7 Dangerous Natural Catastrophe Risks
The Risk List is presented by:
Leading From the Front
Making your fellow employees safer and creating more risk resiliency in your organization requires much more than simply doing your job.
It means doing the hard work to find a unique and practical solution, and then having the backbone and drive to implement that solution despite whatever obstacles you might face. In effect, doing the right thing over the easy thing.
These eight Responsibility Leaders do that and more. Through their drive and passion, they are the ones creating solutions that benefit not only their organizations but their employees and their communities.
Leslie Lamb works for Cisco Systems, with 75,000 employees and more than $100 billion in assets. You could count the members of her risk management team on one hand.
But Lamb’s Global Risk & Resilience Management team is bold and acts strategically. They dig deeper into the business, to take the time to meet with department heads in the effort to better understand their risks.
Lamb and her team created that most precious of dynamics. They created a dialogue among company leaders that is risk-focused. The award-winning Lamb reports that after a five-year effort, that dialogue is not only ongoing, it is expanding.
Sprague Operating Resource’s David Hershey displayed courage and dedication in standing up for his fellow risk managers. When insurance carriers decided in one fell swoop to stop notifying designated third parties that policies naming them as insureds were cancelled, he stood up to take a leading role.
In demanding that such notification be restored contractually, Hershey was insisting that insurance be what it says it is: a backstop that enables the smooth and productive flow of commerce.
“Commerce is not in business to justify the insurance industry, insurers, agents and brokers,” Hershey said, in one of the most relevant statements that may have ever appeared in this publication.
His status as a Responsibility Leader® stems from the essence of the definition of the award. He made a difference for an entire industry by leading when no one else stepped forward.
Hershey also furthers the profession of risk management by being a frequent speaker and author on risk management topics. He talks to college students about careers in risk management and teaches insurance at the Insurance Library of Boston.
Hershey and the rest of the 2014 Risk All Stars Responsibility Leaders® are not only doing what needs to be done, they are helping others to do it as well.
Here are the 2014 Risk All Stars Responsibility Leaders.
Champion for Change
Workers’ Compensation Manager Patty Hostine created dramatic gains for Cooper Standard Automotive by championing a fundamental change in the way both management and employees perceived the company’s approach to injury treatment and recovery.
That kind of transformation is never an easy sell. But Hostine’s ability to clearly communicate the benefits of the change to people at every level of the organization is the hallmark of a Responsibility Leader®.
“When she came on board we had all kinds of new management — nobody was on board with our thought process,” said Gerry King, who hired Hostine to manage workers’ compensation at Cooper Standard.
“So it was taking them and making them see the business side of workers’ compensation that a lot of people don’t look at,” King said.
Hostine is also committed the members of her team, and to making sure that everyone involved has the tools and knowledge they need to excel.
“Her ethics are above reproach,” said Mick Altherr, coordinator of health, safety and environment, and workers’ compensation at Cooper Standard Automotive, “and that drives her theme of being fair, firm and friendly. … She’s an amazing talent with her drive for knowledge. She shares her thought process to educate the people who work with her.”
Filling a Need for Safety
Saws and heavy lumber make the timber and wood products industry inherently dangerous. But many small companies lack resources to provide adequate safety training to employees.
Enter Latitia Estrada and Chris Chathams of Timber Products Manufacturers Association (TPM). The duo leveraged their nonprofit status to win government grants to create and provide training to member organizations at no cost.
The training programs, consisting of webinars, worksheets, and videos, bring awareness to the highest-risk areas of the industry, all the way from logging in the forest to working a sawmill on the factory floor.
Over the past two years, more than 80 employers and 2,200 employees in seven different states have received training.
The pair estimates they’ve saved participating companies more than $134,000 in training costs alone, not including costs saved by lowering injury rates.
One company was able to slash their injury rates by 50 percent.
Chathams and Estrada have also widened TPM’s involvement within the safety industry.
They’ve worked with different chapters of the American Society of Safety Engineers, the Northern Idaho Safety Fest and the Montana Safety Fest.
Looking to the future, they’ve also helped TPM create a safety scholarship and internship program.
Making a Difference
David Hershey is a prolific speaker and writer on risk management topics. The list of industry awards he has won and industry leadership positions he occupies runs longer than most restaurant menus.
He serves as a board member, president, vice president, and committee member — both now and in the past — for the New Hampshire chapter of the CPCU, the Massachusetts and Delaware Valley chapters of RIMS, the Philadelphia Area Risk Managers Association, the Governor’s Council on Insurance Fraud, and the Association of Certified Fraud Examiners.
He has also volunteered his creativity and passion about risk management by serving on the External Affairs Committee and Standards & Practices Committee of the national RIMS organization.
Sharing his knowledge with others, Hershey taught classes for the Insurance Society of Philadelphia and the Independent Insurance Agents & Brokers of New Hampshire.
In challenging insurance carriers to restore their obligation to inform named insureds when a policy is cancelled — and establishing a process to make sure his company was protected — Hershey made a difference to countless others in the risk management community, not just himself or his company.
“Notification is one of the core concepts of risk management,” he rightly noted.
Taking on a Mighty Challenge
You sign on to share the burden of managing risk for a high-profile $15 billion company. Months down the road, you’re bidding “Happy Retirement” to half of your team and wondering how you’re going to manage it all alone. That scenario could send a chill down the spine of any seasoned risk professional.
But Dan Holden took on the challenge, and he thrived —identifying multiple savings opportunities in the insurance and risk management programs of Daimler Trucks North America.
Holden made a critical assessment of his responsibilities. He carved out the pieces that needed his attention most, and sought alternative means to get the rest accomplished, like relying more heavily on the company’s TPA and on the company’s existing online portal.
He also skillfully leveraged his resources, tapping into the expertise of his brokers, other vendors, and former colleagues to gather the tools he needed to succeed.
Taking on the work of two men, Holden persevered by looking at the big picture and restructuring his priorities.
That freed him up get creative in making adjustments to DTNA’s insurance program, negotiating better policy terms by highlighting the impact of the economic downturn. The determination to rise above every challenge is what makes Holden a Responsibility Leader®.
Worth Her Weight in Gold
The company Leslie Lamb works for has more than 75,000 employees and $100 billion in assets.
Imagine the amount of work involved to break down department silos and gain a better understanding of risk on a department by department basis.
It can’t have been easy to go to company leadership and say that you want to conduct risk meetings with each department, to get a better understanding of not only each department’s risk but how risk straddles the entire company.
But that’s what Leslie Lamb and her risk management team of three did.
Senior leaders who didn’t before are now talking to one another about risk as a result of Lamb’s drive to unify all stakeholders.
The result is a sharing of information about exposures, risk scenarios and how best to mitigate them.
Because of Lamb’s leadership, Cisco can take to its underwriters a story that is far more educated and nuanced. Underwriters like that; they like it very much.
As a Responsibility Leader® and winner of a Risk All Stars Award, Leslie gets a plaque and mention in this magazine. But to the company that employs her, she is worth her weight in gold.
Running to the Fight
Maybe it’s his history in emergency management and current service as a volunteer firefighter that gives Richard Pcihoda the reflexes to run to the fight, because that is what he did as Superstorm Sandy threatened in October of 2012.
Pcihoda, the director of risk management for the Pennsylvania Real Estate Investment Trust, based in Philadelphia, wasn’t the only risk manager whose job got a lot tougher when Sandy hit, but it looks like he outperformed many of his contemporaries.
Not only did Pcihoda conduct the necessary planning and preparation to reduce his own company’s business interruption, he went out of his way to counsel his company’s Jersey City (N.J.) Hudson Mall tenants on coverage and recovery methods after the mall suffered millions in damage.
Pcihoda looked at the whole picture and acted on it. The day after the storm struck, Pcihoda jumped in his truck and drove to Jersey City, getting there before formal travel bans were in place to jump start the recovery process.
He had his contractors in place ahead of the storm to get a jump on reconstruction. He had the adjuster relationships to pull it together seamlessly.
Pcihoda is a Risk All Star because he possesses passion, creativity and perseverance. He’s a Responsibility Leader® because through his actions, he shows others how it’s done.
Creating His Own Solution
When the 16 institutions comprising Wisconsin Technical Colleges faced persistent problems obtaining insurance coverage suited to their unique needs, Steven Stoeger-Moore didn’t just find the solution — he created it.
Stoeger-Moore helped to establish Districts Mutual Insurance (DMI) in 2004 to represent the colleges and provide better insurance and risk management services.
Under his self-implemented “Rule of 16,” he ensures that if any school has a problem, all 16 colleges benefit from DMI’s solution. That dedication led to the development of comprehensive risk management programs — provided to each school at no cost — for electrical and fire safety inspections, emergency response planning, legal consultations, and employee health and safety consultations, among many others.
And when those programs were tested, Stoeger-Moore sprang into action. In the past 10 years, the Wisconsin Technical College System has weathered both a tornado and a major fire. Both times, he was at the scene within 24 hours of the event, providing claims and insurance guidance as well as comfort for shaken colleagues.
Stoeger-Moore has also worked to bolster the industry’s future by encouraging young people to consider a career in risk management. Through DMI, he creates opportunities for young people to learn about the colleges’ unique challenges and the programs created to meet them.
2014 Risk All Stars
Chief Risk Officer, Stanford University Medical Center
Jeff Driver’s efforts ensure consistent risk management throughout the Stanford University Medical Center and its Accountable Care Organizations.
Leslie Lamb: Cross Talk (+Responsibility Leader)
Director of Global Risk & Resiliency Management, Cisco Systems
Leslie Lamb started off a dialogue within Cisco Systems about exposures that helped mitigate risk while better informing underwriters and brokers.
Associate Director for Systemwide Risk Management, The California State University
Protecting the California University System from risks associated with campus sports clubs took Zachary Gifford’s leadership and collaboration.
Chief Information Risk Officer, XL Group plc
By using cyber security education and other tools, Thomas Dunbar reduces the risks at his company.
David Hershey: Standing up for Insureds (+Responsibility Leader)
Risk Manager, Sprague Operating Resources
(Axel Johnson Inc.)
David Hershey made sure that insurers for his company’s vendors and suppliers complied with notification requirements for when insurance was cancelled or not renewed.
Steve Stoeger-Moore: Alternative Vision Saves Millions (+Responsibility Leader)
President, Districts Mutual Insurance
By creating a mutual insurance company for 16 technical colleges, Steve Stoeger-Moore saved the group $10 million in premium over the past 10 years.
Environmental, Health and Safety Manager, FM Global
Janine Pitocco’s emphasis on safety and training programs has reduced the number of OSHA-reportable injuries by 70 percent.
Dan Holden: Doing More With Less (+Responsibility Leader)
Manager, Corporate Risk & Insurance, Daimler Trucks North America
When all risk management responsibilities landed on his sole shoulders, Dan Holden found a way to make it work, and saved his truck manufacturing company millions at the same time.
Chris Chathams and Letitia Estrada: Team Tackles Timber Safety Gaps (+Responsibility Leaders)
Chris Chathams, Safety Resource Director, TPMA
Latitia Estrada, Human Resource Generalist and Grant Coordinator, TPMA
The timber industry is inherently dangerous, but Chris Chathams and Letitia Estrada found a way to get funding and designed safety programs to make it safer.
National Safety Director, Convergint Technologies
Stopping distracted driving meant establishing clear and actionable guidelines for disciplinary action when such events occurred.
Assistant Vice President of Loss Prevention, Corporate Safety and Security Officer, IASIS Healthcare
By overhauling his company’s return-to-work program, Tim Davidson made it virtually impossible for an injured worker to fall through the cracks.
Neurosurgeon, Oklahoma Spine & Brain Institute
By using electrodiagnostic functional assessments to collect more data on muscle and nerve function, Dr. Frank Tomecek is reducing unnecessary surgery.
Richard Pcihoda: Crisis Management Coordination (+Responsibility Leader)
Director of Risk Management, PREIT Services LLC
By his actions both before and after Hurricane Sandy, Richard Pcihoda successfully mitigated the damaging impact of Superstorm Sandy.
Human Resources Generalist, Peerless Industrial Group
Elizabeth Ruff has developed a reputation as a “difference-maker.” It began with wrestling an unruly lost-time culture to the ground.
Patty Hostine: Vocal Rehabilitation Success (+Responsibility Leader)
Manager, Workers’ Compensation, Cooper Standard Automotive
Taking cues from her vocational rehabilitation background, Patty Hostine kept injured workers on the job and kept the company from drowning in claims costs.
Risk All Stars stand out from their peers by overcoming challenges through exceptional problem solving, creativity, perseverance and/or passion.
Responsibility Leaders overcome obstacles by doing the right thing over the easy thing to find practical solutions that benefit their co-workers and community.