Are Your Risk Management Operations Effective?

Lance J. Ewing ARM, CRM, ERMP EVP Global Risk Management Cotton Holdings, Inc.

AS RISK AND INSURANCE PROFESSIONALS WE BELIEVE WE HAVE TOUGH JOBS. AND WE DO. BUT…

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What if there were NO risk takers

A Day in the Life of the Insurance and Risk Professional

I want to be a Risk and Insurance Professional

Let’s Talk About YOUR CAREER

How Good Are You?... Really?

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Policies Exclusions/Endorsements Premiums Designations (More letters after my name than in my name) Marketing the program Understand business (clients and own) I am an active leader in many risk & insurance professional organizations Risk advisor? My clients love me

 Your broker / third-party administrator  may have a vested interest  may not understand your organization’s culture  Your internal / external auditors or company peers  may have little knowledge of risk management  external auditors may be more narrow focused  Your insurance carrier(s)  may have a vested interest  may not understand your risk organization’s culture  Your boss – you may not like the answer  Your risk management colleagues – their sincerity may be called into question TWO HARD FACTS  Most risk & insurance professionals need a mentor…most DO NOT have one  Benchmarking with a recruiter for your profession is valuable

 Is your work time strategic?  Time is your most valuable asset and how you decide to use it will ultimately determine the fate of your career  Are you being entrepreneurial/risk-taking?  Broaden your observations and start thinking like an entrepreneur in the workplace  Are you daily challenging yourself?  Manage yourself to a standard that will produce a set of expectations  Do you have a true support network? You have to be deliberate in communicating your career goals 

Does your employer appreciate your talent?  Put new ideas to the test with your employer

 CEOs/CFOs did NOT list insurance knowledge as a key attribute to lead risk  

management (per recent US survey) Risk Managers place a high value on their knowledge of insurance issues/coverage/claims Risk Managers believe if their title is higher that denotes higher standing in the organization

 CEOs/CFOs indicated they plan to make a change related to risk management within the next 18-24 months (per recent US survey)

FACTS  The top requirement CFOs sought was an intimate knowledge of the entity’s business and industry familiarity  Second was having a strategic view of risk for the entity & the risk management function  Third CFOs want their risk professionals to be able to communicate and deliver the risk culture “message”

 Do you know your company’s three-year strategic plan? How are you helping meet it?  What are the key performance metrics for your company/you?  How frequently do you assess your professional goals? Do they include measurables? (I got out of bed)  Why and how do you decide to RFP your broker/ third-party administrator / insurance providers?  How much “face time” do you get with your boss? How much do you want?  Have you created or helped to create a risk management committee?

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Lunch Ask your boss Ask your staff Ask peers you respect Ask for job rotations Get out into the field and learn the business Find a mentor and/or BE one Learn “finance speak” Understand the claims process COMPLETELY Get a “seat at the table” – learn how Educate Communicate

 With executive senior management by  supporting achievement of the company’s strategic plan  integrating with other business support functions  optimizing the use of available resources  With supported business units by  increasing their strategic and operational relevance while respecting the resource constraints  understanding their business & key metrics and offering help  With your boss, staff and service providers by  providing frequent & relevant updates on key metrics (Stewardship Reports)  helping overcome obstacles to their success—say YES  developing and maintaining a professional and fun working environment/relationship

NOT EVERYONE WANTS TO BE TREATED OR COMMUNICTED THE SAME

The Golden Rule Theory of Insurance and Risk Management Communication And Why it Does Not Work

» Who REALLY needs to be part of the communication trail…are you hiding behind email? » How do you want to be communicated with and TELL people » Provide MEANINGFUL feedback » Learn to say “I AM SORRY” and learn to say “NO” » Always be LONG on delivery and SHORT on promise » Never OVER risk manage and UNDER communicate » Know your and your boss’ communication style

The Director Strong Personality Very Direct and to the Point Expert in ALL Areas Results Only “Time is Money”

The Relater Team Builder Personality Consensus is Key Supportive Works Behind the Scenes “Why Can’t We All Just Get Along”

Detail Oriented Personality Analytical Skill Set Systems Work Best Bit of Perfectionist “Data and Numbers Equal Knowledge”

Charismatic & Charming Opportunity Seeking Skill Set Reaction Seeker Works best with an Audience “Leadership by Party”

Career Anchors » Security & stability anchor » Gig anchor » Social anchor » Managerial anchor » Autonomy anchor » Entrepreneurial anchor

Final Advice

Questions ?

Really Final Advice

LANCE J. EWING [email protected]