2016 Risk All Stars

Empowered Risk Management

The 2016 Risk All Stars deployed creativity and passion to add value to their organizations.
By: | September 14, 2016 • 2 min read
Modern business woman finishing a phone conversation with a colleague

The best risk managers are inquisitive and tenacious. They possess the drive to help their organizations prosper, even if C-suite executives don’t initially grasp risk management’s scope or potential.

Superior risk managers proactively engage with colleagues and corporate leaders to identify the risks and challenges they face: They listen more than they talk. They delve into the details. They consider exposures and how they can be mitigated. They consider the upside of risk as well as its downside. They put their creativity and passion to work.

AllStars2016v1oThe 2016 Risk All Stars exemplify ingenuity and resourcefulness in problem solving. They demonstrate the power of their profession to make a profound difference.

For some, like James Colorado Robertson, making a difference meant starting from scratch. Before he even graduated from LSU, he created an enterprise risk management plan for the university. Then he helped build the first stand-alone public higher education insurance program in the state.

For Christopher de Wolfe, the challenge was that company leaders at Mars Inc. didn’t always recognize the integral role of risk management. It was an afterthought. That’s no longer the case. Not only did de Wolfe revamp the risk management program at Mars, he was so successful at promoting its services with colleagues that they now frequently seek advice on improving resilience and minimizing risk.

The 2016 Risk All Stars exemplify ingenuity and resourcefulness in problem solving. They demonstrate the power of their profession to make a profound difference.

The best risk managers seek out possible exposures and offer solutions. For Susan Hiteshew at Under Armour Inc., that meant building a “playbook” the fast-growing company uses to add value to projects when business lines, projects or acquisitions are discussed.

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“In a young company that grows as quickly as we do, you can’t wait for things to happen — you have to be proactive,” she said.

When unforeseen changes hit, that’s when the best risk managers display their talent for thinking outside the box.

When Scott Clark, who recently retired from Miami-Dade County Public Schools, learned that FEMA substantially reduced the level of assistance it would provide to storm-damaged properties, he worked with Swiss Re on an innovative parametric storm solution to address the shortfall.

It is that creativity, passion and determination that marks each of the 11 Risk All Stars honored this year. They devised solutions that added value to their organizations and empowered the role of risk management. We hope their achievements offer encouragement and guidance to others striving to do the same. &

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Risk All Stars stand out from their peers by overcoming challenges through exceptional problem solving, creativity, perseverance and passion.

See the complete list of 2016 Risk All Stars.

Anne Freedman is managing editor of Risk & Insurance. She can be reached at [email protected]
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2016 Risk All Stars

The 2016 Risk All Stars

Creativity and a passion for risk management mark the winners of the 2016 Risk All Star award.
By: | September 14, 2016 • 3 min read

Scott Clark: Withstanding the Storm

09152016_1CS_AllStars_SClarkRisk and Benefits Officer, Miami-Dade County Public Schools (recently retired)

When FEMA reduced assistance, Scott Clark put together a new storm policy that protected his school district and saved money as well.

Christopher de Wolfe: Risk Management’s Sweet Spot

09152016_1CS_AllStars_CdeWolfeGlobal Director of Risk Management, Mars Inc.

Christopher de Wolfe leveraged his company’s marketing savvy to help the organization buy in to the risk management mission.

Carlos Dezayas: Freeing Cargo From Captivity

09152016_1CS_AllStars_CDezayasSenior Manager, Corporate Risk Management, The Kraft Heinz Co.

When a captive structure didn’t serve the needs of a post-merger cargo program, Carlos Dezayas built a new one.

Timothy Fischer: Managing U.S. Nuclear Fuel Risks

09152016_1CS_AllStars_TFischerChief Risk Officer, BWX Technologies

Timothy Fischer makes the complicated job of managing risk for the sole producer of nuclear fuel to the U.S. government look easy. It’s not.

James Colorado Robertson: A-Plus in Risk Management

09152016_1CS_AllStars_CRobertsonAssistant Director, Risk Management, Louisiana State University

James Colorado Robertson used innovation, persistence and love of his alma mater to help create Louisiana State University’s risk management program.

Susan Hiteshew: A Winning Strategy

09152016_1CS_AllStars_HiteshewSenior Manager, Global Insurance and Risk Financing, Under Armour Inc.

Susan Hiteshew built a risk management playbook to stay ahead of Under Armour’s challenges and fast growth.

Chauncey Fagler: An ERM Mantra

09152016_1CS_AllStars_CFaglerExecutive Director, Florida College System Risk Management Consortium

Chauncey Fagler’s risk management successes stem from his conviction to create “the best consortium” for Florida colleges.

Susan Tukel: Revolutionizing the Organization

09152016_1CS_AllStars_STukelPresident, Locomotive Engineers and Conductors Mutual Protective Association

Susan Tukel brought her 100-year-old organization back from the brink.

David Jewell: Balancing Act

09152016_1CS_AllStars_JewellVice President-Risk Management, Dollar Tree

David Jewell’s focus and experience helped guide a successful $9.2 billion acquisition, despite a staggering array of obstacles.

Kristy Harris: Flipping Coverage on Its Head

09152016_1CS_AllStars_KHarrisRisk Manager, Southwest Airlines

Southwest’s Kristy Harris engages underwriters as she searches for creative solutions during a soft market.

 

Michael Brown: Looking at the Upside

09152016_1CS_AllStars_MBrownVice President and Property Department Manager, Golden Bear Insurance Co.

Michael Brown brought enterprise risk management to his company, while working to close the talent gap facing the industry.

The R&I Editorial Team may be reached at [email protected]
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Sponsored Content: XL Catlin

Think You Don’t Need Environmental Insurance?

The risk of environmental damage is there no matter what business you're in.
By: | September 14, 2016 • 5 min read
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“I don’t work with hazardous materials.”

“My industry isn’t regulated by the EPA.”

“We have an environmental health and safety team, and a response plan in place.”

“We’ve never had an environmental loss.”

“I have coverage through my other general liability and property policies.”

These are the justifications clients most often give insurers for not procuring environmental insurance. For companies outside of sectors with obvious exposure — oil and gas, manufacturing, transportation — the risk of environmental damage may appear marginal and coverage unnecessary.

“Environmental insurance is not like every other insurance,” said Mary Ann Susavidge, Chief Underwriting Officer, Environmental, XL Catlin. “The exposure is unique for every operation and claims don’t happen often, so many businesses view coverage as a discretionary purchase. But the truth is that no one is immune to environmental liability risk.”

Every business needs to be aware of their environmental exposures. To do that, they need a partner with the experience to help them identify exposures and guide them through the remediation claims process after an incident. The environmental team at XL Catlin has been underwriting these risks for 30 years.

“Insureds might not experience this type of claim every day, but our environmental team does,” said Matt O’Malley, President, North America Environmental, XL Catlin. “We’ve seen what can happen if you’re not prepared.”

Susavidge and O’Malley debunked some of the common myths behind decisions to forego environmental coverage:

Myth: My business is not subject to environmental regulations.

Reality: Other regulators and business partners will require some degree of environmental protection.

Regulatory agencies like OSHA are more diligent than ever about indoor air quality and water systems testing after several outbreaks of Legionnaires disease.

“The regulators often set the trends in environmental claims,” Susavidge said. “In the real estate area it started with testing for radon, and now there’s more concern over mold and legionella.”

Multiple hotels have been forced to shut down after testing revealed legionella in their plumbing or cooling systems. In addition to remediation costs, business interruption losses can climb quickly.

For some industries, environmental insurance acts as a critical business enabler because investors require it. Many real estate developers, for example, are moving into urban areas where their clients want to live and work, but vacant lots are scarce. Those still available may be covering up an urban landfill or a brownfield.

“We’re able to provide expertise on those sites and the development risks so the contractor can get comfortable working on it. It’s about allowing our clients to stay relevant in their markets,” O’Malley said. “In this case, the developer is not an insured with a typical environmental exposure. But if there is a contaminant on the worksite, they could inadvertently disperse it. In a high-population urban area, the impact could be large.”

Banks also quite often require the coverage specifically because developers are turning to these locations with higher potential environmental risk.

“Though it’s not a legal requirement, insurance is a facilitator to the deal that developers really can’t operate without,” Susavidge said.

Myth: The small environmental exposure I have would be covered under other polices.

Reality: Environmental losses can result from exposure to off-site events and are excluded by many property and casualty policies.

Environmental risks on adjoining properties can lead to major third party losses. Vapor intrusion under the foundation of one property, for example, can unknowingly underlie the neighboring properties as well. The vapor intrusion can then seep into the surrounding properties, endangering employees and guests.

In other words, your neighbor’s environmental exposure may become your environmental exposure.

O’Malley described a claim in which a petroleum pipeline burst, affecting properties and natural resources 10 miles downstream even though the pipeline was shut off two minutes after the rupture. The energy company that owns the pipeline might have coverage, but what about the other impacted organizations? Many other property policies exclude environmental damage.

Sometimes the exposure is even more unexpected. In 2005, for example, a train carrying tons of chlorine gas crashed into a parked train set sitting in the yard of Avondale Mills — a South Carolina textile plant. The gas permanently damaged plant equipment and forced the operation to shut down.

“It’s not always obvious when you have an environmental exposure,” Susavidge said.

“When there is a big loss or a pattern of losses, the casualty market will typically move to exclude it,” said O’Malley. “And that’s where the environmental team looks for a solution. Environmental coverage has been developed to fill the gaps that other coverages won’t touch.”

Myth: We already have a thorough response plan if there is an incident.

Reality: Properly handling an environmental event requires experience and expertise.

In addition to coverage, risk managers need experience and expertise on their side when navigating environmental claims.

“For many of our clients, their first environmental claim is a very different experience because the claimant is not always a typical third party – it’s a government agency or some other organization that they lack experience with,” Susavidge said. “Our claims team is made up of attorneys that have specific domain experience litigating environmental claims issues.”

Beyond its legal staff, XL Catlin’s claims consulting team and risk engineers come with specialized expertise in environmental issues. 85 to 90 percent of the team members are former environmental engineers and scientists, civil engineers, chemists, and geologists.

“Handling environmental claims requires specialized expertise with contaminants and different types of pollution events,” O’Malley said. “That’s why our 30 years of experience makes a difference.”

Thirty years in the business also means 30 years of loss data.

“That informs us as a carrier how to provide the right types of services for the right clients,” Susavidge said. “It gives us insight into what our insureds are likely to experience and help us determine what support they need.”

Insureds also benefit from the relationships that XL Catlin has built in the industry over those 30 years. When the XL Catlin team is engaged following a covered pollution event, the XL Catlin claims team can deploy seasoned, experienced third party contractors that partner with the insured to address the spill and the potential reputational risk. And they receive guidance on communicating with regulatory bodies and following proper reporting procedures.

“The value of the policy goes beyond the words that are written,” O’Malley said. “It’s the service we provide to help clients get back on their feet, so they can focus on their business rather than the event itself.”

For more information on XL Catlin’s environmental coverage and services, visit http://xlcatlin.com/insurance/insurance-coverage/casualty-insurance.

The information contained herein is intended for informational purposes only. Insurance coverage in any particular case will depend upon the type of policy in effect, the terms, conditions and exclusions in any such policy, and the facts of each unique situation. No representation is made that any specific insurance coverage would apply in the circumstances outlined herein. Please refer to the individual policy forms for specific coverage details. XL Catlin, the XL Catlin logo and Make Your World Go are trademarks of XL Group Ltd companies. XL Catlin is the global brand used by XL Group Ltd’s (re)insurance subsidiaries. In the US, the insurance companies of XL Group Ltd are: Catlin Indemnity Company, Catlin Insurance Company, Inc., Catlin Specialty Insurance Company, Greenwich Insurance Company, Indian Harbor Insurance Company, XL Insurance America, Inc., and XL Specialty Insurance Company. Not all of the insurers do business in all jurisdictions nor is coverage available in all jurisdictions. Information accurate as of September 2016.

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This article was produced by the R&I Brand Studio, a unit of the advertising department of Risk & Insurance, in collaboration with XL Catlin. The editorial staff of Risk & Insurance had no role in its preparation.




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XL Catlin. From insurance to reinsurance, a changing world needs new answers. We’re here to find them. With an incredible blend of people, products, services and technology, we have the power to find innovative, creative solutions to your risks — from the most familiar to the most complex.
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