or a dedicated episode. Links to sponsored episodes are in our show notes. RIMScast has a global audience of risk and insurance professionals, legal professionals, students, business leaders, C-Suite executives, and more. Let’s collaborate and help you reach them! Contact [email protected] for more information.
[30:36] Become a RIMS member and get access to the tools, thought leadership, and network you need to succeed. Visit RIMS.org/membership or email [email protected] for more information.
[30:53] Risk Knowledge is the RIMS searchable content library that provides relevant information for today’s risk professionals. Materials include RIMS executive reports, survey findings, contributed articles, industry research, benchmarking data, and more.
[31:09] For the best reporting on the profession of risk management, read Risk Management Magazine at RMMagazine.com. It is written and published by the best minds in risk management.
[31:24] Justin Smulison is the Business Content Manager at RIMS. You can email Justin at [email protected].
[31:31] Thank you all for your continued support and engagement on social media channels! We appreciate all your kind words. Listen every week! Stay safe!
Mentioned in this Episode:
RIMS DEI Council
RIMS-Certified Risk Management Professional (RIMS-CRMP)
RIMS-CRMP Stories — Featuring Manny Padilla!
Nominations open for RIMS 2025 Awards! (Through Jan. 6, 2025)
Nominations for the Donald M. Stuart Award
“RegASK: The 2025 State of Regulatory Affairs and Compliance Report”
RIMS Risk Management Magazine, “Managing the Risks of Emerging AI Regulations”
RIMS Risk Knowledge: Artificial Intelligence
RIMS Webinars:“Staying Vigilant: 7 Practical Tips for Ongoing Third-Party Risk Monitoring” | Sponsored by OneTrust | Dec. 12, 2024
RIMS.org/Webinars
Upcoming Virtual Workshops:
RIMS-CRMP Exam Prep (Virtual)
Dec. 17‒18, 2024 | 9:00 am‒4:00 pm EST — Register by Dec. 10.“Stay Competitive with the RIMS-CRMP” | Presented by the RIMS Greater Bluegrass Chapter
February 19‒20, 2025 | Instructor: Chris Mandel
“Managing Data for ERM” | Dec. 12, 2024 & March 12, 2025
“Captives as an Alternate Risk Financing Technique” | Dec. 17‒18
“Fundamentals of Insurance” | Feb. 19‒20, 2025
See the full calendar of RIMS Virtual Workshops
RIMS-CRMP Prep Workshops
Related RIMScast Episodes:
“Exploring Risk in Extreme Environments with Kevin Vallely”, RIMS Canada Conference 2024 Keynote
“Change Management and Strategy with Jay Kiew, RIMS Canada Conference 2024 Keynote”
“Live From Vancouver! with Maryam Salmasi, Fred H. Bossons Award Winner 2024”
“RIMS 2024 Rising Star Chelsea Andrusiak” (SKRIMS Vice President)
“Supply and Bike Chains with Emily Buckley”
Sponsored RIMScast Episodes:
“Simplifying the Challenges of OSHA Recordkeeping” | Sponsored by Medcor (New!)
“Risk Management in a Changing World: A Deep Dive into AXA's 2024 Future Risks Report” | Sponsored by AXA XL
“How Insurance Builds Resilience Against An Active Assailant Attack” | Sponsored by Merrill Herzog
“Third-Party and Cyber Risk Management Tips” | Sponsored by Alliant
“RMIS Innovation with Archer” | Sponsored by Archer
“Navigating Commercial Property Risks with Captives” | Sponsored by Zurich
“Breaking Down Silos: AXA XL’s New Approach to Casualty Insurance” | Sponsored by AXA XL
“Weathering Today’s Property Claims Management Challenges” | Sponsored by AXA XL
“Storm Prep 2024: The Growing Impact of Convective Storms and Hail” | Sponsored by Global Risk Consultants, a TÜV SÜD Company
“Partnering Against Cyberrisk” | Sponsored by AXA XL
“Harnessing the Power of Data and Analytics for Effective Risk Management” | Sponsored by Marsh
“Accident Prevention — The Winning Formula For Construction and Insurance” | Sponsored by Otoos
“Platinum Protection: Underwriting and Risk Engineering's Role in Protecting Commercial Properties” | Sponsored by AXA XL
“Elevating RMIS — The Archer Way” | Sponsored by Archer
“Alliant’s P&C Outlook For 2024” | Sponsored by Alliant
“Why Subrogation is the New Arbitration” | Sponsored by Fleet Response
“Cyclone Season: Proactive Preparation for Loss Minimization” | Sponsored by Prudent Insurance Brokers Ltd.
“Subrogation and the Competitive Advantage” | Sponsored by Fleet Response
RIMS Publications, Content, and Links:
RIMS Membership — Whether you are a new member or need to transition, be a part of the global risk management community!
RIMS Virtual Workshops
On-Demand Webinars
RIMS-Certified Risk Management Professional (RIMS-CRMP)
RISK PAC | RIMS Advocacy
RIMS Strategic & Enterprise Risk Center
RIMS Events, Education, and Services:
RIMS Risk Maturity Model®
Sponsor RIMScast: Contact [email protected] or [email protected] for more information.
Want to Learn More?
Keep up with the podcast on RIMS.org, and listen on Spotify and Apple Podcasts.
Have a question or suggestion? Email: [email protected].
Join the Conversation!
Follow @RIMSorg on Facebook, Twitter, and LinkedIn.
About our guest:
Caroline Shleifer, CEO and Founder at RegAskSocial Shareables (Edited For Social Media Use):
I worked for years in the life science and consumer product industry, helping them scout innovation in ingredients and technology and helping them put it on the market. — Caroline Shleifer
Risk professional teams are usually understaffed. The risk of non-compliance can range from stopping a product from being imported to stopping a clinical trial to a financial impact. — Caroline Shleifer
Leveraging technology helps you to augment the data with all the additional knowledge that you have collected along the way that can be integrated into your workflow. — Caroline Shleifer
Now it’s more how you adapt AI rather than do you adapt AI. — Caroline Shleifer
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Welcome to RIMScast. Your host is Justin Smulison, Business Content Manager at RIMS, the Risk and Insurance Management Society.
As the 2010 Winter Olympics gold medalist in men’s skeleton, Jonathan “Jon” Montgomery became a national icon, renowned for his spontaneous and exuberant celebration. Since 2013, Jon has hosted The Amazing Race Canada, captivating audiences nationwide. His career highlights include winning his first World Cup race in 2008 and earning two silver medals at the 2008 FIBT World Championships. Inducted into the Manitoba Sports Hall of Fame in 2019, Jon continues to inspire through his passion for sport and community.
Jon recently keynoted the RIMS Canada Conference 2024 in Vancouver, where he took the audience along on his journey to Olympic history. RIMScast Host Justin Smulison was in the audience and was inspired by Montgomery’s story, which revealed the parallels between risk management and sports and competition.To help close out 2024 and usher in the winter, Montgomery joined RIMScast to discuss his risk philosophies, highlighted by the ups and downs of training and competition. Justin and Jon discuss Jon’s victory at the 2010 Olympics followed by his failure to qualify for the 2014 Olympics. Jon reveals where he fell short and how he turned this failure into a life-changing habit of learning lessons from every setback. Jon comments on the differences between individual risk-taking, and risk professionals applying more risk-aware thinking. Jon talks about journaling his wins and losses in life. Jon credits his team for everything he achieves, from the Olympics to Amazing Race Canada. Jon shares how a misunderstood training program challenged him to his limit but built him up for the 2010 Olympics. Jon’s secret sauce is his curiosity and his desire to chase the best-informed guesses. Jon recommends stacking habits to make short-term goals become long-term commitments.
Listen in to hear Jon’s take on the RIMS Canada Conference 2024 and what he experienced there.
Key Takeaways:
[:01] About RIMS.
[:14] Member registration for RISKWORLD 2025 is now open! General registration opens on December 4th. Visit RIMS.org/RISKWORLD.
[:25] About this episode, coming to you from RIMS headquarters in New York. We will be joined by Olympic Gold Medalist, Host of The Amazing Race Canada, and recent RIMS Canada Keynote, Jon Montgomery!
[:49] The next RIMS-CRMP Exam Prep Virtual Workshop will be held on December 17th and 18th. The next RIMS-CRMP-FED Exam Course will be held from February 4th through the 6th, 2025.
[1:08] Links to these courses can be found on the Certification page of RIMS.org and through this episode’s show notes.
[1:15] RIMS Virtual Workshops! Elise Farnham of Illumine Consulting recently joined us here on RIMScast. On December 17th and 18th, she will host “Captives as an Alternate Risk Financing Technique”.
[1:30] Gail Kiyomura of The ART of Risk Consulting, will host the “Fundamentals of Insurance” virtual workshop on February 19th and 20th, 2025.
[1:41] This is the last week to sign up for “Managing Data for ERM”, hosted by Pat Saporito on December 12th. Registration closes on December 11th.
[1:52] A link to the full schedule of virtual workshops can be found through RIMS.org/education/online-learning pages. A link is also in this episode’s show notes.
[2:08] Interview! My guest today is one of my favorite RIMS Keynotes from 2024, the 2010 Winter Olympics Gold Medalist for Men’s Skeleton, Jon Montgomery. He’s an icon in Canada. He’s known since 2013 as the host of The Amazing Race Canada, captivating audiences.
[2:27] He’s an all-around great guy. His keynote at the RIMS Canada Conference 2024 inspired me. We are catching up now to close out 2024 with a little extra inspirado! We will discuss his risk philosophies and how our listeners can apply these philosophies to their lives.
[2:58] Jon Montgomery, welcome to RIMScast!
[3:09] Jon Montgomery is an Olympic Gold Medalist. You may also know him as the recent host of the RIMS Canada Conference 2024. Jon is calling into the interview from his home office. Justin found Jon to be very personable after his keynote address at the conference.
[3:49] Jon says his experience was awesome. The best part was connecting one-on-one with people, and putting a medal around folks’ necks. Not everybody is going to remember what you say but everybody will remember how you made them feel and a moment you shared.
[4:27] Jon gets a charge out of meeting folks and finding out who they might know in common. He says in Canada if it’s more than a couple degrees of separation, one of them has been living under a rock.
[5:13] Jon saw that folks at the conference were genuinely engaged and happy. The level of positivity was the connecting element from person to person. He could feel the energy. It felt like folks looked forward to these opportunities. People were familiar with one another, like family.
[5:36] Jon saw that people look forward to these conferences to be among friends, as well as to learn and network. The level of familiarity was tangible.
[6:26] Jon likes to assess risk, by whatever metrics he uses, and he loves to compete against the best, whatever he gets to be a part of.
[6:51] Jon talks about measuring the risks of skeleton against the potential rewards. Whatever the perceived risks were, he pushed them to the side for the opportunity to represent my country, which carried much greater weight. He downplayed the risk in pursuit of that reward.
[7:27] In hindsight, we might lie to ourselves on occasion about risky endeavors because of that proverbial dangling carrot. Jon would have played any sport that would have him. Skeleton had a shorter bench than the national team in hockey, or even speedskating, or downhill skiing.
[7:55] When Jon first saw skeleton, he was compelled. Having tried it one time, he was hooked. He loved the experience of being on the sled. He didn’t think too much about what would happen to him but it seemed safer than hockey with all its variables, which he grew up playing.
[8:33] In skeleton racing, you go down a frozen chute. There are no right angles and everything is pretty smooth. It just has a great deal of speed. Once Jon got his brain wrapped around that, he was comfortable in that arena.
[8:55] Jon learned that the sport places incredible pressure on the brain. That was glossed over in the pursuit of representing Canada. Some of the athletes got concussions and had to work through them. Jon’s wife was profoundly affected by participation in skeleton racing.
[9:18] Jon says they are where they are today because of that row to hoe and the dark days that followed after she left the sport and Jon retired four years later.
[9:40] Could risk professionals push some risks to the side with a similar outcome or is there a different approach to apply in their roles? Jon suggests risk professionals not turn a blind eye to the outcomes. As an individual chasing a dream, there has to be some of that.
[10:05] Jon says if he focuses solely on the risk, it might detract from his capacity to react and take advantage of a situation and opportunity. If you’re dwelling on what could go wrong, you’re missing things right in front of you that might swing the pendulum in the other direction.
[10:32] As a risk professional, you work to mitigate that negative outcome. For what’s at stake as a risk professional, Jon would not advise turning a blind eye to outcomes. For the public, dwelling on what can go wrong will lead to some of those outcomes. What we focus on grows.
[10:57] If you perpetually focus on the negative and what could go wrong, you will attract it. Focus instead on what you want to have happen. Justin and Jon discuss the law of attraction where thoughts become things. Justin watched it on streaming instead of reading the book.
[12:40] Jon keeps track of his hits and misses, but he doesn’t do as much journaling as he thinks he should. When he does journal, he is proud that he wrote of his successes to be reminded of them later. He finds journaling to be a great tool to be leveraged.
[13:32] Jon says nobody should expect not to experience disappointments. As a parent, Jon has had to realize that his reactions are natural, even if he would have preferred to react a different way.
[13:58] The conversations that are had afterward are humanizing, when he admits not having had the patience the situation warranted. Jon talks of building conversation around expectations, realities, and disappointments, moving forward with purpose.
[14:22] One of Jon’s most disappointing experiences was falling short of making the 2014 Olympic team. As the defending Olympic champion, he failed to qualify for the 2014 Games although he was stronger, faster, and more prepared. He had tried to create a better sled.
[15:43] In skeleton racing, your sled needs to be intertwined with every fiber of your being. You have to know how it will react to the smallest impetus. If you haven’t had the time to become one with your sled, you are at a disadvantage. Jon didn’t have the time to perfect his sled.
[16:18] Jon fell just a hair short. It was wildly disappointing. The feeling in the pit of his stomach was palpable. Today, Jon is so glad it happened to him. What he took away from it was that he realized he had pushed people away who could have helped him in his project.
[17:37] Jon had spent a lot of time, money, and effort on this project and he thought people just wanted to be part of it. He pushed against collaboration. He made himself a man on an island in a solo pursuit. He couldn’t reach the necessary expedited rate of development alone.
[18:12] If you want to go quickly, go alone. If you want to go far, you’ve got to go together. Jon applies that lesson to everything he does today as an entrepreneur and in business. He knows he can’t do it singly. The lesson has stood him well since he moved on from the disappointment.
[18:43] As you move away from a failure, if you focus on the lessons you learned through that pursuit, that’s always going to be a win. You’ll either get the victory or the lesson. In either case, it’s a W!
[19:10] Plug Time! RIMS Webinars! On December 5th, we have “Predictive Strategies to Detect Electrical and Machinery Failures”, presented by Global Risk Consultants, a TÜV SÜD company.
[19:25] On Thursday, December 12th, OneTrust returns to deliver “Staying Vigilant: 7 Practical Tips for Ongoing Third-Party Risk Monitoring”.
[19:35] More webinars will be announced soon and added to the RIMS.org/webinars page. Go there to register. Registration is complimentary for RIMS members.
[19:47] RIMS is now accepting nominations for all awards other than Risk Manager of the Year 2025. The submission deadline is Monday, January 6th, 2025. To receive a RIMS award, all winners must be active members and in good standing.
[20:07] These awards are the Diversity, Equity, and Inclusion Chapter Leadership Award, the Harry and Dorothy Goodell Award, the Volunteer of the Year “Heart of RIMS” Award, the Richard W. Bland Memorial Award, the Chapter of the Year Award, the Rising Risk Professional Award, the Risk Management Hall of Fame, and the Cristy Award.
[20:44] You can find more information about the awards through the About Us page of RIMS.org or the link in this interview’s show notes.
[20:52] Nominations are also open for the Donald M. Stuart Award which recognizes excellence in risk management in Canada. Links are in this episode’s show notes.
[21:04] Back to the Interview!
[22:02] As the tip of the iceberg, the visible part of Amazing Race Canada, Jon stands on the shoulders of a juggernaut of a team. When you saw Jon at the Olympics, going down the mountain on the crazy carpet with rails on it, you didn’t see the team behind the athlete.
[22:27] Jon’s team was made up of coaches, trainers, physiotherapists, and team leaders. All of these people feed into a moment.
[22:40] When that moment becomes visible to the masses, the capacity to see the team for the individual isn’t present but everybody who has done something that they can be proud of knows full well what goes into a result.
[23:22] Jon’s public speaking skills developed in tandem with his pursuit of athletics in high school. Jon and a buddy were student council co-presidents. They spoke in front of their peers at student assemblies. There is no more angst-inducing group to speak to than teen peers.
[24:26] Jon became an auctioneer. He shares a sample of his auctioneer chant. He was often asked to MC weddings and events. He learned to be himself on a grand stage. When a beer was thrust in front of him, he was himself. It led him to develop his career, rather than auctioning.
[27:31] Jon has a great deal of anonymity in a bar although some speak of offering him a beer. His favorite beer is wet and free. When offered, he will chug it.
[29:01] Due to misunderstanding an article on training, Jon found himself overtraining in squats, lifting twice what was suggested. It caused him to break down, physically, emotionally, and mentally, spending hours at the gym to get 100 reps done.
[30:17] On day 10, Jon fell short, being unable to do 100 squats with 200 additional pounds on the bar than he had had on day 1. He looked at the workout again and found he had done almost 100% more work than was required. There was no amount of energy he didn’t expend to do it.
[31:11] It dawned on him that he never would have made it that far had he known the truth. He wouldn’t have put forth that amount of work if he hadn't believed it was possible. That belief that others had done it was compelling and propelled him far past his self-imposed limitations.
[31:39] Almost completing the doubled workout made Jon realize that things are only out of our reach if we put them there; if we use self-limiting verbiage like “I can’t,” or “We’re going to fail.” Confidence is the key, whether you think you can or you think you can’t, you’re right.
[31:59] That experience in the gym made Jon realize that if he was going to be good at skeleton racing, he was going to have to continue to develop his legs, his glutes, his quads, and his core, and also his confidence; his capacity to believe that he could be a 2010 national team skeletor.
[32:22] Jon had to believe he had the same opportunity and chance as every other athlete out there to win a medal; to win the gold medal.
[32:31] All he could do was execute and be the best version of himself on the day that mattered and not worry about anybody else. If he did that, he would put himself in the best possible position. Jon was 30, turning 31. His training had made him strong. He peaked at the Games.
[33:12] Jon’s last push on his last run at the Games was his best. He needed that fast start time to compete with the two fastest pushers in the world.
[34:12] Justin and Jon discuss not drinking alcohol on days you train. Jon says how we manage something inherently unhealthy is an individual thing. Your capacity to recover after having alcohol is reduced. Jon calls drinking a balancing act. You have to weigh things.
[36:42] Jon talks about getting deep sleep and REM. He wears an Oura Ring to track his sleep. His metrics are different when he’s had alcohol. Jon cherishes his sleep.
[37:50] Jon says when you stack habits, your capacity to change short-term interests into long-term commitments is so much more bolstered.
[38:33] Jon Montgomery’s secret sauce is curiosity. He has a great deal of gratitude for having a curious mind. It’s hard to teach or coach curiosity. Curiosity can be nurtured when you recognize it in your children and others. Jon’s curiosity leads him to chase best-informed guesses.
[39:37] Jon never holds anything so dear to his heart that he would die on that front. He is open and willing to have his mind changed about stuff. He’s plain about what he knows right now.
[39:49] Jon, it has been such a pleasure to have this one-on-one time with you for RIMScast. This past year, 2024 RIMS Canada had their best lineup of keynotes with you, Kevin Vallely, Jay Kiew, and Jody Wilson-Raybould. You all were fantastic and there was a lot to take away.
[40:14] It resonated with me so I wanted to keep you at RIMS a little longer to get some more of those nuggets of wisdom.
[40:39] Jon invites you to get your submission tapes in for Amazing Race Canada. Casting is still open. Jon will be the host for as long as they will have him! If they can him, he’ll follow them on the road and sneak into shots! They do the show for men’s health awareness. Donate online.
[41:19] Special thanks again to Olympic gold medalist Jon Montgomery for joining us here on RIMScast. If you missed his keynote at the RIMS Canada Conference 2024, be sure to look for him on the road as he delivers several more at other events.
[41:33] Be sure to follow his adventures as the host of Amazing Race Canada, which is gearing up for its 11th season, brought to you by CTV. Learn more about him at JonMontgomery.CA.
[41:47] More RIMS Plugs! The RIMS App is available to RIMS members exclusively. Go to the App Store and download the RIMS App with all sorts of RIMS resources and coverage. It’s different from the RIMS Events App. Everyone loves the RIMS App!
[42:22] You can sponsor a RIMScast episode for this, our weekly show, or a dedicated episode. Links to sponsored episodes are in our show notes. RIMScast has a global audience of risk and insurance professionals, legal professionals, students, business leaders, C-Suite executives, and more. Let’s collaborate and help you reach them! Contact [email protected] for more information.
[43:07] Become a RIMS member and get access to the tools, thought leadership, and network you need to succeed. Visit RIMS.org/membership or email [email protected] for more information.
[43:25] Risk Knowledge is the RIMS searchable content library that provides relevant information for today’s risk professionals. Materials include RIMS executive reports, survey findings, contributed articles, industry research, benchmarking data, and more.
[43:42] For the best reporting on the profession of risk management, read Risk Management Magazine at RMMagazine.com. It is written and published by the best minds in risk management.
[43:56] Justin Smulison is the Business Content Manager at RIMS. You can email Justin at [email protected].
[44:03] Thank you all for your continued support and engagement on social media channels! We appreciate all your kind words. Listen every week! Stay safe!
Mentioned in this Episode:
RIMS DEI Council
RIMS-Certified Risk Management Professional (RIMS-CRMP)
NEW FOR MEMBERS! RIMS Mobile App
RIMS-CRMP Stories — Featuring Valerie Fox!
Nominations open for RIMS 2025 Awards! (Through Jan. 6, 2025)
Nominations for the Donald M. Stuart Award
RIMS Webinars:“Predictive Strategies to Detect Electrical and Machinery Failures” | Sponsored by TUV SUD GRC | Dec. 5, 2024
“Staying Vigilant: 7 Practical Tips for Ongoing Third-Party Risk Monitoring” | Sponsored by OneTrust | Dec. 12, 2024
RIMS.org/Webinars
Upcoming Virtual Workshops:
RIMS-CRMP Exam Prep (Virtual)
Dec. 17‒18, 2024 | 9:00 am‒4:00 pm EST — Register by Dec. 10.“Managing Data for ERM” | Dec. 12, 2024 & March 12, 2025
“Captives as an Alternate Risk Financing Technique” | Dec. 17‒18
“Fundamentals of Insurance” | Feb. 19‒20, 2025
See the full calendar of RIMS Virtual Workshops”
RIMS-CRMP Prep Workshops
Related RIMScast Episodes:
“Exploring Risk in Extreme Environments with Kevin Vallely”, RIMS Canada Conference 2024 Keynote
“Change Management and Strategy with Jay Kiew, RIMS Canada Conference 2024 Keynote”
“Live From Vancouver! with Maryam Salmasi, Fred H. Bossons Award Winner 2024”
“RIMS 2024 Rising Star Chelsea Andrusiak” (SKRIMS Vice President)
“Supply and Bike Chains with Emily Buckley”
Sponsored RIMScast Episodes:
“Risk Management in a Changing World: A Deep Dive into AXA's 2024 Future Risks Report” | Sponsored by AXA XL (New!)
“How Insurance Builds Resilience Against An Active Assailant Attack” | Sponsored by Merrill Herzog
“Third-Party and Cyber Risk Management Tips” | Sponsored by Alliant
“RMIS Innovation with Archer” | Sponsored by Archer
“Navigating Commercial Property Risks with Captives” | Sponsored by Zurich
“Breaking Down Silos: AXA XL’s New Approach to Casualty Insurance” | Sponsored by AXA XL
“Weathering Today’s Property Claims Management Challenges” | Sponsored by AXA XL
“Storm Prep 2024: The Growing Impact of Convective Storms and Hail” | Sponsored by Global Risk Consultants, a TÜV SÜD Company
“Partnering Against Cyberrisk” | Sponsored by AXA XL
“Harnessing the Power of Data and Analytics for Effective Risk Management” | Sponsored by Marsh
“Accident Prevention — The Winning Formula For Construction and Insurance” | Sponsored by Otoos
“Platinum Protection: Underwriting and Risk Engineering's Role in Protecting Commercial Properties” | Sponsored by AXA XL
“Elevating RMIS — The Archer Way” | Sponsored by Archer
“Alliant’s P&C Outlook For 2024” | Sponsored by Alliant
“Why Subrogation is the New Arbitration” | Sponsored by Fleet Response
“Cyclone Season: Proactive Preparation for Loss Minimization” | Sponsored by Prudent Insurance Brokers Ltd.
“Subrogation and the Competitive Advantage” | Sponsored by Fleet Response
RIMS Publications, Content, and Links:
RIMS Membership — Whether you are a new member or need to transition, be a part of the global risk management community!
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About our guest:
Jon Montgomery, 2010 Winter Olympics Men’s Skeleton Gold Medal Winner and Host of Amazing Race CanadaSocial Shareables (Edited For Social Media Use):
The best part of a gig is the opportunity to connect one-on-one with people in their space, and getting to put a medal around folks’ necks. Not everybody is going to remember what you say but everybody will remember how you made them feel and a moment you share. — Jon Montgomery
I like to assess risk, on what metrics I use, and I love to compete. I love to stack myself against the best, in whatever it is I get to be a part of. — Jon Montgomery
When I saw skeleton for the first time, I was compelled, from a visual standpoint. Having tried it one time, I was hooked. — Jon Montgomery
When the moment of competition becomes visible to the masses, the capacity to see the individual’s team isn’t present but everybody who has done something that they can be proud of knows full well what goes into a result. — Jon Montgomery
That belief that others had done this doubled workout was compelling and propelled me far past my self-imposed limitations. It made me realize that things are only out of our reach if we put them there. — Jon Montgomery
I am a curious dude. It’s led me to chase best-informed guesses for what we know today. I am open and willing to have my mind changed about stuff. Here’s what I know right now. — Jon Montgomery
-
Welcome to RIMScast. Your host is Justin Smulison, Business Content Manager at RIMS, the Risk and Insurance Management Society.
The RIMS ERM Conference 2024 in Boston featured a stellar lineup of risk thought leaders who shared their experiences applying ERM practices to align risk management with strategy and showcase the value of more risk-aware corporate cultures. At the Conference, Justin spoke with two leading ERM practitioners in different primary areas to provide a range of perspectives. In this episode of RIMScast, Justin interviews Christopher Stitt about his session, which he based on the RIMS ERM Framework and the RIMS Risk Maturity Model. Justin interviews Catrina Gilbert about her position at the DFW Airport and her career in risk management and ERM, as well as current airport initiatives.
Listen in for a sample of the offerings of the RIMS ERM Conference 2024 with its record-breaking full-capacity attendance.
Key Takeaways:
[:01] About RIMS.
[:14] Member registration for RISKWORLD 2025 is now open! General registration opens on December 4th. Visit RIMS.org/RISKWORLD.
[:25] About this episode. Recorded live in Boston at the RIMS ERM Conference 2024, we have interviews with two fantastic guests!
[:49] The next RIMS-CRMP Exam Prep Virtual Workshop will be held on December 17th and 18th. The next RIMS-CRMP-FED Exam Course will be hosted along with George Mason University from December 3rd through the 5th.
[1:07] Links to these courses can be found on the Certification page of RIMS.org and through this episode’s show notes.
[1:15] RIMS Virtual Workshops! Elise Farnham of Illumine Consulting recently joined us here on RIMScast. On December 4th and 5th, she will host “Applying and Integrating ERM”. On December 17th and 18th, she will host “Captives as an Alternate Risk Financing Technique”.
[1:35] Those are just two of the workshops RIMS offers; we have lots more! Other dates for the Fall and Winter are available on the Virtual Workshops calendar, RIMS.org/virtualworkshops.
[1:51] First Interview! Our first guest was a featured speaker on Day 2 of the RIMS ERM Conference 2024. His name is Christopher Stitt and he is the Founder and CEO of CrisisLead, LLC.
[2:01] Chris’s session was titled “The Art and Science of High-performing Enterprise Risk Management: Bridging Silos for Sustainable Success.” We’ll speak about that session and give a high-level overview for those who could not attend.
[2:18] Chris has a fascinating background that led him to risk management and ERM. His career journey is an inspiration. We recorded live on-site at the Boston Hilton Plaza. Christopher Stitt, welcome to RIMScast!
[2:51] This is Chris’s first ERM Conference. He’s enjoying it and likes getting a broader perspective of how the overall ERM community operates. It’s been a fantastic opportunity to network with some amazing professionals and learn from them!
[3:20] Chris talks about the session he is giving, “The Art and Science of High-performing Enterprise Risk Management: Bridging Silos for Sustainable Success.” It comes down to people. What sometimes gets missed in the ERM process is the human factor.
[3:51] It’s about getting the buy-in necessary and the understanding of what risk is, not just from the senior level but across the board. A new concept, the Risk Intelligence Quotient, can help your organization understand how to look at, feel about, and interact with risk.
[4:26] The Risk Intelligence Quotient, along with the human-centric aspects of the risk program, can help you build a good risk culture and ultimately, a high-performing organization that can thrive during both business-as-usual and disruption.
[5:03] Chris used the RIMS ERM Framework and the RIMS Risk Maturity Model as the foundation of his session. As he studied the RIMS Risk Maturity Model, he saw it was about the journey, from starting a risk program in a new business to developing a mature program.
[5:37] As a business grows and a company matures, you need to be able to go through the process and say, “We need to start documenting how this works. We need to start ingraining this into our business process.”
[6:01] The RIMS Risk Maturity Model gives a great overview of how to ingrain risk management into your business process, especially in a business developing as a hierarchical organization.
[6:41] Chris was a U.S. Department of State Diplomatic Security Service Special Agent for over 25 years managing integrated security risks in embassies around the world. He looked at how international risks would influence U.S. operations in a given country.
[7:17] Chris was also Chief of Emergency Planning for the Department of State twice. That gave him a wide view of how risks develop and how to develop response plans to those risks.
[7:40] About 2014, The Department of State set up an ERM program. Chris was at the initial meeting. Senior officials were using terms he knew but with different meanings. That led Chris to investigate further into the meaning of enterprise risk and how to integrate it.
[8:24] What Chris loves is helping other people understand and build ERM programs. That’s why now, since retiring from the Department of State, Chris has moved into consulting. He sees it as a great opportunity to bridge the silos for a better understanding of what we’re trying to achieve.
[8:51] Chris is excited about presenting his session where he talks not only about the risks but also how you find the opportunities in those risks. It’s about building a powerful ERM program that gets buy-in from stakeholders and imbuing ERM into your organization’s culture.
[9:29] Chris, it’s been a pleasure. Thank you for joining us here on RIMScast.
[9:43] Plug Time! RIMS Webinars! On November 25th, Resolver returns to discuss “The Future of Risk & Compliance: 5 Key Insights for the Modern Leader”.
[9:54] On December 5th, we have “Predictive Strategies to Detect Electrical and Machinery Failures”, presented by Global Risk Consultants, a TÜV SÜD company.
[10:06] On Thursday, December 12th, OneTrust returns to deliver “Staying Vigilant: 7 Practical Tips for Ongoing Third-Party Risk Monitoring”.
[10:16] More webinars will be announced soon and added to the RIMS.org/webinars page. Go there to register. Registration is complimentary for RIMS members.
[10:28] RIMS is now accepting nominations for all awards other than Risk Manager of the Year 2025. The submission deadline is Monday, January 6th, 2025. To receive a RIMS award, all winners must be active members and in good standing.
[10:48] The awards are the Diversity, Equity, and Inclusion Chapter Leadership Award, the Harry and Dorothy Goodell Award, the Volunteer of the Year “Heart of RIMS” Award, the Richard W. Bland Memorial Award, the Chapter of the Year Award, the Rising Risk Professional Award, the Risk Management Hall of Fame, and the Cristy Award.
[11:26] You can find more information about the awards through the About Us page of RIMS.org or the link in this interview’s show notes.
[11:35] Final Interview! Catrina Gilbert is a previous ERM Conference speaker. Catrina is well known in ERM in Texas and the DFW RIMS Chapter. We will talk about how ERM influences aviation and some of the risk awareness campaigns she champions at the DFW Airport.
[11:56] Catrina Gilbert, welcome to RIMScast! Catrina is the Vice President of Risk Management at the DFW Airport and the Treasurer of the RIMS DFW Chapter. Justin and Catrina have known each other for a few years.
[12:30] Catrina is absolutely loving the RIMS ERM Conference 2024. Boston is beautiful this time of year. The speakers, the lineup, the vendors, and the food have been amazing! Every session has been standing-room-only! The Conference is at maximum capacity.
[12:54] It adds to the excitement. It is beautiful to see all these great minds from different industries, states, and countries converging on Boston! Catrina had “chowda” for the first time!
[13:37] Catrina states that there is never a dull moment in aviation. Airports are growing and rebounding from the pandemic, doing all sorts of construction projects. DFW has a $9B Capital Improvement Plan. From an insurance and claims perspective, that keeps Catrina very busy.
[14:02] The DFW Airport has a rolling owner-controlled insurance program, which keeps Catrina super busy. Catrina is also responsible for the airport’s ERM program. That’s why Catrina is at the RIMS ERM Conference 2024.
[14:16] Having the ERM program and being rooted in the organization at the ground level and the executive level, Catrina makes sure that everyone on the airport’s Risk Council understands that ERM can also stand for “Everyone’s a Risk Manager.”.
[14:37] Catrina is trying to empower the team to think strategically and holistically, and to think about how different programs and platforms have interdependencies. If we have an issue here, how is it going to impact, perhaps, the runway or the concessions?
[14:57] Catrina is looking at a resiliency framework; how do we bounce back? A lot of organizations are still struggling from the pandemic. Everyone is focused on a resiliency framework. When this happens again, are we ready? That’s the beauty of this conference.
[15:33] Catrina says every holiday is the best time of the year at an airport! There’s no such thing as the worst time of the year. The beauty of an airport is that it connects people around the globe. The holidays are a special time for everyone. Airports love playing a part in that journey.
[16:14] Catrina has been at DFW for almost eight years. She has been in risk management since 1999. She has done risk in several industries. Aviation is, by far, her favorite. There is never a dull moment; two days are never the same. DFW Airport is a city, with all the departments.
[17:22] Trisha Sqrow and Sandra Fontenot, past RIMScast guests, were DFW colleagues of Catrina’s. Trisha is doing great work at the Conference. Sandra Fontenot is doing great work at the RIMS DFW Chapter and helped Catrina with the annual chapter conference.
[17:37] Catrina says we grow when we move, but RIMS and risk management keep people together. Catrina thinks the work that they did together at DFW Airport is one of the reasons they’re still colleagues and friends. They still share ideas and speak at conferences together.
[18:31] Catrina has 12 people in her risk group at the DFW Airport. At her previous airport, Hartsfield-Jackson Atlanta, she was a department of one. She reported to the city. She hears “department of one” a lot at the Conference, maybe two or three. Everything’s bigger in Texas.
[19:03] Catrina looks for fresh ideas in a new risk hire. DFW had Innovation Week last week. Seeing the great ideas coming through in the aviation industry, including AI, Catrina wants people who have an open mind, are innovative, and are willing to try some new things.
[19:37] You can teach the rest of it. Catrina wants people with the soft skills, the personality, and the ability to jump in there, push up their sleeves, and try it out.
[19:57] Justin recently noticed in the restrooms at DFW Airport posters on Human Trafficking Awareness. He is a big proponent of human trafficking awareness. He has led those initiatives at RIMS. He was glad to see that DFW is one of the many airports boosting awareness.
[20:18] DFW is one of many airports in this fight against human trafficking. They have training, posters, and placards to educate you to say something if you see something and how to report what you see. It’s better to be safe than sorry. DFW provides you with a way to report.
[21:06] The Human Trafficking Awareness campaign is a team effort. It went through the Community Engagement Team, the Customer Experience Team, and the Department of Public Safety. Everyone worked hand-in-hand to be on the same beat in fighting human trafficking.
[21:32] DFW is proud to be a part of the global Sunflower Lanyard Program, designed to make hidden disabilities a little bit more visible. A passenger who has a hidden disability will receive a Sunflower Lanyard by mail before their departure date.
[21:54] When the passenger with the hidden disability is in the terminals, DFW employees have been trained to recognize the Lanyard and give them a tailored experience by asking how they can assist the passenger to have a wonderful travel experience.
[22:14] It’s about providing for the diverse needs of a diverse population to ensure that everybody has the same experience in traveling.
[22:25] What a delight to finally have Christoper Stitt and Catrina Gilbert as our special guests here on RIMScast!
[22:33] Check out this episode’s show notes for links about the ERM Award of Distinction Winners and Honorees and more about the Conference. Of course, we also have a special edition of Risk Management magazine dedicated to ERM. That’s available in the show notes.
[22:52] More RIMS Plugs! The RIMS App is available to RIMS members exclusively. Go to the App Store and download the RIMS App with all sorts of RIMS resources and coverage. It’s different from the RIMS Events App. Everyone loves the RIMS App!
[23:27] You can sponsor a RIMScast episode for this, our weekly show, or a dedicated episode. Links to sponsored episodes are in our show notes. RIMScast has a global audience of risk and insurance professionals, legal professionals, students, business leaders, C-Suite executives, and more. Let’s collaborate and help you reach them! Contact [email protected] for more information.
[24:13] Become a RIMS member and get access to the tools, thought leadership, and network you need to succeed. Visit RIMS.org/membership or email [email protected] for more information.
[24:30] Risk Knowledge is the RIMS searchable content library that provides relevant information for today’s risk professionals. Materials include RIMS executive reports, survey findings, contributed articles, industry research, benchmarking data, and more.
[24:47] For the best reporting on the profession of risk management, read Risk Management Magazine at RMMagazine.com. It is written and published by the best minds in risk management.
[25:01] Justin Smulison is the Business Content Manager at RIMS. You can email Justin at [email protected].
[25:09] Thank you all for your continued support and engagement on social media channels! We appreciate all your kind words. Listen every week! Stay safe!
Mentioned in this Episode:
RIMS ERM Conference 2024 Roundup — Global Award of Distinction Honors
RIMS Strategic & Enterprise Risk Center
RIMS DEI Council
RIMS-Certified Risk Management Professional (RIMS-CRMP)
NEW FOR MEMBERS! RIMS Mobile App
RIMS-CRMP Stories — Featuring Valerie Fox!
Nominations open for RIMS 2025 Awards! (Through Jan. 6, 2025)
Nominations for the Donald M. Stuart Award
RIMS Webinars:“The Future of Risk & Compliance: 5 Key Insights for the Modern Leader” | Sponsored by Resolver | Nov. 25, 2024
“Predictive Strategies to Detect Electrical and Machinery Failures” | Sponsored by TUV SUD GRC | Dec. 5, 2024
“Staying Vigilant: 7 Practical Tips for Ongoing Third-Party Risk Monitoring” | Sponsored by OneTrust | Dec. 12, 2024
RIMS.org/Webinars
Upcoming Virtual Workshops:
RIMS-CRMP Exam Prep (Virtual)
Dec. 17‒18, 2024 | 9:00 am‒4:00 pm EST — Register by Dec. 10.“Applying and Integrating ERM” | Dec 4‒5
“Captives as an Alternate Risk Financing Technique” | Dec. 17‒18
See the full calendar of RIMS Virtual Workshops
RIMS-CRMP Prep Workshops
Related RIMScast Episodes:
“Risk Quantification Through Value-Based Frameworks”
“Maintaining an Award-Winning ERM Program with Michael Zuraw”
“Applying ERM Theory with Elise Farnham”
“On Risk Appetite and Tolerance”
“Big Shifts with John Hagel, RIMS ERM Conference Keynote”
“Live From RIMS ERM Conference 2023”
Sponsored RIMScast Episodes:
“Risk Management in a Changing World: A Deep Dive into AXA's 2024 Future Risks Report” | Sponsored by AXA XL (New!)
“How Insurance Builds Resilience Against An Active Assailant Attack” | Sponsored by Merrill Herzog
“Third-Party and Cyber Risk Management Tips” | Sponsored by Alliant
“RMIS Innovation with Archer” | Sponsored by Archer
“Navigating Commercial Property Risks with Captives” | Sponsored by Zurich
“Breaking Down Silos: AXA XL’s New Approach to Casualty Insurance” | Sponsored by AXA XL
“Weathering Today’s Property Claims Management Challenges” | Sponsored by AXA XL
“Storm Prep 2024: The Growing Impact of Convective Storms and Hail” | Sponsored by Global Risk Consultants, a TÜV SÜD Company
“Partnering Against Cyberrisk” | Sponsored by AXA XL
“Harnessing the Power of Data and Analytics for Effective Risk Management” | Sponsored by Marsh
“Accident Prevention — The Winning Formula For Construction and Insurance” | Sponsored by Otoos
“Platinum Protection: Underwriting and Risk Engineering's Role in Protecting Commercial Properties” | Sponsored by AXA XL
“Elevating RMIS — The Archer Way” | Sponsored by Archer
“Alliant’s P&C Outlook For 2024” | Sponsored by Alliant
“Why Subrogation is the New Arbitration” | Sponsored by Fleet Response
“Cyclone Season: Proactive Preparation for Loss Minimization” | Sponsored by Prudent Insurance Brokers Ltd.
“Subrogation and the Competitive Advantage” | Sponsored by Fleet Response
RIMS Publications, Content, and Links:
RIMS Membership — Whether you are a new member or need to transition, be a part of the global risk management community!
RIMS Virtual Workshops
On-Demand Webinars
Risk Management Magazine ERM Special Edition
RIMS-Certified Risk Management Professional (RIMS-CRMP)
RISK PAC | RIMS Advocacy
RIMS Events, Education, and Services:
RIMS Risk Maturity Model®
RIMS Events App Apple | Google Play
Sponsor RIMScast: Contact [email protected] or [email protected] for more information.
Want to Learn More?
Keep up with the podcast on RIMS.org, and listen on Spotify and Apple Podcasts.
Have a question or suggestion? Email: [email protected].
Join the Conversation!
Follow @RIMSorg on Facebook, Twitter, and LinkedIn.
About our guests:
Christopher Stitt, Founder and CEO at CrisisLead, LLCCatrina Gilbert, Vice President of Risk Management at Dallas Fort Worth International Airport
RIMS DFW Chapter Treasurer
Social Shareables (Edited For Social Media Use):
The Risk Intelligence Quotient (how you look at risk), along with the human-centric aspects of the risk program, can help you build a good risk culture and ultimately, a high-performing organization that can thrive during both business-as-usual and disruption. — Christopher Stitt
What I really love is helping other people understand and build ERM programs. That’s why now, since I retired from the Department of State, I have moved into consulting. It’s a great opportunity to bridge the silos. — Christopher Stitt
It’s about building those cultures that can build very powerful ERM programs that get buy-in from the stakeholders and imbuing ERM into the culture of your organization. — Christopher Stitt
In a post-pandemic era, everyone is focused on a resiliency framework. When this happens again, are we ready? Are we prepared? Have we done the work? That’s the beauty of this RIMS ERM Conference 2024. — Catrina Gilbert
You can teach the rest of risk management. I want people with the soft skills, the personality, and the ability to jump in there, push up their sleeves, and try it out. — Catrina Gilbert
We have training, posters, and placards to educate you to say something if you see something and to have a way in which to report human trafficking. — Catrina Gilbert
-
Welcome to RIMScast. Your host is Justin Smulison, Business Content Manager at RIMS, the Risk and Insurance Management Society.
In this episode, Justin interviews Andrew Bent on risk management involvement in developing requirements for contracts, the most important thing a risk professional can do before they start drafting insurance requirements, and the types of coverages and limits to include in a contract. Andrew shares his approach to reviewing contracts received from other organizations, and his pet peeves about reviewing contracts that have requests for endorsements or policy coverages that are hard to obtain or no longer exist. He shares some general tips for negotiations.
Listen in for advice on win-win strategies in contract negotiations.
Key Takeaways:
[:01] About RIMS.
[:14] Member registration for RISKWORLD 2025 is now open! General registration opens on December 4th. Visit RIMS.org/RISKWORLD.
[:26] About this episode. From RIMS headquarters in New York, we will delve into the importance of contract review in risk management with our guest today, Andrew Bent.
[:47] The next RIMS-CRMP Exam Prep Virtual Workshop will be held on December 17th and 18th. The next RIMS-CRMP-FED Exam Course will be hosted along with George Mason University from December 3rd through the 5th.
[1:06] Links to these courses can be found on the Certification page of RIMS.org and through this episode’s show notes.
[1:13] RIMS Virtual Workshops! “Risk Appetite Management” is back by popular demand. Registration closes November 19th for the session on November 20th and 21st. That session will be led by Ken Baker.
[1:28] Elise Farnham of Illumine Consulting recently joined us here on RIMScast. On December 4th and 5th, she will host “Applying and Integrating ERM”. On December 17th and 18th, she will host “Captives as an Alternate Risk Financing Technique”.
[1:45] Those are just three of the workshops RIMS offers; we have lots more! Other dates for the Fall and Winter are available on the Virtual Workshops calendar, RIMS.org/virtualworkshops.
[1:57] Interview! Our guest today has 20 years of experience as a risk management professional and consultant and is known for the development, implementation, and optimization of ERM frameworks. He is Andrew Bent, the Senior Engagement Lead from Marsh Advisory.
[2:17] Andrew is also one of the founding members of the RIMS CRMP Commission. He’s here to talk about the importance of contract review in risk management and to provide tips and strategies for effective review.
[2:28] We will also discuss how contract review can even influence business relationships. Andrew Bent, welcome to RIMScast!
[2:57] Andrew started in New Zealand as a chemical engineer. He compares chemical processes with risk frameworks. He then worked in risk management with the New Zealand Customs Service.
[4:11] Australia and New Zealand’s governments made drastic cuts to public service about how resources were deployed. They did this with good risk management theory, the 4360 standard.
[4:48] The Customs Service applied the 4360 standard to the risks of people, crafts, and goods coming across the border. They did risk assessments on many things. It was a good way for Andrew to understand how risk works and how to either mitigate risks or live with them.
[5:22] There are only so many shipping containers that can get opened every day and so many people who can be evaluated every day if you don’t want to shut down your country’s entire commerce trade and flow.
[5:41] Andrew stayed there for a few years. Then he moved to Canada in 2009, a financially difficult time. He loved Canada and found the people to be similar to New Zealanders. He worked in a large municipal police agency in Western Canada.
[6:55] They were forward-thinking and strategic in how they thought about risk. He was able to help set up an enterprise risk management team and help accelerate the integration of strategy and risk.
[7:17] For a time, Andrew was the only chemical engineer in the world who had moved to Alberta and didn’t work for an oil and gas company. So he went to work for an oil and gas company for a while.
[7:27] Andrew found RISKWORLD hugely beneficial to his work. Andrew had a challenging job working beside health and safety folk. He developed a broad range of understanding of health and safety rules and regulations and helpful insights into operations and business.
[7:54] Andrew then moved back into the regulatory space with one of the provincial energy regulators. Then he met his now wife, an American. They had a long-distance commuting relationship until he moved down to the U.S. and subsequently to Washington, D.C.
[8:23] Along the way, Andrew had a couple of additional jobs, including cyberspace and risk management teams and risk management functions in the gig economy.
[8:51] Fundamentally, Andrew has found that risk management breaks down into understanding what you are trying to do, what your inputs are, what your risks are, and managing them as much or as little as your risk appetite needs.
[9:33] Andrew says contract review usually has the deepest understanding of what is and what is not insured under current programs of insurance. That helps them inform contract owners about what are and are not acceptable levels of risk they can assume in most contracts.
[9:54] Contract review helps to draw out the discussions around the organization’s risk-reward balances that they want to make sure are built into contracts. They can get overlooked in the rush to get a deal done. Contract review wants to bring that balance back to the conversation.
[10:27] Contract review also provides advice on some of the types of risk controls outside of insurance risk transfer that a contract owner should be thinking about, such as cyber, IT controls, data protection, health and safety, and a host of other issues.
[10:49] Contract owners should be thinking about and potentially building into their contracts as part of the negotiation with the counterparty. This is a two-way negotiation. We always want to be thinking about what each party is trying to achieve out of this contract.
[11:16] As risk management professionals, part of our role is to be the grownup in the room while everyone else is rushing to get the deal done. We often have to take a step back and ask if this is the right deal to be done.
[11:32] If it is, what do we need to protect and what value do we bring to the organization if the deal is done?
[11:52] Andrew believes the most important thing a risk professional can do before drafting insurance requirements is to talk to the person who wants the contract. Andrew rarely sees it happen but it is the single most important thing to happen before writing any requirements.
[12:15] Everyone involved needs to understand the purpose of the contract. Why are we doing this? What is being proposed here? What’s the work that needs to be done? What are the services that are going to be delivered?
[12:31] What are the organizational objectives to be achieved by entering this contract? Andrew shares an example from his career of how this is discussed, with a small vendor providing a critical service but who had trouble with the standard contract. Flexibility was needed.
[14:46] If you understand the work or services to be provided in a contract, you’re two-thirds of the way to understanding what risks need to be covered by insurance or another way. If someone’s digging a ditch at your building, they probably don’t need to provide cyber coverage.
[15:40] In cases where you have people moving between sites, you might need to include auto coverage. Workers’ compensation coverage is always something you need to think about. You don’t want to end up being on the hook if a contractor is injured working for you.
[16:19] Some things may not just need to be in our insurance provisions within a contract but also into the liability or other sections of the contract. You need to see the entire contract, not just the insurance provisions within the contract.
[16:48] Plug Time! RIMS Webinars! On November 21st, HUB International returns with the fourth installment of their Ready for Tomorrow series, “From AI to the SEC: The Future of D&O Litigation and Regulatory Exposures”.
[17:07] On November 25th, Resolver returns to discuss “The Future of Risk & Compliance: 5 Key Insights for the Modern Leader”.
[17:15] On December 5th, we have “Predictive Strategies to Detect Electrical and Machinery Failures”, presented by Global Risk Consultants, a TÜV SÜD company.
[17:27] On Thursday, December 12th, OneTrust returns to deliver “Staying Vigilant: 7 Practical Tips for Ongoing Third-Party Risk Monitoring”.
[17:36] More webinars will be announced soon and added to the RIMS.org/webinars page. Go there to register. Registration is complimentary for RIMS members.
[17:48] RIMS is now accepting nominations for all awards other than Risk Manager of the Year 2025. The submission deadline is Monday, January 6th, 2025. To receive a RIMS award, all winners must be active members and in good standing.
[18:08] The awards are the Diversity, Equity, and Inclusion Chapter Leadership Award, the Harry and Dorothy Goodell Award, the Volunteer of the Year “Heart of RIMS” Award, the Richard W. Bland Memorial Award, the Chapter of the Year Award, the Rising Risk Professional Award, the Risk Management Hall of Fame, and the Cristy Award.
[18:46] You can find more information about the awards through the About Us page of RIMS.org or the link in this interview’s show notes.
[18:55] Back to My Interview with Andrew Bent!
[19:10] When Andrew reviews a contract his organization has received from another organization, he keeps in mind that everyone tries to negotiate a contract in a way that is most beneficial for them.
[19:21] In an ideal world, everyone approaches contract negotiation as a win-win, but most of the time, people come in with their ideal position. Understand the other party. A large company will have multiple layers and a legal department to negotiate through and changes will take time.
[20:35] If you’re dealing with a smaller organization, maybe a one-person shop, be aware that they may not have a lot of risk management knowledge. Don’t take advantage of that. As a risk management professional, you have an ethical obligation to do the right thing.
[21:08] You need to make sure to protect your organization. You also want to make sure that the counterparty you’re contracting with is also left in a position where if something does go wrong, they’re not destroyed.
[21:26] Andrew doesn’t want to be the proud owner of someone’s home because that’s the only asset they have. Be sensible about the obligations and insurance requirements you place on parties, particularly on those without a lot of assets. Be thoughtful in managing those things.
[21:58] You have to be able to think about what the other party is looking to protect and to achieve out of this contract. That doesn’t mean you give up your objectives, limits, and red lines.
[22:17] Step out of your viewpoint briefly and put yourself in their shoes. It gives you a perspective on what might be a reasonable compromise between the two positions and helps you get to an agreed position faster and more efficiently.
[22:45] Andrew’s Number One pet peeve is people who refuse to negotiate. Everyone starts with their ideal position but if you’re not prepared to move, then you’re not prepared to do business. Every contract needs to be a two-party agreement or you’re not being commensurate.
[23:16] Another pet peeve is requesting things that aren’t going to help you manage your risk. If Andrew is looking at a contract from a counterparty and they’re asking for things that bear no resemblance to the scope of work, that tells him they’re phoning it in with a standard contract.
[23:42] If Andrew gets both of those things together, he asks if this is the level of input in their contract, what will they be like to work with? You can learn a lot about the people you are potentially going to work with by how they negotiate and work through that process.
[24:07] If they’re prepared to come to the table and have a reasonable discussion, not always an easy discussion, that says a lot about how they’re going to work once they’ve got ink on paper and you’re into the business you want to get into.
[24:34] Andrew has had requests for a form that doesn’t exist anymore. This is driven by very old standard contract language that hasn’t been updated since 1984. He uses it as an opportunity to educate. Some people refuse to be educated. The computer says they need that form.
[25:20] That shows what they would be like to work with. You need to understand what you are trying to achieve and how important this particular contract is. Sometimes you just have to walk away when the value of doing what the counterparty is asking for isn’t worth it to you.
[26:05] Andrew gives examples of both a reasonable requirement and an unreasonable requirement from a landlord if you want to do construction within a newly leased building. It’s about how, where, and what those requests are and how reasonable they are in the contract.
[27:12] Remember that you are working with another party toward a mutual benefit. A legally binding contract is between two parties that come to some agreement with a transfer of services and payment between them. There has to be something of value to both parties.
[27:39] You’re there for a reason. Even if you can go in hot and heavy, unwilling to bend, that doesn’t mean you should even if there is a power imbalance between the two parties.
[28:24] There is another party, another person or group, involved here. Treat them with the courtesy, respect, and professional dignity you would like to receive as well. Work with them. Try to understand their position.
[28:51] It’s OK to walk away. There are some deals that you’re just not going to get done. There are times when the best course of action is just to say, Look, we gave it the old college try, and for whatever reason the risk appetite and the risk tolerance for both parties didn’t line up.
[29:28] If you do it respectfully and professionally, you maintain that relationship for the future, and maybe next time it will work out; it just didn’t this time. Be professional, be thoughtful, be mindful of your position, and also be mindful of the other party.
[30:02] Special thanks again to Andrew Bent for joining us here on RIMScast! Andrew will be making an appearance in our brand-new video series for the RIMS-CRMP. We’ll eventually update this episode’s show notes with that link.
[30:16] More RIMS Plugs! The RIMS App is available to RIMS members exclusively. Go to the App Store and download the RIMS App with all sorts of RIMS resources and coverage. It’s different from the RIMS Events App. Everyone loves the RIMS App!
[30:51] You can sponsor a RIMScast episode for this, our weekly show, or a dedicated episode. Links to sponsored episodes are in our show notes. RIMScast has a global audience of risk and insurance professionals, legal professionals, students, business leaders, C-Suite executives, and more. Let’s collaborate and help you reach them! Contact [email protected] for more information.
[31:36] Become a RIMS member and get access to the tools, thought leadership, and network you need to succeed. Visit RIMS.org/membership or email [email protected] for more information.
[31:53] Risk Knowledge is the RIMS searchable content library that provides relevant information for today’s risk professionals. Materials include RIMS executive reports, survey findings, contributed articles, industry research, benchmarking data, and more.
[32:10] For the best reporting on the profession of risk management, read Risk Management Magazine at RMMagazine.com. It is written and published by the best minds in risk management.
[32:24] Justin Smulison is the Business Content Manager at RIMS. You can email Justin at [email protected].
[32:31] Thank you all for your continued support and engagement on social media channels! We appreciate all your kind words. Listen every week! Stay safe!
Mentioned in this Episode:
RIMS DEI Council
RIMS-Certified Risk Management Professional (RIMS-CRMP)
RIMS Strategic & Enterprise Risk Center
NEW FOR MEMBERS! RIMS Mobile App
RIMS-CRMP Stories — Featuring Valerie Fox!
Nominations open for RIMS 2025 Awards! (Through Jan. 6, 2025)
Nominations for the Donald M. Stuart Award
RIMS Webinars:“From AI to the SEC: The Future of D&O Litigation and Regulatory Exposures” | Sponsored by Hub International | Nov. 21, 2024
“The Future of Risk & Compliance: 5 Key Insights for the Modern Leader” | Sponsored by Resolver | Nov. 25, 2024
“Predictive Strategies to Detect Electrical and Machinery Failures” | Sponsored by TUV SUD GRC | Dec. 5, 2024
“Staying Vigilant: 7 Practical Tips for Ongoing Third-Party Risk Monitoring” | Sponsored by OneTrust | Dec. 12, 2024
RIMS.org/Webinars
Upcoming Virtual Workshops:
RIMS-CRMP Exam Prep (Virtual)
Dec. 17‒18, 2024 | 9:00 am‒4:00 pm EST — Register by Dec. 10.“Applying and Integrating ERM” | Dec 4‒5
“Captives as an Alternate Risk Financing Technique” | Dec. 17‒18
See the full calendar of RIMS Virtual Workshops
RIMS-CRMP Prep Workshops
Related RIMScast Episodes:
“Risk Quantification Through Value-Based Frameworks”
“Maintaining an Award-Winning ERM Program with Michael Zuraw”
“Applying ERM Theory with Elise Farnham”
“On Risk Appetite and Tolerance”
Sponsored RIMScast Episodes:
“Risk Management in a Changing World: A Deep Dive into AXA's 2024 Future Risks Report” | Sponsored by AXA XL (New!)
“How Insurance Builds Resilience Against An Active Assailant Attack” | Sponsored by Merrill Herzog
“Third-Party and Cyber Risk Management Tips” | Sponsored by Alliant
“RMIS Innovation with Archer” | Sponsored by Archer
“Navigating Commercial Property Risks with Captives” | Sponsored by Zurich
“Breaking Down Silos: AXA XL’s New Approach to Casualty Insurance” | Sponsored by AXA XL
“Weathering Today’s Property Claims Management Challenges” | Sponsored by AXA XL
“Storm Prep 2024: The Growing Impact of Convective Storms and Hail” | Sponsored by Global Risk Consultants, a TÜV SÜD Company
“Partnering Against Cyberrisk” | Sponsored by AXA XL
“Harnessing the Power of Data and Analytics for Effective Risk Management” | Sponsored by Marsh
“Accident Prevention — The Winning Formula For Construction and Insurance” | Sponsored by Otoos
“Platinum Protection: Underwriting and Risk Engineering's Role in Protecting Commercial Properties” | Sponsored by AXA XL
“Elevating RMIS — The Archer Way” | Sponsored by Archer
“Alliant’s P&C Outlook For 2024” | Sponsored by Alliant
“Why Subrogation is the New Arbitration” | Sponsored by Fleet Response
“Cyclone Season: Proactive Preparation for Loss Minimization” | Sponsored by Prudent Insurance Brokers Ltd.
“Subrogation and the Competitive Advantage” | Sponsored by Fleet Response
RIMS Publications, Content, and Links:
RIMS Membership — Whether you are a new member or need to transition, be a part of the global risk management community!
RIMS Virtual Workshops
On-Demand Webinars
RIMS-Certified Risk Management Professional (RIMS-CRMP)
RISK PAC | RIMS Advocacy
RIMS Events, Education, and Services:
RIMS Risk Maturity Model®
RIMS Events App Apple | Google Play
Sponsor RIMScast: Contact [email protected] or [email protected] for more information.
Want to Learn More?
Keep up with the podcast on RIMS.org, and listen on Spotify and Apple Podcasts.
Have a question or suggestion? Email: [email protected].
Join the Conversation!
Follow @RIMSorg on Facebook, Twitter, and LinkedIn.
About our guest:
Andrew Bent, Senior Vice President, Senior Engagement Lead, Marsh Advisory — Strategic Risk Consulting
Founding Member of the RIMS-CRMP CommissionSocial Shareables (Edited For Social Media Use):
There are only so many shipping containers that can be opened every day and so many people who can be evaluated every day if you don’t want to shut down your country’s entire commerce trade. — Andrew Bent
If you understand the services to be provided in a contract, you’re two-thirds of the way to understanding what risks need to be covered. If someone’s digging a ditch at your building, they probably don’t need to provide cyber coverage. — Andrew Bent
You need to make sure to protect your organization. You also want to make sure that the counterparty you’re contracting with is also left in a position where if something does go wrong, they’re not destroyed. — Andrew Bent
Step out of your viewpoint and put yourself in their shoes. It gives you a perspective on what might be a reasonable compromise between the two positions and helps you get to an agreed position faster and more efficiently. — Andrew Bent
Everyone starts with their ideal position but if you’re not prepared to move, then you’re not prepared to do business. Every contract needs to be a two-party agreement or you’re not being commensurate. — Andrew Bent
There are some deals that you’re just not going to get done. There are times when the best course of action is just to say, Look, we gave it the old college try, and for whatever reason the risk appetite and the risk tolerance for both parties didn’t line up. — Andrew Bent
-
Welcome to RIMScast. Your host is Justin Smulison, Business Content Manager at RIMS, the Risk and Insurance Management Society.
In this episode, Justin interviews Kevin Stein, the CEO of Delos Insurance Solutions. Kevin tells of his aerospace engineering background and how modeling led him to the insurance space. He speaks of his passion for insurance, and of co-founding Delos Insurance Solutions to fill the commercial coverage gap around California Wildfires. Kevin speaks of his optimism for the future of Wildfire control with property fire-hardening principles and new detection and deterrent technology.
Listen in for advice on hardening commercial properties against wildfire risk, and how to secure coverage against this risk.Key Takeaways:
[:01] About RIMS.
[:15] About this episode. From RIMS headquarters in New York, our guest today is Kevin Stein, the CEO of Delos Insurance and we will discuss wildfire risk.
[:39] The next RIMS-CRMP Exam Prep will be held with Purima virtually on November 14th and 15th. The next RIMS-CRMP-FED Exam Course will be hosted along with George Mason University from December 3rd through the 5th.
[:58] Links to these courses can be found on the Certifications page of RIMS.org and through this episode’s show notes.
[1:05] RIMS Virtual Workshops! “Risk Appetite Management” is back by popular demand. Registration closes November 19th for the session on November 20th and 21st. That session will be led by Ken Baker.
[1:20] Elise Farnham of Illumine Consulting recently joined us here on RIMScast. On December 4th and 5th, she will host “Applying and Integrating ERM”. On December 17th and 18th, she will host “Captives as an Alternate Risk Financing Technique”.
[1:37] Those are just three of the workshops RIMS offers; we have lots more! Other dates for the Fall and Winter are available on the Virtual Workshops calendar, RIMS.org/virtualworkshops.
[1:49] This is the last call to register for the RIMS ERM Conference 2024 which will be held on November 18‒19, 2024 in Boston, Massachusetts. The agenda is live, we’ve got a great keynote, and we’ve got so many fantastic educational sessions and networking opportunities for you!
[2:07] So visit the Events page of RIMS.org and register today! A link is also in this episode’s show notes.
[2:14] Interview! Climate change and wildfire risks are on our minds here at RIMScast! My take is that there is no longer a wildfire season here in the U.S., it’s just wildfire year. Let’s see if our guest agrees with me, and what risk managers can do to combat and mitigate this problem.
[2:39] My guest is Kevin Stein. He is the CEO of Delos Insurance Solutions and he is an aerospace engineer by training. We're going to get a fascinating perspective from him on wildfire risks and what risk professionals can do to limit their exposure.
[2:56] We’re also going to talk about the trends driving wildfire reduction techniques. Let’s get to it! Kevin Stein, welcome to RIMScast!
[3:21] Kevin and a Co-founder started Delos Insurance Solutions in 2017. It is a specialty MGA. They sell policies across California in areas that other insurers have vacated because of perceived wildfire exposure in those regions.
[3:40] Delos Insurance Solutions is in partnership with an environment think tank made up of 100 professors, post-doc scientists, and the top wildfire researchers in the world.
[99] They have co-developed the civil government models for agencies including CalFire, the Public Utilities Commission, and the U.S. Forestry Service, for 25 years.
[4:04] With the think tank, Delos Insurance Solutions has developed more sophisticated wildfire underwriting internal tools and models that give a sense of a per-risk view of wildfire exposure as well as a portfolio-level view of wildfire exposure.
[4:19] With that, Delos Insurance Solutions has developed a number of programs. They sell home insurance, landlord’s insurance, and vacant home insurance across California.
[4:33] Kevin tells about his experience as an aerospace engineer. He did his Master’s in Aerospace Engineering at Stanford. He started on the modeling side and found his way into insurance.
[4:56] Kevin finds insurance fascinating. He says that everybody in the industry understands how interesting insurance is and everybody outside the insurance industry does not. Having gone from outside the industry to inside it, Kevin says the people in the industry are correct.
[5:13] Kevin says there are many different, interesting aspects of insurance and his career has been a wild ride.
[5:40] Kevin says the reality of wildfire season is that wildfires can happen at any time. There need to be specific conditions for these fires to become large, destructive wildfires. Conditions need to be hot, dry, and windy and there needs to be fuel.
[6:01] The seasons have been changing. In California, the wildfire seasons in 2017 and 2018 were very destructive. Historically, Northern California has a rainy season from mid-October through late March or early April. In 2017 they had sun through the end of December and rain until June.
[6:43] During the Fall, Northern California has a lake effect of winds coming over the mountains out to the ocean, and it’s usually stormy. In 2017 and 2018, they had 100-degree temperatures, the vegetation had been dry for six months, and the extreme winds led to fire superstorms.
[7:11] In any wildfire area, once sustained rains start, you’re in a more comfortable position. You need vegetation that’s been dried out for a while to have large fire superstorms but even in the Spring or early Summer, you can have individual or smaller fires that threaten your properties.
[7:37] The antidote to smaller, individual fires is to implement property-hardening techniques on commercial properties that effectively protect structures against smaller, slower-moving fires.
[8:25] Fires are spreading. The Salem, Massachusetts fires, the Eastern Canada fires, the Hawaiian fires, the fires in Oklahoma, and in San Diego show that fires can happen in a lot of geographies now that have not experienced fires before.
[8:59] This has a big effect on the insurance market. Insurers and reinsurers are looking at the spread and prevalence of wildfires and getting more concerned about what that means for their average exposure and maximum exposure.
[9:18] The price of re-insurance is going up significantly and the availability of re-insurance and capacity is going down significantly.
[9:28] The key for folks who own properties and large buildings and who rely on risk transfer as an effective means for managing their risk, is to be more creative and find more specialty groups.
[9:49] The insurance industry is morphing. The previous structure included wildfire exposure with hurricane exposure and tornado exposure. Now many of them will exclude wildfire.
[10:16] Risk managers will have to find specialty groups that are underwriting wildfire exposure more effectively and capturing re-insurance capacity more effectively to provide policies for people with this exposure.
[10:40] A key to understanding your fire exposure is to understand what type of fires you are potentially exposed to. There are wind-driven fire locations, moisture-driven fire locations, and vegetation-driven fire locations.
[10:58] To harden your property to vegetation fires, make the area around your building either a parking lot or drought-resistant, fire-resistant landscaping. Don’t use bark or woodchips. You can have small scattered plants surrounded by concrete to avoid the risk of vegetation fire.[11:50] With wind-driven fires, your biggest risk is embers. Embers can catch a building on fire by igniting vegetation at the base of the structure, so remove all vegetation against the structure or under eaves, especially with single-story structures.
[12:20] Embers can also get inside structures. Have ember-mesh screens on air intakes, such as those used by the HVAC system, and any openings in the foundation and your eaves.
[13:03] Build structures out of fire-resistant materials. Shingles and siding need to be fire-resistant or fire-safe. Use double-pane windows. Single-pane windows crack in fires and embers can get in. Use ember-mesh screens.
[13:59] For landscaping, make sure it is drought-resistant and fire-resistant.
[13:52] Plug Time! RIMS Webinars! On November 14th, Marsh will present “Risk Perception and Management: Insights for a Changing Landscape”.
[14:03] On November 21st, HUB International returns with the fourth installment of their Ready for Tomorrow series, “From AI to the SEC: The Future of D&O Litigation and Regulatory Exposures”.
[14:17] On November 25th, Resolver returns to discuss “The Future of Risk & Compliance: 5 Key Insights for the Modern Leader”.
[14:26] On December 5th, we have “Predictive Strategies to Detect Electrical and Machinery Failures”, presented by Global Risk Consultants, a TÜV SÜD company.
[14:37] On Thursday, December 12th, OneTrust returns to deliver “Staying Vigilant: 7 Practical Tips for Ongoing Third-Party Risk Monitoring”.
[14:47] More webinars will be announced soon and added to the RIMS.org/webinars page. Go there to register. Registration is complimentary for RIMS members.
[14:59] RIMS is now accepting nominations for all awards other than Risk Manager of the Year 2025. The submission deadline is Monday, January 6th, 2025. To receive a RIMS award, all winners must be active members and in good standing.
[15:19] The awards are the Diversity, Equity, and Inclusion Chapter Leadership Award, the Harry and Dorothy Goodell Award, the Volunteer of the Year “Heart of RIMS” Award, the Richard W. Bland Memorial Award, the Chapter of the Year Award, the Rising Risk Professional Award, the Risk Management Hall of Fame, and the Cristy Award.
[15:57] You can find more information about the awards through the About Us page of RIMS.org or the link in this interview’s show notes.
[16:06] Back to My Interview About Wildfire Risks with Kevin Stein!
[16:36] Kevin has a really optimistic view of the future of wildfire risk. A lot of that has to do with firefighting strategies and resources. The California government has put massive amounts of money into forest management and it’s been very effective.
[17:01] Kevin is optimistic about the new technology. Improved outdoor sprinklers are triggered if a fire is oncoming and douse everything in water or fire-retardant material. Sensors are put in different locations to recognize fire quickly.
[17:39] How fast firefighters get to a wildfire is hugely important in terms of how big the fire will be. Fires that are reached and controlled quickly don’t become giant superstorms. Giant superstorms cause significant loss and burn down large buildings. Small wildfires can’t do that.
[18:07] The sensors are put on a variety of buildings to recognize smoke automatically with computer vision AI built in. Some longer-term technology is very interesting. In the future, there will be drone armies to replace the helicopters to pour fire retardant or water on top of wildfires.
[19:10] Commercial clients can deal with re-insurers like Lloyd’s of London to get coverage. Property-hardening characteristics and technologies come into play with a detailed assessment of the defensibility of the structure.
[20:38] Wildfire Re-insurers are moving from being generalists to being specialists. Generalist actuaries study years of loss history to predict losses for the next year. Specialist perils require area expertise because the risks cannot be handled simply through large amounts of data.
[21:13] Cyber is a great example of this. Cyber insurance was first bundled with general liability. The carriers soon realized they had no expertise to predict cyber risk so they excluded it. Specialty groups with expertise popped up to fill the gap in the market.
[21:36] This has happened with flood insurance, hurricane insurance in Florida, and earthquake insurance. Wildfire is the next one. It’s changing very rapidly. It’s very complicated, so you need people with area expertise to be able to underwrite it profitably.
[21:58] There is a trend where primary carriers are pulling back. They’re making the sound decision for a risk manager who can’t understand a peril. This opens up space for specialists to jump in, like Delos Insurance Solutions. Kevin says more groups will show up to serve the sector.
[22:54] Kevin reveals some of his aerospace engineer experience. He put in a proposal to NASA for a heliocentric spacecraft to look for life on Alpha Centauri. That wasn’t chosen, but there was an interesting satellite project he worked on.
[23:35] Kevin helped create two NBN satellites to provide internet to all of Australia, combined with a detailed fiber network. Kevin managed everything mechanical on the build of those two satellites.
[24:25] Special thanks again to Kevin Stein of Delos Insurance Solutions for joining us today on RIMScast. RIMS has a Wildfire Resources Page on RIMS.org. A link is in this interview’s show notes. Be sure to go there for more insight and information on how you can combat wildfire risk.
[24:44] More RIMS Plugs! The RIMS App is available to RIMS members exclusively. Go to the App Store and download the RIMS App with all sorts of RIMS resources and coverage. It’s different from the RIMS Events App. Everyone loves the RIMS App!
[25:18] You can sponsor a RIMScast episode for this, our weekly show, or a dedicated episode. Links to sponsored episodes are in our show notes. RIMScast has a global audience of risk and insurance professionals, legal professionals, students, business leaders, C-Suite executives, and more. Let’s collaborate and help you reach them! Contact [email protected] for more information.
[26:00] Become a RIMS member and get access to the tools, thought leadership, and network you need to succeed. Visit RIMS.org/membership or email [email protected] for more information.
[26:17] Risk Knowledge is the RIMS searchable content library that provides relevant information for today’s risk professionals. Materials include RIMS executive reports, survey findings, contributed articles, industry research, benchmarking data, and more.
[26:33] For the best reporting on the profession of risk management, read Risk Management Magazine at RMMagazine.com. It is written and published by the best minds in risk management.
[26:46] Justin Smulison is the Business Content Manager at RIMS. You can email Justin at [email protected].
[26:53] Thank you all for your continued support and engagement on social media channels! We appreciate all your kind words. Listen every week! Stay safe!
Mentioned in this Episode:
RIMS DEI Council
RIMS-Certified Risk Management Professional (RIMS-CRMP)
RIMS Strategic & Enterprise Risk Center
RIMS ERM Conference 2024 — November 18‒19, 2024 | Boston, MA
NEW FOR MEMBERS! RIMS Mobile App
RIMS-CRMP Stories — Featuring Valerie Fox!
Nominations open for RIMS 2025 Awards! (Through Jan. 6, 2025)
Nominations for the Donald M. Stuart Award
RIMS Wildfire Resource Center
RIMS Webinars:“Risk Perception and Management: Insights for a Changing Landscape” | Sponsored by Marsh | Nov. 14, 2024
“From AI to the SEC: The Future of D&O Litigation and Regulatory Exposures” | Sponsored by Hub International | Nov. 21, 2024
“The Future of Risk & Compliance: 5 Key Insights for the Modern Leader’ | Sponsored by Resolver | Nov. 25, 2024
“Predictive Strategies to Detect Electrical and Machinery Failures” | Sponsored by TUV SUD GRC | Dec. 5, 2024
“Staying Vigilant: 7 Practical Tips for Ongoing Third-Party Risk Monitoring” | Sponsored by OneTrust | Dec. 12, 2024
RIMS.org/Webinars
Upcoming Virtual Workshops:
Risk Appetite Management Nov. 20‒21
RIMS-CRMP Exam Prep (Virtual)
Dec. 17‒18, 2024 | 9:00 am‒4:00 pm EST — Register by Dec. 10.“Applying and Integrating ERM” | Dec. 4‒5
“Captives as an Alternate Risk Financing Technique” | Dec. 17‒18
See the full calendar of RIMS Virtual Workshops
RIMS-CRMP Prep Workshops
Related RIMScast Episodes:
“Safety and Preparedness in 2024 with National Safety Council CEO Lorraine Martin”
“Mitigating the Risks of Catastrophes with Mrunal Pandit of Tata Consumer Products”
“Evolving Fire Risks with Ralph Bless”
“California Wildfires: Risks, Preparedness, Business Continuity, and the Impact on Insurance Markets” (2020)
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“Risk Management in a Changing World: A Deep Dive into AXA’s 2024 Future Risks Report” | Sponsored by AXA XL (New!)
“How Insurance Builds Resilience Against An Active Assailant Attack” | Sponsored by Merrill Herzog
“Third-Party and Cyber Risk Management Tips” | Sponsored by Alliant
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“Navigating Commercial Property Risks with Captives” | Sponsored by Zurich
“Breaking Down Silos: AXA XL’s New Approach to Casualty Insurance” | Sponsored by AXA XL
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“Elevating RMIS — The Archer Way” | Sponsored by Archer
“Alliant’s P&C Outlook For 2024” | Sponsored by Alliant
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About our guest:
Kevin Stein, CEO of Delos Insurance SolutionsSocial Shareables (Edited For Social Media Use):
There are so many different, super-interesting aspects of insurance. — Kevin Stein
I have a really optimistic view of the future of wildfire risk. A lot of that has to do with firefighting strategies and resources. The California government has put massive amounts of money into forest management and it’s been very effective. — Kevin Stein
Sensors can be put in different locations to recognize fire quickly. How fast firefighters get to a wildfire is hugely important in terms of how big the fire will be. Fires that are reached and controlled quickly don’t become giant superstorms. — Kevin Stein
There is a trend where primary carriers are pulling back. They’re making the sound decision for a risk manager who can’t understand a peril. This opens up space for specialists like Delos Insurance Solutions to jump in. Other groups will follow. — Kevin Stein
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Welcome to RIMScast. Your host is Justin Smulison, Business Content Manager at RIMS, the Risk and Insurance Management Society.
In this episode, Justin interviews Valerie Fox, the 2024 Donald M. Stuart Award Winner. Valerie and Justin discuss her receiving the Donald M. Stuart Award and what this recognition means to her. Valerie tells how her journey in risk management has evolved over her 42-year career. Valerie has held prominent roles across a diverse range of industries. She shares some highlights and challenges of her career. Valerie remarks on the education opportunities, taking on leadership roles, and networking, that ORIMS and RIMS provided for her that helped her develop and advance in her risk career. She shares details of a long-term international project that stretched her and that she is proud of. Valerie offers her expectations for the future of risk management and how today’s students can prepare themselves to be tomorrow’s risk leaders. Valerie hopes to continue her student outreach and offer them the knowledge to guide their paths.
Listen in for advice on resilience and lifelong learning to keep up with the evolving risk management industry.Key Takeaways:
[:01] About RIMS.
[:15] About this episode. From RIMS headquarters in New York, I am delighted to be joined by Valerie Fox, the 2024 Donald M. Stuart Award Winner and a RIMS-CRMP holder!
[:41] The next RIMS-CRMP Exam Prep will be held with PARIMA virtually on November 14th and 15th. The next RIMS-CRMP-FED Exam Course will be hosted along with George Mason University from December 3rd through the 5th.
[:57] Links to these courses can be found on the Certifications page of RIMS.org and through this episode’s show notes.
[1:04] RIMS Virtual Workshops! Elise Farnham of Illumine Consulting recently joined us here on RIMScast. On December 4th and 5th, she will host Applying and Integrating ERM. On December 17th and 18th, she will host Captives as an Alternate Risk Financing Technique.
[1:26] Those are just two of the workshops RIMS offers; we have lots more! Other dates for the Fall and Winter are available on the Virtual Workshops calendar, RIMS.org/virtualworkshops. We’ve got more important plugs coming during the break. Now, let’s get on with the show!
[1:44] Interview! The RIMS Ontario Chapter (ORIMS) presented the Donald M. Stuart Award to our guest, Valerie Fox, at the RIMS Canada Conference 2024 in Vancouver.
[1:57] Valerie is a CRM holder, a RIMS-CRMP holder, and the former Director of Risk Management and Health and Safety for NPL Canada. She has since retired.
[2:14] The Donald M. Stuart Award is widely recognized as Canada’s highest honor within the risk management field and since 1979, has celebrated Canadians who have made outstanding contributions to the profession.
[2:28] Throughout her 42-year career, Valerie has held prominent leadership roles in risk management for a range of multinational corporations, including Walmart and Wendy’s Restaurants of Canada.
[2:44] We’ll talk a bit about her career, how she sees the risk profession evolving, and why she’s so inspired by the next generation of risk management professionals. Donald M. Stuart Award Winner, Valerie Fox, welcome to RIMScast!
[3:33] Valerie notes that winning the Donald M. Stuart Award was a very special moment for her. She has a tremendous respect for the history of the Donald M. Stuart Award and the professional values it represents.
[4:04] When Valerie was VP of the Ontario RIMS Chapter Board in 2017, she was responsible for the oversight of this award. She enjoyed it so much that she continued to be the presenter of the award for the last seven years. This year, she stepped down from the ORIMS Board.
[4:25] When Valerie stepped down from the ORIMS board, her colleagues nominated her for the award. She couldn’t be more humbled or appreciative of their recognition and support. To be recognized alongside the people she presented the award to over the years is very special.
[5:02] ORIMS accepts nominations from all over the country. It’s an award for all of Canada and is overseen by the Ontario Chapter. The nomination process has two stages.
[5:21] If a nomination clears the first stage, a total nomination package is submitted with further documentation. The package goes to a panel of evaluators across the country, including risk managers, people on boards, and insurance companies and brokers.
[5:44] They evaluate the nominations. The person with the top collective score wins the award. They’re looking at the nominees’ history with their companies, volunteerism, and the tenets the award represents. It’s the Canadian version of RIMS Risk Manager of the Year.
[6:36] Valerie’s first role as a risk manager was Manager of Contracts and Insurance. She bought insurance, handled claims, and implemented some risk control of targeted risks.
[6:56] The job description of a risk manager has evolved immensely and varies greatly from entity to entity, depending on the company’s maturity, operations, experiences, losses, and more.
[7:16] You could still be hired today as Manager of Contracts and Insurance but you could also be aspiring to be a Chief Risk Officer of a major, multi-national corporation with the responsibility to help them be more resilient and grow.
[7:41] Valerie saw the evolution in risk management start very slowly. It has continually ramped up and now is speeding forward.
[7:50] Over her career, Valerie had to be willing to delve into new challenges and be prepared to learn and develop new skills and new mitigation strategies and develop broad-based business knowledge. Without that knowledge, it’s difficult to assess potential impacts.
[8:33] Different industries have different areas of risk focus. Valerie started in the airline industry. A major focus was having a major accident response plan ready. There were challenges of jurisdictional insurance requirements and risk exposures around the world.
[9:11] Valerie spent five years in the public sector as a risk manager for a municipality. The focus of public entities is protecting people in public spaces, maintaining critical services, and managing reputation. It includes presenting the right answers.
[9:51] Valerie worked in the retail industry in domestic and international markets. On her first day at Walmart Canada, she realized how unprepared she was to deal with health and safety and worker’s compensation management responsibilities. Those had been under HR in Canada.
[10:13] Working for American companies, she had to get up to speed quickly on those areas of risk. Valerie trained herself on the job. She met with anyone she knew in the industry who was involved in health and safety. She met with people from the boards.
[10:42] Valerie spent a lot of time in the stores with the associates to see what their concerns were. She spent time with operations leaders, seeing the processes first-hand to understand the risks and put together programs that fit the culture and the environment of the companies.
[11:26] Valerie says retailers today need to do a deep-dive business impact analysis, map out dependencies and processes, and have alternative options to avoid business interruption. As a risk manager, you have to understand that to help businesses come up with the right solutions.
[11:55] Valerie reviews a case of having to train people quickly after a buyout.
[12:52] Valerie talks about working with a new inexperienced team that she had to take under her wing and teach risk management quickly. In large corporations, you also build company-wide teams and external teams that help you.
[13:17] Valerie taught CRM courses at the University of Toronto. Later, she had the pleasure of hiring one of her most enthusiastic students for a risk management position. He now works for another company she is close to and he is doing super well.
[13:48] Plug Time! RIMS Webinars! On November 14th, Marsh will present “Risk Perception and Management: Insights for a Changing Landscape”.
[13:58] On November 21st, HUB International returns with the fourth installment of their Ready for Tomorrow series, “From AI to the SEC: The Future of D&O Litigation and Regulatory Exposures”.
[14:13] On November 25th, Resolver returns to discuss “The Future of Risk & Compliance: 5 Key Insights for the Modern Leader”.
[14:22] On December 5th, we have “Predictive Strategies to Detect Electrical and Machinery Failures”, presented by Global Risk Consultants, a TÜV SÜD company.
[14:33] On Thursday, December 12th, OneTrust returns to deliver “Staying Vigilant: 7 Practical Tips for Ongoing Third-Party Risk Monitoring”
[14:42] More webinars will be announced soon and added to the RIMS.org/webinars page. Go there to register. Registration is complimentary for RIMS members.
[15:01] RIMS is now accepting nominations for all awards other than Risk Manager of the Year 2025. The submission deadline is Monday, January 6th, 2025. To receive a RIMS award, all winners must be active members and in good standing.
[15:18] The awards are the Diversity, Equity, and Inclusion Chapter Leadership Award, the Harry and Dorothy Goodell Award, the Volunteer of the Year “Heart of RIMS” Award, the Richard W. Bland Memorial Award, the Chapter of the Year Award, the Rising Risk Professional Award, the Risk Management Hall of Fame, and the Cristy Award.
[15:56] You can find more information about the awards through the About Us page of RIMS.org or the link in this episode’s show notes. I also have a link in the show notes to the nominations page for the Donald M. Stuart Award. Check it out!
[16:13] Back to My Interview with 2024 Donald M. Stuart Award Winner, Valerie Fox!
[16:33] Valerie was ORIMS President in 2018 and 2019. She also had a couple of terms as Vice President, two terms as Secretary, and more. She is an active ORIMS member and a Director at Large. She intends to continue volunteering, especially with student outreach.
[17:28] Justin remembers the wonderful people he worked with when he co-hosted the ORIMS luncheon last year.
[17:57] Valerie describes how being involved in RIMS and ORIMS, whether volunteering or participating in regular events, gives you so much to learn both in formal training and networking that greatly helps your career.
[18:29] Volunteering on the board gives you leadership development opportunities. Those who step up to do this work are go-getters and prominent professionals who know their jobs. Their ages are from quite young to quite senior. It’s a diverse group of leaders.
[18:58] You learn a lot about non-profit work and compliance. On the board, Valerie learned a tremendous amount that she has applied elsewhere in her career. You can improve your comfort with public speaking.
[20:00] Justin suggests trying stand-up comedy or an improv class three times to develop a foundation of confidence to speak publicly.
[20:24] Valerie was on the RIMS Risk Leaders Series. See the link in the show notes. She gave an expansive view of her career and the challenges she overcame using risk management.
[19:16] The career accomplishment Valerie is most proud of is with Walmart International. Valerie had to get the risk management process promptly into place and hire a team when Walmart came into Canada in 1994. It was very successful.
[21:47] Therefore, Valerie was asked to take a three-year expatriate assignment to work with Walmart’s international division as an internal consultant in seven countries where Walmart had recently opened operations.
[22:02] She visited each country to work with their leadership teams on insurance brokerage, services, claims, health and safety, food safety, construction, benefits, and whatever they needed. It was tough. It was two-and-a-half years of being far out of her comfort zone.
[22:34] At the end of that assignment, she felt like she had made a difference and she had grown as a risk manager and as a person. It was an invaluable experience she is very proud of.
[23:01] It was a new way of doing things for Walmart, too. Valerie was a test case. There were some glitches through which Walmart learned and improved its support system for expatriates working around the world. It was an evolution both for Walmart and Valerie.
[23:32] Valerie has assisted with RIMS-CRMP workshops in Canada.
[24:00] Valerie believes the risk leaders of tomorrow in Canada should take the CRM program and work toward their CRMP certification. There is also a variety of technical training that can help them throughout their careers.
[24:18] RIMS has helped Valerie to stay current through seminars and articles. It’s extremely important that people have a solid business base. Get out from behind the desk and understand the business and how business is done.
[24:47] Going forward, the emerging trend for employers is going to be to look at some of these qualifications as a minimum requirement. Gaining that base knowledge is important.
[25:00] Valerie says risk leaders need to focus on the soft skills of team management, social intelligence, communication, and identifying and supporting mental health. Risk management is a people business. Know how to communicate with people and read their reactions.
[25:34] Working from home during the pandemic has depleted some opportunities to gain that experience. Future risk leaders need to ensure they have those skills today.
[25:59] Valerie is encouraged by the college and university students she has been meeting over the last couple of years of outreach. The students are bright, curious, motivated, and hungry to get out there and make their mark.
[26:24] They’re comfortable with technology and passionate about the world events that are shaping risks these days. They are the future. She hopes that she can continue to share some tidbits or tribal knowledge that they might find helpful.
[26:44] Valerie has concerns about the talent gap as lots of people retire. We need to fill that gap fast. The students she has been seeing indicate to her that the future is bright.
[27:01] Justin had the pleasure of attending the McGannon Foundation’s closing ceremony for their students. The students are extremely impressive. He feels that we will be seeing them up on stage receiving awards in the not-too-distant future.
[27:20] Val, it has been such a pleasure to see you again. I want to congratulate you again on winning the Donald M. Stuart Award in 2024. I look forward to seeing you at more RIMS events. Thank you so much for all you do for ORIMS and RIMS!
[27:42] Special thanks again to Valerie Fox for joining us here on RIMScast! It’s always a pleasure to speak with her. There is a link to her RIMS Risk Leaders Series interview in this episode’s show notes. There is a link to her CRMP Story also in this episode’s show notes.
[28:02] For more coverage of the RIMS Canada Conference 2024 Awards, check out the October 15th episode of RIMScast, when we were live from Vancouver with Maryam Salmasi. She was the Fred H. Bossons Award Winner for 2024. A link is in this episode’s show notes.
[28:20] More RIMS Plugs! The RIMS App is available to RIMS members exclusively. Go to the App Store and download the RIMS App with all sorts of RIMS resources and coverage. It’s different from the RIMS Events App. Everyone loves the RIMS App!
[28:53] You can sponsor a RIMScast episode for this, our weekly show, or a dedicated episode. Links to sponsored episodes are in our show notes. RIMScast has a global audience of risk and insurance professionals, legal professionals, students, business leaders, C-Suite executives, and more. Let’s collaborate and help you reach them! Contact [email protected] for more information.
[29:36] Become a RIMS member and get access to the tools, thought leadership, and network you need to succeed. Visit RIMS.org/membership or email [email protected] for more information.
[29:53] Risk Knowledge is the RIMS searchable content library that provides relevant information for today’s risk professionals. Materials include RIMS executive reports, survey findings, contributed articles, industry research, benchmarking data, and more.
[30:09] For the best reporting on the profession of risk management, read Risk Management Magazine at RMMagazine.com. It is written and published by the best minds in risk management.
[30:23] Justin Smulison is the Business Content Manager at RIMS. You can email Justin at [email protected].
[30:30] Thank you all for your continued support and engagement on social media channels! We appreciate all your kind words. Listen every week! Stay safe!
Mentioned in this Episode:
RIMS DEI Council
RIMS-Certified Risk Management Professional (RIMS-CRMP)
RIMS Strategic & Enterprise Risk Center
NEW FOR MEMBERS! RIMS Mobile App
Hear Valerie on the RIMS Risk Leaders Series
RIMS Press Release: RIMS Ontario Chapter Honours Valerie Fox with the 2024 Donald M. Stuart Award
RIMS-CRMP Stories — Featuring Valerie Fox!
Nominations open for RIMS 2025 Awards! (Through January 6, 2025)
Nominations for the Donald M. Stuart Award
RIMS Webinars:“Risk Perception and Management: Insights for a Changing Landscape” | Sponsored by Marsh | Nov. 14, 2024
“From AI to the SEC: The Future of D&O Litigation and Regulatory Exposures” | Sponsored by Hub International | Nov. 21, 2024
“The Future of Risk & Compliance: 5 Key Insights for the Modern Leader” | Sponsored by Resolver | Nov. 25, 2024
“Predictive Strategies to Detect Electrical and Machinery Failures” | Sponsored by TÜV SÜD GRC | Dec. 5, 2024
“Staying Vigilant: 7 Practical Tips for Ongoing Third-Party Risk Monitoring” | Sponsored by OneTrust | Dec. 12, 2024
RIMS.org/Webinars
Upcoming Virtual Workshops:
RIMS-CRMP Exam Prep with PARIMA (Virtual) November 14‒15 | 9:00 am‒4:00 pm SGT — Register by Nov. 7.
“Applying and Integrating ERM” | Dec 4‒5
“Captives as an Alternate Risk Financing Technique” | Dec. 17‒18
See the full calendar of RIMS Virtual Workshops
RIMS-CRMP Prep Workshops
Related RIMScast Episodes:
“Live From Vancouver! with Maryam Salmasi, Fred H. Bossons Award Winner 2024”
“300th Episode Spectacular with RIMS CEO Gary LaBranche”
“Change Management and Strategy with Jay Kiew, RIMS Canada Conference 2024 Keynote”
“DE&I Initiatives with Lilian Vanvieldt-Gray of Alliant Insurance Services”
“Julie Bean, 2024 Heart of RIMS Award Winner”
Sponsored RIMScast Episodes:
“How Insurance Builds Resilience Against An Active Assailant Attack” | Sponsored by Merrill Herzog (New!)
“Third-Party and Cyber Risk Management Tips” | Sponsored by Alliant
“RMIS Innovation with Archer” | Sponsored by Archer
“Navigating Commercial Property Risks with Captives” | Sponsored by Zurich
“Breaking Down Silos: AXA XL’s New Approach to Casualty Insurance” | Sponsored by AXA XL
“Weathering Today’s Property Claims Management Challenges” | Sponsored by AXA XL
“Storm Prep 2024: The Growing Impact of Convective Storms and Hail” | Sponsored by Global Risk Consultants, a TÜV SÜD Company
“Partnering Against Cyberrisk” | Sponsored by AXA XL
“Harnessing the Power of Data and Analytics for Effective Risk Management” | Sponsored by Marsh
“Accident Prevention — The Winning Formula For Construction and Insurance” | Sponsored by Otoos
“Platinum Protection: Underwriting and Risk Engineering's Role in Protecting Commercial Properties” | Sponsored by AXA XL
“Elevating RMIS — The Archer Way” | Sponsored by Archer
“Alliant’s P&C Outlook For 2024” | Sponsored by Alliant
“Why Subrogation is the New Arbitration” | Sponsored by Fleet Response
“Cyclone Season: Proactive Preparation for Loss Minimization” | Sponsored by Prudent Insurance Brokers Ltd.
“Subrogation and the Competitive Advantage” | Sponsored by Fleet Response
RIMS Publications, Content, and Links:
RIMS Membership — Whether you are a new member or need to transition, be a part of the global risk management community!
RIMS Virtual Workshops
On-Demand Webinars
RIMS-Certified Risk Management Professional (RIMS-CRMP)
RISK PAC | RIMS Advocacy
RIMS Events, Education, and Services:
RIMS Risk Maturity Model®
RIMS Events App Apple | Google Play
Sponsor RIMScast: Contact [email protected] or [email protected] for more information.
Want to Learn More?
Keep up with the podcast on RIMS.org, and listen on Spotify and Apple Podcasts.
Have a question or suggestion? Email: [email protected].
Join the Conversation!
Follow @RIMSorg on Facebook, Twitter, and LinkedIn.
About our guest:
Valerie Fox, CRM, RIMS-CRMP, former Director of Risk Management & Health & Safety for NPL CanadaSocial Shareables (Edited For Social Media Use):
Evolution in risk management started very slowly. It has continually ramped up and now it’s speeding forward. Over my career, that meant I had to be willing to delve into new challenges and be prepared to learn and develop new skills. — Valerie Fox
On the board, I’ve learned a tremendous amount that I’ve been able to apply elsewhere in my career. — Valerie Fox
It’s extremely important that people have a solid business base. Get out there from behind the desk and really understand the business and how business is done. — Valerie Fox
Students are comfortable with technology and passionate about the world events that are shaping risks these days. They are the future. I hope that I can continue to share some tidbits or tribal knowledge that they might find helpful. — Valerie Fox
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Welcome to RIMScast. Your host is Justin Smulison, Business Content Manager at RIMS, the Risk and Insurance Management Society.
In this episode, Justin interviews Trisha Sqrow, of Marsh Advisory, and our Council Vice-Chair 2024, Suzanne Christensen, of Franklin Templeton Investments, and making his debut on RIMScast is Karthick Dalawai, of Penn Mutual Life Insurance Company.
Karthick, Suzanne, and Trisha discuss value-based frameworks in terms of benefits, their experience with them, and value metrics. They share the concept of a value-based Enterprise Risk Management (ERM) framework to align risk management activities with the creation of shareholder value. They mention risk quantification methodologies to assess financial and non-financial risks. They explain the use of scenario analysis to tailor risk management practices to your organization's risk appetite and objectives and give ideas on how to get buy-in from the boardroom.
Listen in for ways to implement a value-based ERM framework in your organization.Key Takeaways:
[:01] About RIMS.
[:15] About this episode. From RIMS headquarters in New York, we will be joined by three members of the RIMS Strategic and Enterprise Risk Management Council to discuss risk quantification through a value-based framework.
[:43] The RIMS ERM Conference 2024 will be held on November 18th and 19th in Boston. Opening keynote speaker John Hagel recently appeared here on RIMScast. Register at RIMS.org/ERM2024.
[:58] We will talk about everything from RMIS and AI to D&O, ESG, the SEC, and various other acronyms. If you are a RIMS-CRMP holder, you can earn recertification points by attending the RIMS ERM Conference 2024!
[1:16] For those of you interested in studying for the exam, a pre-conference workshop will be held on-site on November 16th and 17th. Register now; a link is on this page!
[1:30] The next RIMS-CRMP Exam Prep will be held with Purima virtually on November 14th and 15th. The next RIMS-CRMP-FED Exam Course will be hosted along with George Mason University from December 3rd through the 5th.
[1:45] Links to these courses can be found on the Certifications page of RIMS.org and through this episode’s show notes.
[1:53] RIMS Virtual Workshops! Elise Farnham of Illumine Consulting recently joined us here on RIMScast. On December 4th and 5th, she will host Applying and Integrating ERM. On December 17th and 18th, she will host Captives as an Alternate Risk Financing Technique.
[2:14] Other dates for the Fall and Winter are available on the Virtual Workshops calendar, RIMS.org/virtualworkshops.
[2:23] Interview! Returning to the show are Trisha Sqrow, of Marsh Advisory, and our Council Vice-Chair 2024, Suzanne Christensen, of Franklin Templeton Investments, and making his debut on RIMScast is Karthick Dalawai, of Penn Mutual Life Insurance Company.
[3:00] These brilliant minds, Trisha, Suzanne, and Karthick, will present the session “Risk Quantification Through Value-Based Frameworks” to kick off Day 2 of the RIMS ERM Conference 2024 on November 19th.
[3:15] Today we’ll get tips on how to launch a value-based framework, what the benefits and limitations may be, and how to convince your board to buy in. Karthick Dalawai, Trisha Sqrow, and Suzanne Christensen welcome to RIMScast!
[4:54] Karthick explains that Enterprise Risk Management in its current form and where it goes from here to enable leaders to make informed decisions tie back to metrics and the quantification of results.
[5:22] Doing risk management thematically is good and influential, but anything you don’t quantify you can’t improve. Risk quantification is essential for a good enterprise risk management program.
[5:49] Trisha’s risk management path has evolved toward a value-based framework. She suggests an organization could start by measuring its overarching risk appetite, understanding its risks, and putting its ERM framework in place.
[6:22] The parameters could be how much financial, regulatory, or strategic risk you want to take. Hone in on what the risk translates to by quantifying the value.
[7:03] The metrics may not always be dollar amounts. There may be safety value metrics, or cyber security impacts. There is a way to tie those back to financials in many cases, but you can look at different values.
[7:51] Karthick says it’s easier to quantify financial risk than intangibles like cyber risk or talent risk. Having a common denominator makes it possible to explain risk so IT, HR, and all departments understand the enterprise risk, not just the risk in their slivers of the organization.
[8:58] Defining risk under a value-based framework takes three keys: uncertainty, deviation from the company strategy, and taking the right opportunities to increase value. If you planned to grow 10% and you grew 15%, analyze that opportunity. What was the cost of that benefit?
[10:20] Suzanne adds that scenario analysis helps. Why did your growth vary from your planned growth? What do you have to have in place to manage it? With a 15% growth, you’ll need more resources and a plan for the logistics. You may need to make a lot of other arrangements.
[11:06] You need to think about those things in contingency mode. Scenario analysis does that; it helps you work through those plans.
[11:30] Karthick describes the possible limitations of a value-based framework. The common denominator is a financial metric. Executives need to understand what factors contribute to that value. Tying the risk appetite to the value occurs high in the organization. It’s all-encompassing.
[12:07] You have to break the framework into layers by what it means for the different business units and how they measure business. Rightly implemented, a value-based framework is of great value; otherwise, people might become disconnected from it.
[12:37] Suzanne agrees that people might not buy in if the framework is not well-implemented. Suzanne and Karthick discuss avoiding bias and starting with wrong assumptions.
[13:02] Karthick believes that gets into the risk culture of the organization. Is it conservative or more aggressive? When you have a quantifiable and measurable risk appetite, some people may tend not to breach it at all. Many times, risk decisions need not be risk-optimized.
[13:48] Having a measurable risk metric guides how much risk people can take to add value to the organization, not just to manage the downside. Tie it back to the business metrics through which leaders measure their performance. Having a good manager is a win-win.
[14:16] Suzanne adds that weighing the cumulative impact of multiple decisions while figuring out a strategy for the organization helps you think about the risk appetite of the firm and if there is room to take more risk.
[14:53] Trisha considers the risk culture of the organization in helping people understand value-based frameworks. There are a lot of conversations to be had with various departments. A financial office does not have the same risks as a manufacturing facility or an airport.
[15:28] Work with the people looking at safety metrics and help translate them into dollar amounts, considering insurance and claims. What value does the framework add?
[15:45] Help people understand the value-based framework and have conversations around it. How much risk can you take?
[16:19] Plug Time! RIMS Webinars! On October 31st, TÜV SÜD GRC discusses “Mastering Property Renewals: Strategies for Success in 2025 with Risk Engineering”.
[16:34] On November 4th, I will be hosting a special RIMS Webinar presentation, “Lessons from Veterans on Strategic Risk Leadership”. That session will feature insights and perspectives from risk managers who previously served in the United States Armed Services.
[16:53] On November 14th, Marsh will present “Risk Perception and Management: Insights for a Changing Landscape”.
[17:00] On November 21st, HUB International returns with the fourth installment of their Ready for Tomorrow series, “From AI to the SEC: The Future of D&O Litigation and Regulatory Exposures”.
[17:15] On November 25th, Resolver returns to discuss “The Future of Risk & Compliance: 5 Key Insights for the Modern Leader”.
[17:23] On Thursday, December 12th, OneTrust returns to deliver “Staying Vigilant: 7 Practical Tips for Ongoing Third-Party Risk Monitoring”
[17:32] More webinars will be announced soon and added to the RIMS.org/webinars page. Go there to register. Registration is complimentary for RIMS members.
[17:44] Back to My Interview with Suzanne Christensen, Trisha Sqrow, and Karthick Dalawai.
[18:22] Karthick says to ask the executives at your organization if they use the deliverables from ERM in their day-to-day decision-making and how they tie into the metrics. If you get a positive answer, you’re in a good spot. If not, a value-based framework is a good solution.
[19:00] Every executive business leader manages P&L and understands dollarized values. Value-based frameworks are good tools if they are implemented in the right way.
[19:21] Trisha says to consider your impact scoring. That’s the beginning of your risk appetite. Work toward getting a common denominator.
[19:40] Suzanne comments that to make better, more confident decisions in the organization, and get the executives engaged in the conversation, you want to understand what their tough decisions and challenges are.
[20:03] In what would the executives like more transparency and understanding to make their tough strategic or day-to-day decisions? Connect with them where their challenges are as a starting point. That immediately proves value to the organization.
[20:41] Trisha and Suzanne have publications discussed in episodes linked in the show notes. Suzanne authored a report on emerging risks and board reporting, “Navigating the Complexities of Emerging Risks”. Trisha co-authored “Developing and Refining Risk Appetite and Tolerance”.
[21:21] Suzanne and Karthick will be two of the panelists in the closing general session of the RIMS ERM Conference 2024 on November 19th. That’s going to be a forward-looking discussion that will be a lot of fun.
[21:57] During that closing session, we’re going to give away a registration to RISKWORLD 2025 in Chicago! Everyone should stick around for this session![22:16] Thank you all so much for joining us today here on RIMScast!
[22:25] Special thanks to Trisha Sqrow, Karthick Dalawai, and Suzanne Christensen of the RIMS Strategic and Enterprise Risk Management Council.
[22:36] On November 19th, they will kick off Day 2 of the RIMS ERM Conference 2024 in Boston, with a session about Risk Quantification through a Value-based Framework. That will not be the only session they will present, so if you like what you heard, register now at RIMS.org/ERM2024.
[22:59] Links to the guests’ prior RIMScast interviews and their respective reports are in this episode’s show notes.
[23:12] More RIMS Plugs! The RIMS ERM Conference 2024 will be held in Boston, Massachusetts on November 18th and 19th. Register today at RIMS.org/ERM2024!
[23:27] The RIMS App is available to RIMS members exclusively. Go to the App Store and download the RIMS App with all sorts of RIMS resources and coverage. It’s different from the RIMS Events App. Everyone loves the RIMS App!
[23:58 ] You can sponsor a RIMScast episode for this, our weekly show, or a dedicated episode. Links to sponsored episodes are in our show notes. RIMScast has a global audience of risk and insurance professionals, legal professionals, students, business leaders, C-Suite executives, and more. Let’s collaborate and help you reach them! Contact [email protected] for more information.
[24:40] Become a RIMS member and get access to the tools, thought leadership, and network you need to succeed. Visit RIMS.org/membership or email [email protected] for more information.
[24:57] Risk Knowledge is the RIMS searchable content library that provides relevant information for today’s risk professionals. Materials include RIMS executive reports, survey findings, contributed articles, industry research, benchmarking data, and more.
[25:12] For the best reporting on the profession of risk management, read Risk Management Magazine at RMMagazine.com. It is written and published by the best minds in risk management.
[25:26] Justin Smulison is the Business Content Manager at RIMS. You can email Justin at [email protected].
[25:33] Thank you all for your continued support and engagement on social media channels! We appreciate all your kind words. Listen every week! Stay safe!
Mentioned in this Episode:
RIMS ERM Conference 2024 will be in Boston, MA Nov. 18–19 | Register Now
RIMS DEI Council
RIMS-Certified Risk Management Professional (RIMS-CRMP)
RIMS Strategic & Enterprise Risk Center
NEW FOR MEMBERS! RIMS Mobile App
RIMS Executive Report: “Developing and Refining Risk Appetite and Tolerance”
RIMS Professional Report: “Navigating the Complexities of Emerging Risks”
RIMS-CRMP Stories — New interview featuring Dan Elliott!
Submit Your Nomination for 2025 Risk Manager of the Year — Part I is due on Oct. 31!
RIMS Webinars:“Mastering Property Renewals: Strategies for Success in 2025 with Risk Engineering” | Sponsored by Global Risk Consultants, a TÜV SÜD Company | Oct. 31, 2024
“Lessons from Veterans on Strategic Risk Leadership” | Presented by RIMS | Nov. 4, 2024
“Risk Perception and Management: Insights for a Changing Landscape” | Sponsored by Marsh | Nov. 14, 2024
“From AI to the SEC: The Future of D&O Litigation and Regulatory Exposures” | Sponsored by HUB International | Nov. 21, 2024
“The Future of Risk & Compliance: 5 Key Insights for the Modern Leader” | Sponsored by Resolver | Nov. 25, 2024
“Staying Vigilant: 7 Practical Tips for Ongoing Third-Party Risk Monitoring” | Sponsored by OneTrust | Dec. 12, 2024
RIMS.org/Webinars
Upcoming Virtual Workshops:
RIMS-CRMP Exam Prep with PARIMA (Virtual) | November 14–15, 2024 | 9:00 am–4:00 pm SGT — Register by Nov. 7
“Applying and Integrating ERM” | Dec 4‒5
“Captives as an Alternate Risk Financing Technique” | Dec. 17–18
See the full calendar of RIMS Virtual Workshops
RIMS-CRMP Prep Workshops
Related RIMScast Episodes:
“Big Shifts with John Hagel, ERM Conference Keynote”
“Applying ERM Theory with Elise Farnham”
“Maintaining an Award-Winning ERM Program with Michael Zuraw”
“On Risk Appetite and Tolerance” with Trisha Sqrow
“Emerging Risks and Board Reporting” with Suzanne Christensen
Sponsored RIMScast Episodes:
“Third-Party and Cyber Risk Management Tips” | Sponsored by Alliant (New!)
“RMIS Innovation with Archer” | Sponsored by Archer
“Navigating Commercial Property Risks with Captives” | Sponsored by Zurich
“Breaking Down Silos: AXA XL’s New Approach to Casualty Insurance” | Sponsored by AXA XL
“Weathering Today’s Property Claims Management Challenges” | Sponsored by AXA XL
“Storm Prep 2024: The Growing Impact of Convective Storms and Hail” | Sponsored by Global Risk Consultants, a TÜV SÜD Company
“Partnering Against Cyberrisk” | Sponsored by AXA XL
“Harnessing the Power of Data and Analytics for Effective Risk Management” | Sponsored by Marsh
“Accident Prevention — The Winning Formula For Construction and Insurance” | Sponsored by Otoos
“Platinum Protection: Underwriting and Risk Engineering's Role in Protecting Commercial Properties” | Sponsored by AXA XL
“Elevating RMIS — The Archer Way” | Sponsored by Archer
“Alliant’s P&C Outlook For 2024” | Sponsored by Alliant
“Why Subrogation is the New Arbitration” | Sponsored by Fleet Response
“Cyclone Season: Proactive Preparation for Loss Minimization” | Sponsored by Prudent Insurance Brokers Ltd.
“Subrogation and the Competitive Advantage” | Sponsored by Fleet Response
“Cyberrisk Outlook 2023” | Sponsored by Alliant
“Chemical Industry: How To Succeed Amid Emerging Risks and a Challenging Market” | Sponsored by TÜV SÜD
“Insuring the Future of the Environment” | Sponsored by AXA XL
“Insights into the Gig Economy and its Contractors” | Sponsored by Zurich
“The Importance of Disaster Planning Relationships” | Sponsored by ServiceMaster
RIMS Publications, Content, and Links:
RIMS Membership — Whether you are a new member or need to transition, be a part of the global risk management community!
RIMS Virtual Workshops
On-Demand Webinars
RIMS-Certified Risk Management Professional (RIMS-CRMP)
RISK PAC | RIMS Advocacy
RIMS Events, Education, and Services:
RIMS Risk Maturity Model®
RIMS Events App Apple | Google Play
Sponsor RIMScast: Contact [email protected] or [email protected] for more information.
Want to Learn More?
Keep up with the podcast on RIMS.org, and listen on Spotify and Apple Podcasts.
Have a question or suggestion? Email: [email protected].
Join the Conversation!
Follow @RIMSorg on Facebook, Twitter, and LinkedIn.
About our guests:
Karthick Dalawai, Chief Risk Officer for Penn Mutual Life Insurance CompanyTrisha Sqrow, Vice President, Consulting Solutions, Marsh Advisory for Marsh USA Inc.
Suzanne Christensen, SVP, Head of Enterprise Risk Management for Franklin Templeton Investments
Social Shareables (Edited For Social Media Use):Why Enterprise Risk Management exists in its current form and where it goes from here tie back to metrics and the quantification of results to enable leaders to make informed decisions. — Karthick Dalawai
Depending on your organization, you might be looking at different values and different types of metrics. Some might be strictly financial. An industry that has significant safety concerns might have a lot of safety value metrics, based on the type of risk. — Trisha Sqrow
Scenario analysis helps because you can run through those situations to say if that happens, then what happens? What do we have to have in place to be able to manage through that? With a 15% growth, you’ll need more resources and a plan for the logistics. — Suzanne Christensen
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Welcome to RIMScast. Your host is Justin Smulison, Business Content Manager at RIMS, the Risk and Insurance Management Society.
In this episode, Justin interviews Chris Willey of American Eagle FCU. Justin asks Chris how banking and financial risk management has evolved since Chris entered the profession, in the past 15 years after the housing crisis, and in the past two years after the SVB collapse. They talk about Chris’s 2023 RIMS ERM Global Award of Distinction, how leadership has reacted to the ERM program, and how the program has changed since last year. Chris explains American Eagle FCU’s ERM philosophy, including its nine risk categories. Chris shares her thoughts about what it takes to activate an effective ERM Program today, and how ERM can help improve the banking sector and the risk industry overall.
October is Cybersecurity Awareness Month. Chris tells what that means to her.Key Takeaways:
[:01] About RIMS.
[:15] About this episode. From RIMS headquarters in New York, our guest is Chris Willey, the VP of ERM at American Eagle Financial Credit Union. She is also a recipient of the 2023 RIMS ERM Global Award of Distinction.
[:43] The RIMS ERM Conference 2024 will be held on November 18th and 19th in Boston. Opening keynote speaker John Hagel recently appeared here on RIMScast. Register at RIMS.org/ERM2024.
[:58] We will talk about everything from RMIS and AI to D&O, ESG, the SEC, and various other acronyms, in addition to future casting and risk quantification.
[1:10] RIMS-CRMP holders can earn recertification points by attending the RIMS ERM Conference 2024! For those interested in studying for the exam, a pre-conference workshop will be held on-site on November 16th and 17th. Register now; a link is on this page!
[1:34] The next RIMS-CRMP Exam Prep will be held with Purima virtually on November 14th and 15th. The next RIMS-CRMP-FED Exam Course will be hosted along with George Mason University from December 3rd through the 5th.
[1:50] Links to these courses can be found on the Certifications page of RIMS.org and through this episode’s show notes.
[1:57] RIMS Virtual Workshops! Elise Farnham of Illumine Consulting recently joined us here on RIMScast. On December 4th and 5th, she will host Applying and Integrating ERM. On December 17th and 18th, she will host Captives as an Alternate Risk Financing Technique.
[2:20] Other dates for the Fall and Winter are available on the Virtual Workshops calendar, RIMS.org/virtualworkshops.
[2:28] Interview! My guest today, Chris Willey, is the Vice President of Enterprise Risk Management at American Eagle Financial Credit Union. In 2023, her ERM program received a RIMS ERM Global Award of Distinction. We didn’t get to connect last year to discuss it.
[2:49] We’re here now, and we will learn all about Chris Willey’s ERM philosophies, how American Eagle FCU handles certain risks, and what their risk register looks like. We will also get some tips for staying cyber secure, as October is International Cybersecurity Awareness Month.
[3:06] Chris Willey, welcome to RIMScast! Congratulations again for your ERM program being one of the honorees of the 2023 RIMS ERM Global Award of Distinction!
[3:51] Chris started at the credit union 34 years ago in Internal Audits where she got to see and understand the entire organization. In 1998, the board of directors started a risk management department. Chris applied and got the job.
[4:25] At first, they worked on traditional risk management, including insurance and fraud. Over the years, they added responsibilities. ERM was the last piece they added to their risk management repertoire, 14 years ago.
[4:56] Around the time of the housing crisis, one of the credit union’s high-risk areas, the board asked Chris to create an ERM program. Credit union regulators were also instrumental in starting ERM. While not required, having an ERM program is necessary to understand your risks.
[6:26] Chris has one staff member, Theresa, the Assistant Vice President, who helps with all facets of risk management. Chris and Theresa do a lot. Chris says it would be nice to have another person helping them.
[7:28] After the Silicon Valley Bank collapsed in March 2023, the interest rate risk and liquidity risk got a lot of attention. American Eagle FCU was on top of it. Their interest rate risk was increasing and the ERM program had already begun taking measures to thwart risk.
[8:10] American Eagle had scaled back some of their lending and beefed up their liquidity because of what happened on the West Coast. That helped put them in a great spot.
[8:44] The regulators had come down hard on them and American Eagle did a lot of things to prove that they were going to be OK. The regulators are the insurers so wanted to make sure American Eagle had enough liquidity in case something happened like that at the credit union.
[9:04] It was a lot of work. The CFO and others in the organization put in additional monitoring tools. That’s what the ERM program does. It says, “Hey, we’ve got a potential issue or higher risk.” It’s a call to action to ask, "What are we going to do differently to mitigate the risk?"
[9:37] American Eagle’s interest rate risk is still trending a little bit higher but it’s under control and being monitored. The regulators gave them a great pass last year and are working on this year’s audit.
[10:12] When the American Eagle FCU ERM program was awarded the 2023 RIMS ERM Award of Distinction, regulators were thrilled. The board of directors was very happy to hear of it at a board meeting. The Risk Council Team was also thrilled and felt they were on the right track.
[11:11] The award came at a good time for the ERM program. Since then, American Eagle has had a few new executive leaders. The ERM program team is educating the risk council on what ERM is and the nine risk categories, definitions, KRIs, and what they should keep or change.
[12:43] American Eagle is getting to the point of putting new KRIs in place to see where they land with the risk ratings. They are asking if their risk tolerance or appetite should be increased. American Eagle FCU has been risk-averse. You can take calculated risks with an ERM program.
[13:41] If the risk gets to be above your expectations, you can try to reel it back to a more manageable level.
[14:04] American Eagle FCU is growing in its assets and also in its team members. The ERM program is adding a People Risk category to help create a culture that’s engaging. The board of directors is excited to see what that will look like.
[14:39] Plug Time! RIMS Webinars! On October 24th, Hub International returns for the fourth installment of their Ready for Tomorrow series, “From AI to the SEC: The Future of D&O Litigation and Regulatory Exposures”.
[14:56] On October 31st, TÜV SÜD GRC discusses “Mastering Property Renewals: Strategies for Success in 2025 with Risk Engineering”. On November 4th, I will be hosting a special RIMS Webinar presentation, “Lessons from Veterans on Strategic Risk Leadership”.
[15:17] On November 14th, Marsh will present “Risk Perception and Management: Insights for a Changing Landscape”. On Thursday, December 12th, OneTrust returns to deliver “Staying Vigilant: 7 Practical Tips for Ongoing Third-Party Risk Monitoring”
[15:43] More webinars will be announced soon and added to the RIMS.org/webinars page. Go there to register. Registration is complimentary for RIMS members.
[15:55] There is another webinar you should know about. On October 22, 2024 at 1:00 p.m. ET. I will be moderating for my friends at ex judicata “If I Leave the Law — A Webcast Series: Landing a Nonlegal Job in Insurance Industry: Risk Management, Brokerage, Claims, & Advisory”.
[16:20] Other panelists include leaders from Lockton, Berkshire Hathaway Specialty Insurance, and our friend from the RIMS Public Policy Committee and the RIMS Detroit Chapter, Lynn Haley Pilarski, who works at GM. The link is in this episode’s show notes.
[16:41] This is a complimentary webinar and it is a chance for you to invite your friends who are in the legal profession, looking to transition to another role, to check out risk management and see what it’s all about. The link is in this episode’s notes.[16:58] Back to My Interview with Chris Willey of American Eagle FCU! The nine risk categories of American Eagle’s ERM program are credit risk, interest rate risk, liquidity risk, transaction risk, compliance risk, concentration risk, strategic risk, reputation risk, and cyber risk.
[17:44] American Eagle FCU started with the seven NCUA risks, and as cybercrime became prevalent, they added a category for cyber risk. When NCUA sent a letter on concentration risk, American Eagle FCU added a category for concentration risk. The people risk is upcoming.
[18:32] Now all risks are counted equally, but they may start looking at weighted averages. That is still TBD.
[19:25] American Eagle FCU has from 335 to 350 team members. The credit union is state-charted in Connecticut. They have members in Massachusetts but no branches in that state. They have no plans to charter in other states.
[20:35] American Eagle FCU is trying to manage everything with a balanced approach, taking on more risk than before, and moving toward the center of the risk spectrum. The initiatives of their strategic plan involve a certain amount of risk and it will be OK.
[21:34] To start an ERM program from scratch in 2024 you need executive buy-in. The tone from the top is important. American Eagle FCU started at the management level and once it was running well, they brought the board of directors into it.
[22:01] Chris explains how strategic initiatives, projects, budgets, finances, and reputation were KRI measures that were reported to the board twice a year.
[22:52] Two of the three 2023 honorees of distinction, American Eagle FCU and Sterling Bank and Trust, are in the banking sector, which speaks to what ERM can do for banking.
[23:21] With interest rates as they are, it’s a good idea for a bank to have an ERM program to help navigate these times, whether interest rates are going up or down. Risk management is very basic to every financial institution, whether or not it is ERM.
[24:36] Justin remembers that there was no risk manager at Silicon Valley Bank. RIMS believes that every organization, regardless of its size, should have a dedicated risk professional. Chris thought at the time there were going to be a lot of risk management positions opening up.
[25:36] It is prudent to have a risk professional. They bring insight to your thinking that you may never have considered. The American Eagle FCU ERM program uses Key Risk Indicators. You want leading KRIs to pinpoint problems that are up and coming. Look forward, not back.
[26:29] ERM can help the risk profession greatly. In the cyber area, everyone has data they need to protect. If you have an ERM program looking at some of the risks in the cyber area, you might be able to create a better environment and protect against all the threats out there.
[27:08] Threats are not going to stop. They will continue to get worse. American Eagle ERM makes decisions based on its ERM program. They do business-level risk assessments to help business owners understand how to stay within their risk tolerance level.
[27:51] ERM is language and knowledge from which every organization can benefit.
[27:57] October is Cybersecurity Awareness Month. American Eagle FCU has participated in Cybersecurity Awareness Month for over a decade to educate team members on all kinds of cybersecurity issues and threats.
[28:38] This year, the theme is Willy Wonka, with cyber security videos and activities for interactive learning. They issue their security training for the year for all team members. They also educate members with tips on social media, their newsletter, and their website.
[29:45] American Eagle FCU is holding a fraud symposium for members. October at American Eagle FCU is a fun time. The CFO dresses as WIlly Wonka and the ERM team members are Oompa Loompas. They do short videos throughout the month about what’s coming up.
[31:41] Chris, it is wonderful to see you. I appreciate all your time and your wonderful insight. It speaks to the banking sector and the broader risk community. There’s a lot that our listeners can learn from this episode. Congratulations again on the 2023 RIMS ERM Award of Distinction!
[32:09] Special thanks again to Chris Willey of American Eagle FCU for joining us here on RIMScast! Check out the episode’s show notes for more resources about cybersecurity and the 10 risks we discussed during the interview.
[32:24] More RIMS Plugs! The RIMS ERM Conference 2024 will be held in Boston, Massachusetts on November 18th and 19th. Register today at RIMS.org/ERM2024!
[32:40] The RIMS App is available to RIMS members exclusively. Go to the App Store and download the RIMS App with all sorts of RIMS resources and coverage. It’s different from the RIMS Events App. Everyone loves the RIMS App!
[33:13] You can sponsor a RIMScast episode for this, our weekly show, or a dedicated episode. Links to sponsored episodes are in our show notes. RIMScast has a global audience of risk and insurance professionals, legal professionals, students, business leaders, C-Suite executives, and more. Let’s collaborate and help you reach them! Contact [email protected] for more information.
[33:58] Become a RIMS member and get access to the tools, thought leadership, and network you need to succeed. Visit RIMS.org/membership or email [email protected] for more information.
[34:15] Risk Knowledge is the RIMS searchable content library that provides relevant information for today’s risk professionals. Materials include RIMS executive reports, survey findings, contributed articles, industry research, benchmarking data, and more.
[34:32] For the best reporting on the profession of risk management, read Risk Management Magazine at RMMagazine.com. It is written and published by the best minds in risk management.
[34:46] Justin Smulison is the Business Content Manager at RIMS. You can email Justin at [email protected].
[34:54] Thank you all for your continued support and engagement on social media channels! We appreciate all your kind words. Listen every week! Stay safe!
Mentioned in this Episode:
RIMS ERM Conference 2024 will be in Boston, MA Nov. 18‒19 | Register Now
RIMS DEI Council
RIMS-Certified Risk Management Professional (RIMS-CRMP)
RIMS Strategic & Enterprise Risk Center
NEW FOR MEMBERS! RIMS Mobile App
The Strategic and Enterprise Risk Center
RIMS-CRMP Stories — New interview featuring Dan Elliott!
Submit Your Nomination for 2025 Risk Manager of the Year — Part I is due on Oct. 31!
International Cybersecurity Awareness Month
RIMS Webinars:“If I Leave the Law — A Webcast Series: Landing a Nonlegal Job in Insurance Industry: Risk Management, Brokerage, Claims, & Advisory” | Presented by ex judicata | Oct. 22, 2024
“From AI to the SEC: The Future of D&O Litigation and Regulatory Exposures” | Sponsored by Hub International | Oct. 24, 2024
“Mastering Property Renewals: Strategies for Success in 2025 with Risk Engineering” | Sponsored by Global Risk Consultants, a TÜV SÜD Company | Oct. 31, 2024
“Lessons from Veterans on Strategic Risk Leadership” | Presented by RIMS | Nov. 4, 2024
“Risk Perception and Management: Insights for a Changing Landscape” | Sponsored by Marsh | Nov. 14, 2024
“Staying Vigilant: 7 Practical Tips for Ongoing Third-Party Risk Monitoring” | Sponsored by OneTrust | Dec. 12, 2024
RIMS.org/Webinars
Upcoming Virtual Workshops:
RIMS-CRMP Exam Prep with PARIMA (Virtual) November 14‒15, 2024 | 9:00 am‒4:00 pm SGT — Register by Nov. 7.
Applying and Integrating ERM | Dec 4‒5
Captives as an Alternate Risk Financing Technique | Dec. 17‒18
See the full calendar of RIMS Virtual Workshops
RIMS-CRMP Prep Workshops
Related RIMScast Episodes:
“Big Shifts with John Hagel, ERM Conference Keynote”“Applying ERM Theory with Elise Farnham”
“Maintaining an Award-Winning ERM Program with Michael Zuraw”
Sponsored RIMScast Episodes:
“RMIS Innovation with Archer” | Sponsored by Archer (New!)
“Navigating Commercial Property Risks with Captives” | Sponsored by Zurich (New!)
“Breaking Down Silos: AXA XL’s New Approach to Casualty Insurance” | Sponsored by AXA XL
“Weathering Today’s Property Claims Management Challenges” | Sponsored by AXA XL
“Storm Prep 2024: The Growing Impact of Convective Storms and Hail” | Sponsored by Global Risk Consultants, a TÜV SÜD Company
“Partnering Against Cyberrisk” | Sponsored by AXA XL
“Harnessing the Power of Data and Analytics for Effective Risk Management” | Sponsored by Marsh
“Accident Prevention — The Winning Formula For Construction and Insurance” | Sponsored by Otoos
“Platinum Protection: Underwriting and Risk Engineering's Role in Protecting Commercial Properties” | Sponsored by AXA XL
“Elevating RMIS — The Archer Way” | Sponsored by Archer
“Alliant’s P&C Outlook For 2024” | Sponsored by Alliant
“Why Subrogation is the New Arbitration” | Sponsored by Fleet Response
“Cyclone Season: Proactive Preparation for Loss Minimization” | Sponsored by Prudent Insurance Brokers Ltd.
“Subrogation and the Competitive Advantage” | Sponsored by Fleet Response
“Cyberrisk Outlook 2023” | Sponsored by Alliant
“Chemical Industry: How To Succeed Amid Emerging Risks and a Challenging Market” | Sponsored by TÜV SÜD
“Insuring the Future of the Environment” | Sponsored by AXA XL
“Insights into the Gig Economy and its Contractors” | Sponsored by Zurich
“The Importance of Disaster Planning Relationships” | Sponsored by ServiceMaster
RIMS Publications, Content, and Links:
RIMS Membership — Whether you are a new member or need to transition, be a part of the global risk management community!
RIMS Virtual Workshops
On-Demand Webinars
RIMS-Certified Risk Management Professional (RIMS-CRMP)
RISK PAC | RIMS Advocacy
RIMS Events, Education, and Services:
RIMS Risk Maturity Model®
RIMS Events App Apple | Google Play
Sponsor RIMScast: Contact [email protected] or [email protected] for more information.
Want to Learn More?
Keep up with the podcast on RIMS.org, and listen on Spotify and Apple Podcasts.
Have a question or suggestion? Email: [email protected].
Join the Conversation!
Follow @RIMSorg on Facebook, Twitter, and LinkedIn.
About our guest:
Chris Willey, VP of Enterprise Risk Management at American Eagle Financial Credit UnionThe American Eagle FCU ERM top risk categories:
Credit Risk
Interest Rate Risk
Liquidity Risk
Transaction Risk
Compliance Risk
Concentration Risk
Strategic Risk
Reputation Risk
Cyber Risk
Coming soon: People Risk
Social Shareables (Edited For Social Media Use):Our CFO and others in our organization put in additional monitoring tools. That’s what the ERM Program does. It says, “Hey, we’ve got a potential issue or higher risk.” It’s a call to action to ask, "What are we going to do differently to mitigate the risk?" — Chris Willey
It’s hard to benchmark one ERM Program to the next. It’s different, based on your risk tolerances and the way you run your business. — Chris Willey
If we want to grow, give back to the community, and do all the initiatives we would like to with our strategic plan, we are going to have to take more risk, and it’s going to be OK. — Chris Willey
Threats are not going to stop. They are going to continue and get worse. We make decisions based on our ERM program. We do business-level risk assessments and get the business owners involved so they understand what their tolerance levels are. — Chris Willey
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Welcome to RIMScast. Your host is Justin Smulison, Business Content Manager at RIMS, the Risk and Insurance Management Society.
In this episode, Justin interviews Maryam Salmasi, the Fred H. Bossons Award Winner for 2024. They discuss Maryam’s passion for ERM, her professional training in Iran, and her tips on studying for the CRM exam. She tells how being multilingual helps her in risk management. She reveals what winning the Fred H. Bossons Award 2024 meant to her. Maryam concludes with her hopes and next steps for her risk management career in Canada.
Key Takeaways:
[:01] About RIMS.
[:15] About this episode. We are coming to you live from Vancouver at the RIMS Canada Conference 2024 and are featuring our very special guest, the Fred H. Bossons Award Winner for 2024, Maryam Salmasi.
[:43] The RIMS ERM Conference will be held on November 18th and 19th. Keynote John Hagel recently appeared here on RIMScast. The full agenda is live.
[:53] We will talk about everything from RMIS and AI to D&O, ESG, the SEC, and various other acronyms, in addition to future casting and risk quantification. Register at RIMS.org/ERM2024.
[1:05] RIMS-CRMP holders can earn recertification points by attending the RIMS ERM Conference 2024! For those interested in studying for the exam, a pre-conference workshop will be held on-site on November 16th and 17th. Register now; a link is on this page!
[1:28] The next RIMS-CRMP Exam Prep will be held with Purima virtually on November 14th and 15th.
[1:36] The next RIMS-CRMP-FED Exam Course will be hosted along with George Mason University from December 3rd through the 5th. Links to these courses can be found on the Certifications page of RIMS.org and through this episode’s show notes.
[1:51] RIMS Virtual Workshops! Elise Farnham of Illumine Consulting recently joined us here on RIMScast. On December 4th and 5th, she will host Applying and Integrating ERM. Other dates for the Fall and Winter are available on the Virtual Workshops calendar, RIMS.org/virtualworkshops.
[2:16] Interview! This episode is recorded live on-site at the RIMS Canada Conference 2024 in Vancouver. It’s a beautiful city and everyone is having a fantastic time!
[2:29] The RIMS Canada Council and Planning Committee outdoes themselves every year with the networking opportunities and educational offerings! One of the highlights of the RIMS Canada Conference was the Fred H. Bossons Award.
[2:42] The Fred H. Bossons Award honors the risk management professional who earns the highest average mark on the three examinations required to attain the Canadian Risk Management designation (CRM). This year’s winner is ERM consultant Maryam Salmasi.
[2:56] Maryam has such a fantastic story and unique background. I wanted to capture her perspective and share it all with the RIMScast audience!
[3:03] We’re going to learn about what it was like for her to be an emerging risk professional in Iran, what her experience has been here in Vancouver, and what it took for her to study for, pass, and eventually make the grade!
[3:18] Maryam Salmasi, this year’s winner of the Fred H. Bossons Award, welcome to RIMScast!
[3:58] Maryam is an enterprise risk management consultant at Stage Meta in Canada. She is also working with the Burnaby Board of Trade in Vancouver, with incredible people.
[4:20] Maryam has been in ERM for about eight years. Risk management helps control uncertainty. Maryam is passionate about helping businesses to grow and make the best of themselves.
[4:39] Maryam chose to concentrate on risk management to help businesses understand their risks and address them, mitigate them, and have better paths for growth.
[5:06] Maryam started her career in Iran. She is a newcomer to Canada. In Iran, she worked as a risk manager for an insurance company, insurance agencies, and a brokerage.
[5:31] Maryam worked in the insurance industry for about 19 years, in underwriting, claims, and customer-facing roles for about three years. She worked in organizational development, ERM, organizational excellence, quality, and process management, as a manager and specialist.
[6:13] Maryam was also involved in designing new insurance products and executing actuarial calculations, package design, and insurance acquisitions.
[6:43] Maryam says that organizations share similarities in all the world. They each have structure, risk strategies, and financial, operational, and hazard risks. The environments are different but the concepts are the same.
[7:19] Maryam says that in Iran, more than 50% of insurance industry employees are women who work hard and thrive in different positions but not many of them are managers or directors.
[8:16] Maryam was part of a supportive risk management networking group that was mostly women.
[8:48] Plug Time! RIMS Webinars! On October 17th, Resolver will discuss The Future of Risk & Compliance: 5 Key Insights for the Modern Leader.
[9:00] On October 24th, Hub International returns for the fourth installment of their Ready for Tomorrow series, From AI to the SEC: The Future of D&O Litigation and Regulatory Exposures.
[9:13] On October 31st, TÜV SÜD GRC discusses Mastering Property Renewals: Strategies for Success in 2025 with Risk Engineering. On November 4th, I will be hosting a special RIMS Webinar presentation, Lessons from Veterans on Strategic Risk Leadership.
[9:43] On November 14th, Marsh will present Risk Perception and Management: Insights for a Changing Landscape. More webinars will be announced soon and added to the RIMS.org/webinars page. Go there to register. Registration is complimentary for RIMS members.
[10:02] There is another webinar you should know about. On October 22, 2024 at 1:00 p.m.ET. I will be moderating for my friends at ex judicata If I Leave the Law — A Webcast Series: Landing a Nonlegal Job in Insurance Industry: Risk Management, Brokerage, Claims, & Advisory.
[10:28] Other panelists include leaders from Lockton, Berkshire Hathaway Specialty Insurance, and our friend from the RIMS Public Policy Committee and the RIMS Detroit Chapter, Lynn Haley Pilarski, who works at GM.
[10:45] This is a complimentary webinar and it is a chance for you to invite your friends who are in the legal profession, looking to transition to another role, to check out risk management and see what it’s all about. The link is in this episode’s notes.[11:05] Back to My Interview with the 2024 Fred H. Bossons Award Winner, Maryam Salmasi! Maryam studied for the CRM exam online at the Insurance Institute at her own pace while she was searching for a full-time job as she worked as a risk management consultant.
[12:21] Maryam’s study method is to take detailed notes and create summaries and summaries of summaries, to review and compare the points. She says there are similar concepts across CRM and risk management materials and her notes help her locate and review concepts.
[12:55] That review gave her a better understanding of the concepts than trying to memorize them. Her notes were very helpful for her.
[13:13] Maryam finished the risk management courses and the examinations in two semesters. In the first semester, she took two exams. In the second semester, she studied for and took the third exam.
[13:53] Maryam was not taking the examinations to win an award but to acquire the CRM certification. When she found out she had won the 2024 Fred H. Bossons Award, at first she was surprised. It’s great that someone recognized her passion as she did what she truly enjoyed.
[14:38] Maryam is grateful to be recognized for her passion for risk management and the insurance industry. She enjoyed being on stage and receiving the trophy for the award. It’s precious to her.
[15:01] Maryam speaks Persian, English, and some Italian. Knowing English helped Maryam in her risk management career. She also found a few risk books translated into Persian from English. She follows some Italian insurance companies’ social media accounts in Italian.
[15:44] Maryam feels that knowing other languages and cultures is like having two or three souls. It’s wonderful to know them, but for insurance and risk management, she says that English is the best language.
[16:24] Maryam has found great opportunities to network and meet incredible people with great backgrounds and knowledge of risk management, most of them in the insurance industry, at the RIMS Canada Conference 2024. Maryam is grateful to be there.
[16:52] Maryam’s tip for studying for the CRM examinations is to make notes and summaries. You have to pass both Institute courses and exams separately. That’s a total of six exams. Once you achieve passing grades in both courses and the exams, you will receive the designation.
[17:29] Maryam scheduled two exams on the same day, which kept her fresh and focused on the material, which she thought was good, although she was tired at the end of the day.
[17:58] Maryam’s next step is to learn more and to get the CRMP certification. She is still in search of her ideal long-term position. She hopes this certification will help her to gain more success! Justin believes the Fred H. Bossons Award will elevate Maryam’s professional profile.
[18:49] I want to thank you so much! It was such a pleasure to meet you and I feel fortunate to sit down with you the day after you won an award. Congratulations again and I wish you continued success!
[19:07] Special thanks again to 2024 Fred H. Bossons Award winner Maryam Salmasi for joining me here on RIMScast live, in person! We had a great time here at the RIMS Canada Conference 2024 in Vancouver.
[19:20] I look forward to seeing you all at the RIMS Canada Conference 2025 in Calgary, September 14th through the 17th.
[19:27] And special thanks and congratulations to all the members of the RIMS Canada Council, the RIMS Canada Conference Planning Committee, and the RIMS Events staff for producing one of the most memorable RIMS Canada Conferences I’ve attended. I hope you get some sleep!
[19:46] Register today for the RIMS ERM Conference 2024, to be held November 18th and 19th in Boston, Massachusetts! Visit RIMS.org/ERM2024 to register.
[20:04] More RIMS Plugs! The RIMS App is available to RIMS members exclusively. Go to the App Store and download the RIMS App with all sorts of RIMS resources and coverage. It’s different from the RIMS Events App. Everyone loves the RIMS App!
[20:37] You can sponsor a RIMScast episode for this, our weekly show, or a dedicated episode. Links to sponsored episodes are in our show notes. RIMScast has a global audience of risk and insurance professionals, legal professionals, students, business leaders, C-Suite executives, and more. Let’s collaborate and help you reach them! Contact [email protected] for more information.
[21:19] Become a RIMS member and get access to the tools, thought leadership, and network you need to succeed. Visit RIMS.org/membership or email [email protected] for more information.
[21:36] Risk Knowledge is the RIMS searchable content library that provides relevant information for today’s risk professionals. Materials include RIMS executive reports, survey findings, contributed articles, industry research, benchmarking data, and more.
[21:51] For the best reporting on the profession of risk management, read Risk Management Magazine at RMMagazine.com. It is written and published by the best minds in risk management.
[22:05] Justin Smulison is the Business Content Manager at RIMS. You can email Justin at [email protected].
[22:12] Thank you all for your continued support and engagement on social media channels! We appreciate all your kind words. Listen every week! Stay safe!
Mentioned in this Episode:
RIMS ERM Conference 2024 will be in Boston, MA Nov. 18–19 | Register Now
RIMS DEI Council
RIMS-Certified Risk Management Professional (RIMS-CRMP)
RIMS Strategic & Enterprise Risk Center
NEW FOR MEMBERS! RIMS Mobile App
RIMS Canada News Release: RIMS Ontario Chapter Honours Valerie Fox with the 2024 Donald M. Stuart Award
Follow RIMS Canada on LinkedIn
The Strategic and Enterprise Risk Center
RIMS-CRMP Stories — New interviews featuring Dan Elliott!
The CRM designation provides risk professionals with a foundation of knowledge and skills needed to identify, assess, monitor, and limit risks. The award is recognized by RIMS and awarded by GRMI.RIMS Webinars:
The Future of Risk & Compliance: 5 Key Insights for the Modern Leader | Sponsored by Resolver | Oct. 17, 2024
“If I Leave the Law – A Webcast Series: Landing a Nonlegal Job in Insurance Industry: Risk Management, Brokerage, Claims, & Advisory” \ Presented by ex judicata | Oct. 22, 2024
From AI to the SEC: The Future of D&O Litigation and Regulatory Exposures | Sponsored by Hub International | Oct. 24, 2024
Mastering Property Renewals: Strategies for Success in 2025 with Risk Engineering | Sponsored by Global Risk Consultants, a TÜV SÜD Company | Oct. 31, 2024
Lessons from Veterans on Strategic Risk Leadership | Presented by RIMS | Nov. 4, 2024
Risk Perception and Management: Insights for a Changing Landscape | Sponsored by Marsh | Nov. 14, 2024
RIMS.org/WebinarsUpcoming Virtual Workshops
RIMS-CRMP Exam Prep with PARIMA (Virtual) November 14–15, 2024 | 9:00 am–4:00 pm SGT — Register by Nov. 7
Applying and Integrating ERM | Dec 4‒5
See the full calendar of RIMS Virtual Workshops
RIMS-CRMP Prep Workshops
Related RIMScast Episodes:
“Big Shifts with John Hagel, ERM Conference Keynote”
“Applying ERM Theory with Elise Farnham”
“Maintaining an Award-Winning ERM Program with Michael Zuraw”
Sponsored RIMScast Episodes:
“Navigating Commercial Property Risks with Captives” | Sponsored by Zurich (New!)
“Breaking Down Silos: AXA XL’s New Approach to Casualty Insurance” | (New!)
“Weathering Today’s Property Claims Management Challenges” | Sponsored by AXA XL
“Storm Prep 2024: The Growing Impact of Convective Storms and Hail” | Sponsored by Global Risk Consultants, a TÜV SÜD Company
“Partnering Against Cyberrisk” | Sponsored by AXA XL
“Harnessing the Power of Data and Analytics for Effective Risk Management” | Sponsored by Marsh
“Accident Prevention — The Winning Formula For Construction and Insurance” | Sponsored by Otoos
“Platinum Protection: Underwriting and Risk Engineering's Role in Protecting Commercial Properties” | Sponsored by AXA XL
“Elevating RMIS — The Archer Way” | Sponsored by Archer
“Alliant’s P&C Outlook For 2024” | Sponsored by Alliant
“Why Subrogation is the New Arbitration” | Sponsored by Fleet Response
“Cyclone Season: Proactive Preparation for Loss Minimization” | Sponsored by Prudent Insurance Brokers Ltd.
“Subrogation and the Competitive Advantage” | Sponsored by Fleet Response
“Cyberrisk Outlook 2023” | Sponsored by Alliant
“Chemical Industry: How To Succeed Amid Emerging Risks and a Challenging Market” | Sponsored by TÜV SÜD
“Insuring the Future of the Environment” | Sponsored by AXA XL
“Insights into the Gig Economy and its Contractors” | Sponsored by Zurich
“The Importance of Disaster Planning Relationships” | Sponsored by ServiceMaster
RIMS Publications, Content, and Links:
RIMS Membership — Whether you are a new member or need to transition, be a part of the global risk management community!
RIMS Virtual Workshops
On-Demand Webinars
RIMS-Certified Risk Management Professional (RIMS-CRMP)
RISK PAC | RIMS Advocacy
RIMS Events, Education, and Services:
RIMS Risk Maturity Model®
RIMS Events App Apple | Google Play
Sponsor RIMScast: Contact [email protected] or [email protected] for more information.
Want to Learn More?
Keep up with the podcast on RIMS.org, and listen on Spotify and Apple Podcasts.
Have a question or suggestion? Email: [email protected].
Join the Conversation!
Follow @RIMSorg on Facebook, Twitter, and LinkedIn.
About our guest:
Maryam Salmasi, ERM Consultant at Stage Meta, Fred H. Bossons Award Winner 2024
Social Shareables (Edited For Social Media Use):Risk management controls uncertainty. Because I am passionate about helping businesses to grow and to make the best of themselves, I chose to concentrate on risk management to help them understand their risk. — Maryam Salmasi
It’s very important to have Canadian certification to show that you know this concept. My only intention was to pass the exam. It’s great that someone recognized my passion for risk management because I did what I truly enjoyed. — Maryam Salmasi
When you know other languages or cultures it’s like you have this second or third soul. It’s pretty wonderful to know other languages or cultures but for insurance or risk management, English is the best language. — Maryam Salmasi
I found great opportunities to network and meet incredible people with great backgrounds and knowledge of risk management, most of them in the insurance industry, at the RIMS Canada Conference 2024. I am grateful to be here. — Maryam Salmasi
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Welcome to RIMScast. Your host is Justin Smulison, Business Content Manager at RIMS, the Risk and Insurance Management Society.
In this episode, Justin interviews John Hagel, RIMS ERM Conference Keynote. John’s keynote on November 18 will be titled Embracing Change to Manage Risk. Justin and John explore how risk has evolved over John’s 40-year career and the last decade, and aligning risk management with technological innovation. John shares his thoughts on the RIMS Risk Maturity Model and a hint of what to expect in his November 18th keynote address at the RIMS ERM Conference 2024 in Boston. John concludes with his observation of positive trends in risk management.
Key Takeaways:
[:01] About RIMS.
[:15] About this episode. Our topic is ERM and our guest is John Hagel, who will be the opening keynote at the RIMS ERM Conference 2024 in Boston on November 18th and 19th.
[:46] RIMS ERM Conference! The full agenda is live. We will talk about everything from RMIS and AI to D&O, ESG, the SEC, and various other acronyms, in addition to future casting and risk quantification. RIMS.org/ERM2024.
[1:05] RIMS-CRMP holders can earn recertification points by attending the RIMS ERM Conference 2024! For those interested in studying for the exam, a pre-conference workshop will be held on-site on November 16th and 17th. Register now; a link is on this page!
[1:28] The next RIMS-CRMP-FED Exam Course will be hosted along with George Mason University from December 3rd through the 5th. Links to these courses can be found on the Certifications page of RIMS.org and through this episode’s show notes.
[1:44] RIMS Virtual Workshops! On October 9th and 10th, Chris Hansen returns to deliver Fundamentals of Insurance. He’s very popular in the Worker’s Comp space.
[1:59] Elise Farnham of Illumine Consulting recently joined us here on RIMScast. On December 4th and 5th, she will host Applying and Integrating ERM. Other dates for the Fall and Winter are available on the Virtual Workshops calendar of RIMS.org/virtualworkshops.
[2:20] Interview! I am so excited to present an interview with our guest today, John Hagel! He will deliver the opening keynote address at the RIMS ERM Conference 2024. It’s titled Embracing Change to Manage Risk.
[2:37] John is a visionary with more than 40 years of experience as a management consultant, entrepreneur, and thought leader in Silicon Valley. He will kick off our conference, exploring how technological innovation is transforming the global economy, society, and the risk landscape.
[2:55] John will also explore how these concepts will influence and intersect with three critical risk tenets: strategy alignment, culture and accountability, and risk capabilities. There’s so much to discuss. Let’s get to it!
[3:09] John Hagel, welcome to RIMScast! John joins a long line of impactful keynote speakers for the RIMS ERM Conference. He is excited about it!
[3:54] John was drawn to Silicon Valley decades ago because of the sense of optimism and the energy around addressing opportunities in the future and also because it’s the seedbed of some amazing digital technology.
[4:17] John founded a couple of tech startups. He was a senior executive with Atari in the video game business from 1982 to 1984, a partner at McKinsey & Company, helping found their Silicon Valley office, and led a research center at Deloitte, called the Center for the Edge.
[5:20] Atari provided an opportunity for young people to get into digital technology.
[6:09] John talks about the risks in technology over the years. Digital technology is improving exponentially over time. What’s competitive today becomes obsolete a couple of days from now or years from now.
[6:27] John has done a lot of work around what he calls the big shift, or the long-term forces that are redefining the global economy and society. On one side, the big shift creates mounting performance pressure, the competition intensifies and the pace of change accelerates.
[6:46] A small event in a faraway place quickly becomes a globally disruptive event. There’s a lot of risk from the mounting performance pressure. One of the consequences of all this is that it increases the risk of the status quo. Doing what you’ve done before becomes more risky.
[7:24] At the same time, the big shift is creating exponentially expanding opportunity, with far more value at far less resource, far more quickly. It decreases the risk of creating exponential value.
[8:14] John believes the most disruptive trend over the past years has been customers becoming more powerful with access to more information. They use that information to find someone much more effective at addressing their needs. They’re becoming less trusting.
[8:44] John sees trust eroding in large institutions around the world. That’s disruptive, as large institutions want and need trust but they’re losing it. This is business-to-business trust. It is being lost because of the spreading emotion of fear.
[10:35] In Silicon Valley, John had the opportunity to work with some of the most successful technology companies. He found that they have a different approach to strategy than most traditional organizations. John is a strong proponent of the value of this approach.
[10:56] This different approach is called Zoom Out-Zoom In. Zoom out 10 to 20 years; what’s the really big opportunity we could be pursuing? Zoom in; what can we do in the next six to 12 months to help us accelerate our movement toward that opportunity?
[11:25] Companies that pursue the Zoom In-Zoom-Out strategy focus on the risk of not acting. They move forward but don’t try to do massive 10-year projects. They do something in the next six months that can help them learn faster what’s required to achieve the opportunity at low risk.
[12:16] Plug Time! RIMS Webinars! On October 10th, Zurich returns to present Long-Term Property Strategies for a Resilient Future. On October 17th, Resolver will discuss The Future of Risk & Compliance: 5 Key Insights for the Modern Leader.
[12:36] On October 24th, Hub International returns for the fourth installment of their Ready for Tomorrow series, From AI to the SEC: The Future of D&O Litigation and Regulatory Exposures.
[12:50] On October 31st, TÜV SÜD GRC discusses Mastering Property Renewals: Strategies for Success in 2025 with Risk Engineering. On November 4th, I will be hosting a special RIMS Webinar presentation, Lessons from Veterans on Strategic Risk Leadership.
[13:20] On November 14th, Marsh will present Risk Perception and Management: Insights for a Changing Landscape. More webinars will be announced soon and added to the RIMS.org/webinars page. Go there to register. Registration is complimentary for RIMS members.
[13:38] There is another webinar you should know about. On October 22, 2024 at 1:00 p.m.ET. I will be moderating for my friends at ex judicata If I Leave the Law — A Webcast Series: Landing a Nonlegal Job in Insurance Industry: Risk Management, Brokerage, Claims, & Advisory.
[14:04] Other panelists include leaders from Lockton, Berkshire Hathaway Specialty Insurance, and our friend from the RIMS Public Policy Committee and the RIMS Detroit Chapter, Lynn Haley Pilarski, who works at GM.
[14:24] This is a complimentary webinar and it is a chance for you to invite your friends who are in the legal profession, looking to transition to another role, to check out risk management and see what it’s all about. The link is on this page.[14:43] The Spencer Educational Foundation’s goal is to help build a talent pipeline of risk management and insurance professionals. That is achieved, in part, by a collaboration with risk management and insurance educators across the U.S. and Canada.
[13:57] Whether you want to apply for a grant, participate in the Risk Manager on Campus program, or just learn more about Spencer, visit SpencerEd.org.
[15:08] On that note, applications are being accepted for internship grants. Since 1999, Spencer has awarded over $2.7 million in internship grants to over 540 recipients. To be eligible, risk managers must be based in the United States, Canada, or Bermuda.
[15:26] The application deadline is October 15th, 2024. Awardees are typically notified at the beginning of December. A link to the Internship Grants page is in this episode’s show notes.
[15:40] Back to My Interview with RIMS ERM Conference 2024 Keynote Speaker, John Hagel! John loves Boston. He loves the combination of incredible history and all the universities there. It’s got a youthful culture; the combination of age and youth makes it interesting.
[16:38] For six years, John lived in Boston. For four of those years, he was in a graduate program for both an MBA and a JD from Harvard. He was recruited by Boston Consulting Group to be a consultant and spent two years there. He just didn’t like the cold winters and hot summers.
[17:30] Justin describes the emergence of the RIMS Risk Maturity Model. It serves as a template or guide for how effective ERM can be run. A link to it is on this page. John took the model. It was challenging for him as a solo practitioner; it was hard to apply five pillars to an individual.
[18:15] John found the five pillars and the different levels of maturity enlightening. The model shows the complexity of ERM. It’s not just one pillar and one stage. In terms of maturity, it’s a set of stages. John particularly likes the emphasis on continuous cycles of improvement.
[19:05] John also liked that at the highest level, the focus was future-oriented decision-making, encouraging and helping people to look ahead to future opportunities and risks. The model helps leaders to see that ERM is a continuously improving cycle.
[19:48] No matter how good an ERM program is at any time, there is more to come. John likes the focus on the future and the emphasis on continuous learning. We must learn constantly and never assume we’re experts with all the answers. There are more questions that need answers.
[20:15] The five pillars John mentioned are Strategy Alignment, Culture & Accountability, Risk Management Capabilities, Risk Governance, and Analytics.
[20:44] John’s opening keynote address will cover his research on how the world is changing and the implications for risk management, the big shift with mounting performance pressures as a key factor. He will discuss the new approach to strategy as old approaches are challenged.
[21:24] We need to step back and reflect on what strategy is going to help us manage risk more effectively. We’re in a time when fundamental transformation is essential. He will talk about the role of AI in ERM as a catalyst for change.
[22:08] John will focus on three pillars of the RIMS Risk Maturity Model: Strategy Alignment, Culture & Accountability, and Risk Management Capabilities and how to address them in the rapidly changing world. John will have no visuals. He encourages audience interaction.
[23:14] Justin emphasizes there will be some Q&A time at the end of the session, and that people should take notes during the address. Please come prepared with questions that can enhance the audience’s knowledge.
[24:09] John warns against underestimating the risk of continuing as you are and focusing just on the present. Look into the future to see how risks may be changing over time. In addition to internal risks, look for ways to reduce the risks to your stakeholders, customers, and suppliers.
[25:00] John sees a positive trend of understanding that as the world is changing, more opportunity is emerging. Explore the opportunity. Understanding how technological innovation transforms our opportunities and risks becomes critical.
[25:26] John, we look forward to seeing you on the morning of November 18th in Boston, kicking off our RIMS ERM Conference 2024. You’re going to explain how to embrace change through innovation and the psychology of change. Anyone in risk management will take away a lot!
[26:00] We thank you in advance for being a fantastic keynote!
[26:07] Special thanks to John Hagel for joining us! He will be the opening keynote speaker on November 18th at the RIMS ERM Conference 2024. A link to his website is on this page.
[26:23] Register now for the RIMS ERM Conference 2024, to be held November 18th and 19th in Boston, Massachusetts! Visit RIMS.org/ERM2024 to register.
[26:36] It’s RIMS Plug Time! The RIMS App is available to RIMS members exclusively. Go to the App Store and download the RIMS App with all sorts of RIMS resources and coverage. It’s different from the RIMS Events App. Everyone loves the RIMS App!
[27:11] You can sponsor a RIMScast episode for this, our weekly show, or a dedicated episode. Links to sponsored episodes are in our show notes. RIMScast has a global audience of risk and insurance professionals, legal professionals, students, business leaders, C-Suite executives, and more. Let’s collaborate and help you reach them! Contact [email protected] for more information.
[27:56] Become a RIMS member and get access to the tools, thought leadership, and network you need to succeed. Visit RIMS.org/membership or email [email protected] for more information.
[28:14] Risk Knowledge is the RIMS searchable content library that provides relevant information for today’s risk professionals. Materials include RIMS executive reports, survey findings, contributed articles, industry research, benchmarking data, and more.
[28:30] For the best reporting on the profession of risk management, read Risk Management Magazine at RMMagazine.com. It is written and published by the best minds in risk management.
[28:45] Justin Smulison is the Business Content Manager at RIMS. You can email Justin at [email protected].
[28:52] Thank you for your continued support and engagement on social media channels! We appreciate all your kind words. Listen every week! Stay safe!
Mentioned in this Episode:
RIMS ERM Conference 2024 will be in Boston, MA Nov. 18‒19 | Register Now
RIMS DEI Council
RIMS-Certified Risk Management Professional (RIMS-CRMP)
RIMS Strategic & Enterprise Risk Center
NEW FOR MEMBERS! RIMS Mobile App
Spencer Internship Grants — Deadline Oct. 15
The Strategic and Enterprise Risk Center
RIMS-CRMP Stories — New interviews featuring DFW RIMS President Emily Casso Ford!
JohnHagel.com
RIMS Webinars:
Long-Term Property Strategies for a Resilient Future | Sponsored by Zurich | Oct. 10, 2024
The Future of Risk & Compliance: 5 Key Insights for the Modern Leader | Sponsored by Resolver | Oct. 17, 2024
If I Leave the Law — A Webcast Series: Landing a Nonlegal Job in Insurance Industry: Risk Management, Brokerage, Claims, & Advisory | Presented by ex judicata | Oct. 22, 2024
From AI to the SEC: The Future of D&O Litigation and Regulatory Exposures | Sponsored by Hub International | Oct. 24, 2024
Mastering Property Renewals: Strategies for Success in 2025 with Risk Engineering | Sponsored by Global Risk Consultants, a TÜV SÜD Company | Oct. 31, 2024Lessons from Veterans on Strategic Risk Leadership | Presented by RIMS | Nov. 4, 2024
Risk Perception and Management: Insights for a Changing Landscape | Sponsored by Marsh | Nov. 14, 2024
RIMS.org/WebinarsUpcoming Virtual Workshops:
Fundamentals of Insurance | Oct 9‒10, 2024
Applying and Integrating ERM | Dec 4‒5
See the full calendar of RIMS Virtual Workshops
RIMS-CRMP Prep Workshops
Related RIMScast Episodes:
“Applying ERM Theory with Elise Farnham”
“Maintaining an Award-Winning ERM Program with Michael Zuraw”
“Bigger Risks with the Texas State Office of Risk Management” | Sponsored By Hillwood
Sponsored RIMScast Episodes:
“Navigating Commercial Property Risks with Captives” | Sponsored by Zurich (New!)
“Breaking Down Silos: AXA XL’s New Approach to Casualty Insurance” | (New!)
“Weathering Today’s Property Claims Management Challenges” | Sponsored by AXA XL
“Storm Prep 2024: The Growing Impact of Convective Storms and Hail” | Sponsored by Global Risk Consultants, a TÜV SÜD Company
“Partnering Against Cyberrisk” | Sponsored by AXA XL
“Harnessing the Power of Data and Analytics for Effective Risk Management” | Sponsored by Marsh
“Accident Prevention — The Winning Formula For Construction and Insurance” | Sponsored by Otoos
“Platinum Protection: Underwriting and Risk Engineering's Role in Protecting Commercial Properties” | Sponsored by AXA XL
“Elevating RMIS — The Archer Way” | Sponsored by Archer
“Alliant’s P&C Outlook For 2024” | Sponsored by Alliant
“Why Subrogation is the New Arbitration” | Sponsored by Fleet Response
“Cyclone Season: Proactive Preparation for Loss Minimization” | Sponsored by Prudent Insurance Brokers Ltd.
“Subrogation and the Competitive Advantage” | Sponsored by Fleet Response
“Cyberrisk Outlook 2023” | Sponsored by Alliant
“Chemical Industry: How To Succeed Amid Emerging Risks and a Challenging Market” | Sponsored by TÜV SÜD
“Insuring the Future of the Environment” | Sponsored by AXA XL
“Insights into the Gig Economy and its Contractors” | Sponsored by Zurich
“The Importance of Disaster Planning Relationships” | Sponsored by ServiceMaster
RIMS Publications, Content, and Links:
RIMS Membership — Whether you are a new member or need to transition, be a part of the global risk management community!
RIMS Virtual Workshops
On-Demand Webinars
RIMS-Certified Risk Management Professional (RIMS-CRMP)
RISK PAC | RIMS Advocacy
RIMS Events, Education, and Services:
RIMS Risk Maturity Model®
RIMS Events App Apple | Google Play
Sponsor RIMScast: Contact [email protected] or [email protected] for more information.
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About our guest:
John Hagel, Silicon Valley Veteran, Entrepreneur, and Founder of Beyond Our Edge, LLCJohn Hagel on LinkedIn
Social Shareables (Edited For Social Media Use):Digital technology is exponentially improving over time. What’s competitive today becomes obsolete a couple of days from now or a couple of years from now. — John Hagel
There’s a lot of risk from the mounting performance pressure. One of the consequences of all this is that it increases the risk of the status quo. Doing what you’ve done before becomes more and more risky — John Hagel
I did find the RIMS Risk Maturity Model enlightening in terms of the five pillars that come into it and the different levels of maturity, helping people to see that this is complex. It’s not just one pillar and one stage. — John Hagel
Don’t underestimate the risk of continuing as you are and focusing on the present. Look to the future to see how risks may be changing. In addition to internal organizational risks, look for ways to reduce the risks to your stakeholders, customers, and suppliers. — John Hagel
-
Welcome to RIMScast. Your host is Justin Smulison, Business Content Manager at RIMS, the Risk and Insurance Management Society.
In this episode, Justin interviews Britt Embry, VP of Communications, RIMS Greater Bluegrass Chapter; Nancy Brooks, Executive Director of NAMI Louisville; and Tony Quinones, Director of Risk Strategies and Compliance of Walt Disney World® Resort and Disney Cruise Line. Britt discusses the Greater Bluegrass RIMS Chapter’s Power of Partnership Conference, on October 8th and 9th. Nancy shares an overview of her keynote speech on mental health and risk management for the conference. Then Tony describes his career and how he used continual learning to expand his career from claims to risk strategies and compliance, with a side of mentorship.
Get ready for some excellent tips on partnership, mental health, and risk, and developing your risk management career.Key Takeaways:
[:01] About RIMS.
[:15] About this episode. We have three guests; one from the Greater Bluegrass Chapter of RIMS, one from the National Alliance on Mental Illness, and last, but not least, Tony Quinones, Director for Risk Strategies and Compliance at Walt Disney World® Resort and Disney Cruise Line.
[:48] RIMS Events! We are less than a week away from the start of one of my favorite events, the RIMS Canada Conference 2024, which will be from October 6th through the 9th in Vancouver. Register at RIMSCanadaConference.ca.
[1:05] We want you to join us in Boston, Massachusetts on November 18th and 19th for the RIMS ERM Conference 2024. The full agenda is live. It runs the gamut of ERM. Check it out and register. A link is on this page! RIMS.org/ERM2024.
[1:21] All RIMS Regional Conference Information can be found through the Events page of RIMS.org.
[1:26] RIMS Virtual Offerings! The next RIMS-CRMP-FED Exam Course will be hosted along with George Mason University from December 3rd through the 5th. Links to these courses can be found on the Certification Page of RIMS.org and through this episode’s show notes.
[1:44] RIMS Virtual Workshops! On October 9th and 10th, Chris Hansen returns to deliver Fundamentals of Insurance. He’s very popular in the Worker’s Comp space.
[1:59] Elise Farnham of Illumine Consulting recently joined us here on RIMScast. This is the last call for her session on October 3rd and 4th, Fundamentals of Risk Management. Other dates for Fall and Winter are available on the Virtual Workshops calendar of RIMS.org/virtualworkshops.
[2:19] RIMS Webinars! Also, be sure to check out the full schedule of RIMS webinars at RIMS.org/webinars. Remember, registration is free for all RIMS members, one of the many value-adds for a RIMS membership.
[2:36] Interviews! We will kick off this episode of RIMScast with two guests. Britt Embry is the VP of Communications for the RIMS Greater Bluegrass Chapter. They have a two-day event on October 8th and 9th in Louisville, Kentucky, The Power of Partnership.
[2:57] Registration is supposed to close today, October 1st, but as you’ll hear in the interview, you may still be able to register past today, if you play your cards right!
[3:08] We will also be joined by one of the speakers presenting on October 9th, Nancy Brooks, the Executive Director of NAMI Louisville. We’ll get a brief preview of her session on mental health in risk management, and how mental health awareness is evolving in the risk space.
[3:29] Britt Embry and Nancy Brooks, welcome to RIMScast!
[3:38] Britt, let me congratulate you for winning the Chapter of the Year award at RISKWORLD 2024! Britt says the RIMS Greater Louisville Chapter went full steam; it’s a new chapter, the 80th RIMS chapter! They got much excitement from the risk management and insurance community!
[4:21] It paid off! Britt is very appreciative of all the sponsors, vendors, and participants in the Power of Partnership Conference. Britt says it was a lot of hard work but the chapter is very excited to receive the Chapter of the Year Award.
[4:37] The RIMS Greater Louisville Chapter is growing like weeds! They are close to 100 members with the chapter and RIMS nationally. They’re pushing through to make a difference!
[5:04] The chapter is about two-and-a-half years old. They’re excited to support risk management and insurance throughout the state of Kentucky and some of Indiana, as well.
[5:30] This episode comes out on October 1st. That’s one week before the opening of the Power of Partnership. Today is the last day for registration. If you want an exception after today, please email the chapter at [email protected]. The link is on this page.
[6:22] Nancy Brooks is here because she will be one of the marquee speakers at the Power of Partnership event. Nancy says as we assess the risk, including the safety and well-being of an individual, it results in us understanding how mental health impacts everything we do.
[6:56] Nancy will highlight that in her presentation and focus on mental health in risk management and how the potential to reduce insurance rates and provide more benefits for employees impacts their mental well-being as well.
[7:38] One of NAMI’s messages is “You are not alone.” NAMI recognizes that the mental health journey is complicated. It’s not the same as someone who comes down with a diagnosis that’s more “acceptable.” With mental illness, there’s a tendency to hide, so they need a trusted ally.
[8:10] NAMI supports families and individuals who are affected by mental illness.
[8:30] In her keynote, Nancy will include a discussion on general mental well-being and share tools for self-care that everyone can use. She will note some signs and symptoms to help individuals identify in their workplace that someone’s struggling with a mental health condition.
[8:56] These signs and symptoms can also show up in our loved ones and inner circle. It helps to know those signs and symptoms and reduce the stigma, reducing barriers to communication.
[9:18] Nancy will focus on how mental health relates to risk management, employees, and injured workers.
[9:39] Britt says registration is open to all risk professionals. You pay a little extra if you are not a chapter member. They would love to have you as a member and get your insight into the organization, as well.
[10:04] Greater Bluegrass is connecting all the various types of risk management and insurance that they see in the state of Kentucky, from distilleries to healthcare, to restaurants, and everything in between. To have everyone’s insight and knowledge is amazing!
[10:35] NAMI Louisville is very experienced in doing workplace training through its Stigma-Free Workplace Partnerships. Any business that comes to the event can ask to have NAMI Louisville send someone to their workplace for different types of training, including suicide prevention.
[11:04] The Power of Partnership will be on October 8th and 9th in Louisville, Kentucky. Britt and Nancy will be there. There are links in this episode’s show notes for anyone who wants to and should attend. Britt and Nancy, I want to thank you both. It sounds like it will be fabulous!
[11:24] Marquee Interview! I am joined by Tony Quinones, the Director for Risk Strategies and Compliance at Walt Disney World® Resort and Disney Cruise Line. Tony, welcome to RIMScast!
[12:01] At Walt Disney World® Resort and Disney Cruise Line, it’s always booking season and vacation season. Now it’s the beginning of the holiday season.
[12:17] Out of college and for most of his career, Tony worked in claims. He started in liability with State Farm Insurance. He hadn’t studied insurance in college but he was attracted by a job posting. He meant to work for a time, then go back to school to be a history teacher.
[12:50] Twenty-two years later, here he is, talking to Justin about his career and his current role in risk management. Tony says he’s had a good time and the profession has been good to him.
[13:20] His claims background knowledge helps him handle challenges in his risk management role. He worked in claims until three years ago when he formally transitioned to risk strategies and compliance. He always took opportunities to expand his knowledge of risk management.
[14:17] Disney Cruise Line feels like a floating resort. Tony has a set of responsibilities around compliance training and data analytics. The analytics teams support safety, operations, and claims partners.
[14:54] The environmental, safety, and operations teams address the risks inherent to the Maritime laws, and regulations in the U.S. and internationally. Tony’s analytics teams work with them in every aspect to support them with the best information possible to do their roles.
[15:43] A cruise ship is a floating city. Tony doesn’t oversee the waste management but he says the machinery is amazing. They are conscientious to do the best they can for the environment.
[16:08] Tony has a staff of approximately 70 cast members under his supervision. Any that have responsibilities strictly on the ships are crew members. The Risk Management Division has about 150 members in partnership with the areas of safety, environmental, and operations.
[17:14] It’s a well-oiled machine of information and partnership back and forth, with some of the strongest protocols and audits to help make sure it’s one of the safest environments for crew, cast, and guests.
[17:33] The Walt Disney World® Resort and Disney Cruise Line ERM program is overseen at the corporate level. Tony’s team supports the ERM initiatives with their day-to-day operations.
[18:01] Tony thinks it’s important to work in unison with the corporate side. There is risk management alignment across the company.
[18:37] About dealing with catastrophes, Tony says having a contingency plan is great but make sure that it’s flexible for the situation at hand. Have robust communication systems. Know which partners you need to reach out to for certain situations and communications.
[19:02] You need to have the right roles in the room and at the table so that decisions can be made and communication can be spread out effectively and efficiently. There aren’t catastrophes happening all the time but have continuous training and be aware of the what-ifs.
[19:26] You might not be ready for a specific incident but the memory of going through the action plan and reacting will apply to most incidents and having those three things puts you into a situation where you are ready for the unexpected and to respond effectively and efficiently.
[20:01] How do storms affect Disney Cruise Line? Everyone goes through practices and knows what they are doing. They walk through the contingency plans and action plans to solidify them in muscle memory.
[20:57] Tony recounts the rebound after the pandemic. Having key partnerships with the operations partners across the company was key. As Walt Disney World® Resort and Disney Cruise Lines re-opened slowly and surely, they saw their guests come back to resume normalcy.
[21:59] Tony says risk management was impacted by the pandemic but they still had work to do. At that time, he was still on the claims side. While the resort and cruise line were closed, they built for what they knew would come back. Claims built up slowly with attendance.
[22:38] Once the hiccup of the pandemic was over, Tony says they were in a good place to be there for their guests and cast members, for worker’s comp.
[23:10] Tony recalls how the resorts reopened, a park or a resort at a time. Some services weren’t available right at the time of the park opening. Some new experiences were added, like mobile check-in and self-check-in. They explored technology during the interruption.
[24:35] Tony takes opportunities to walk the parks and the ships to see the conditions of the properties in case something comes up in a report. He wants to make sure that what he is offering his partners is what they need.
[25:44] Whenever Disney gets in the news, Tony checks to see what is the context. He is confident in what Disney does and why they do it.
[26:14] Quick Break! The Spencer Educational Foundation’s goal is to help build a talent pipeline of risk management and insurance professionals. That is achieved, in part, by a collaboration with risk management and insurance educators across the U.S. and Canada.
[26:31] Whether you want to apply for a grant, participate in the Risk Manager on Campus program, or just learn more about Spencer, visit SpencerEd.org.
[25:42] On that note, applications are being accepted for internship grants. The application deadline is October 15th, 2024. Awardees are typically notified at the beginning of December. A link to the Internship Grants page is in this episode’s show notes.
[27:02] We Conclude My Interview with Tony Quinones of Disney!
[27:15] Through October 15th, we are in National Hispanic Heritage Month. At Disney, there are cast-run burgs. Tony belongs to the Latin American Burg. He also does anything he can within the RISKWORLD diversity platforms and to be part of the Hispanic heritage within the industry.
[28:23] Latin American professionals need to take advantage of the opportunities in risk management in general, and insurance. There are not a lot of Hispanic or Latino Americans in the industry but there are a lot of opportunities, maybe more than when he started.
[28:47] There’s still a way to go. There are so many specialties within risk management. It’s not just a risk manager. There’s insurance and so many different areas of risk. Tony wants Latinos to find a niche where their talents can grow. Maybe risk management is meant for you.
[29:29] Many colleges are offering a risk management program. If you’re a young Latino going into college, Tony invites you to consider risk management as an avenue for your education.
[29:49] Tony is bilingual and that has served him in his career. He needed it almost daily when he was handling claims. Tony suggests that whatever other language you speak, double down on it and use it to your advantage.
[30:30] Tony is on the RISKWORLD ACPC, the Annual Conference Planning Committee. They are planning RISKWORLD 2025 in Chicago. He recalls the great program and breakout sessions of RISKWORLD 2024 in San Diego. Put RISKWORLD on your bucket list! It’s a great opportunity!
[32:06] Tony relates the RISKWORLD DE&I Studio to the evolution of the risk profession overall. It speaks to the younger generation in risk management, just entering the workforce. The DE&I Studio was exciting and attracted many people who wanted to know more about DE&I.
[33:03] The DE&I Studio is a place where different communities are immediately acknowledged and included. Tony hopes it continues to grow as they continue to put the RISKWORLD conferences together.
[33:36] Any chance Tony gets, not just with the Latin American community, but in general, with the younger workforce coming into risk management, to mentor, he does it. He is involved with mentorship at Disney, called Mano a Mano, which is focused on mentoring the Latin community.
[34:02] Tony is also part of Rise Professional, a mentorship program helping those just coming into the risk management profession. Anytime he can share his knowledge and experience to contribute the most, such as being on a platform like RIMScast, he will do it.
[34:34] Tony thinks the most important thing for anyone who has been in the industry is to give mentorship. That’s the way to give back, one-on-one with professionals entering the industry. It’s the most value for your time.
[35:16] Tony’s advice to people entering or considering entering the risk profession is that it can provide a consistent and stable platform, similar to other traditional professions. If you’re a professional looking to transition, this is a great industry.
[35:46] If you’re in college trying to figure out your future, take a couple of risk management courses. Look at the programs colleges have for it. Tony’s great 20-plus-year career started in one little avenue of risk management. He’s learned something new every year.
[36:13] It’s an industry that can take you to so many different places and you’ll never be bored.
[36:39] Tony is a big Disney fan. He has been on a couple of Disney cruises on vacation, and he loves it. Once in a while, he just wants to go to a beach somewhere and take a little different vacation so he doesn’t have to worry about work. The brand is still there on a Disney Cruise.
[37:19] Tony, it has been a real pleasure to meet you. Thank you for being a member of our RIMS RISKWORLD ACPC. We hope to connect at RISKWORLD 2025 in Chicago Illinois, celebrating RIMS’s 75th Anniversary! We appreciate your leadership there. Thanks for joining us!
[37:45] Special thanks to Tony Quinones for all of his time and insight! Special thanks to Nancy Brooks of NAMI Louisville and Britt Embry of the Greater Bluegrass Chapter of RIMS!
[37:59] This is the last call for registration for the Power of Partnership Event on October 8th and 9th in Lousiville, Kentucky, hosted by the Greater Louisville Chapter of RIMS!
[38:09] Email [email protected] to register and be sure to tell them that you heard about the opportunity here, on RIMScast! More links about the event are in this episode’s show notes.
[38:24] It’s RIMS Plug Time! The RIMS App is available to RIMS members exclusively. Go to the App Store and download the RIMS App with all sorts of RIMS resources and coverage. It’s different from the RIMS Events App. Everyone loves the RIMS App!
[38:57] You can sponsor a RIMScast episode for this, our weekly show, or a dedicated episode. Links to sponsored episodes are in our show notes. RIMScast has a global audience of risk and insurance professionals, legal professionals, students, business leaders, C-Suite executives, and more. Let’s collaborate and help you reach them! Contact [email protected] for more information.
[39:40] Become a RIMS member and get access to the tools, thought leadership, and network you need to succeed. Visit RIMS.org/membership or email [email protected] for more information.
[39:57] Risk Knowledge is the RIMS searchable content library that provides relevant information for today’s risk professionals. Materials include RIMS executive reports, survey findings, contributed articles, industry research, benchmarking data, and more.
[40:13] For the best reporting on the profession of risk management, read Risk Management Magazine at RMMagazine.com. It is written and published by the best minds in risk management.
[40:27] Justin Smulison is the Business Content Manager at RIMS. You can email Justin at [email protected].
[40:34] Thank you for your continued support and engagement on social media channels! We appreciate all your kind words. Listen every week! Stay safe!
Mentioned in this Episode:
RIMS Greater Bluegrass Chapter Annual Meeting & Conference — Oct 8‒9 | Last call for Registration | Also email here: [email protected]
RIMS ERM Conference 2024 will be in Boston, MA Nov. 18‒19 | Register Now
RIMS Canada Conference 2024 — Oct. 6‒9 | Last call for Registration!
RIMS DEI Council
RIMS-Certified Risk Management Professional (RIMS-CRMP)
RIMS Strategic & Enterprise Risk Center
NEW FOR MEMBERS! RIMS Mobile App
Spencer Internship Grants — Deadline Oct. 15
The Strategic and Enterprise Risk Center
RIMS-CRMP Stories — New interviews featuring DFW RIMS President Emily Casso Ford!
NAMI Louisville
National Hispanic American Heritage Month
RIMS Webinars:
Mastering ERM: Leveraging Internal and External Risk Factors for Strategic Advantage | Sponsored by Diligent | Oct. 3, 2024
Long-Term Property Strategies for a Resilient Future | Sponsored by Zurich | Oct. 10, 2024
From AI to the SEC: The Future of D&O Litigation and Regulatory Exposures | Sponsored by Hub International | Oct. 24, 2024
Lessons from Veterans on Strategic Risk Leadership | Presented by RIMS | Nov. 4, 2024
Risk Perception and Management: Insights for a Changing Landscape | Sponsored by Marsh | Nov. 14, 2024
RIMS.org/WebinarsUpcoming Virtual Workshops:
Fundamentals of Risk Management | Oct 3‒4, 2024
Fundamentals of Insurance | Oct 9‒10, 2024
Applying and Integrating ERM | Dec 4‒5
See the full calendar of RIMS Virtual Workshops
RIMS-CRMP Prep Workshops
Related RIMScast Episodes:
Applying ERM Theory with Elise Farnham
Maintaining an Award-Winning ERM Program with Michael Zuraw
LAAIA Atlanta Chapter President Jose Aponte
Sponsored RIMScast Episodes:
“Navigating Commercial Property Risks with Captives” | Sponsored by Zurich (New!)
“Breaking Down Silos: AXA XL’s New Approach to Casualty Insurance” | (New!)
“Weathering Today’s Property C
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Welcome to RIMScast. Your host is Justin Smulison, Business Content Manager at RIMS, the Risk and Insurance Management Society.
This episode of RIMScast is proudly sponsored by Hillwood. Hillwood is a leading multinational real estate development company and part of the Perot family of companies. For more information, visit Hillwood.com.
In the spirit of #InternationalPodcastDay on Sept. 30, RIMScast was produced live and onsite at the DFW RIMS Fall Conference in Irving, Texas on Sept. 19. You can hear the electricity on the floor of the Irving Convention Center as RIMS members, risk professionals and vendors from the greater Dallas Fort Worth area convened to learn, share knowledge, and network.
Former and current DFW RIMS Presidents join RIMScast today to discuss the state of risk in DFW, Safety, and ERM trends they are noticing, and why this event marks the closing chapter in one book and prepares for an all-new one in 2025.
Key Takeaways:
[:01] About Hillwood, the proud sponsor of this episode of RIMScast.
[:15] About this episode, coming to you live from Irving Texas at the DFW RIMS 2024 Fall Conference and Spa Event. This is the Texas risk roundup; we’re juggling risks and lassoing opportunities.
[:46] This episode is sponsored by Hillwood, a Perot company. Learn more at Hillwood.com.
[:52] It’s an exciting event. It’s also the end of an era for the DFW RIMS Chapter and we’ll talk about that.
[1:07] Events! Visit GreaterBluegrass.RIMS.org to learn more about the Greater Bluegrass Chapter of RIMS and their upcoming annual conference and meeting event, on October 8th and 9th. They’ve got some great speakers lined up. Check out their website and LinkedIn.
[1:35] Last call for the RIMS Western Regional Conference, September 29th through October 1st at the Sun River Resort in Oregon. Register at RIMSWesternRegional.com.
[1:47] The RIMS Canada Conference 2024 is coming up, October 6th through the 9th in Vancouver. Visit RIMSCanadaConference.ca to register.
[1:57] The 2024 RIMS ERM Conference will be held in Boston, Massachusetts on November 18th and 19th. Visit RIMS.org/ERM2024.
[2:10] Interviews! My first guest is the Ex Officio of the DFW RIMS Chapter, LaToya Lee. She is Vice President of Crew Safety at Raising Cane's Chicken Fingers. LaToya Lee, welcome to RIMScast!
[2:33] The DFW RIMS 2024 Fall Conference and Spa Event at the Irving Convention Center is Texas-themed with a carnival. It is electrifying! Justin and LaToya met at the Risk Manager Exclusive Forum Lunch at the conference. It was a lunch for risk managers to speak freely.
[3:43] At the luncheon, LaToya raised an excellent point about an emerging risk from social media. Raising Cane’s has so many employees who are young people on Instagram, TikTok, and Snapchat. Raising Cane’s has great policies and procedures to prevent employees from posting.
[5:01] Most employees don’t bring their phones to the restaurant, but if they do, they must store them in their lockers. Raising Cane’s has about 840 locations in the U.S. About 800 are corporate-owned with a few franchise partners. LaToya is the Vice President of Crew Safety.
[5:57] As a fast-casual. Quick-service restaurant, with four menu items, Raising Cane’s is a people business. The Raising Cane’s culture is a fun, cool culture, with disco balls and smiling faces. The crew is in shorts. It’s a family-oriented business. They cater to all.
[7:29] The growth of Raising Cane’s is astronomical. When LaToya started, there were 248 restaurants. LaToya will soon be celebrating her 9th anniversary with Raising Cane’s and there are 800-plus restaurants now.
[8:04] As DFW RIMS Ex Officio, LaToya says the conference turnout is simply amazing. The attendees, vendors, and speakers are phenomenal. The topics of ERM, Work Comp, Property Damage, and Nuclear Verdicts, are everything you want in a one-day conference.
[8:37] What excites LaToya for the next year’s conference is the growth. Having all of the Texas Chapters coming together for one conference in San Antonio is going to be amazing!
[8:55] LaToya, it has been such a pleasure to meet you! I look forward to seeing you in San Antonio and at RISKWORLD 2025! Thank you so much!
[9:10] We are joined by former DFW RIMS Chapter President and a RIMS Global Board Director, Penni Chambers. Hello, Penni!
[9:46] Penni grew up in Texas and has lassoing skills! She moderated a session with the State Office of Risk Management. It was one of the favorite sessions she has moderated. It was lassoing the panelists, keeping them on track, and not going over time, with audience questions!
[10:40] Justin notes that it is International Podcast Day, and this is a special live episode. There’s electricity here at the Conference!
[11:09] Penni thinks the growth of risk management in Texas is in part because of the economic growth in Texas, with big Fortune 500 companies coming into the region. North Texas has grown. The Dallas membership for the DFW RIMS Chapter grows with the companies coming in.
[11:35] Their risk managers want to get to know other risk managers. There is a camaraderie among peers. The marketing effort of the chapter spans decades. The fall conference gives everyone a chance to reconnect and meet new people at events leading up to the conference.
[12:36] It’s exciting to Penni as a seasoned professional to see these young faces and new faces at the Conference. It’s incredible! It’s also bittersweet to Penni that this is the last DFW RIMS Fall Conference, after decades of conferences.
[13:22] Next year, DFW RIMS will team up with the Huston, San Antonio, and Central Texas RIMS Chapters to host the first-ever Texas Regional RIMS Conference, August 4th through 6th, in San Antonio near the Alamo, on the river walk. San Antonio is a beautiful place to kick it off!
[14:21] Penni is excited because she will get to meet members from other chapters. She says the collaboration that’s going to come from this is going to be phenomenal!
[14:53] Penni says they are planning this conference in collaboration with Global RIMS. It’s super exciting. It’s the first time Global RIMS has done something like it for a regional conference. It’s going to be a “drop-dead stunner” of a conference!
[15:17] It has been such a pleasure to sit with you in person to do one of these interviews for International Podcast Day! You did a wonderful job moderating this morning. I want to thank you and thank Hillwood for being our sponsor for this episode! I’ll see you at RISKWORLD 2025!
[15:44] I wanted to close out this RIMScast episode with some symmetry. We had two former DFW RIMS Presidents on the show today. We will close it out with the current DFW RIMS President, Emily Casso Ford, who has been fantastic to work with.
[16:05] Emily has led sessions and in many ways has been the face of the conference. I wanted to hear from her directly, not just about DFW RIMS but also to discuss her experiences in the ERM space. She leads ERM at Globe Life.
[16:23] We’re also going to talk about her experience with the RIMS-CRMP and how it is impacting her overall organization. Let’s get to it!
[16:37] I’m joined by the President of the DFW RIMS Chapter, Emily Casso Ford! Welcome to RIMScast! We have had such a great time for these last 36 hours or so! We’re talking at the very end of the final DFW RIMS Annual Conference. How does it feel, now that you’re done?
[17:06] Emily says she feels fantastic! She gives a shout-out to the Conference Chair, Chapter Vice President Marissa Holland, who did an outstanding job! This conference is our best yet!
[18:12] Emily gives an overview of her work at Globe Life for the last two-and-a-half years. She started as an island of one leading an ERM function, explaining to C-Suite and board why risk management matters. The board believed in it and demanded that the ERM function expand.
[18:41] Emily started hiring. She had great buy-in from the top. She spearheaded a program in a company that just needed to get around a table and talk about what the risks are and what they look like. Emily refers to ERM as getting comfortable talking about the elephant in the room.
[19:18] Emily started a Risk Liaison Program to work with areas of the organization that weren’t represented on the ERM Committee. She asked the members of the ERM Committee to identify the leaders on their teams who understand the emerging risks on the horizon.
[19:52] These people, the Risk Liaisons, would come together to have good conversations about what those emerging risks look like. They are up to 43 Risk Liaisons, from all across the enterprise of over 3,000 full-time employees. Globe Life is a $6 billion company.
[20:30] All the functions of the company are represented among the Risk Liaisons. Emily’s goal was to pass the mic and give people a voice who hadn’t had a voice or a seat at the table to share the insight and perspectives they have. They are closer to the work that’s being done.
[21:02] They sometimes see the risks coming faster than the folks in upper leadership do. Emily wants to champion that and give them a voice.
[21:21] Emily says the ERM team wants to make sure they share the risks with the board in the right way, giving them the information they need and desire. That changes from quarter to quarter. They are constantly on a trajectory or increased maturity.
[22:16] Some of you listening may recognize Emily Casso Ford as one of our more recent RIMS-CRMP Story interviewees. Emily has an update. Her entire ERM team at Globe Life has now earned the certification of RIMS-CRMP. She’s very proud of each member of the team.
[23:00] Emily’s boss, the SVP of Risk at Globe Life, provided the impetus for the team members to obtain the RIMS-CRMP. The Globe Life Chief Risk Officer fully supported the ERM team members each getting the RIMS-CRMP certification. It showcases their expertise in the industry.
[23:39] The Make-a-Wish Foundation received at least $5,500 in donations at the DFW RIMS Conference this year. A match is expected from a generous benefactor.
[24:04] This has been a great way to close out a wonderful tradition and start a new one. I want to thank you for inviting me! It’s a real privilege to be here! I want to thank Hillwood, a Perot Company, for sponsoring this episode.
[24:26] Emily, you’re doing a great job as President of the DFW RIMS Branch! We look forward to more great work from you!
[24:36] Special thanks to all of my RIMScast guests here who attended the DFW RIMS Annual Fall Conference and Spa Event. A very special thank you to Marissa Holland, DFW RIMS Vice President. As Emily said, she was the unsung hero of this year’s event. She’s fantastic!
[24:55] Visit DFWRIMS.org for more information and to learn more about the Texas RIMS Regional 2025 Conference, which will be held in San Antonio from August 4th through the 6th.
[25:06] We are very grateful for our sponsor, Hillwood, a Perot Company. Visit Hillwood.com for more information. A link is on this page.
[25:18] It’s RIMS Plug Time! The RIMS App is available to RIMS members exclusively. Go to the App Store and download the RIMS App with all sorts of RIMS resources and coverage. It’s different from the RIMS Events App. Everyone loves the RIMS App!
[25:50] You can sponsor a RIMScast episode for this, our weekly show, or a dedicated episode. Links to sponsored episodes are in our show notes. RIMScast has a global audience of risk and insurance professionals, legal professionals, students, business leaders, C-Suite executives, and more. Let’s collaborate and help you reach them! Contact [email protected] for more information.
[26:31] Become a RIMS member and get access to the tools, thought leadership, and network you need to succeed. Visit RIMS.org/membership or email [email protected] for more information.
[26:48] Risk Knowledge is the RIMS searchable content library that provides relevant information for today’s risk professionals. Materials include RIMS executive reports, survey findings, contributed articles, industry research, benchmarking data, and more.
[27:04] For the best reporting on the profession of risk management, read Risk Management Magazine at RMMagazine.com. It is written and published by the best minds in risk management.
[27:17] Justin Smulison is the Business Content Manager at RIMS. You can email Justin at [email protected].
[27:24] Thank you for your continued support and engagement on social media channels! We appreciate all your kind words. Listen every week! Stay safe!
Mentioned in this Episode:
About our sponsor, Hillwood: Hillwood.com
RIMS ERM Conference 2024 will be in Boston, MA Nov. 18‒19 | Register Now
RIMS Western Regional — Sept 29‒Oct 1, Oregon | Registration is open!
RIMS Canada Conference 2024 — Oct. 6‒9 | Registration is open!
RIMS Greater Bluegrass Chapter Annual Meeting & Conference — Oct 8‒9 | Last call for Registration
RIMS DEI Council
RIMS-Certified Risk Management Professional (RIMS-CRMP)
RIMS Strategic & Enterprise Risk Center
NEW FOR MEMBERS! RIMS Mobile App
Spencer Internship Grants — Deadline Oct. 15
The Strategic and Enterprise Risk Center
RIMS-CRMP Stories — New interviews featuring DFW RIMS President Emily Casso Ford!
RIMS Webinars:
The Future of RMIS: Beyond Traditional Approaches | Sponsored by Archer | Sept. 26, 2024
Mastering ERM: Leveraging Internal and External Risk Factors for Strategic Advantage | Sponsored by Diligent | Oct. 3, 2024
Long-Term Property Strategies for a Resilient Future | Sponsored by Zurich | Oct. 10, 2024
From AI to the SEC: The Future of D&O Litigation and Regulatory Exposures | Sponsored by Hub International | Oct. 24, 2024
Lessons from Veterans on Strategic Risk Leadership | Presented by RIMS | Nov. 4, 2024
Risk Perception and Management: Insights for a Changing Landscape | Sponsored by Marsh | Nov. 14, 2024
RIMS.org/WebinarsUpcoming Virtual Workshops:
Applying and Integrating ERM | Sept 25‒26 and Dec 4‒5
Fundamentals of Risk Management | Oct 3‒4, 2024
Fundamentals of Insurance | Oct 9‒10, 2024
See the full calendar of RIMS Virtual Workshops
RIMS-CRMP Prep Workshops
Related RIMScast Episodes:
“Bigger Risks with the Texas State Office of Risk Management” | Sponsored By HillwoodSponsored RIMScast Episodes:
“Weathering Today’s Property Claims Management Challenges” | Sponsored by AXA XL (New!)
“Storm Prep 2024: The Growing Impact of Convective Storms and Hail” | Sponsored by Global Risk Consultants, a TÜV SÜD Company (New!)
“Partnering Against Cyberrisk” | Sponsored by AXA XL
“Harnessing the Power of Data and Analytics for Effective Risk Management” | Sponsored by Marsh
“Accident Prevention — The Winning Formula For Construction and Insurance” | Sponsored by Otoos
“Platinum Protection: Underwriting and Risk Engineering's Role in Protecting Commercial Properties” | Sponsored by AXA XL
“Elevating RMIS — The Archer Way” | Sponsored by Archer
“Alliant’s P&C Outlook For 2024” | Sponsored by Alliant
“Why Subrogation is the New Arbitration” | Sponsored by Fleet Response
“Cyclone Season: Proactive Preparation for Loss Minimization” | Sponsored by Prudent Insurance Brokers Ltd.
“Subrogation and the Competitive Advantage” | Sponsored by Fleet Response
“Cyberrisk Outlook 2023” | Sponsored by Alliant
“Chemical Industry: How To Succeed Amid Emerging Risks and a Challenging Market” | Sponsored by TÜV SÜD
“Insuring the Future of the Environment” | Sponsored by AXA XL
“Insights into the Gig Economy and its Contractors” | Sponsored by Zurich
“The Importance of Disaster Planning Relationships” | Sponsored by ServiceMaster
RIMS Publications, Content, and Links:
RIMS Membership — Whether you are a new member or need to transition, be a part of the global risk management community!
RIMS Virtual Workshops
On-Demand Webinars
RIMS-Certified Risk Management Professional (RIMS-CRMP)
RISK PAC | RIMS Advocacy
RIMS Events, Education, and Services:
RIMS Risk Maturity Model®
RIMS Events App Apple | Google Play
Sponsor RIMScast: Contact [email protected] or [email protected] for more information.
Want to Learn More?
Keep up with the podcast on RIMS.org and listen on Spotify and Apple Podcasts.
Have a question or suggestion? Email: [email protected].
Join the Conversation!
Follow @RIMSorg on Facebook, Twitter, and LinkedIn.
About our guests:
LaToya Lee, Vice President of Crew Safety at Raising Cane’s Chicken Fingers and DFW RIMS Ex OfficioPenni Chambers, Vice President of Risk Management at Hillwood. Penni is also a former DFW RIMS President. She is currently a RIMS Board Director.
Emily Casso Ford, Esq., RIMS-CRMP, VP of Enterprise Risk at Globe Life. Emily is also the DFW RIMS President.
Postables (Edited For Social Media Use):Kids like to be on their cell phones. They like TikTok, Instagram, and Snapchat. At Raising Cane’s, we have good policies and procedures to help guide our young crew to be the best fry cook cashiers they can be, put their cell phones up, and stay off social media. — LaToya Lee
It’s exciting to me as a seasoned professional to see these young faces and new faces at the DFW RIMS Conference. This is incredible! — Penni Chambers
The people who are in that first line are closer to the work that’s being done and they sometimes see the risks coming faster than the folks in upper leadership do. We want to champion that. We want to give them a voice. — Emily Casso Ford, Esq.
As our function grows, we are constantly on a trajectory of increased maturity. — Emily Casso Ford, Esq.
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Welcome to RIMScast. Your host is Justin Smulison, Business Content Manager at RIMS, the Risk and Insurance Management Society.
Justin Smulison interviews Michael Zuraw about his career in risk management, including how the CHIPS Act impacts him and what it takes to lead ERM at a semiconductor manufacturer.
Justin asks about Michael’s RIMS ERM Award win, how new leadership at Onsemi has reacted to the program, how involved new leadership is in ERM, and how the program has changed since the win. Michael tells about his ERM 2024 sessions and how he likes his work with the SERMC.
Listen for ERM tips for improvement for your organization.
Key Takeaways:
[:01] About RIMS.
[:15] About this episode. Our guest is Michael Zuraw of On Semiconductor. He’s a past recipient of the ERM Award of Distinction. We will discuss what it takes to maintain an award-winning ERM program.
[:41] Events! This is the last call for the RIMS Chicago Chapter’s Chicagoland Risk Forum, which will be held on September 19th, 2024 at the Old Post office. There is no charge for risk management professionals or risk department staff! Register at ChicagolandRiskForum.org.
[1:05] We are just a few weeks away from the RIMS Canada Conference 2024 which will be held from October 6th through the 9th in Vancouver. Visit RIMSCanadaConference.ca to register.
[1:19] Registration is also open for the RIMS Western Regional, which will be held from September 29th through October 1st at the Sun River Resort in Oregon. Register at RIMSWesternRegional.com.
[1:33] We want you to join us in Boston on November 18th and 19th for the RIMS ERM Conference 2024. The full agenda is live. It runs the gamut of ERM. Check it out! A link to register is on this page.
[1:49] All RIMS regional conference information can be found on the Events page at RIMS.org.
[1:55] RIMS-CRMP-FED! The next RIMS-CRMP-FED Exam Course will be hosted along with George Mason University from December 3rd through the 5th. Links to these courses can be found through the certification page of RIMS.org and this episode’s show notes.
[2:12] RIMS Virtual Workshops! On October 9th and 10th, Chris Hansen returns to deliver Fundamentals of Insurance. He’s very popular in the Workers’ Comp space.
[2:30] In our prior episode, we had Elise Farnham of Illumine Consulting join us. She will be leading two upcoming courses for us. On September 25th and 26th, we’ve got Applying and Integrating ERM and on October 3rd and 4th, we have Fundamentals of Risk Management.
[2:47] Other dates for the Fall and Winter are available on the Virtual Workshops Calendar of RIMS.org/virtualworkshops.
[2:56] Interview! Our guest today, Michael Zuraw, is a member of our Strategic and Enterprise Risk Management Council and is the Senior Director for Global Enterprise Risk Management at On Semiconductor.
[3:16] I met Michael at the RIMS ERM Conference 2019 in New Orleans, where he accepted an ERM Global Award of Distinction honor for the program he leads at Onsemi. I wanted to catch up with him now and see how the program is evolving under new company leadership.
[3:38] Michael will be presenting or co-presenting three sessions at the RIMS ERM Conference 2024 in Boston, so we’ll talk all about that and we’ll get his philosophies on what it takes to keep an award-winning ERM program going strong in 2024. Michael Zuraw, welcome to RIMScast!
[4:21] Michael shares his memories of the RIMS ERM Conference 2019 at the Roosevelt Hotel in New Orleans. That was his first RIMS ERM event. He notes how collaborative ERM professionals are, whatever their industry or employer.
[5:30] Justin and Michael collaborated on an interview for the ERM Q&A series. A link is in this interview’s show notes. Since then, they have met at RISKWORLD and ERM Conferences. Michael feels honored to serve on the RIMS Strategic and Enterprise Risk Management Council.
[6:15] Michael is the co-author of two upcoming RIMS Executive Reports and White Papers. The first is part of a series of scenario-planning guides, about the Pre-Mortem Exercise to unlock some risk identification and help to manage biases and risks that might cause you to fail.
[7:00] The second paper is on risk interdependencies or interconnectedness. Risks don’t stay in silos. We have risk registers by which we manage and organize risks, but generally, we underestimate risk because we don’t account for the cascading effect of risk events.
[7:45] Justin will update the show notes for this episode to reflect when these two papers come out. After September, listeners can check out the show notes and download these papers.
[8:15] Michael has been in ERM at Onsemi for 10 years. His bachelor’s and master’s degrees are in electrical engineering. He worked in telecom before semiconductors. He worked on the business management side.
[8:45] When Onsemi formalized its ERM program, it named a Chief Risk Officer. Michael had a conversation with him. If risk is going to be treated as part of a strategy, Michael was interested. If it was a governance or reporting function, it wasn’t for Michael.
[9:08] The Chief Risk Officer had a similar philosophy. He delegated putting the program together to Michael and supported him with what he needed. Michael had a lot of freedom. He’s been doing it ever since.
[9:54] Michael discusses how the CHIPS Act impacts Onsemi. They have a government affairs group to focus on that. Michael is always looking at what parts of their manufacturing and infrastructure need to expand.
[10:25] The CHIPS Act provides an incentive for doing more pieces in the U.S. There are similar programs in other countries where Onsemi has a footprint. Onsemi is in 10 countries with 20-plus manufacturing sites and more, including sales and support functions.
[10:50] Michael says they’re always reviewing their footprint, where they need to expand, and how. Expanding the manufacturing of semiconductors takes tens of millions of dollars and years to build. When there is government support, every semiconductor company takes note.
[11:46] Onsemi is a tech-heavy, engineering-heavy global company with 30,000 employees. You have to get very analytical with the engineering group.
[12:33] Engineers are trained to solve problems full-speed ahead, using key assumptions they have in their heads. Michael is asking the organization to step back and hear what those assumptions are first. An assumption may be based 90% in fact but 10% in uncertainty.
[13:19] Michael asks the organization to discuss the 10% probability that the opposite is true. That’s where the risk lies. Can they make that 10% likelihood into 2%? That’s risk mitigation.
[13:34] In tech-heavy industries, we acknowledge and respect engineering training to solve problems, drive solutions, and work within their vocabulary. How do we put a risk framework into that model so the company’s risk profile can be improved? It takes time.
[14:02] Is Michael a patient person? It depends! More often than not.
[14:53] When Michael won the ERM Global Award of Distinction for the ERM program at Onsemi, the Chief Risk Officer called the Chairman of the Board and the Risk Committee to let them know of the Award. It was vindication that the company was going in the right direction.
[15:34] The Risk department felt they were seeing the positive impact of the ERM Program. They saw the industry felt the emerging risk topic they submitted with their application was innovative and positive.
[15:55] That program within the ERM Program was well-regarded within the company and led people to think about the future and get into an open discussion. People wanted to participate.
[16:30] About four years ago, Onsemi’s long-time COO retired and new leadership came in. Michael tells how the ERM Program changed with the new leadership. They were much more focused on accountability and ownership. They wanted to remove self-reporting.
[18:47] It’s RIMS Plug Time! RIMS Webinars! On September 19th, Origami Risk returns to deliver Leveraging Integrated Risk Management For Strategic Advantage. On September 26th, Archer returns to discuss The Future of RMIS: Beyond Traditional Approaches.
[19:07] On October 3rd, Diligent will host Mastering ERM: Leveraging Internal and External Risk Factors for Strategic Advantage. On October 10th, Zurich returns to present Long-Term Property Strategies for a Resilient Future.
[19:24] On October 24th, HUB International returns for the fourth installment of their Ready for Tomorrow series, From AI to the SEC: The Future of D&O Litigation and Regulatory Exposures.
[19:37] On November 4th, Justin will be hosting a special RIMS Webinar Presentation, Lessons from Veterans on Strategic Risk Leadership. That session will feature insights and perspectives from risk managers who had previously served in the U.S. Armed Services.
[19:56] More webinars will be announced soon and added to the RIMS.org/webinars page. Go there to register. As always, registration is complimentary for RIMS members.
[20:08] The Spencer Educational Foundation’s goal is to help build a talent pipeline of risk management and insurance professionals. That is achieved, in part, by a collaboration with risk management and insurance educators across the U.S. and Canada.
[20:23] Whether you want to apply for a grant, participate in the Risk Manager on Campus program, or just learn more about Spencer, visit SpencerEd.org.
[20:33] On that note, applications are being accepted for internship grants. Since 1999, Spenser has awarded over $2.7 million in internship grants to over 540 recipients. To be eligible, risk managers must be based in the United States, Canada, or Bermuda.
[20:51] The application deadline is October 15th, 2024. Awardees are typically notified at the beginning of December. A link to the Internship Grants page is in this episode’s show notes.
[21:05] Let’s Return to My Interview with Michael Zuraw!
[21:23] The program shifted with new management to an open 45-minute interview. Michael doesn’t ask individuals about any specific risk but starts them talking about their concerns relative to company strategy and execution.
[21:42] It’s much more challenging to analyze the input from the interview but it identifies items the company might otherwise miss.
[21:52] The issues are ranked and tiered. Then it comes down to assigning ownership and accountability. Leaders pick out issues each year and assign cross-functional teams with action plans to address them. Bonus goals are tied to the plans.
[22:16] Depending on what the company, the board, and the risk committees want to focus on, the teams must be comfortable with making adjustments. The program and ERM managers can be successful as the shifts happen. Be open-minded to new approaches and ideas. Be flexible.
[23:10] Onsemi just finished its fourth cycle of interviews and action teams, as the ERM program is in its 10th year. In its first five years, it had reached maturity. Then under new management, it took time to adapt to the interviews and analyze the data.
[23:48] Michael says, now in our fourth cycle of interviews, our maturity level is back up. We have good interactions with the board and several committees within the board. We have an executive risk committee that we function very well with. We’re much more efficient in doing it.
[24:11] Onsemi has integrated some AI processing of interviews. Michael has himself and a staff of two. As they get more efficient, they conduct better interviews because they’re not worried about taking notes and getting the notes right.
[24:35] As the ERM program matures, the ERM managers get better at their jobs and their interviewees get better at identifying risks.
[24:52] At the ERM Conference on November 18th Michael will lead two sessions. He will lead the “Dancing with Uncertainty” morning session. Michael says this is a discussion on decision process, decision-making, decision quality, and risk.
[25:26] It’s not uncommon for executives to believe that the higher the title, the better the decision-making skill. Michael disagrees. There is an approach of discipline in decision-making that allows you to understand uncertainty and how it leads to risk.
[26:00] Michael often says that if everyone in your company, from janitor to CEO and everyone in between, were 20% more disciplined in how they make decisions, your company would be doing quite a bit better. So, what discipline can be applied to decision-making to reduce risk?
[26:29] In the afternoon, a member of Michael’s staff, Alicia Tuckett, will present “The Illusion of Insight: Why Risk Interviews Fail to Deliver,” on how to do open-ended interviews, analyze the conversational input, and turn it into risk statements, risk categories, and data to analyze.
[29:23] Michael hopes to solicit the crowd for ideas to evolve the ERM program even more.
[29:33] Michael will host another session that day with his SERMC colleague Denise Sobczak, “Pre-Mortem or Post-Mortem. If You Were a Patient, Which Would You Choose?” on scenario planning to weed out risks by thinking of everything that might go wrong before it does.
[31:11] Michael calls having a Pre-Mortem a great tool. It’s efficient and not expensive to run. It doesn’t take much time. It’s one of the biggest bang-for-the-buck scenario approaches for risk management.
[31:22] At the ERM Conference 2023, Denise co-presented on the scenario planning sessions. You are in for quality discussions at the RIMS ERM Conference 2024, for all sessions. Michael’s insight will be invaluable.
[32:02] Justin tells Michael it has been such a pleasure to have him here on RIMScast! Justin will update this episode’s show notes with the links to Michael’s two papers coming in the Fall. He looks forward to seeing Michael on November 18th and 19th.
[32:19] Justin thanks Michael for being such a valuable contributor to the SERMC at RIMS. Michael says he learns something new every time he gets together with the council.
[32:42] Special thanks again to Michael Zuraw for joining us here on RIMScast. Michael has two RIMS reports that will be published on the Risk Knowledge page of RIMS.org in the next couple of weeks. Check back then on this episode’s show notes for the updated links.
[33:03] Michael will be presenting or co-presenting three sessions at the RIMS ERM Conference 2024 on November 18th, starting in the morning with “Dancing with Uncertainty,” and then in the afternoon with “The Illusion of Insight: Why Risk Interviews Fail to Deliver.”
[33:24] Michael will help close out the day with “Pre-Mortem or Post-Mortem. If You Were a Patient, Which Would You Choose?”
[33:31] There is also a link in this interview’s show notes to Michael’s ERM Q&A based on his 2019 win of the ERM Award of Distinction.
[33:44] There are lots of resources here today, especially for all you ERM fans out there! Check them out!
[33:50] It’s RIMS plug time! The RIMS App is available to RIMS members exclusively. Go to the App Store and download the RIMS App with all sorts of RIMS resources and coverage. It’s different from the RIMS Events App. Everyone loves the RIMS App!
[34:23] You can sponsor a RIMScast episode for this, our weekly show, or a dedicated episode. Links to sponsored episodes are in our show notes. RIMScast has a global audience of risk and insurance professionals, legal professionals, students, business leaders, C-Suite executives, and more. Let’s collaborate and help you reach them! Contact [email protected] for more information.
[35:08] Become a RIMS member and get access to the tools, thought leadership, and network you need to succeed. Visit RIMS.org/membership or email [email protected] for more information.
[35:26] Risk Knowledge is the RIMS searchable content library that provides relevant information for today’s risk professionals. Materials include RIMS executive reports, survey findings, contributed articles, industry research, benchmarking data, and more.
[35:42] For the best reporting on the profession of risk management, read Risk Management Magazine at RMMagazine.com. It is written and published by the best minds in risk management.
[35:56] Justin Smulison is the Business Content Manager at RIMS. You can email Justin at [email protected].
[36:03] Thank you for your continued support and engagement on social media channels! We appreciate all your kind words. Listen every week! Stay safe!
Mentioned in this Episode:
RIMS ERM Conference 2024 will be in Boston, MA Nov. 18‒19 | Register Now
DFW RIMS 2024 Fall Conference and Spa Event | Sept 19‒20
Chicagoland Risk Forum 2024 — Presented by RIMS Chicago Chapter — Sept. 19, 2024
RIMS Western Regional — Sept 29‒Oct 1, Oregon | Registration is open!
RIMS Canada Conference 2024 — Oct. 6‒9 | Registration is open!
RIMS DEI Council
RIMS-Certified Risk Management Professional (RIMS-CRMP)
RIMS Strategic & Enterprise Risk Center
NEW FOR MEMBERS! RIMS Mobile App
RISK PAC | RIMS Advocacy
Spencer Internship Grants — Deadline Oct. 15
The Strategic and Enterprise Risk Center
Truly Long-Term Strategic Risk Management in Focus — RIMS Q&A with Michael Zuraw (2019)
RIMS Webinars:
Leveraging Integrated Risk Management For Strategic Advantage | Sponsored by Origami Risk | Sept. 19, 2024
The Future of RMIS: Beyond Traditional Approaches | Sponsored by Archer | Sept. 26, 2024
Mastering ERM: Leveraging Internal and External Risk Factors for Strategic Advantage | Sponsored by Diligent | Oct. 3, 2024
Long-Term Property Strategies for a Resilient Future | Sponsored by Zurich | Oct. 10, 2024
From AI to the SEC: The Future of D&O Litigation and Regulatory Exposures | Sponsored by Hub International | Oct. 24, 2024
Lessons from Veterans on Strategic Risk Leadership | Presented by RIMS | Nov. 4, 2024
Risk Perception and Management: Insights for a Changing Landscape | Sponsored by Marsh | Nov. 14, 2024
RIMS.org/WebinarsUpcoming Virtual Workshops:
Applying and Integrating ERM | Sept 25‒26 and Dec 4‒5
Fundamentals of Risk Management | Oct 3‒4, 2024
Fundamentals of Insurance | Oct 9-10, 2024
See the full calendar of RIMS Virtual Workshops
RIMS-CRMP Prep Workshops
Related RIMScast Episodes:
“Applying ERM Theory with Elise Farnham”
“On Risk Appetite and Tolerance” with the RIMS SERMC
“Climate Disclosures with Jana Utter”
“Scenario Planning with the RIMS SERMC”
“Recipes for Success with Wendy’s CRO Bob Bowman”
“All Roads Lead to ERM”
“ERM’s Value Proposition with Chris Mandel”
Sponsored RIMScast Episodes:
“Weathering Today’s Property Claims Management Challenges” | Sponsored by AXA XL (New!)
“Storm Prep 2024: The Growing Impact of Convective Storms and Hail” | Sponsored by Global Risk Consultants, a TÜV SÜD Company (New!)
“Partnering Against Cyberrisk” | Sponsored by AXA XL
“Harnessing the Power of Data and Analytics for Effective Risk Management” | Sponsored by Marsh
“Accident Prevention — The Winning Formula For Construction and Insurance” | Sponsored by Otoos
“Platinum Protection: Underwriting and Risk Engineering's Role in Protecting Commercial Properties” | Sponsored by AXA XL
“Elevating RMIS — The Archer Way” | Sponsored by Archer
“Alliant’s P&C Outlook For 2024” | Sponsored by Alliant
“Why Subrogation is the New Arbitration” | Sponsored by Fleet Response
“Cyclone Season: Proactive Preparation for Loss Minimization” | Sponsored by Prudent Insurance Brokers Ltd.
“Subrogation and the Competitive Advantage” | Sponsored by Fleet Response
“Cyberrisk Outlook 2023” | Sponsored by Alliant
“Chemical Industry: How To Succeed Amid Emerging Risks and a Challenging Market” | Sponsored by TÜV SÜD
“Insuring the Future of the Environment” | Sponsored by AXA XL
“Insights into the Gig Economy and its Contractors” | Sponsored by Zurich
“The Importance of Disaster Planning Relationships” | Sponsored by ServiceMaster
RIMS Publications, Content, and Links:
RIMS Membership — Whether you are a new member or need to transition, be a part of the global risk management community!
RIMS Virtual Workshops
On-Demand Webinars
RIMS-Certified Risk Management Professional (RIMS-CRMP)
RIMS-CRMP Stories — New interviews featuring DFW RIMS President Emily Casso Ford!
RIMS Events, Education, and Services:
RIMS Risk Maturity Model®
RIMS Events App Apple | Google Play
Sponsor RIMScast: Contact [email protected] or [email protected] for more information.
Want to Learn More?
Keep up with the podcast on RIMS.org and listen on Spotify and Apple Podcasts.
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Join the Conversation!
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About our guest:
Michael Zuraw, Senior Director of Global Enterprise Risk Management (ERM) at
onsemi / ON Semiconductor
Tweetables (Edited For Social Media Use):Uncertainty underlies every decision. An assumption may be 90% dead-on. There’s a 10% probability that exactly the opposite is true and we should discuss that. That’s where the risk lies. Can we make that 10% likelihood into 2%? That’s what risk mitigation is. — Michael Zuraw
Now in our fourth cycle of interviews, our maturity level is back up. We have good interactions with the board and several committees within the board, as well. We have an executive risk committee that we function very well with. We’re much more efficient. — Michael Zuraw
As we mature in the program, we get better at our jobs and our interviewees get better at identifying risks. — Michael Zuraw
If everyone in your company, from janitor to CEO and everyone in between, were 20% more disciplined in how they make decisions, your company would be doing quite a bit better. — Michael Zuraw
-
Welcome to RIMScast. Your host is Justin Smulison, Business Content Manager at RIMS, the Risk and Insurance Management Society.
Justin Smulison interviews Elise Farnham about how ERM has changed, how new policies like the SEC climate disclosures influence the ERM landscape, and Elise’s risk philosophy. They discuss whether organizational leaders are placing more value on ERM programs, and the biggest challenge for a risk practitioner to turn theory into practice. When did you first understand how the fundamentals of risk management can be used to form decisions beneficial to an organization? What are some commonalities among the risk professionals you've come across in the RIMS virtual workshops (or RIMS events)?
Listen for insight on risk management basics and more wisdom for your organization.
Key Takeaways:
[:01] About RIMS.
[:15] About this episode.
[:30] Events! We’ve got the DFW RIMS 2024 Fall Conference and Spa Event happening on September 19th in Irving, Texas. Learn more about that event in Episode 299, which features an interview with the Texas State Office of Risk Management.
[:49] Also on September 19th is the RIMS Chicago Chapter’s Chicagoland Risk Forum 2024. Register at ChicagolandRiskForum.org.
[:58] Registration opened for the RIMS Canada Conference 2024 which will be held from October 6th through the 9th in Vancouver. Visit RIMSCanadaConference.ca to register.
[1:11] Registration is also open for the RIMS Western Regional, which will be held from September 29th through October 1st at the Sun River Resort in Oregon. Register at RIMSWesternRegional.com.
[1:25] We want you to join us in Boston on November 18th and 19th for the RIMS ERM Conference 2024. The full agenda is live. It runs the gamut of ERM. Check it out! A link to register is on this page.
[1:40] All RIMS regional conference information can be found on the Events page at RIMS.org.
[1:46] The next RIMS-CRMP-FED Exam Course will be hosted along with George Mason University from December 3rd through the 5th. Links to these courses can be found through the certification page of RIMS.org and this episode’s show notes.
[2:04] RIMS Virtual Workshops! On October 9th and 10th, Chris Hansen returns to deliver Fundamentals of Insurance. He’s very popular in the Workers’ Comp space. Other dates for the Fall and Winter are available on the Virtual Workshops Calendar of RIMS.org/virtualworkshops.
[2:27] Interview! We will be chatting with Elise Farnham of Illumine Consulting. Elise is very well known among the RIMS membership as she has been one of our instructors for the past 30 years!
[2:43] Elise will be leading two upcoming courses for us here at RIMS. On September 25th and 26th, we’ve got Applying and Integrating ERM and on October 3rd and 4th, we have Fundamentals of Risk Management.
[2:57] Elise will let us in on what it takes to apply and integrate ERM into an organization’s framework and operations and we will talk about her ERM philosophies. Elise Farnham, welcome to RIMScast!
[3:24] This year, Elise celebrated her 51st year in the risk and insurance industry. It’s been an amazingly great career. She started in claims in the mid-seventies. She got involved with RIMS when she started working with large corporate clients in the late seventies and early eighties.
[3:52] Elise took an interest in what RIMS was working to accomplish, reducing claims, all while she was working for a claims management firm. Elise has been working with RIMS since 1995.
[4:51] The RIMS ERM Conference 2024 will be on November 18th and 19th in Boston, Massachusetts.
[5:06] Elise became aware of the concept of ERM in the late nineties. She thought it would be a difficult job. ERM professionals have grown, frameworks have been developed, and we’ve seen some companies that lacked ERM fail spectacularly.
[5:44] It has become evident that every company has to take the resources and strengths that they have, look at their entire risk picture, and turn what could be a bad situation into something positive for their organization.
[6:17] Elise talks a lot in her classes about how to convert a problem into an opportunity that might help an organization. ERM has changed a lot in the last five years. Justin and Elise comment on how the pandemic may have helped companies realize the importance of ERM.
[6:42] All of a sudden, companies were faced with a type of loss that came out of the blue. COVID-19 was the “black swan” that we will remember and write about for years to come.
[7:00] How companies dealt with it, the resources they had to use, and changes to their work processes were all things that ERM considers.
[7:14] Elise Farnham will be leading Applying and Integrating ERM on September 25th and 26th.
[7:27] How does the SEC climate disclosure announcement change or influence the ERM landscape? It will impact how companies report their exposure. It will probably require some new technology to bring forward all of the information they will have to submit.
[7:53] Elise thinks that will be a challenge for companies because there is a rule they will have to follow. Collecting data from every bit of an organization will be a significant challenge. It may help organizations use a good ERM program. It requires penetrating the silos to follow the law.
[8:33] ERM will help companies to see the cumulative effect of risk. What if two bad things happen at one time? Getting more companies to have an ERM program will have a positive effect. It will be a lot of work to get there.
[9:02] Elise has always been an optimist. She always tries to look at how this can benefit us. Perhaps that’s why she has embraced ERM. It’s not about how we can get hurt but how we can use a bad situation to make things better for the organization. She knows how difficult it can be.
[9:55] Elise tells risk managers, “You don’t want to be the one to go in and say, ‘We just lost all of this.’ You don’t want that to happen. That’s a horrible situation to be in.”
[10:12] It’s much better to say, ‘I just saved you this much money because we have a policy in place, our people all know what to do, and this has never happened to us as it did to that other company.’” That’s where Elise wants her risk managers to be.
[10:46] Elise believes that today, organizational leaders put more value on ERM programs. The catch is understanding the amount of work that has to go into one. It takes resources and people to explore the organization, down to the risk owner, who may be on the factory floor.
[11:17] The risk owner may not have risk management experience. Almost everybody has the philosophy that “it couldn’t happen to us.” Understanding that something bad could happen and preparing for it in advance will be a challenge for them.
[11:42] The C-Suite understands the value of ERM. It’s a matter of applying the resources and following through. In her classes, Elise goes through the steps to take along the way. The feedback she gets is often, “Whew! That will take us a lot of time and effort!” They got the point!
[12:08] It’s RIMS Plug Time! RIMS Webinars! On September 12th, HUB International returns to deliver the third part of their Ready for Tomorrow series, Pivot and Swerve: Staying Agile During Shifting Market Dynamics.
[12:26] Also on September 12th is a complimentary webinar presented by the RIMS-CRMP and UCLA Extension, The Many Routes to Becoming an Enterprise Risk Management Practitioner.
[12:36] On September 19th, Origami Risk returns to deliver Leveraging Integrated Risk Management For Strategic Advantage. On September 26th, Archer returns to discuss The Future of RMIS: Beyond Traditional Approaches.
[12:54] On October 3rd, Diligent will host Mastering ERM: Leveraging Internal and External Risk Factors for Strategic Advantage. On October 10th, Zurich returns to present Long-Term Property Strategies for a Resilient Future.
[13:11] More webinars will be announced soon and added to the RIMS.org/webinars page. Go there to register. As always, registration is complimentary for RIMS members.
[13:23] The Spencer Educational Foundation’s goal is to help build a talent pipeline of risk management and insurance professionals. That is achieved, in part, by a collaboration with risk management and insurance educators across the U.S. and Canada.
[13:37] Whether you want to apply for a grant, participate in the Risk Manager on Campus program, or just learn more about Spencer, visit SpencerEd.org.
[13:47] On September 12th, 2024, we look forward to seeing you at the Spencer Funding Their Future Gala at The Cipriani 42nd Street in New York City. Purchase your tickets in advance because there is no guaranteed seating!
[14:03] Our recent guest from Episode 293, Lilian Vanvieldt-Gray, will be our honoree.
[14:09] Lilian is the Executive Vice President and Chief Diversity, Equity, and Inclusion Officer at Alliant Insurance Services and she will be honored for her valuable contributions to supporting the future of risk management and insurance.
[14:26] That was a great episode, so after you finish this one, please go back and listen to Episode 293.
[14:32] Let’s Return to Our Interview with Elise Farnham!
[15:14] Elise loves this business, and helping risk managers do a better job. It’s very fulfilling.
[15:51] The philosophical aspect of risk management is very logical. The real-world work part of it is almost drudgery, pulling information from everywhere within an organization, making people understand that they could have a problem if we don’t take care of it.
[16:16] Thinking of combining several problems at once is hard for some people to imagine. Bringing people into the real world of risk is one of the biggest problems; getting them to understand that, yes, this could happen to them.
[16:40] Elise’s family members have called her for advice after some unforeseen event, saying “I didn’t know this could happen!” Yet, the stats are out there. The stories are out there. It’s just, “It could never happen to me!” Risk managers are still fighting that battle quite heavily.
[17:13] Elise will also lead the virtual workshop, Fundamentals of Risk Management on October 3rd and 4th, 2024.
[17:42] Elise first became involved with large corporate accounts in 1987. She worked with risk managers and saw how they had to identify risk, analyze that risk, come up with a solution for it, and then implement the solution. Those are the basics of risk management.
[18:03] The focus was always on hazard risk, not on opportunities that might be developed.
[18:10] Elise took the Associate in Risk Management (ARM) program, which helped her to define that knowledge and to understand better what her clients were going through.
[18:21] Then RIMS developed a program about risk management, providing fundamentals. Elise thinks the fundamentals are more important than ever, now, as there are a lot of new people in the industry, fresh out of college. They know the theory but haven’t seen it applied.
[18:43] In her workshops, Elise always tries to apply this to the real world so that the day they go back to the office they have something they can apply immediately to their organization.
[19:11] What risk managers learn in Elise’s workshops will change what they do in their organization. That’s a big challenge.
[19:50] What Elise has noticed from teaching risk managers is their energy. They are ready to go. They are thirsty for this knowledge. They know they have concerns. They know there are some things they could do better.
[20:08] They just need the resources in their brains to make that happen. Elise talks to them about that. You can only make decisions based on what you know. If you don’t know something, you can’t include that resource in your decision process.
[20:27] Elise says it’s great to see the wheels start to turn while she’s teaching. All of a sudden, the aha moment hits. They have a strong desire to go back and do good things. It’s a compliment when they tell her they have a list of things to do when they get back to the office.
[20:55] They want to have an impact within their organization. They are there to learn something new that will help their organizations. Elise loves teaching with folks who are like that. They are like sponges. It’s fun to facilitate discussions with them about how to manage risk.
[21:58] Justin says it has been such a delight to catch up with Elise Farnham. The next two courses Elise teaches are Applying and Integrating ERM on September 25th and 26th, and Fundamentals of Risk Management on October 3rd and 4th. The links are in the show notes.
[22:17] Justin looks forward to more workshops hosted by Elise Farnham and thanks her for being such a wonderful instructor.
[22:31] Special thanks again to Elise Farnham of Illumine Consulting for joining us here today. Alise will lead Applying and Integrating ERM on September 25th and 26th and December 4th and 5th and Fundamentals of Risk Management on October 3rd and 4th.
[22:54] Links are in the episode show notes, as is a link to the full virtual workshop schedule.
[23:00] RIMS members enjoy reduced rates on registration, which is yet another value-add of a RIMS membership.
[23:09] It’s RIMS plug time! The RIMS App is available to RIMS members exclusively. Go to the App Store and download the RIMS App with all sorts of RIMS resources and coverage. It’s different from the RIMS Events App. Everyone loves the RIMS App!
[23:43] You can sponsor a RIMScast episode for this, our weekly show, or a dedicated episode. Links to sponsored episodes are in our show notes. RIMScast has a global audience of risk and insurance professionals, legal professionals, students, business leaders, C-Suite executives, and more. Let’s collaborate and help you reach them! Contact [email protected] for more information.
[24:26] Become a RIMS member and get access to the tools, thought leadership, and network you need to succeed. Visit RIMS.org/membership or email [email protected] for more information.
[24:43] Risk Knowledge is the RIMS searchable content library that provides relevant information for today’s risk professionals. Materials include RIMS executive reports, survey findings, contributed articles, industry research, benchmarking data, and more.
[24:59] For the best reporting on the profession of risk management, read Risk Management Magazine at RMMagazine.com. It is written and published by the best minds in risk management. Justin Smulison is the Business Content Manager at RIMS. You can email Justin at [email protected].
[25:20] Thank you for your continued support and engagement on social media channels! We appreciate all your kind words. Listen every week! Stay safe!
Mentioned in this Episode:
RISKWORLD 2025 will be in Chicago! May 4‒7 | Last Call For Submissions Sept. 9!
DFW RIMS 2024 Fall Conference and Spa Event | Sept 19‒20
Chicagoland Risk Forum 2024 — Presented by RIMS Chicago Chapter — Sept. 19, 2024
RIMS Western Regional — Sept 29‒Oct 1, Oregon | Registration is open!
RIMS Canada Conference 2024 — Oct. 6‒9 | Registration is open!
Spencer Educational Foundation — Funding Their Future Gala 2024 | Sept. 12, 2024 — Last Call For Tickets
RIMS ERM Conference 2024 will be in Boston, MA Nov. 18‒19 | Register Now
RIMS DEI Council
RIMS-Certified Risk Management Professional (RIMS-CRMP)
RIMS Strategic & Enterprise Risk Center
NEW FOR MEMBERS! RIMS Mobile App
RISK PAC | RIMS Advocacy
RIMS Webinars:
HUB Ready for Tomorrow Series: Pivot and Swerve — Staying Agile During Shifting Market Dynamics | Sept. 12, 2024
The Many Routes to Becoming an Enterprise Risk Management Practitioner | Presented by the RIMS-CRMP and UCLA Extension | Sept. 12, 2024
Leveraging Integrated Risk Management For Strategic Advantage | Sponsored by Origami Risk | Sept. 19, 2024
The Future of RMIS: Beyond Traditional Approaches | Sponsored by Archer | Sept. 26, 2024
Mastering ERM: Leveraging Internal and External Risk Factors for Strategic Advantage | Sponsored by Diligent | Oct. 3, 2024
Long-Term Property Strategies for a Resilient Future | Sponsored by Zurich | Oct. 10, 2024
RIMS.org/WebinarsUpcoming Virtual Workshops:
Applying and Integrating ERM | Sept 25‒26 and Dec 4‒5
Fundamentals of Risk Management | Oct 3‒4, 2024
Fundamentals of Insurance | Oct 9‒10, 2024
See the full calendar of RIMS Virtual Workshops
RIMS-CRMP Prep Workshops
Related RIMScast Episodes:
“On Risk Appetite and Tolerance”
“Climate Disclosures with Jana Utter”
“Scenario Planning with the RIMS SERMC”
“Recipes for Success with Wendy’s CRO Bob Bowman”
“All Roads Lead to ERM”
“ERM’s Value Proposition with Chris Mandel”
Sponsored RIMScast Episodes:
“Weathering Today’s Property Claims Management Challenges” | Sponsored by AXA XL (New!)
“Storm Prep 2024: The Growing Impact of Convective Storms and Hail” | Sponsored by Global Risk Consultants, a TÜV SÜD Company (New!)
“Partnering Against Cyberrisk” | Sponsored by AXA XL
“Harnessing the Power of Data and Analytics for Effective Risk Management” | Sponsored by Marsh
“Accident Prevention — The Winning Formula For Construction and Insurance” | Sponsored by Otoos
“Platinum Protection: Underwriting and Risk Engineering's Role in Protecting Commercial Properties” | Sponsored by AXA XL
“Elevating RMIS — The Archer Way” | Sponsored by Archer
“Alliant’s P&C Outlook For 2024” | Sponsored by Alliant
“Why Subrogation is the New Arbitration” | Sponsored by Fleet Response
“Cyclone Season: Proactive Preparation for Loss Minimization” | Sponsored by Prudent Insurance Brokers Ltd.
“Subrogation and the Competitive Advantage” | Sponsored by Fleet Response
“Cyberrisk Outlook 2023” | Sponsored by Alliant
“Chemical Industry: How To Succeed Amid Emerging Risks and a Challenging Market” | Sponsored by TÜV SÜD
“Insuring the Future of the Environment” | Sponsored by AXA XL
“Insights into the Gig Economy and its Contractors” | Sponsored by Zurich
“The Importance of Disaster Planning Relationships” | Sponsored by ServiceMaster
RIMS Publications, Content, and Links:
RIMS Membership — Whether you are a new member or need to transition, be a part of the global risk management community!
RIMS Virtual Workshops
On-Demand Webinars
RIMS-Certified Risk Management Professional (RIMS-CRMP)
RIMS-CRMP Stories — New interviews featuring DFW RIMS President Emily Casso Ford!
RIMS Events, Education, and Services:
RIMS Risk Maturity Model®
RIMS Events App Apple | Google Play
Sponsor RIMScast: Contact [email protected] or [email protected] for more information.
Want to Learn More?
Keep up with the podcast on RIMS.org and listen on Spotify and Apple Podcasts.
Have a question or suggestion? Email: [email protected].
Join the Conversation!
Follow @RIMSorg on Facebook, Twitter, and LinkedIn.
About our guests:
Elise Farnham, Illumine Consulting
Tweetables (Edited For Social Media Use):COVID-19 was the “black swan” we will remember for years to come. How companies dealt with it, the resources they brought to bear, and the changes to their work processes were all things that ERM considers. — Elise Farnham
I’ve always been an optimist. I always try to look at how this can benefit us. Perhaps that’s why I have embraced ERM so much. — Elise Farnham
I just love this business and I love what we do. I particularly love to help risk managers do a better job. It’s very fulfilling for me. — Elise Farnham
The stats are out there. The stories are out there. It’s just, “It could never happen to me!” I think risk managers are still fighting that battle quite heavily. — Elise Farnham
The most important thing that I have noticed from teaching risk managers is their energy. They are ready. They are thirsty. They know they have some concerns. They know there are some things they could do better. They just need the resources. — Elise Farnham
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Welcome to RIMScast. Your host is Justin Smulison, Business Content Manager at RIMS, the Risk and Insurance Management Society.
Justin Smulison interviews RIMS General Counsel and VP of External Affairs Mark Prysock about the RIMS Advocacy, the RIMS Legislative Summit being postponed to Q1 2025 to work with a fresh Congress and Administration. Mark covers a few of the important legislative issues potentially affecting RIMS and RIMS members, including the Tomorrow’s Workforce Act, the negative impact of increasing the tax burden on 501(c)(6) non-profit organizations like RIMS, and the national security issues at stake if nothing is done to make third party litigation funding transparent.
Listen for information and inspiration to get more involved in RIMS Advocacy.
Key Takeaways:
[:01] About RIMS.
[:15] About this episode. Justin introduces return guest Mark Prysock, RIMS General Counsel and VP of External Affairs.
[:42] Events! We’ve got the DFW RIMS 2024 Fall Conference and Spa Event happening on September 19th in Irving, Texas. Learn more about that event in Episode 299, which features an interview with the Texas State Office of Risk Management.
[1:00] Also on September 19th is the RIMS Chicago Chapter’s Chicagoland Risk Forum 2024. Register at ChicagolandRiskForum.org.
[1:09] Registration opened for the RIMS Canada Conference 2024 which will be held from October 6th through the 9th in Vancouver. Visit RIMSCanadaConference.ca to register.
[1:21] Registration is also open for the RIMS Western Regional, which will be held from September 29th through October 1st at the Sun River Resort in Oregon. Register at RIMSWesternRegional.com.
[1:35] We want you to join us in Boston on November 18th and 19th for the RIMS ERM Conference 2024. The agenda is live. The keynote will be announced soon. We want to see you there! A link is on this page.
[1:50] All RIMS regional conference information can be found on the Events page at RIMS.org.
[1:57] If you want to present a session at RISKWORLD 2025 in Chicago, you are in luck! The deadline to submit your session has been extended to Monday, September 9th, 2024. A link is in this episode’s notes.
[2:12] We will be bringing out Mark Prysock in just a moment but before we get started, let’s talk RIMS Webinars! All RIMS Webinars registration pages are available through RIMS.org/webinars. [2:26] On September 5th, Merrill Herzog makes their RIMS Webinars debut with the Role of Insurance in Building Resilience Against an Active Assailant Attack.
[2:35] On September 19th, Origami Risk returns to deliver Leveraging Integrated Risk Management For Strategic Advantage. On September 26th, Archer returns to explore The Future of RMIS: Beyond Traditional Approaches. Webinars for October are also available.
[2:52] Justin jumped ahead a little bit, though. On September 12th, HUB International returns to deliver the third part of their Ready for Tomorrow series, Pivot and Swerve: Staying Agile During Shifting Market Dynamics.
[3:07] Justin is delighted to be joined by the moderator for that session, the Chief Marketing Officer for Canada at HUB International, Linda Regner Dykeman. Justin welcomes Linda to RIMScast and introduces the upcoming global webinar on staying agile that Linda will host.
[3:38] The webinar will be at 1:00 p.m. Eastern Time on September 12th. Linda says they will be discussing current market trends and challenges. The industry has been able to produce some very strong profits over the last few years.
[3:52] The market needed correction after many years of unprofitability driven by weather events in the property line where rates seemed to be unsustainable. Casualty also had its issues, particularly with Directors and Officers Liability.
[4:10] As a result of the profitability the industry was able to achieve over the last few years, most carriers have become more competitive in growing their books of business. This competition is not being seen in all lines, segments, or geographies.
[4:27] Some catastrophe-prone zones such as BC and Alberta have not seen the same level of competition across the board. As the market transitions from a hard market to a competitive environment, there is some unusual and inconsistent behavior.
[4:44] Carriers in Canada are being more flexible with their appetite. London is looking to grow significantly over the next couple of years with goals of hitting $100 billion by 2025. Add to that NGAs who are seeing their market share change as local carriers become more competitive.
[5:02] As we transition out of what was considered to be a hard market, we see a lot of inconsistency in this market.
[5:11] Add to this the supply chain issues, which are not what they once were, the economy is flat with spending, once normalized for an increase in population, it reflects that of a market in a recession.
[5:25] We, as brokers, are finding competitive solutions to protect our clients. We have to pivot and swerve to discover the right opportunities.
[5:37] We had a significant rain event in Toronto, followed by one of the worst wildfires Jasper has ever seen, seemingly a once-in-a-hundred-year event; weather catastrophes are more severe and more frequent.
[5:50] How is this going to change the availability of capacity and pricing? Time will tell, as insurers try to figure out if their pricing models included the right loadings for these events.
[6:12] Being informed by what is happening in the market; the trends, the opportunities, what’s available, and partnering with the right broker, will help a risk manager make an informed decision, appropriate for their business.
[6:34] The panelists have decades of experience and expertise across North America. They work with clients, markets, and other experts and bring a much broader perspective and experience to this session.
[6:49] Steve Pottle is the risk manager on the panel. He’s been omnipresent in RIMS Canada for years. He’s a former RIMS VP and is currently the Director for Risk and Safety Services at Thompson Rivers University. Justin says he’s one of the best and Linda agrees.
[7:20] Linda will moderate. She’ll ask the panelists questions HUB International has received from its clients, based on what they are seeing happening in the environment around them. She would also like the audience to pose some questions. Audience participation is encouraged.
[7:44] Justin thanks Linda Regner Dykeman of HUB International, and will see her again on September 12th, 2024 for the third installment of HUB’s Ready for Tomorrow series, Pivot and Swerve: Staying Agile During Shifting Market Dynamics.
[8:02] Interview! Justin introduces Mark Prysock, RIMS General Counsel and VP of External Affairs. Mark will provide a RIMS Advocacy update and talk about the legislative issues on RIMS’s radar and the status of the next RIMS legislative summit. Mark, welcome to RIMScast!
[8:36] Mark Prysock is the hardest-working lawyer that Justin knows. Justin wants him to be on RIMScast weekly. Mark says he will try to be on at least once a quarter.
[9:13] The Legislative Summit has been postponed to Q1 2025 as the time Congress has left in 2024 is focused on passing continuing resolutions to keep the government open. It's not an ideal time for RIMS to come to D.C. with their legislative priorities.
[10:07] Q1 2025 will be great for RIMS to go to D.C. to talk about RIMS’s priorities. The new Congress will be seated with new Committee Chairs and Ranking Members. There will be a new administration, so a lot of new Executive Branch jobs will have been filled.
[10:46] In Q4 2024, RIMS Advocacy will announce to RIMS members the date for the Legislative Summit of Q1 2025. It will be live, in person, on Capitol Hill, similar to the 2023 event.
[11:03] RIMS Advocacy hopes to set up educational sessions on Wednesday in the U.S. Chamber of Commerce building, with a reception Wednesday evening with a fund-raising event for RISKPAC. On Thursday, everyone will descend on Capitol Hill and lobby RIMS’s issues.[11:46] RISKPAC has been going to a lot of fund-raising events for key members of Congress who sit on committees with jurisdiction over legislative issues that matter to RIMS. They focus on the Chairs, Ranking Members, and other committee members.
[12:15] RISKPAC has had some good one-on-one time with members of Congress and their key staff members to talk about RIMS’s issues.
[12:31] Greg McKenna is the Chair of the RISKPAC Trustees Committee. He supports everything RIMS is doing on the legislative front and knows that RISKPAC plays a vital role in helping RIMS accomplish those legislative objectives. Greg has been a RIMScast guest.
[13:20] Mark discusses some association-specific issues. RIMS is working in a coalition with ASAE on the Tomorrow’s Workforce Act. That legislation would liberalize 529 College Savings Plans to allow individuals to use them for post-secondary training and credentialing.
[14:21] The funds could be used for licenses and professional certifications like the RIMS-CRMP, for example. This is a successful bi-partisan, bi-cameral issue that has made good progress through the House. RISKPAC hopes something will get done by the end of 2024.
[14:53] If the Tomorrow’s Workforce Act doesn’t pass this year, RISKPAC will pursue it aggressively in the next session of Congress.
[15:05] The next issue is that Democrats and Republicans in the House and the Senate seem to believe that 501(c)(6) organizations like RIMS should be paying more taxes than they currently pay. The idea is to start taxing non-profits on their net income.
[16:16] A lot of associations like RIMS would be significantly negatively impacted if that happened. It would have an impact on a lot of organizations’ abilities to offer programs to their members and in other ways.
[16:41] RIMS will participate actively with another ASAE coalition to educate members of Congress about why non-profits should remain untaxed. That is going to be an aggressive effort that is kicking off now and into 2025.
[17:08] Both houses of Congress have working groups figuring out the approach to this issue. When the new Congress is seated, we may see some legislative proposals. The association community thinks it is extremely important to ramp up an educational campaign now.
[17:36] RIMS has members who are part of not-for-profits or associations and they should be paying close attention to our developments and progress here. It’s another reason RIMS members should join the Legislative Summit in 2025, to learn more about this sort of issue.
[18:09] One more quick break! The Spencer Educational Foundation’s goal is to help build a talent pipeline of risk management and insurance professionals. That is achieved, in part, by a collaboration with risk management and insurance educators across the U.S. and Canada.
[18:26] Whether you want to apply for a grant, participate in the Risk Manager on Campus program, or just learn more about Spencer, visit SpencerEd.org.
[18:37] On September 12th, 2024, we look forward to seeing you at the Spencer Funding Their Future Gala at The Cipriani 42nd Street in New York City. Our recent guest from Episode 293, Lilian Vanvieldt-Gray, will be our honoree.
[18:53] Lilian is the Executive Vice President and Chief Diversity, Equity, and Inclusion Officer at Alliant Insurance Services and she will be honored for her valuable contributions to supporting the future of risk management and insurance.
[19:10] That was a great episode, so after you finish this one, please go back and listen to Episode 293.
[19:16] Let’s Conclude Our Interview! RIMS CEO Gary LaBranche was the RIMScast guest on Episode 300. An item that was discussed on Gary’s risk radar is third-party litigation funding (TPLF). Mark Prysock dives deeper into TPLF and what it means to RIMS members.
[20:21] TPLF is when third parties, such as hedge funds, private equity groups, or sovereign funds, invest in litigation with the idea that the litigation has a positive result, such as a settlement or payout, and the investor will get a nice return.
[20:47] The problem with TPLF is that right now, it is not in any way transparent. Judges and opposing parties often have no idea who is funding litigation. RIMS’s focus has been on foreign entities’ involvement in litigation.
[21:24] There is real concern about having foreign funds invest in litigation because it presents both national security concerns and economic concerns. If a foreign fund invests in litigation against a defense contractor, there is a risk of economic damage to the defense contractor.
[21:54] In some cases, foreign funds would see documents that are part of the discovery and litigation process, which could include highly confidential information. This is a matter of growing concern. Key individuals in Congress recognize that something has to be done here.
[22:22] What we’ve seen so far have been a couple of legislative proposals that focus on disclosure. Any third parties that would stand to benefit financially from any sort of contingency relationship in litigation would have to be disclosed to the judge and all parties to the case.
[22:47] If there is a litigation funding agreement, that agreement would need to be shared with the court. Mark does not think we will have much success in stopping TPLF domestically.
[23:10] RIMS’s focus will be on the aspect of foreign manipulation of our courts and the extent to which foreign funds might be behind significant and very expensive litigation here in the U.S.
[23:45] Mark believes RIMS Advocacy will try to find ways to work with its friends in the insurance industry on this issue. Mark cites Chubb Limited’s Chairman and CEO Evan Greenberg’s keynote address at RISKWORLD 2024.
[24:03] Evan Greenberg mentioned TPLF as a significant problem from the industry’s perspective but not one the industry can take the lead in addressing. It’s an opportunity for RIMS to step forward and put together a coalition to work on this issue with the insurance community.
[24:37] Key members of the House and Senate are focused on this issue. That offers RIMS Advocacy a good place to start, working with them, their committee staff, and other members of Congress who would be willing to get behind and support some changes.
[25:04] Foreign funds from sanctioned nations that we don’t want infiltrating the U.S. judicial system may be participating in TPLF.
[25:44] Justin hopes we make great progress in the next six months and that the Legislative Summit will have gone on as scheduled. Justin will keep members and listeners apprised of the date. Mark will come back to RIMScast in six months.
[26:15] Justin thanks Mark for joining us here on RIMScast.
[26:22] Special thanks again to my friend, Mark Prysock, RIMS General Counsel and VP of External Affairs. For more information about RIMS's public policy efforts, visit RIMS.org/advocacy and we will keep you updated on the RIMS Legislative Summit 2025.
[26:44] It’s RIMS plug time! The RIMS App is available to RIMS members exclusively. Go to the App Store and download the RIMS App with all sorts of RIMS resources and coverage. It’s different from the RIMS Events App. Everyone loves the RIMS App!
[27:18] You can sponsor a RIMScast episode for this, our weekly show, or a dedicated episode. Links to sponsored episodes are in our show notes. RIMScast has a global audience of risk and insurance professionals, legal professionals, students, business leaders, C-Suite executives, and more. Let’s collaborate and help you reach them! Contact [email protected] for more information.
[28:00] Become a RIMS member and get access to the tools, thought leadership, and network you need to succeed. Visit RIMS.org/membership or email [email protected] for more information.
[28:17] Risk Knowledge is the RIMS searchable content library that provides relevant information for today’s risk professionals. Materials include RIMS executive reports, survey findings, contributed articles, industry research, benchmarking data, and more.
[28:32] For the best reporting on the profession of risk management, read Risk Management Magazine at RMMagazine.com. It is written and published by the best minds in risk management. Justin Smulison is the Business Content Manager at RIMS. You can email Justin at [email protected].
[28:53] Thank you for your continued support and engagement on social media channels! We appreciate all your kind words. Listen every week! Stay safe!
Mentioned in this Episode:
RIMS Advocacy
RISKWORLD 2025 will be in Chicago! May 4‒7 | Last Call For Submissions Sept. 9!
DFW RIMS 2024 Fall Conference and Spa Event | Sept 19‒20
Chicagoland Risk Forum 2024 — Presented by RIMS Chicago Chapter — Sept. 19, 2024
RIMS Western Regional — Sept 29‒Oct 1, Oregon | Registration is open!
RIMS Canada Conference 2024 — Oct. 6‒9 | Registration is open!
Spencer Educational Foundation — Funding Their Future Gala 2024 | Sept. 12, 2024
RIMS ERM Conference 2024 will be in Boston, MA Nov. 18‒19 | Register Now
RIMS DEI Council
RIMS-Certified Risk Management Professional (RIMS-CRMP)
RIMS Strategic & Enterprise Risk Center
NEW FOR MEMBERS! RIMS Mobile App
RISK PAC
RIMS Webinars:
Role of Insurance in Building Resilience Against an Active Assailant Attack | Sponsored by Merrill Herzog | Sept. 5, 2024
HUB Ready for Tomorrow Series: Pivot and Swerve — Staying Agile During Shifting Market Dynamics | Sept. 12, 2024
Leveraging Integrated Risk Management For Strategic Advantage | Sponsored by Origami Risk | Sept. 19, 2024
The Future of RMIS: Beyond Traditional Approaches | Sponsored by Archer | Sept. 26, 2024
Mastering ERM: Leveraging Internal and External Risk Factors for Strategic Advantage | Sponsored by Diligent | Oct. 3, 2024
RIMS.org/Webinars
Upcoming Virtual Workshops:
Fundamentals of Insurance | Oct 9‒10, 2024
See the full calendar of RIMS Virtual Workshops
RIMS-CRMP Prep Workshops
Related RIMScast Episodes:
“300th Episode Spectacular with RIMS CEO Gary LaBranche”
“Legal and Risk Trends with Katherine Henry”
“RIMS Public Policy and Advocacy 2023”
“Public Policy Goals with CIAB President Joel Wood” (2023)
“Keeping Up With RISK PAC” (2022)
Sponsored RIMScast Episodes:
“Weathering Today’s Property Claims Management Challenges” | Sponsored by AXA XL (New!)
“Storm Prep 2024: The Growing Impact of Convective Storms and Hail” | Sponsored by Global Risk Consultants, a TÜV SÜD Company (New!)
“Partnering Against Cyberrisk” | Sponsored by AXA XL
“Harnessing the Power of Data and Analytics for Effective Risk Management” | Sponsored by Marsh
“Accident Prevention — The Winning Formula For Construction and Insurance” | Sponsored by Otoos
“Platinum Protection: Underwriting and Risk Engineering’s Role in Protecting Commercial Properties” | Sponsored by AXA XL
“Elevating RMIS — The Archer Way” | Sponsored by Archer
“Alliant’s P&C Outlook For 2024” | Sponsored by Alliant
“Why Subrogation is the New Arbitration” | Sponsored by Fleet Response
“Cyclone Season: Proactive Preparation for Loss Minimization” | Sponsored by Prudent Insurance Brokers Ltd.
“Subrogation and the Competitive Advantage” | Sponsored by Fleet Response
“Cyberrisk Outlook 2023” | Sponsored by Alliant
“Chemical Industry: How To Succeed Amid Emerging Risks and a Challenging Market” | Sponsored by TÜV SÜD
“Insuring the Future of the Environment” | Sponsored by AXA XL
“Insights into the Gig Economy and its Contractors” | Sponsored by Zurich
“The Importance of Disaster Planning Relationships” | Sponsored by ServiceMaster
RIMS Publications, Content, and Links:
RIMS Membership — Whether you are a new member or need to transition, be a part of the global risk management community!
RIMS Virtual Workshops
On-Demand Webinars
RIMS-Certified Risk Management Professional (RIMS-CRMP)
RIMS-CRMP Stories — New interviews featuring DFW RIMS President Emily Casso Ford!
RIMS Events, Education, and Services:
RIMS Risk Maturity Model®
RIMS Events App Apple | Google Play
Sponsor RIMScast: Contact [email protected] or [email protected] for more information.
Want to Learn More?
Keep up with the podcast on RIMS.org and listen on Spotify and Apple Podcasts.
Have a question or suggestion? Email: [email protected].
Join the Conversation!
Follow @RIMSorg on Facebook, Twitter, and LinkedIn.
About our guests:
Mark Prysock, General Counsel at RIMS, Inc.
Linda Regner Dykeman of Hub International, Chief Marketing Officer for Canada
Tweetables (Edited For Social Media Use):Q1 2025 would be great for RIMS to go to D.C. to talk about legislative priorities. The new Congress will be seated with new committee chairs and ranking members. There will be a new administration, so a lot of new Executive Branch jobs will have been filled. — Mark Prysock
RIMS is working in a coalition with ASAE on the Tomorrow’s Workforce Act. That legislation would liberalize 529 College Savings Plans to allow individuals to use them for post-secondary training and credentialing. — Mark Prysock
Democrats and Republicans in the House and the Senate seem to believe that 501(c)(6) organizations like RIMS should be paying more taxes than they currently pay. They are suggesting taxing non-profits on their net income. — Mark Prysock
There is real concern about having foreign funds invest in litigation because it presents both national security and economic concerns. If a foreign fund invests in litigation against a defense contractor, there is a risk of economic damage to the contractor. — Mark Prysock
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Welcome to RIMScast. Your host is Justin Smulison, Business Content Manager at RIMS, the Risk and Insurance Management Society.
Justin Smulison interviews National Safety Council CEO Lorraine Martin about National Preparedness Month, a new OSHA proposed statement on workplace safety in extreme heat, National Recovery Month, drug overdose deaths at work, and some related topics. Lorraine also invites you to the NSC Safety Congress & Expo from September 13th through the 19th.
Listen for information and insight from NSC CEO, Lorraine Martin.
Key Takeaways:
[:01] About RIMS.
[:14] About this episode. Justin introduces return guest National Safety Council President and CEO Lorraine Martin. She will tell us what’s going on with safety and preparedness in the U.S. and the world.
[:44] Virtual Workshops! Applying and Integrating ERM is back and it will be hosted by Elise Farnham on September 25th and 26th and also on December 4th and 5th.
[:58] On October 9th and 10th, Chris Hansen returns to deliver Fundamentals of Insurance. Other dates for the Fall and the Winter are available on the virtual workshops calendar at RIMS.org/virtualworkshops.
[1:16] RIMS-CRMP Prep Courses! On September 10th and 11th, the RIMS-CRMP Exam Prep will be held with NAIT. There is another RIMS-CRMP Exam Prep on September 12th and 13th.
[1:31] The next RIMS-CRMP-FED Exam Prep course will be hosted along with George Mason University on December 3rd through 5th, 2024. Links to these courses can be found on the Certification Page of RIMS.org and in this episode’s show notes.
[1:46] Events! We’ve got the DFW RIMS 2024 Fall Conference and Spa Event happening on September 19th in Irving, Texas. Learn more about that event in Episode 299, which features an interview with the Texas State Office of Risk Management.
[2:04] Also on September 19th is the RIMS Chicago Chapter’s Chicagoland Risk Forum 2024. Register at ChicagolandRiskForum.org.
[2:13] Registration opened for the RIMS Canada Conference 2024 which will be held from October 6th through the 9th in Vancouver. Visit RIMSCanadaConference.ca to register.
[2:26] Registration is also open for the RIMS Western Regional, which will be held from September 29th through October 1st at the Sun River Resort in Oregon. Register at RIMSWesternRegional.com.
[2:39] We want you to join us in Boston on November 18th and 19th for the RIMS ERM Conference 2024. The agenda is live. The keynote will be announced soon. We want to see you there! A link is on this page.
[2:55] The nominations are now open for the RIMS ERM Award of Distinction 2024. Nominations are due August 30th. A link to the nomination form is in this episode’s show notes.
[3:09] If you or someone you know manages an ERM program that delivers the goods, we want to hear about it. A link is in this episode’s show notes. All RIMS regional conference information can be found on the Events page at RIMS.org.
[3:26] Interview! I am delighted to be rejoined by National Safety Council President and CEO Lorraine Martin. Her timing is perfect for National Preparedness Month in September. We’ve got so much to discuss in the way of natural catastrophes and other risks.
[3:46] We will also talk about National Recovery Month, and how prescription opioids can impact employees and employers and why it is such an important business risk. That dovetails into last week’s episode with the NCCI.
[4:02] We’ll talk about the NSC’s Safety Congress and Expo on September 13th through the 19th in Florida and we’ll also talk a bit about Lorraine’s background in the U.S. Air Force, her decades at Lockheed Martin, and how those shaped her risk perspective.
[4:24] Lorraine Martin, welcome back to RIMScast!
[4:45] Lorraine started her career in the U.S. Air Force. Justin thanks her for her service. After the Air Force, Lorraine spent nearly 30 years at Lockheed Martin.
[5:29] The Air Force and all the armed services ask their people to do high-risk things to protect our nation and support our allies around the world. As a member of the armed services, you understand how important safety is to those you protect, and the risks that go with that.
[5:55] Lorraine started in the Air Force in the early ’80s. Being a five-foot female in the Air Force she had combat boots and survival suits that didn’t always fit. She saw the need to keep everyone safe. That means being open and expansive to make sure to cover everybody.
[6:44] At Lockheed Martin, Lorraine ran some of the aircraft manufacturing programs. There was potential for serious injury and fatality (SIF), with energy, heights, and all kinds of things that need to be done safely.
[7:08] The products being built had to go do important things around the world, so they had to meet safety standards for operation and bring everybody home. Lorraine needed to understand safety in manufacturing and in the mission.
[7:30] Justin and Lorraine met after Lorraine joined the NSC as President and CEO in 2019. Less than a year later, COVID-19 hit the U.S. Lorraine has been at the NSC for five years. Time sometimes flew by and In some cases, it felt like the world stood still for everybody.
[8:13] On RIMScast in 2020, Justin and Lorraine talked about technology and the importance of reaching people, through podcasts, Zoom, or Teams. Lorraine is responsible for providing training so people can be safe. She had to learn how to do that when she couldn’t be with them.
[8:40] The NSC had to become good at virtual training and helping customers and stakeholders understand what remote and virtual learning looks like. The world has come so far in understanding what people can do virtually. It’s not everything! Human interaction is still critical.
[9:01] Lorraine says we learned so much, whether for drivers' fleet training or for folks doing CPR. The NSC was able to reach more people, which is great when you’re talking about safety. In many cases, the NSC reached them in a more cost-effective manner for all involved.
[9:27] The NSC focused on what was happening to humans as they were being buffeted during this time, from 2020. On RIMScast, Lorraine and Justin had talked about mental health. The NSC pioneered some research that looked at how psychological safety impacts physical safety.
[9:55] Lorraine believes that since 2020, we’ve come so far in understanding that physical safety can be impacted by many different aspects of your life like distraction, fatigue, or substance abuse, that can cause you not to be on your game.
[10:22] The NSC honed in on the issue of a person not being on their game as being impaired, and they shouldn’t do something that would put themselves or somebody else at risk.
[10:38] The NSC leaned into trainings around being able to identify impairment and giving people the skills to take action so they can take somebody out of harm’s way. It’s easy to say and hard to do but so critical.
[10:55] The NSC and RIMS both used the pandemic as an opportunity to dial up virtual offerings and dial back some live events. Many of the right live events have come back. There is some training that is important to be in person.
[11:18] In-person collaboration and interaction support mental health. Isolation as a result of the pandemic was a burden for many folks.
[11:47] The NSC received positive feedback on their SAFER initiative, ensuring people were safe in returning to work. A task force of stakeholders from government, non-profits, public health medical professionals, and Fortune 500 companies advised NSC and NSC advised workplaces.
[12:30] The SAFER guidelines included ventilation, vaccination, and all of the things a business would need. It was a one-stop shop for policy statements, legal statements, and other best practices for workplaces to use to safely accommodate workers at work.
[13:10] The SAFER initiative is still going on. It’s funded now by the CDC. NSC is now looking at long-term COVID, mental health and well-being, the overall long-term effects of a pandemic, and how workplaces prepare for whatever’s coming in the future.
[14:06] Lorraine just listened to a piece on NPR about COVID-19. We’re still learning. We’ve found a way so that most folks do not perish from it, but we don’t know everything about it and probably won’t for some time.
[14:28] In Long COVID there’s some inflammation or reaction that’s still happening long after the initial symptoms. Understanding it and what we can do either to prevent or treat it is still in front of us.
[14:46] Organizations that let NSC white-label guideline documents for distribution were mostly NSC member organizations. NSC has roughly 14,000 member organizations and companies. They get policies and information from NSC and they also give back so others could learn.
[16:01] All of the armed services are members of the National Safety Council. Some of them use NSC training for various things. Lorraine’s past employer, Lockheed Martin, has been a member for a long time.
[16:13] NSC has groups called networks, made up of the larger companies, that look at big trends coming, to help the government prepare and give back to small and mid-sized companies. Lockheed Martin is in many of the networks as are other Fortune 100 companies.
[16:44] It’s RIMS plug time! Webinars! On September 5th, Merrill Herzog debuts on RIMS Webinars with the Role of Insurance in Building Resilience Against an Active Assailant Attack.
[16:57] On September 12th, HUB International returns to deliver the third part of their Ready for Tomorrow series, Pivot and Swerve: Staying Agile During Shifting Market Dynamics.
[17:12] On September 19th, Origami Risk returns to deliver Leveraging Integrated Risk Management For Strategic Advantage. On September 26th, Archer returns to discuss The Future of RMIS: Beyond Traditional Approaches.
[17:28] On October 3rd, Diligent will host Mastering ERM: Leveraging Internal and External Risk Factors for Strategic Advantage. More RIMS Webinars will be announced soon and added to RIMS.org/Webinars. Register here. Registration is always complimentary for RIMS members.
[17:50] The RIMS ERM Conference 2024 will be held November 18th and 19th in Boston, Massachusetts. The agenda is live.
[18:01] The submission process is open for the RIMS ERM Global Award of Distinction. A link to the application is in this episode’s show notes. The deadline for submissions is August 30th.
[18:12] So review your organization’s ERM program. If you feel it was successful and you have the numbers and the data to back it up, compile that information and get ready to submit your ERM program for the ERM Award of Distinction.
[18:26] The Spencer Educational Foundation’s goal is to help build a talent pipeline of risk management and insurance professionals. That is achieved, in part, by a collaboration with risk management and insurance educators across the U.S. and Canada.
[18:41] Whether you want to apply for a grant, participate in the Risk Manager on Campus program, or just learn more about Spencer, visit SpencerEd.org.
[18:52] On September 12th, 2024, we look forward to seeing you at the Spencer Funding Their Future Gala at The Cipriani 42nd Street in New York City. Our recent guest from Episode 293, Lilian Vanvieldt-Gray, will be our honoree.
[19:08] Lilian is the Executive Vice President and Chief Diversity, Equity, and Inclusion Officer at Alliant Insurance Services and she will be honored for her valuable contributions to supporting the future of risk management and insurance.
[19:25] That was a great episode, so after you finish this one, please go back and listen to Episode 293.
[19:31] Let’s Conclude Our Interview! September is National Preparedness Month. NOAA has said that atmospheric and oceanic conditions continue to support an above-normal 2024 Atlantic hurricane season with a 90% probability of this result.
[20:57] Organizations must do a lot to prepare for extreme weather. Extreme weather is getting more common. It affects communities but also impacts people at work. Businesses must be prepared for their businesses to continue but also to protect their people from extreme weather.
[21:42] Businesses can act to protect their people from wildfires, tornadoes, storms, and heat. Heat is the deadliest weather event. Our world is getting hotter, the data shows. Many people work outside in extreme, dangerous heat.
[22:18] OSHA recently issued a proposed ruling, informed by input from the NSC and its members, to keep indoor and outdoor workers safe from heat injury and illness. Employers need to incorporate these weather events into their safety programs.
[22:59] You need a written heat injury and illness policy and prevention program. Document your emergency action plans. Practice them. Hold heat awareness training. Heat exhaustion and heat stress prevention is about being preventative. Know the signs, hydrate, and take shaded breaks.
[23:30] Education is hugely important to prevent heat illness. NSC has resources for employers to build their safety programs. Go to NSC.org and reach out. If you haven’t put in some of these extreme weather precautions to protect your employees, Lorraine urges you to do so.
[24:13] September is also National Alcohol and Drug Addiction Recovery Month. Overdoses are the leading cause of unintentional death in the U.S. Every day we lose 200 people to an unintentional death from an overdose, compared to 100 roadway deaths.
[25:16] Deaths on the job from overdoses have increased by over 600% since 2011. Overdoses make up nearly 10% of all deaths at work in the U.S. In some U.S. states the number is higher. In California, the rate of overdose deaths at work over the last 12 months was closer to 20%.
[26:09] Construction and agriculture are hard hit by overdose deaths. Sometimes it’s the type of work being done. Last year the FDA made naloxone, an opioid reversal medication, available over the counter.
[26:39] The NSC advocates that naloxone be stocked in every workplace and all employees be trained in this life-saving reversal practice, just like with CPR or AEDs. You want to be able to administer this life-saving drug on the spot to bring someone back to life if you can.
[27:03] For those workplaces where they’ve had a fatality due to an unintended overdose, it’s devastating for the workforce, the community, and families.
[27:11] We have this incredibly impactful drug and in most cases, the person has survived, and you can’t hurt someone with it, whether or not they’re overdosing or whether or not you’ve misdiagnosed them, you can’t hurt them.
[27:28] The NSC provides training on its website on how to do naloxone. It's virtual, and it is in a workplace language. NSC also has drug policies, legal briefs, and good samaritan laws, state by state. If somebody says they need some guide, NSC tries to find it to put it on the website.
[28:26] Sixty-six percent of people with a substance use disorder of any kind have a job. The workplace is a great place to be intervening for them and having their back.
[28:45] A study from the Massachusetts Dept. of Public Health found that Massachusetts working-age residents were 35% more likely to die of an opioid-related overdose if they’d previously been injured at work.
[29:06] If you get hurt at work and then get prescribed an opioid, you can sometimes be on that path to a substance use issue just because you’re trying to make sure that you can stay healthy and be at work. This is an important issue for our workplaces and employers to be part of.
[29:27] Employees in recovery are very good employees who miss fewer days of work than the average employee and they save employers money, once they are back at work. Lorraine encourages employers to ensure employee safety, help in recovery, and get them back to work.
[30:11] Labor Day is coming up. NSC offers a message for the Labor Day weekend on how many people may lose their lives if people don’t drive well this Labor Day weekend: 457 across the nation. Every single death on a roadway is preventable. When you drive, do so safely.
[31:50] Justin says to look for the link to the NSC 2024 Labor Day message in this episode’s show notes.
[31:58] The NSC Safety Congress & Expo will be held in Orlando, September 13th through the 19th. Lorraine will talk to the stakeholders and be on the stage. It’s the big NSC show of the year. There is also a fundraiser around it, the NSC board meeting, and professional development.
[32:29] The main show is on the Monday, Tuesday, and Wednesday, the 16th through the 18th. Speakers include Doug Parker, the head of OSHA, technical sessions, and a huge Expo floor.
[32:43] There will be a cool speaker who is a blind adventurer who climbs mountains, and who will share resilience and safety-related messages. Go the the NSC Safety Congress link in this episode’s notes. Lorraine looks forward to seeing everyone this year, there in Orlando.
[33:12] Everyone is definitely united at the NSC Safety Congress & Expo!
[33:14] Lorraine, it has been such a pleasure to see you again and to speak with you to get your perspective and insight. Thank you for rejoining us! Hopefully, the next time we have you on RIMScast, it won’t be four years between visits.
[33:37] Special thanks again to NSC CEO, Lorraine Martin for reasoning us here on RIMScast. We love the NSC here at RIMS; they do great work. The NSC Safety Congress & Expo will be held from September 13th through 19th in Orlando, Florida. A link is in this episode’s show notes.
[34:01] Also in our show notes, you will find the prior interview with Lorraine Martin. She is a wealth of information and perspective.
[34:09] It’s RIMS plug time! The RIMS App is available to RIMS members exclusively. Go to the App Store and download the RIMS App with all sorts of RIMS resources and coverage. It’s different from the RIMS Events App. Everyone loves the RIMS App!
[34:44] You can sponsor a RIMScast episode for this, our weekly show, or a dedicated episode. Links to sponsored episodes are in our show notes. RIMScast has a global audience of risk and insurance professionals, legal professionals, students, business leaders, C-Suite executives, and more. Let’s collaborate and help you reach them! Contact [email protected] for more information.
[35:28] Become a RIMS member and get access to the tools, thought leadership, and network you need to succeed. Visit RIMS.org/membership or email [email protected] for more information.
[35:48] Risk Knowledge is the RIMS searchable content library that provides relevant information for today’s risk professionals. Materials include RIMS executive reports, survey findings, contributed articles, industry research, benchmarking data, and more.
[36:02] For the best reporting on the profession of risk management, read Risk Management Magazine at RMMagazine.com. It is written and published by the best minds in risk management. Justin Smulison is the Business Content Manager at RIMS. You can email Justin at [email protected].
[36:24] Thank you for your continued support and engagement on social media channels! We appreciate all your kind words. Listen every week! Stay safe!
Mentioned in this Episode:
DFW RIMS 2024 Fall Conference and Spa Event | Sept 19-20
Chicagoland Risk Forum 2024 – Presented by RIMS Chicago Chapter – Sept. 19, 2024
RIMS Western Regional – Sept 29‒Oct 1, Oregon | Registration is open!
RIMS Canada Conference 2024 – Oct. 6‒9 | Registration is open!
Spencer Educational Foundation – Funding Their Future Gala 2024 | Sept. 12, 2024
RIMS ERM Conference 2024 will be in Boston, MA Nov. 18‒19 | Register Now
RIMS ERM Award of Distinction – Nominations Open Through Aug. 30, 2024!
RISKWORLD 2025 will be in Chicago! May 4‒7
RIMS DEI Council
RIMS-Certified Risk Management Professional (RIMS-CRMP)
RIMS Strategic & Enterprise Risk Center
NEW FOR MEMBERS! RIMS Mobile App
NSC CEO and President Lorraine Martin (NSC Bio)
NSC Safety Congress & Expo – Sept 13‒19
OSHA Heat Injury and Illness Prevention in Outdoor and Indoor Work Settings Rulemaking
National Recovery Month
NSC 2024 Labor Day Message
RIMS Webinars:
How to Successfully Deploy AI in Risk Management | Sponsored by Riskonnect | Aug. 27, 2024
Role of Insurance in Building Resilience Against an Active Assailant Attack | Sponsored by Merrill Herzog | Sept. 5, 2024
HUB Ready for Tomorrow Series: Pivot and Swerve — Staying Agile During Shifting Market Dynamics | Sept. 12, 2024
Leveraging Integrated Risk Management For Strategic Advantage | Sponsored by Origami Risk | Sept. 19, 2024
The Future of RMIS: Beyond Traditional Approaches | Sponsored by Archer | Sept. 26, 2024
Mastering ERM: Leveraging Internal and External Risk Factors for Strategic Advantage | Sponsored by Diligent | Oct. 3, 2024
RIMS.org/Webinars
Upcoming Virtual Workshops:
Optimizing Risk Management with AI | Aug. 29, 2024
Fundamentals of Insurance | Oct 9‒10, 2024
See the full calendar of RIMS Virtual Workshops
RIMS-CRMP Prep Workshops
Related RIMScast Episodes:
Opioid Awareness and Workers Comp Risks with Raji Chadarevian of the NCCI
Bigger Risks with the Texas State Office of Risk Management | Sponsored By Hillwood
DE&I Initiatives with Spencer 2024 Honoree Lilian Vanvieldt-Gray of Alliant Insurance Services
Safety Does Not Pause: Employee Hazards During COVID-19 with NSC President & CEO Lorraine Martin [March 2020]
Sponsored RIMScast Episodes:
“Weathering Today’s Property Claims Management Challenges” | Sponsored by AXA XL (New!)
“Storm Prep 2024: The Growing Impact of Convective Storms and Hail” | Sponsored by Global Risk Consultants, a TÜV SÜD Company (New!)
“Partnering Against Cyberrisk” | Sponsored by AXA XL
“Harnessing the Power of Data and Analytics for Effective Risk Management” | Sponsored by Marsh
“Accident Prevention — The Winning Formula For Construction and Insurance” | Sponsored by Otoos
“Platinum Protection: Underwriting and Risk Engineering's Role in Protecting Commercial Properties” | Sponsored by AXA XL
“Elevating RMIS — The Archer Way” | Sponsored by Archer
“Alliant’s P&C Outlook For 2024” | Sponsored by Alliant
“Why Subrogation is the New Arbitration” | Sponsored by Fleet Response
“Cyclone Season: Proactive Preparation for Loss Minimization” | Sponsored by Prudent Insurance Brokers Ltd.
“Subrogation and the Competitive Advantage” | Sponsored by Fleet Response
“Cyberrisk Outlook 2023” | Sponsored by Alliant
“Chemical Industry: How To Succeed Amid Emerging Risks and a Challenging Market” | Sponsored by TÜV SÜD
“Insuring the Future of the Environment” | Sponsored by AXA XL
“Insights into the Gig Economy and its Contractors” | Sponsored by Zurich
“The Importance of Disaster Planning Relationships” | Sponsored by ServiceMaster
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About our guest:
Lorraine Martin, CEO, National Safety Council
Tweetables (Edited For Social Media Use):We just said, “We’re going to be the place, if you need anything to navigate the return to work, we’re going to have it for you.” And if we didn’t have it, companies would give us theirs and enable us in many cases to white-label it and provide it to the world. — Lorraine Martin
We have a lot of resources for employers to build their heat safety programs. — Lorraine Martin
Right now, overdoses are the leading cause of unintentional death in the U.S. Deaths on the job from overdoses have increased by over 600% since 2011. Overdoses make up nearly 10% of all deaths at work. — Lorraine Martin
For those workplaces where they’ve had a fatality due to an unintended overdose, it’s devastating for the workforce, the community, and families. — Lorraine Martin
Driving is the most dangerous thing we do every day and it’s even more dangerous during these longer weekends. Buckle up, follow the speed limit, don’t get distracted, and drive sober. — Lorraine Martin
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Welcome to RIMScast. Your host is Justin Smulison, Business Content Manager at RIMS, the Risk and Insurance Management Society.
Justin Smulison interviews Raji H. Chadarevian, Executive Director, Actuarial Research , the National Council of Compensation Insurance, or NCCI, about opioid use and related risks for injured workers. Raji and Justin talk about the statistics. The good news is that through the joint efforts of insurers, the NCCI, prescribing physicians, pharmacies, and employers, the utilization of opioids for pain management in injured workers, while appropriate in some cases, has decreased sharply in the last eight years, and continuing efforts to find alternative pain management systems should keep that trend going.
Listen in for more information about recovery awareness, and what your company can do to help injured workers avoid opioid addiction.
Key Takeaways:
[:01] About RIMS.
[:14] RISKWORLD 2025 will take place in Chicago, Illinois from May 4th through May 7th. The call for submissions is now open through August 27th. A link to the submission form is in this episode’s show notes.
[:30] Virtual Workshops! Applying and Integrating ERM is back and it will be hosted by Elise Farnham on September 25th and 25th and also on December 4th and 5th.
[:56] On August 29th, Pat Saporito returns to discuss Optimizing Risk Management with Artificial Intelligence.
[1:05] On October 9th and 10th, Chris Hansen returns to deliver Fundamentals of Insurance. Other dates for the Fall and the Winter are available on the virtual workshops calendar at RIMS.org/virtualworkshops.
[1:24] RIMS-CRMP Prep Courses! On September 10th and 11th, the RIMS-CRMP Exam Prep will be held with NAIT. There is another RIMS-CRMP Exam Prep on September 12th and 13th.
[1:38] The next RIMS-CRMP-FED Exam Prep course will be hosted along with George Mason University on December 3rd through 5th, 2024. Links to these courses can be found on the Certification Page of RIMS.org and in this episode’s show notes.
[1:53] Events! We’ve got the DFW RIMS 2024 Fall Conference and Spa Event happening on September 19th in Irving, Texas. Learn more about that event in Episode 299, which features an interview with the Texas State Office of Risk Management.
[2:11] Also on September 19th is the RIMS Chicago Chapter’s Chicagoland Risk Forum 2024. Register at ChicagolandRiskForum.org.
[2:21] Registration opened for the RIMS Canada Conference 2024 which will be held from October 6th through the 9th in Vancouver. Visit RIMSCanadaConference.ca to register.
[2:33] Registration is also open for the RIMS Western Regional, which will be held from September 29th through October 1st at the Sun River Resort in Oregon. Register at RIMSWesternRegional.com.
[2:48] We want you to join us in Boston on November 18th and 19th for the RIMS ERM Conference 2024. The agenda is live. The keynote will be announced soon. We want to see you there! A link is in this episode’s show notes.
[3:04] The nominations are now open for the RIMS ERM Award of Distinction 2024. Nominations are due August 30th. A link to the nomination form is in this episode’s show notes.
[3:16] If you or someone you know manages an ERM program that delivers the goods, we want to hear about it. A link is in this episode’s show notes. All RIMS regional conference information can be found on the Events page at RIMS.org.
[3:32] The Interview! With National Recovery Month in September, and National Opioid Awareness Day, September 21st, I wanted to shine a light on opioid addiction and Workers’ Compensation claims with new data about opioid abuse and how it impacts the workplace.
[4:05] This is a critical risk and I wanted to speak with someone who can tell the story about the data, so I reached out to Raji Chadarevian, the Executive Director for Actuarial Research at the National Council of Compensation Insurance, or NCCI.
[4:24] He has the insight and perspective on the new data that’s being released, so let’s hear all about it! Raji Chadarevian, welcome to RIMScast!
[5:03] Raji states that the NCCI celebrated its 100th anniversary in 2023. The mission of NCCI is to help foster a healthy workers’ compensation system. It’s an advisory agency for 38 states and the District of Columbia, serving as a comprehensive source for all things workers’ comp.
[5:47] Raji explains that as an advisory organization, the NCCI provides ratings and statistical advisory insights to the industry, as a whole. It also collects a variety of data.
[6:05] Raji is the Executive Director of Research at NCCI. He tells the story behind the numbers. The brainiacs do the research and help him tell the story.
[6:47] NCCI collects data representing $30 million in workers’ comp premium for just under four million policies a year, six million employer risk reports with detailed information about premiums, claims, and 10 million transactions with detailed information on lost-time claims.
[7:17] NCCI collects data on 52 million payments to medical providers for claims every year. The Medical Data Call, where NCCI collects this information, started in 2010. It contains meaningful information to understand the experience of the injured worker throughout the recovery process.
[8:01] Mapping the medical data, NCCI gets to understand the medical services provided, where they are provided, by what provider, and for what purpose. The data provides details of drugs prescribed and where they are dispensed, to understand the use of opioids in workers’ comp.
[8:41] Managing pain is a big part of the recovery for workers’ comp injuries. Over the years, NCCI has published opioid use for some 40 states where it collects medical data. This data details precise utilization trends, the types of narcotics used, and the frequency of use.
[9:18] The data shows carriers that cover workers’ comp for employers are able to compare their experience in any one jurisdiction to statewide trends and act on that intelligence to manage their pharmacy experience.
[9:45] In the last eight years, there has been a huge change in opioid prescribing in workers’ comp. We’ve seen a significant decrease. The NCCI data shows that in the last eight years, opioid use in the year after an injury has decreased from 42% of lost time claims to 16%.
[11:14] Raji notes this is a very important trend. Being addicted to pain medications makes it hard to manage your daily work when that addiction is taking hold. Opioid use is not opioid addiction. Opioid utilization can lead to opioid addiction.
[11:50] There are alternatives to treating pain that have come through with the greater awareness of opioid addiction.
[12:04] It’s RIMS plug time! Webinars! On August 27th, Riskonnect returns to discuss How To Successfully Deploy AI in Risk Management. On September 5th, Merrill Herzog debuts on RIMS Webinars with the Role of Insurance in Building Resilience Against an Active Assailant Attack.
[12:26] On September 12th, HUB International returns to deliver the third part of their Ready for Tomorrow series, Pivot and Swerve: Staying Agile During Shifting Market Dynamics.
[12:41] On September 19th, Origami Risk returns to deliver Leveraging Integrated Risk Management For Strategic Advantage. More RIMS Webinars will be announced soon and added to RIMS.org/Webinars. Register there. Registration is always complimentary for RIMS members.
[13:00] The RIMS ERM Conference 2024 will be held November 18th and 19th in Boston, Massachusetts. The agenda is live.
[13:12] The submission process is open for the RIMS ERM Global Award of Distinction. A link to the application is in this episode’s show notes. The deadline for submissions is August 30th.
[13:22] So review your organization’s ERM program. If you feel it was successful and you have the numbers and the data to back it up, compile that information and get ready to submit your ERM program for the ERM Award of Distinction.
[13:37] Back to the Interview! The use of alternative pain medications has driven opioid utilization coming down from 42% of indemnity claims to about 16% of indemnity claims. If you look at all claims, opioid utilization is about one in 16, as opposed to one in four, 10 years ago.
[14:12] The huge decrease shows a dramatic change in the way the systems are treating the injured workers, in terms of medications provided. When NCCI first tried to address the opioid epidemic in workers’ comp, it held interviews with physicians, carriers, and regulators.
[14:50] Workers’ comp is a highly regulated system. The regulators had some say in how to manage opioids and other pain prescriptions. There was a meeting of the minds of all stakeholders: those defending the workers, prescribing physicians, carriers, and employers.
[15:30] Opioid addiction was an epidemic that impacted the workers’ comp system heavily. The conversations with stakeholders led to important insights on what the system can do to manage this experience.
[15:57] Each carrier told NCCI they were already developing a specific program to manage the prescribing patterns for injured workers. Regulators were very interested in which opioids were being prescribed. Fentanyl used to be in the top 10 but not anymore.
[17:35] The decrease in use was a result of increased awareness across the board, from patients, physicians, claims managers, and employers. Everyone was on board about the seriousness of the opioid situation.
[18:11] We have time for one more break! The Spencer Educational Foundation’s goal is to help build a talent pipeline of risk management and insurance professionals. That is achieved, in part, by a collaboration with risk management and insurance educators across the U.S. and Canada.
[18:28] Whether you want to apply for a grant, participate in the Risk Manager on Campus program, or just learn more about Spencer, visit SpencerEd.org.
[18:39] On September 12th, 2024, we look forward to seeing you at the Spencer Funding Their Future Gala at The Cipriani 42nd Street in New York City. Our recent guest from Episode 293, Lilian Vanvieldt-Gray, will be our honoree.
[18:55] Lilian is the Executive Vice President and Chief Diversity, Equity, and Inclusion Officer at Alliant Insurance Services and she will be honored for her valuable contributions to supporting the future of risk management and insurance.
[19:12] That was a great episode, so after you finish this one, please go back and listen to Episode 293.
[19:18] Let’s conclude our interview with Raji Chadarevian of the NCCI. Justin notes that the decline in opioid utilization has been observed across all study states and the 10 most common medical conditions.
[19:53] The share of claims with high opioid usage in the first year following an injury has decreased by approximately 85%, reaching an all-time low of two percent, for injuries occurring in 2022. Opioid utilization has started to level off.
[20:17] Utilization at the early stages of the injured worker’s recovery increases the likelihood of continued use. Managing the early stage of opioid utilization is important.
[20:57] Physicians have told NCCI that one of the strategies they use is to draw up a contract between the prescribing physician and the injured worker that describes when the opioid utilization is going to decrease and then stop. That is effective in managing expectations.
[21:28] The more opioids you have, the more you want. Having that contract allows the prescribing physician to manage the opioid use over time. That is critical because once a person gets to a certain stage of using opioids, it’s very hard to get the person off opioids.
[21:57] Some injured workers return to work while using prescribed opioids and some do not. One side effect of opioid addiction is polypharmacy, an increase of medications being taken, and it becomes very difficult to manage from a medical perspective.
[22:49] The data has shown that if you’re able to manage opioid utilization from the beginning, the injured worker’s recovery can be managed in a predicted way.
[23:31] Risk managers need to pay great attention to the injured worker where there is opioid use, making sure that injured workers who do get on an opioid have the necessary support from a nurse case manager, along with the physician, looking out for the patient’s care.
[24:19] Opioid utilization results in an improved condition over time, so it’s tricky to manage. Measuring pain is also very difficult. Raji advises risk managers to make sure they have the right physicians and people assisting with those cases where there is an opioid prescribed.
[24:52] Pay more attention to those folks. If opioid utilization is not well-managed, the consequences can be dramatic. Besides polypharmacy, often the patient is not able to sleep, able to function or go back to work, which becomes a bigger issue.
[25:48] Raji suggests there are multiple ways to make sure your employees are well-educated from a health perspective. Part of wellness is to be educated and understand the impact of opioids, and such. There are programs to supply your employees with that information.
[26:26] HR organizations, workers’ comp management, loss control management, and insurers have the tools to help your workers and aid in awareness.
[27:00] It’s also important to know that health organizations have training for physicians about opioid addiction and alternative prescriptions for pain management. This coming year, NCCI is looking at alternative pain management techniques like behavioral therapy, and physical therapy.
[27:58] There is also virtual reality treatment that has an impact. The NCCI study will look at what is currently being used to manage pain and what alternative treatments are effective, including cannabis, depending on the state and jurisdiction.
[29:07] The use of virtual reality for treating pain is in training the brain to understand the pain messages coming through that may be associated with trauma. The pain from an injury may be associated with the psychological impact of the trauma. Virtual reality may treat that impact.
[30:19] Raji says that there are some interesting studies taking place now on treating pain with virtual reality, including one at the University of Central Florida.
[30:47] Raji contributed to a series for NCCI on the future of workplace safety technology. Raji found that technology to help with posture and carrying things is important in a warehouse. In workers’ comp, there are a lot of lower back injuries that could be avoided with proper posture.
[33:33] Justin hopes to see some unveiling of ergonomic wearable tech at RISKWORLD 2025 in Chicago.
[33:46] The NCCI has an upcoming podcast later in 2024, the NCCI State of the Line Podcast. Raji looks forward to being a regular guest on the show, “if the podcasters are like you, Justin, making the conversation as good as this.”
[35:00] Justin thanks Raji for coming on RIMScast to help raise awareness of National Recovery Month and National Opioid Awareness Day and for helping injured workers get the pain management they need and return to work safely.
[35:24] Special thanks again to Raji Chadarevian of the National Council on Compensation Insurance. Lots of NCCI links are in this episode’s show notes. Later this year, listen for Raji on the upcoming NCCI State of the Line Podcast.
[35:44] It’s RIMS plug time! The RIMS App is available to RIMS members exclusively. Go to the App Store and download the RIMS App with all sorts of RIMS resources and coverage. It’s different from the RIMS Events App. Everyone loves the RIMS App!
[36:17] You can sponsor a RIMScast episode for this, our weekly show, or a dedicated episode. Links to sponsored episodes are in our show notes. RIMScast has a global audience of risk and insurance professionals, legal professionals, students, business leaders, C-Suite executives, and more. Let’s collaborate and help you reach them! Contact [email protected] for more information.
[37:01] Become a RIMS member and get access to the tools, thought leadership, and network you need to succeed. Visit RIMS.org/membership or email [email protected] for more information.
[37:19] Risk Knowledge is the RIMS searchable content library that provides relevant information for today’s risk professionals. Materials include RIMS executive reports, survey findings, contributed articles, industry research, benchmarking data, and more.
[37:35] For the best reporting on the profession of risk management, read Risk Management Magazine at RMMagazine.com. It is written and published by the best minds in risk management. Justin Smulison is the Business Content Manager at RIMS. You can email Justin at [email protected].
[37:56] Thank you for your continued support and engagement on social media channels! We appreciate all your kind words. Listen every week! Stay safe!
Mentioned in this Episode:
DFW RIMS 2024 Fall Conference and Spa Event | Sept 19‒20
Chicagoland Risk Forum 2024 — Presented by RIMS Chicago Chapter — Sept. 19, 2024
RIMS Western Regional — Sept 29‒Oct 1, Oregon | Registration is open!
RIMS Canada Conference 2024 — Oct. 6‒9 | Registration is open!
Spencer Educational Foundation — Funding Their Future Gala 2024 | Sept. 12, 2024
RIMS ERM Conference 2024 will be in Boston, MA Nov. 18‒19 | Register Now
RIMS ERM Award of Distinction — Nominations Open Through Aug. 30, 2024!
RISKWORLD 2025 will be in Chicago! May 4‒7
RIMS DEI Council
RIMS-Certified Risk Management Professional (RIMS-CRMP)
RIMS Strategic & Enterprise Risk Center
NEW FOR MEMBERS! RIMS Mobile App
Risk Management Monitor: “Prescription Opioid Risks to the Workplace Explored at RISKWORLD 2018”
NCCI.com article links:
“Opioid Prescribing Across Industry Groups”
“On Opioids — The Doctors’ Perspective”
“On Opioids — Claims Professionals’ Perspective”
“On Opioids — Regulators’ Perspective”
RIMS Webinars:
How to Successfully Deploy AI in Risk Management | Sponsored by Riskonnect | Aug. 27, 2024
Role of Insurance in Building Resilience Against an Active Assailant Attack | Sponsored by Merrill Herzog | Sept. 5, 2024
HUB Ready for Tomorrow Series: Pivot and Swerve — Staying Agile During Shifting Market Dynamics | Sept. 12, 2024
Leveraging Integrated Risk Management For Strategic Advantage | Sponsored by Origami Risk | Sept. 19, 2024
RIMS.org/WebinarsUpcoming Virtual Workshops:
Managing Data for ERM | Aug. 22, 2024
Optimizing Risk Management with AI | Aug. 29, 2024
Fundamentals of Insurance | Oct 9‒10, 2024
See the full calendar of RIMS Virtual Workshops
RIMS-CRMP Prep Workshops
Related RIMScast Episodes:
“Mental Health Awareness Month 2023”
“Mental Health in the Workplace with Darcy Gruttadaro”
Sponsored RIMScast Episodes:
“Weathering Today’s Property Claims Management Challenges” | Sponsored by AXA XL (New!)
“Storm Prep 2024: The Growing Impact of Convective Storms and Hail” | Sponsored by Global Risk Consultants, a TÜV SÜD Company (New!)
“Partnering Against Cyberrisk” | Sponsored by AXA XL
“Harnessing the Power of Data and Analytics for Effective Risk Management” | Sponsored by Marsh
“Accident Prevention — The Winning Formula For Construction and Insurance” | Sponsored by Otoos
“Platinum Protection: Underwriting and Risk Engineering's Role in Protecting Commercial Properties” | Sponsored by AXA XL
“Elevating RMIS — The Archer Way” | Sponsored by Archer
“Alliant’s P&C Outlook For 2024” | Sponsored by Alliant
“Why Subrogation is the New Arbitration” | Sponsored by Fleet Response
“Cyclone Season: Proactive Preparation for Loss Minimization” | Sponsored by Prudent Insurance Brokers Ltd.
“Subrogation and the Competitive Advantage” | Sponsored by Fleet Response
“Cyberrisk Outlook 2023” | Sponsored by Alliant
“Chemical Industry: How To Succeed Amid Emerging Risks and a Challenging Market” | Sponsored by TÜV SÜD
“Insuring the Future of the Environment” | Sponsored by AXA XL
“Insights into the Gig Economy and its Contractors” | Sponsored by Zurich
“The Importance of Disaster Planning Relationships” | Sponsored by ServiceMaster
RIMS Publications, Content, and Links:
RIMS Membership — Whether you are a new member or need to transition, be a part of the global risk management community!
RIMS Virtual Workshops
On-Demand Webinars
RIMS-Certified Risk Management Professional (RIMS-CRMP)
RIMS-CRMP Stories — New interviews featuring RIMS Risk Management Honor Roll Inductee Mrunal Pandit!
RIMS Events, Education, and Services:
RIMS Risk Maturity Model®
RIMS Events App Apple | Google Play
Sponsor RIMScast: Contact [email protected] or [email protected] for more information.
Want to Learn More?
Keep up with the podcast on RIMS.org and listen on Spotify and Apple Podcasts.
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Join the Conversation!
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About our guests:
Raji H. Chadarevian Executive Director, Actuarial Research , of the National Council on Compensation Insurance (NCCI)
Tweetables (Edited For Social Media Use):I’m all about telling the story behind the numbers. The research is meaningless if you can’t tell that story. My job is to let the brainiacs of NCCI do the research and help me tell the real story behind it all. — Raji Chadarevian
It’s a huge decrease in opioid use and it just means that the way the systems are treating the injured workers has changed dramatically, in terms of what medications are provided. — Raji Chadarevian
One of the strategies that physicians use to manage opioid use is to draw up a contract between the prescribing physician and the injured worker that describes when the opioid utilization is going to decrease and then stop. — Raji Chadarevian
Of the future of wearable workplace safety technology, what I would see as important is technology that helps with the posture in a warehouse and how you carry things; the ergonomic aspect. A lot of what we see in workers’ comp is back injuries. — Raji Chadarevian
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Welcome to RIMScast. Your host is Justin Smulison, Business Content Manager at RIMS, the Risk and Insurance Management Society.
Justin Smulison interviews Daniel Eliot of NIST about NIST, its new publications on cybersecurity, including two Quick Start Guides, the Cybersecurity Framework 2.0, and more, Daniel’s history with cybersecurity for small businesses and his career-long passion for helping small businesses protect themselves against cybercrime.
Listen in for the latest information on NIST and cybersecurity guidelines for your organization.
Key Takeaways:
[:01] About RIMS.
[:14] RISKWORLD 2025 will take place in Chicago, Illinois from May 4th through May 7th. The call for submissions is now open through August 27th. A link to the submission form is in this episode’s show notes.
[:30] About this episode. We will be joined by Daniel Eliot from the National Institute of Standards and Technology, or NIST.
[:52] First, let’s talk about RIMS Virtual Workshops. The full calendar of virtual workshops is at RIMS.org/VirtualWorkshops. August 15th starts the three-part series, Leveraging Data and Analytics for Continuous Risk Management. Other dates for the Fall and Winter are available on the Virtual Workshops full calendar at RIMS.org/VirtualWorkshops.
[1:14] Let’s talk about prep courses for the RIMS-CRMP. On September 10th and 11th, the RIMS-CRMP Exam Prep will be held with NAIT. There is another RIMS-CRMP Exam Prep on September 12th and 13th.
[1:29] The next RIMS-CRMP-FED Exam Prep course will be hosted along with George Mason University on December 3rd through 5th, 2024. Links to these courses can be found on the Certification Page of RIMS.org and in this episode’s show notes.
[1:44] We’ve got the DFW RIMS 2024 Fall Conference and Spa Event happening on September 19th in Irving, Texas. Learn more about that event in Episode 299, which features an interview with the Texas State Office of Risk Management.
[2:02] Also on September 19th is the RIMS Chicago Chapter’s Chicagoland Risk Forum 2024. Register at ChicagolandRiskForum.org.
[2:12] Registration opened for the RIMS Canada Conference 2024 which will be held from October 6th through the 9th in Vancouver. Visit RIMSCanadaConference.ca to register.
[2:25] Registration is also open for the RIMS Western Regional, which will be held from September 29th through October 1st at the Sun River Resort in Oregon. Register at RIMSWesternRegional.com.
[2:38] We want you to join us in Boston on November 18th and 19th for the RIMS ERM Conference 2024. The agenda is live. The keynote will be announced soon. We want to see you there! A link is in this episode’s show notes.
[2:53] The nominations are now open for the RIMS ERM Award of Distinction 2024. Nominations are due August 30th. A link to the nomination form is in this episode’s show notes.
[3:07] If you or someone you know manages an ERM program that delivers the goods, we want to hear about it. A link is in this episode’s show notes. All RIMS regional conference information can be found on the Events page at RIMS.org.
[3:24] On with the show! In October, we will celebrate National Cybersecurity Awareness Month. You should observe it all year round, of course. My guest today has a lot of great insight into risk frameworks. He is Daniel Eliot, the Lead for Small Business Engagement in the Applied Cybersecurity Division of The National Institute of Standards and Technology (NIST).
[3:48] NIST is part of the U.S. Department of Commerce. Today, we will discuss some of the publicly available risk management frameworks and how they’ve evolved through the years and the new frameworks that address AI, as well.
[4:05] You may remember Daniel from his appearance on an episode in April 2020, when he was with the National Cybersecurity Alliance. He is back to provide some new tips for the global risk management community.
[4:18] Daniel Eliot, welcome back to RIMScast!
[4:42] Justin and Daniel comment on some things that have changed since April 2020. Daniel was at the National Cybersecurity Alliance (NCA).
[5:50] Now Daniel is the Lead for Small Business Engagement in the Applied Cybersecurity Division of The NIST. He shares his journey from NCA to NIST via the National Cybersecurity Center of Excellence, a NIST facility operated by Mitre.
[6:52] Daniel is happy to be back supporting the small business community.
[7:04] Daniel had worked in a small tech startup for almost seven years. He helped them scale the business and manage the development of their product. Next, Daniel joined the University of Delaware’s Small Business Development Center, helping tech businesses start and scale.
[8:16] Daniel applied for an SBA grant to help small businesses with cybersecurity. This was in 2014. The Cybersecurity Framework was published in 2014. Daniel applied the Cybersecurity Framework to small businesses. That started Daniel’s career in small business cybersecurity.
[9:32] There’s a new NIST Risk Management Framework (RMF) Small Enterprise Quick Start Guide. Daniel’s role at NIST is to coordinate across NIST, government, and the private sector, to create opportunities for the small business community to engage with NIST expertise.
[10:19] The RMF Small Enterprise Quick Start Guide is a product of that coordination across NIST, government, and the private sector community. In February, NIST produced the Cybersecurity Framework 2.0 Small Business Quick Start Guide.
[10:44] NIST decided to do a Quick Start Guide for a risk management framework for small to medium enterprises. The Risk Management Framework is a process. It’s a holistic and repeatable seven-step process for managing security and privacy risks.
[11:23] The NIST RMF Quick Start Guide provides an overview of the seven steps of the process, the foundational tasks for each step, tips for getting started with each step, a sample planning table, key terminology and definitions, questions to consider, and related resources.
[11:53] It’s RIMS plug time! Webinars! All RIMS Webinar registration pages are available at RIMS/org/Webinars. On August 27th, Riskonnect returns to discuss How To Successfully Deploy AI in Risk Management.
[12:12] On September 5th, Merrill Herzog makes their RIMS Webinars debut with the Role of Insurance in Building Resilience Against an Active Assailant Attack. On September 19th, Origami Risk returns to deliver Leveraging Integrated Risk Management For Strategic Advantage.
[12:28] Justin jumped ahead a bit. On September 12th, HUB International returns to deliver the third part of their Ready for Tomorrow series, Pivot and Swerve: Staying Agile During Shifting Market Dynamics.
[12:44] Justin is delighted to be joined by the moderator for that session, the Chief Marketing Officer for Canada at HUB International, Linda Regner Dykeman. Justin welcomes Linda to RIMScast!
[13:13] The webinar will be at 1:00 p.m. Eastern Time on September 12th. Linda says they will be discussing current market trends and challenges. The industry has been able to produce some very strong profits over the last few years.
[13:29] The market needed correction after many years of unprofitability driven by weather events in the property line where rates seemed to be unsustainable. Casualty also had its issues, particularly with Directors and Officers Liability.
[13:47] As a result of the profitability the industry was able to achieve over the last few years, most carriers have become more competitive in growing their books of business. This competition is not being seen in all lines, segments, or geographies.
[14:04] Some catastrophe-prone zones such as BC and Alberta have not seen the same level of competition across the board. As the market transitions from a hard market to a competitive environment, there is some unusual and inconsistent behavior.
[14:21] Carriers in Canada are being more flexible with their appetite. London is looking to grow significantly over the next couple of years with goals of hitting $100 billion by 2025. Add to that NGAs who are seeing their market share change as local carriers become more competitive.
[14:39] As we transition out of what was considered to be a hard market, we see a lot of inconsistency in this market.
[14:48] Add to this the supply chain issues, which are not what they once were, the economy is flat with spending, once normalized for an increase in population, it reflects that of a market in a recession.
[15:02] We, as brokers are finding competitive solutions to protect our clients. We have to pivot and swerve to discover the right opportunities.
[15:13] We had a significant rain event in Toronto, followed by one of the worst wildfires Jasper has ever seen, seemingly a once-in-a-hundred-year event; weather catastrophes are more severe and more frequent.
[15:27] How is this going to change the availability of capacity and pricing? Time will tell, as insurers try to figure out if their pricing models included the right loadings for these events.
[15:49] Being informed by what is happening in the market; the trends, the opportunities, what’s available, and partnering with the right broker, will help a risk manager make an informed decision, appropriate for their business.
[16:11] The panelists have decades of experience and expertise across North America. They work with clients, markets, and other experts and bring a much broader perspective and experience to this session.
[16:26] Steve Pottle is the risk manager on the panel. He’s been omnipresent in RIMS Canada for years. He’s a former RIMS VP and is currently the Director for Risk and Safety Services at Thompson Rivers University. Justin says he’s one of the best and Linda agrees.
[16:57] Linda will moderate. She’ll ask the panelists questions HUB International has received from its clients, based on what they are seeing happening in the environment around them. She would also like the audience to pose some questions. Audience participation is encouraged.
[17:21] Justin thanks Linda Regner Dykeman of HUB International, and will see her again on September 12th, 2024 for the third installment of HUB’s Ready for Tomorrow series, Pivot and Swerve: Staying Agile During Shifting Market Dynamics.
[17:37] Let’s return to today’s interview with Daniel Eliot from NIST.
[17:53] Daniel states that the Risk Management Framework is a repeatable seven-step process for managing security and privacy risks. It starts with preparation, categorizing, and understanding the information that your organization processes, stores, and transmits.
[18:20] Then you select controls, and implement those controls to protect the security and privacy of the systems. Then you assess, authorize, and monitor the controls. Are the selected controls producing the desired results? Are there changes to the organization that require new controls?
[18:45] You follow the seven steps of the framework in order and repeat them in a cycle. Keep going through it. Every organization regularly changes. Technologies change. People change. That’s why the framework has to be repeatable and flexible.
[19:05] NIST published this Risk Management Framework Smal Enterprise Quick Start Guide as a tool to raise awareness within the Small and Medium Enterprise (SME) Community about what the Risk Management Framework is and how to get started with it.
[19:26] This Quick Start Guide is not intended to guide you on your journey from start to finish for a comprehensive risk management implementation. It is a starting point.
[19:41] The Guide has an overview of the steps of the Risk Management Framework, some foundational tasks for each of the RMF steps, some tips for getting started, some sample planning tables, and graphics to help people understand concepts that might be new to them.
[20:02] NIST spent a lot of time defining key terminology, extracting terms out of the Risk Management Framework, and highlighting them in this Quick Start Guide. There are phrases and terms in the Risk Management Framework that some people new to it might not understand.
[20:24] For example, “authorization boundary.” The Guide highlights and illustrates what these terms mean in the Risk Management Framework and adds questions for organizations to consider and use internally for discussion. The answers may be different for every organization.
[21:12] This Guide is a derivative tool from the existing publication that went out for public comment. The Quick Start Guide did not go out for public comment but NIST has circulated Quick Start Guides to some small businesses they know to make sure it’s hitting the right note.
[21:56] Daniel monitors commentary and looks at how the Guide is received out in the world once it’s published. In every Quick Start Guide, there is an opportunity for people to contact NIST if they have questions or if there is an error. NIST is always open to feedback.
[23:03] In small businesses, Daniel finds the owner or operator is the Chief Risk Officer, the Janitor, the CISO, and the Chief Marketing Officer. Anyone can use the Risk Management Framework. It’s a process.
[23:25] Federal agencies, contractors to the federal government, and other sources that use or operate a federal information system typically use the suite of NIST Risk Management Standards and Guidelines to develop and implement a risk-based approach.
[23:48] A lot of the audience for this Small Enterprise Quick Start Guide might be small universities, small municipalities, or small federal agencies implementing this Risk Management Framework.
[24:27] We have time for one more break! The Spencer Educational Foundation’s goal is to help build a talent pipeline of risk management and insurance professionals. That is achieved, in part, by a collaboration with risk management and insurance educators across the U.S. and Canada.
[24:45] Whether you want to apply for a grant, participate in the Risk Manager on Campus program, or just learn more about Spencer, visit SpencerEd.org.
[24:55] On September 12th, 2024, we look forward to seeing you at the Spencer Funding Their Future Gala at The Cipriani 42nd Street in New York City. Our recent guest from Episode 293, Lilian Vanvieldt-Gray, will be our honoree.
[25:11] Lilian is the Executive Vice President and Chief Diversity, Equity, and Inclusion Officer at Alliant Insurance Services and she will be honored for her valuable contributions to supporting the future of risk management and insurance.
[25:28] That was a great episode, so after you finish this one, please go back and listen to Episode 293.
[25:34] Let’s conclude our interview with Daniel Eliot of NIST.
[26:10] Daniel introduces the U.S. AI Safety Institute, housed within NIST. It’s tasked with advancing the science, practice, and adoption of AI safety across the spectrum of risks, including those to national security, public safety, and individual rights.
[26:39] The efforts of the U.S. AI Safety Institute initially focused on the priorities assigned to NIST under President Biden’s Executive Order on the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence.
[26:51] On July 26th, 2024, they released resources for a variety of aspects of AI technology. Two are new to the public. The first is an initial public draft of a guidance document intended to help software developers mitigate the risks of generative AI and dual-use foundation models.
[27:19] The other is a testing platform intended to help AI system users and developers measure how certain types of attacks can degrade the performance of an AI system. These are two opportunities for the public to provide comments on these publications and tools.
[27:49] There is a link to the call for comments in this episode’s show notes.
[28:03] At NIST, foundational publications go out for public comment. NIST wants to hear from U.S. citizens and people all over the world to get their perspectives on NIST’s approach to what they’re addressing. This is a community effort. Comment periods are important.
[28:37] From Daniel’s perspective of small business, he seeks the comments of small businesses on these publications. Authors need to hear from organizations, large and small.
[28:53] These two new publications are open for public comment.
[28:59] three releases are final publications. One is The AI Risk Management Framework Generative AI Profile, which helps organizations identify unique risks posed by generative AI. It includes actions for generative AI risk management.
[29:34] A second publication is the Secure Software Development Practices for Generative AI and Dual Use Foundation Models. It addresses concerns about Generative AI systems being compromised with malicious training data that would adversely affect system performance.
[30:16] The third publication is A Plan for Global Engagement on AI Standards. It’s intended to drive worldwide development and implementation of AI-related consensus standards. Standards require global input from businesses, governments, non-profits, and academia.
[30:57] These three final publications have been informed by public comment periods. They’re ready to hit the ground running and people can put them into action.
[31:15] Daniel is part of the Applied Cybersecurity Division of NIST. The U.S. AI Safety Institute is a different part of NIST.
[31:44] Every once in a while, public comments receive spammy messages.
[32:23] Daniel says all cybersecurity and privacy risk management comes back to governance and having policies and procedures in place, knowing your contractual and legal responsibilities. Organizations need policies that guide behavior for the appropriate use of AI in their business.
[32:59] Individuals in companies have pasted confidential company information into publicly available AI systems. That creates a vulnerability. Have a policy around the use of these tools.
[33:31] Criminals have used AI to upgrade phishing scams, reduce grammatical errors, and craft more convincing appeals.
[35:00] NIST is raising awareness of different ways of identifying phishing attacks besides looking for grammatical errors, such as looking at the links and the calls to action and other factors that show it is a phishing scam. AI is contributing to their increasing sophistication.
[35:43] Daniel shares his tip for new risk professionals. Familiarize yourselves with the suite of resources that NIST has available for cybersecurity and privacy risk management. They have a broad variety of risk management frameworks and resources, like the Quick Start Guide.
[36:42] There are online courses, extensive FAQs with answers, and archived talks from SMEs. Take advantage of these resources. Also, let NIST know what other resources might be helpful to you. The core of NIST guidance for any framework is good governance.
[37:21] Understand your mission and requirements. Create and maintain policies for good behavior. Understand your supply chain dependencies and vulnerabilities. Good governance sets your organization up for success when implementing and monitoring risk-mitigating controls.
[37:56] NIST offers consistent, clear, concise, and actionable resources to small businesses. Since 2018, they have maintained a website, NIST Small Business Cybersecurity Corner, with over 70 resources on the site, all tailored to small businesses. The Quick Start Guides are there.
[38:32] The resources include short videos, tip sheets, case studies, and guidance organized by both topic and industry. All the resources are free and produced by federal agencies, such as NIST, FBI, CISA, as well as nonprofit organizations. It’s a one-stop shop for this information.
[39:04] The resources are regularly updated and expanded to keep the content fresh and relevant. The resource library has the Cybersecurity Basics Section, with eight basic steps businesses can inexpensively implement to reduce cybersecurity risks.
[39:28] The Cybersecurity Framework Page highlights the CSF and small business resources related to the CSF. There is topical guidance on Multi-Factor Authentication, Ransomware, Phishing, Government Contracting Requirements, and Choosing a Vendor or Service Provider.
[39:53] All the resources are available at NIST.gov/ITL/SmallBusinessCyber. The link is in this episode’s show notes. The resources are there for you to use in your organization.
[40:30] Justin says, “It has been such a pleasure to reconnect with you here on RIMScast! I always love it when you post on LinkedIn! I think you’re great! You’re keeping me informed. Happy National Cybersecurity Awareness Month to you!”
[40:55] With developments in tech and AI, cybersecurity has taken a back seat, but Justin says it will come back pretty hard. Justin feels it will be sooner than four-and-a-half years for Daniel to return to RIMScast.
[41:23] Whatever new technology comes out, cybercriminals are looking at it to see how they can exploit it. There will always be a cybersecurity component to it.
[42:05] Daniel Eliot, thank you so much for rejoining us here on RIMScast!
[42:10] Special thanks again to Daniel Eliot of NIST for rejoining us here on RIMScast. Lots of links are in this episode’s show notes to aid small enterprise owners and risk professionals.
[42:25] These resources are publicly available and complimentary, so by all means, use them and leverage them to ensure your organization’s cyber resilience. I’ve got lots of links in this episode’s show notes for more cybersecurity coverage from RIMS, as well.
[42:44] It’s RIMS plug time! The RIMS App is available to RIMS members exclusively. Go to the App Store and download the RIMS App with all sorts of RIMS resources and coverage. It’s different from the RIMS Events App. Everyone loves the RIMS App!
[43:18] You can sponsor a RIMScast episode for this, our weekly show, or a dedicated episode. Links to sponsored episodes are in our show notes. RIMScast has a global audience of risk and insurance professionals, legal professionals, students, business leaders, C-Suite executives, and more. Let’s collaborate and help you reach them! Contact [email protected] for more information.
[44:02] Become a RIMS member and get access to the tools, thought leadership, and network you need to succeed. Visit RIMS.org/membership or email [email protected] for more information.
[44:20] Risk Knowledge is the RIMS searchable content library that provides relevant information for today’s risk professionals. Materials include RIMS executive reports, survey findings, contributed articles, industry research, benchmarking data, and more.
[44:36] For the best reporting on the profession of risk management, read Risk Management Magazine at RMMagazine.com. It is written and published by the best minds in risk management. Justin Smulison is the Business Content Manager at RIMS. You can email Justin at [email protected].
[44:58] Thank you for your continued support and engagement on social media channels! We appreciate all your kind words. Listen every week! Stay safe!
Mentioned in this Episode:
DFW RIMS 2024 Fall Conference and Spa Event | Sept 19‒20
Chicagoland Risk Forum 2024 — Presented by RIMS Chicago Chapter — Sept. 19, 2024
RIMS Western Regional — Sept 29‒Oct 1, Oregon | Registration is open!
RIMS Canada Conference 2024 — Oct. 6‒9 | Registration is open!
Spencer Educational Foundation — Funding Their Future Gala 2024 | Sept. 12, 2024
RIMS ERM Conference 2024 will be in Boston, MA Nov. 18‒19 | Register Now
RIMS ERM Award of Distinction — Nominations Open Through Aug. 30, 2024!
RISKWORLD 2025 will be in Chicago! May 4‒7
Education Content Submissions for RISKWORLD 2025
NIST Risk Management Framework Small Enterprise Quick Start Guide
Cybersecurity Framework 2.0 Small Business Quick Start GuideNIST Small Business Cybersecurity Corner
U.S. Artificial Intelligence Safety Institute
New Guidance and Tools to mitigate AI Risks
Managing Misuse Risk for Dual-Use Foundation Models
Testing How AI System Models Respond to Attacks
Users can send feedback to: [email protected]
RIMS DEI Council
RIMS-Certified Risk Management Professional (RIMS-CRMP)
RIMS Strategic & Enterprise Risk Center
NEW FOR MEMBERS! RIMS Mobile App
RIMS Webinars:
How to Successfully Deploy AI in Risk Management | Sponsored by Riskonnect | Aug. 27, 2024
Role of Insurance in Building Resilience Against an Active Assailant Attack | Sponsored by Merrill Herzog | Sept. 5, 2024
HUB Ready for Tomorrow Series: Pivot and Swerve — Staying Agile During Shifting Market Dynamics | Sept. 12, 2024
Leveraging Integrated Risk Management For Strategic Advantage | Sponsored by Origami Risk | Sept. 19, 2024
RIMS.org/WebinarsUpcoming Virtual Workshops:
Leveraging Data and Analytics for Continuous Risk Management (Part I) 2024 — Aug 15
See the full calendar of RIMS Virtual Workshops
RIMS-CRMP Prep Workshops
Related RIMScast Episodes:
“Daniel Eliot’s 2020 RIMScast Debut: Cybersecurity Tips for Small Businesses”
“300th Episode Spectacular with RIMS CEO Gary LaBranche”
“Mid-Year Risk Update with Morgan O’Rourke and Hilary Tuttle”
“Emerging Cyber Trends with Davis Hake”
“Cybersecurity Awareness Month with Pamela Hans of Anderson Kill”
Sponsored RIMScast Episodes:
“Weathering Today’s Property Claims Management Challenges” | Sponsored by AXA XL (New!)
“Storm Prep 2024: The Growing Impact of Convective Storms and Hail” | Sponsored by Global Risk Consultants, a TÜV SÜD Company (New!)
“Partnering Against Cyberrisk” | Sponsored by AXA XL (New!)
“Harnessing the Power of Data and Analytics for Effective Risk Management” | Sponsored by Marsh
“Accident Prevention — The Winning Formula For Construction and Insurance” | Sponsored by Otoos
“Platinum Protection: Underwriting and Risk Engineering's Role in Protecting Commercial Properties” | Sponsored by AXA XL
“Elevating RMIS — The Archer Way” | Sponsored by Archer
“Alliant’s P&C Outlook For 2024” | Sponsored by Alliant
“Why Subrogation is the New Arbitration” | Sponsored by Fleet Response
“Cyclone Season: Proactive Preparation for Loss Minimization” | Sponsored by Prudent Insurance Brokers Ltd.
“Subrogation and the Competitive Advantage” | Sponsored by Fleet Response
“Cyberrisk Outlook 2023” | Sponsored by Alliant
“Chemical Industry: How To Succeed Amid Emerging Risks and a Challenging Market” | Sponsored by TÜV SÜD
“Insuring the Future of the Environment” | Sponsored by AXA XL
“Insights into the Gig Economy and its Contractors” | Sponsored by Zurich
“The Importance of Disaster Planning Relationships” | Sponsored by ServiceMaster
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About our guests:
Daniel Eliot, Lead for Small Business Engagement
Small Business Cybersecurity Corner
Applied Cybersecurity Division
National Institute of Standards and TechnologyU.S. Department of Commerce
Linda Regner Dykeman, HUB International, Chief Marketing Officer for Canada
Tweetables (Edited For Social Media Use):
I’m happy to be back at NIST, supporting the small business community. — Daniel Eliot
The industry has been able to produce some very strong profits over the last few years, after many years of unprofitability driven by weather events in the property line. — Linda Regner Dykeman
Follow the seven steps of the framework in order and repeat them in a cycle. Keep going through it. Every organization regularly changes. Technologies change. People change. That’s why it has to be repeatable and flexible. — Daniel Eliot
There are phrases and terms associated with the Risk Management Framework that some people who are new to this might not understand. — Daniel Eliot
When talking about small businesses, the owner or operator is the Chief Risk Officer, the Janitor, the CISO, and the Chief Marketing Officer. — Daniel Eliot
An AI system is only as good as the information that’s put into it. — Daniel Eliot
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