Katie Siegel

Katie Siegel is a staff writer at Risk & Insurance®. She can be reached at [email protected]

Risk Management

The Profession

David Hornaday knows risk managers have to be more fluent and competent in the financial world. Just procuring insurance isn’t enough anymore.
By: | August 3, 2016 • 4 min read

R&I: What was your first job?

Working as a signalman for Consolidated Rail Corp. I did that for about a year and a half before I got my first risk management job as a claims agent for ConRail. That was a self-insured company, so they administered their own claims.

R&I: How did you come to work in risk management? 

082016_ProfessionConRail got acquired by two different railroads and was split up, so I had the opportunity to either go with one of the railroads or look outside for another position, and I wanted to do more than just work with claims. I wanted to be exposed to the corporate risk management side of things. So I found a job as a risk manager for Suburban Propane in Whippany, N.J.

R&I: What is the risk management community doing right?

We’re working closely with brokers and underwriters and communicating internally to bring the insurance expertise to companies that need it.

R&I: What could the risk management community be doing a better job of?

Risk managers should be aware of non-traditional risks and focusing on ERM, versus just the traditional insurance procurement function. That’s where the future of our profession is going.

R&I:: What was the best location and year for the RIMS conference and why?

This is a little self-serving, but I thought Vancouver in 2011 was great because I had never been there but always wanted to go.

R&I: What’s been the biggest change in the risk management and insurance industry since you’ve been in it?

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Risk managers have to be more fluent and competent in the financial world. Just procuring insurance isn’t enough anymore. You have to have a basic level of financial knowledge to communicate with not only internal treasury and CFOs, but also with underwriters and insurers.

R&I: What emerging commercial risk most concerns you?

Social engineering. The onslaught of fraudsters is relentless. Companies have to be vigilant. But the coverage surrounding that sort of risk is also emerging, so risk managers will have to pay close attention to that and keep up with that evolving coverage.

R&I: What insurance carrier do you have the highest opinion of?

We had a major loss recently and there was a handful of insurers who paid on that claim which I thought were exceedingly professional: ACE (now Chubb), Ironshore and XL (now XL Catlin).

R&I: How much business do you do direct versus going through a broker?

We use a broker for everything.

R&I: Is the contingent commission controversy overblown?

It probably was a little bit overblown, but I think it’s good that things are more transparent now.

R&I: Are you optimistic about the U.S. economy or pessimistic and why?

I’m probably a little more pessimistic than optimistic. I just don’t see signs of strength out there. There are still companies with tons of cash outside the U.S. which can’t really bring it back in a way that makes sense. U.S. oil production is way down since the price of oil is so low.  Of course, the lower gas prices help the average consumer and lowers overhead costs for businesses, so it’s a little bit of a mixed bag.

R&I: Who is your mentor and why?

My mentor in this business is Joe Racansky. He was the director of risk management and my boss at CyTec Industries, and I learned as much from him as anybody in my career.

R&I: What have you accomplished that you are proudest of?

Successfully resolving claims stemming from the Lac-Megantic train derailment in 2013.

R&I: How many e-mails do you get in a day?

I’d say about 100.

R&I: How many do you answer?

All the important ones.

R&I:: What’s the best restaurant you’ve ever eaten at?

Prime 112 in South Beach, Miami. It was the freshest tuna I’ve ever had, and it was with the team from Aon, so it was great food and great company.

R&I: What is your favorite drink?

Gin and tonic.

R&I: What is your favorite book or movie?

My favorite movie is “Bull Durham.” It’s a baseball movie.

R&I: Who’s your favorite baseball team?

The Cincinnati Reds.

R&I: What is the most unusual/interesting place you have ever visited?

Key West, Fla., is pretty interesting. My wife and I have been there a few times and you always see something different.

R&I: If the world has a modern hero, who is it and why?

I was moved by the Chris Kyle story. I thought his life and story were inspiring.

R&I: What do your friends and family think you do?

I think they think I just buy insurance, when it’s really more comprehensive than that. They don’t know about meeting with underwriters and contract review and working on M&A deals.




Katie Siegel is a staff writer at Risk & Insurance®. She can be reached at [email protected]
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Risk Management

The Profession

David Hornaday knows risk managers have to be more fluent and competent in the financial world. Just procuring insurance isn’t enough anymore.
By: | August 3, 2016 • 4 min read
Topics: The Profession

R&I: What was your first job?

Working as a signalman for Consolidated Rail Corp. I did that for about a year and a half before I got my first risk management job as a claims agent for ConRail. That was a self-insured company, so they administered their own claims.

R&I: How did you come to work in risk management? 

082016_ProfessionConRail got acquired by two different railroads and was split up, so I had the opportunity to either go with one of the railroads or look outside for another position, and I wanted to do more than just work with claims. I wanted to be exposed to the corporate risk management side of things. So I found a job as a risk manager for Suburban Propane in Whippany, N.J.

R&I: What is the risk management community doing right?

We’re working closely with brokers and underwriters and communicating internally to bring the insurance expertise to companies that need it.

R&I: What could the risk management community be doing a better job of?

Risk managers should be aware of non-traditional risks and focusing on ERM, versus just the traditional insurance procurement function. That’s where the future of our profession is going.

R&I:: What was the best location and year for the RIMS conference and why?

This is a little self-serving, but I thought Vancouver in 2011 was great because I had never been there but always wanted to go.

R&I: What’s been the biggest change in the risk management and insurance industry since you’ve been in it?

Advertisement




Risk managers have to be more fluent and competent in the financial world. Just procuring insurance isn’t enough anymore. You have to have a basic level of financial knowledge to communicate with not only internal treasury and CFOs, but also with underwriters and insurers.

R&I: What emerging commercial risk most concerns you?

Social engineering. The onslaught of fraudsters is relentless. Companies have to be vigilant. But the coverage surrounding that sort of risk is also emerging, so risk managers will have to pay close attention to that and keep up with that evolving coverage.

R&I: What insurance carrier do you have the highest opinion of?

We had a major loss recently and there was a handful of insurers who paid on that claim which I thought were exceedingly professional: ACE (now Chubb), Ironshore and XL (now XL Catlin).

R&I: How much business do you do direct versus going through a broker?

We use a broker for everything.

R&I: Is the contingent commission controversy overblown?

It probably was a little bit overblown, but I think it’s good that things are more transparent now.

R&I: Are you optimistic about the U.S. economy or pessimistic and why?

I’m probably a little more pessimistic than optimistic. I just don’t see signs of strength out there. There are still companies with tons of cash outside the U.S. which can’t really bring it back in a way that makes sense. U.S. oil production is way down since the price of oil is so low.  Of course, the lower gas prices help the average consumer and lowers overhead costs for businesses, so it’s a little bit of a mixed bag.

R&I: Who is your mentor and why?

My mentor in this business is Joe Racansky. He was the director of risk management and my boss at CyTec Industries, and I learned as much from him as anybody in my career.

R&I: What have you accomplished that you are proudest of?

Successfully resolving claims stemming from the Lac-Megantic train derailment in 2013.

R&I: How many e-mails do you get in a day?

I’d say about 100.

R&I: How many do you answer?

All the important ones.

R&I:: What’s the best restaurant you’ve ever eaten at?

Prime 112 in South Beach, Miami. It was the freshest tuna I’ve ever had, and it was with the team from Aon, so it was great food and great company.

R&I: What is your favorite drink?

Gin and tonic.

R&I: What is your favorite book or movie?

My favorite movie is “Bull Durham.” It’s a baseball movie.

R&I: Who’s your favorite baseball team?

The Cincinnati Reds.

R&I: What is the most unusual/interesting place you have ever visited?

Key West, Fla., is pretty interesting. My wife and I have been there a few times and you always see something different.

R&I: If the world has a modern hero, who is it and why?

I was moved by the Chris Kyle story. I thought his life and story were inspiring.

R&I: What do your friends and family think you do?

I think they think I just buy insurance, when it’s really more comprehensive than that. They don’t know about meeting with underwriters and contract review and working on M&A deals.




Katie Siegel is a staff writer at Risk & Insurance®. She can be reached at [email protected]
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Democratic National Convention

Philly’s Risk Manager: DNC Will Be a ‘Walk in the Park’

After nearly two years of planning, Philadelphia's risk manager expects a peaceful and well-organized Democratic National Convention.
By: | July 5, 2016 • 4 min read
Photo Credit: Bob Krist for Visit Philadelphia

On July 25, political leaders, news crews, visitors, volunteers, protesters and a few celebrities will descend on Philadelphia for the Democratic National Convention.

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Though the city is no stranger to playing host for large events, the degree of national attention, sharp debate and pure emotion surrounding the 2016 presidential election could make the convention challenging from a risk management perspective.

Eruptions of violence have punctuated political rallies held by both Democratic and Republican candidates in a few cities so far. Is it possible there could be clashes between opposing parties at the upcoming event?

“We’re not expecting any of that,” said Barry Scott, deputy director of finance and risk manager for the City of Philadelphia.

“We hosted the Republican National Convention here in 2000 and we had a number of demonstrations, but we work to ensure that citizens can exercise their First Amendment Rights safely. I hear that from our police department all the time — they want to protect citizens’ right to speak freely but also safely.”

So far though, the city has received at least nine applications for protest permits.

“One march was scheduled to take place on Broad Street [a main route in Philadelphia’s Center City], during the evening rush hour. That one may have been denied due to the disruption it would cause, but most permits do get approved,” Scott said.

“We try to work with protest groups to make sure what works for them will also work for us.”

Planning for the DNC has been a nearly two-year collaborative process between Scott’s risk management department, the city’s police department, its office of emergency management, and the offices of the mayor and managing director, as well as SEPTA, the local transportation authority.

The convention visitors bureau is expecting about 50,000 visitors, which Scott called a “walk in the park,” compared to the roughly 1 million pilgrims who attended Pope Francis’ visit to the city in September 2015.

“Additionally, for our Fourth of July event, we generally have crowds in excess of 100,000 for the concert and fireworks on the Ben Franklin Parkway every year,” Scott said. “So we definitely have the experience with large crowds.”

“Frankly, my main concern is weather, because it’s one thing we can’t control.” — Barry Scott, deputy director of finance, risk manager, City of Philadelphia

“Frankly,” he said, “my main concern is weather, because it’s one thing we can’t control.”

While the convention will be held indoors at the Wells Fargo Center in South Philadelphia, the city plans to establish “free speech zones” for protesters throughout the surrounding area that will largely be outdoors.

“We won’t stop them, but bad weather could complicate things and potentially lead to injuries,” he said.

Scott said there will be limitations in the interest of safety on where protesters can gather— for example, divided highways are off-limits — and police will be on hand in the event of any property damage or other law-breaking, but he expressed confidence in the city’s ability to respect the rights of protesters while keeping both them and observers safe.

“If you look at the Occupy movement that was present here in the city [in 2011], you’ll see that the city’s response when compared to other cities was relatively peaceful,” he said.

“Dispersal of these folks in other cities was much more unruly and violent. There was more injury and property damage elsewhere than anything that happened in Philadelphia.”

The DNC Host Committee has obtained law-enforcement liability insurance to cover potential claims of police brutality and civil-rights violations.

Just in case, though, the DNC Host Committee — an entity separate from the City of Philadelphia — has obtained law-enforcement liability insurance to cover potential claims of police brutality and civil-rights violations.

The committee has also purchased event cancellation, terrorism, auto, kidnap and ransom, and general liability coverage for the event.

As far as logistical challenges, Scott said, SEPTA trains and buses should not be overloaded, partially because those actively involved in the Convention will have their own, tightly controlled private transport, and because the Wells Fargo Center sits about 3.5 miles outside of Center City, which will keep convention crowds somewhat separated from those living and working in the city.

On the whole, Scott expects the convention to be a boon for the city in terms of attracting tourists who will “fall in love” Philadelphia.

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“We are absolutely hoping we have lots of people come here for the excitement of the event, even if they’re not directly participating,” Scott said.

“There will be a lot of activities, a lot of celebrities drawing folks in. SEPTA will be working with the city’s office of emergency management to ensure that we’ve got the events well-covered.”

“It will be a very rich time for folks in the city. They’ll get a better chance to see what a great city we are. It’s an opportunity to visit America’s birthplace.

“And unlike the papal visit, which was heavily controlled by the Secret Service and had a lot of restrictions, the city and everything it has to offer will be completely open for business.”

Katie Siegel is a staff writer at Risk & Insurance®. She can be reached at [email protected]
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