Tag Archives: risk management

RIMS 2019 Reflections by Hannah

RIMS2019-Hannah

Ferris State Risk Management and Insurance major Hannah McGlocklin takes her turn sharing impressions of the 2019 RIMS conference in Boston:

I had the opportunity to go to the RIMS conference this year in Boston, Massachusetts and I had an amazing time. Since being back, it has been kind of crazy trying to absorb everything that I have learned and experienced this past week. I met so many different people from many different places and got a wonderful perspective on just how large the insurance industry truly is. The marketplace, which was full of vendors and companies, was a fantastic place to network and learn about what people do and how they impact the risk management and insurance industry. Along with the marketplace, I really enjoyed the educational sessions we were able to attend. I learned about a variation of topics from real estate to marijuana and sex trafficking and how all these subjects affect the insurance industry. Getting to know the other students that also attended as well as Dr. Brown was a positive as well. Networking is one of the best things about these types of conferences, and most of the time, the people in our closest professional circle can be just as important. There were many socials at the RIMS conference that allowed us to talk with many people that are a part of the industry. Not only were they held in the convention center but they were also different places in Boston. Even if the socializing and the educational sessions aren’t your thing, I would still highly recommend the experience of RIMS. Attending this trip was amazing, and even though you have to put money toward the cost, the return on your investment is worthwhile. In addition to the conference, having a chance to explore another city and area was awesome too. I tried new food, met new people, and took advantage of a lot of new opportunities, and for the price that I paid, it was an easy exchange. If the money to go on the trip is something that is holding you back, I would highly suggest you figure out how to make it happen, save over the summer, put a little bit away each month, or get a part time job while attending classes. The trip overall was an awesome experience and I look forward to RIMS Conferences in the future!

Hannah McGlocklin, Risk Management and Insurance Freshman

RIMS 2019 Reflections by Ashley

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Ferris State Actuarial Science student Ashley Sowinski attended the RIMS conference in Boston last week, and she has shared the following reflection on her experience:

The lure of the RIMS 2019 conference began for me with the city of Boston. Actuarial Science is my major, so I figured this event would be mildly applicable at most. I didn’t have an idea of what type of career I wanted to develop. I did feel pigeonholed through my degree; I tried diversifying myself with a certificate and a minor, but I wanted to see what options I could have.

The trip to Boston started out strong, adventuring for a day downtown, but the true adventure began Sunday at the RIMS social. We went to a Dave and Busters-esque entertainment center that had a bowling alley on the top floor. I went to this alone because there were two socials: one for 21+ and the other was for those under 21. It was incredibly intimidating to attend this alone because this was my first experience in the professional world. I met so many faces. Faces I made social connections with, so the following day in the Marketplace, I could go find someone like Ian from Vermont and follow up with my business card (that I hadn’t had at the social.) Plus, there is so much free stuff, it’s practically a college student’s heaven. I came home with aluminum water bottles, pens, phone chargers, stress balls, multiple t-shirts, even an umbrella! There were raffles, and some companies were giving out gift cards too.

As far as intangibles are related, I can confidently say I gained so much more than physical trinkets. I highly recommend this event because of everything I learned; there were many applications of the field that I would never have imagined. I had no idea what opportunities could be opened to me, but after just meeting a few companies and socializing, I was invited to another conference and asked to apply for a job. This was so exhilarating because I never thought I would be someone to be sought out like that. The networking there is real, and there is no way to gauge the opportunities you could reveal in attending this conference. RIMS had such a diversity of both people and companies, it is difficult to explain. The environment speaks for itself, and I hope I have the option to attend this conference through my career in the future.

Ashley Sowinski, Actuarial Science Senior

My Insurance Career Story

A few days ago, I shared a YouTube video of “JB” from The Insurance Nerdery, along with a brief message to “tell your story,” which also happened to be JB’s main message in his video.  February being #InsuranceCareersMonth, those of us who have built successful careers in this industry need to share our stories more often and more vividly with young people who are trying to find their career path.  So here’s my story.

Like most young people, I wasn’t sure what I wanted to be when I grew up.  I began my college journey as a communications major, having great fun with my own show on the college radio station.  I envisioned a lifetime of playing rock-and-roll tunes on radio stations around the country.  By my senior year at Michigan State University, I had recognized the inherent career insecurity of being a “disc jockey” and had changed my major to “socioeconomics” – a blend of business, economics, and political science.  I began haphazardly interviewing for various business jobs at the MSU career placement office with no idea where I would end up.

One of those interviews was for a commercial underwriting trainee position with CIGNA, who was at that time a property and casualty insurance company.  Before the interview, I had to investigate what an “underwriter” actually did, and when I arrived for the interview I still wasn’t completely sure what the position was all about.  In spite of my insurance ignorance, my potential must have resonated with the interviewer as I won a second interview at the firm’s Grand Rapids office, and later an employment offer.  I accepted the offer, and another unintentional insurance career was launched.

The analytical aspect of the underwriting job was very attractive to me, and I dove into my training enthusiastically.  I developed a few of my own analytical tools as I learned to underwrite commercial property, liability, and workers compensation insurance.  The 1980’s also happened to be the dawn of the personal computer era, and I had developed some basic programming skills which I put to use in my early underwriting career.  That caught the attention of CIGNA managers who had me apply those personal computer skills to a few projects for the regional Director of Marketing and Underwriting Programs.  Before I knew it, I had earned a promotion less than two years into my career and earned a very nice bonus payout from the home office in Philadelphia.  I realized that this insurance career was not only interesting, challenging, and fun – but also lucrative.

In early 1990, I noticed that Meijer had posted a professional risk management job opening in their corporate office.  Curious about the risk management function in a major corporation, I applied and accepted the position.  I was fascinated by the broad scope of risk management which encompassed a multitude of risk control activities throughout the company and also the intricate risk financing and self-administration of liability and work comp claims at Meijer.  I worked on several exciting projects, including several that further honed my technology skills, as I met some wonderful professionals in my time at Meijer.

By the mid 1990’s I was ready for a new adventure, and my inner entrepreneur was beginning to emerge.  I decided it was time to try self-employment by selling my technology skills and risk management and insurance (RMI) expertise as a free agent.  Management Technology Services, Inc. was launched and I found no shortage of work opportunities managing risk management information and claim system implementation projects at several Fortune 500 clients.  I was able to travel all over the U.S. and engage in a variety of projects and interesting work at insurance companies and Fortune 500 risk management shops.

I also picked up a few custom software development contracts along the way.  I developed an audit management system for a large manufacturer, and a vendor compliance management system for a retailer.  The latter project evolved into a business process outsourcing platform that I used as the backbone of my next firm, Periculum Services Group. With Periculum, I was able to establish client relationships with many prominent risk management professionals in some of the largest companies and government entities around the USA, as well as a strategic partnership with a risk management firm based in Sydney, Australia, who proceeded to use Periculum technology in the Aussie marketplace.

I eventually sold Periculum and accepted an executive position with the acquirer, while I simultaneously turned my attention to a bucket list goal: earning my Doctorate in Business Administration.  Shortly after completing my doctoral studies, Ferris State University revived its Risk Management and Insurance academic program and needed faculty to coordinate and teach the program.  Great timing.  Here I am, nearly six years later, thoroughly enjoying this opportunity to encourage young, talented students to create their own RMI career path.

As I look back over my 32 year career, I can see just how fortunate I was to stumble across fantastic opportunities and meet some amazing people and valuable mentors along the way.  Like many, I truly did “fall into insurance accidentally” simply because CIGNA saw raw potential in an awkward but highly analytical 22-year old kid.

I’ve been able to do interesting, challenging, and meaningful work, that has directly and indirectly improved people’s lives.  At the very heart of risk management is the notion of protecting people and property from adverse outcomes.  That’s very noble work in which I take great pride.  I’ve been able to travel to 46 states, and enjoyed overseas travel to some exotic locales such as Udaipur, India and Sydney, Australia.  Although I spent several years of my career self-employed, I never had a shortage of billable client work.  I can testify truthfully that I have never had a day in 32 years when I was “unemployed.”  And at the risk of sounding immodest, this career path has blessed me with ample compensation over the years.  I continue to work today because I want to, not because I have to.

Such is the nature of the RMI career opportunity:  Neverending and varied opportunities, wonderful people, rewarding compensation, and noble work.  Imagine if I had pursued this career path with greater intention and preparation.  What more might I have achieved?  I am excited for the young students that actively seek this career path today.  The possibilities ahead of them are vast.

That’s my story.

-Dr. David Allen Brown

 

Back to School

We’re back.  Summer was great, but the academic year is officially underway and there is no shortage of events and topics to consider.  Of course, the devastation and tragedy brought about by Hurricane Harvey is heart-wrenching.  Coincidentally, it was almost exactly one year ago that I blogged about flood insurance and the Louisiana floods.  Harvey leads us back to many of the same issues that I wrote about last year.

Risk and insurance headlines continue to debate the future of auto insurance as the reality of driverless automobiles draws closer.  Cyber-security, ransomware, and data breaches still demand considerable risk management attention.  AIG has a new CEO with considerable industry chops and he’s already making big moves.  Drones are playing a large part in the claims process following Harvey.

Contrary to popular belief, risk and insurance is anything but boring.  These are just some of the weighty issues that Ferris State University RMI students will be exploring in the months ahead.  This is going to be fun.

Scholarship Season

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Spring break is upon us!  Over the next few days, Ferris State students will scatter to various warm climates for spring break next week.  When the RMI students return in mid-March, they will be facing several imminent scholarship deadlines.  The amount of scholarship assistance that is available to today’s RMI student is impressive, uplifting, and dare I say, overwhelming.  The ever-growing list of RMI scholarships certainly reflects the industry’s urgent need for young talent, and that should speak volumes to those students and parents still contemplating an academic and career direction.

Many of these scholarships have springtime application deadlines so that awards may be made during May for the upcoming 2017-18 academic year.  This time of year, I receive multiple scholarship opportunities each week that I pass along to my RMI students.  As I have blogged in the past, there are also several online resources (including our own partial list) that will help students to find RMI scholarships.  There is absolutely no reason that a diligent student cannot find at least some scholarship assistance for their RMI education.

All of this is good.  Or is it?  Let me return to my prior use of the word “overwhelming” as it relates to these scholarships.  There are so many scholarship opportunities from every type of RMI organization imaginable, that students seem to be “freezing up” when it comes to applying for these scholarships.  With so many opportunities, it becomes difficult for the individual student to discern which opportunities afford them the best chance of receiving an award, and with limited time to crank out scholarship applications, they can apply for only so many.  In fact, this is beginning to be noticed by the awarding organizations as I have begun to receive queries from some scholarship sponsors as to why their application numbers are lower than expected.  To be clear, I don’t think that’s a universal condition as many of the established and well-known scholarships continue to receive plenty of applicants and award their scholarships only to the most deserving students.  It seems to be the newer, lesser-known scholarships that are struggling to find applicants.

This is a real shame because these sponsoring organizations have funds to help students, and they really do want to bolster the young talent coming into the industry.  I hesitate to say that there may be an over-supply of RMI scholarships because that almost feels blasphemous.  How could there ever be an over-supply of such a fantastic thing as scholarship money when tuition and book costs continue to rise?

I have an idea.  What if some of these scholarship sponsoring organizations who are struggling to generate applicants diverted those scholarships funds for a few years?  Instead of begging for student applicants, put the funds into the hands of the collegiate RMI programs to use for program marketing and enrollment growth initiatives.  More RMI students enrolled at schools equals more future scholarship applicants.  Now, you might argue that the scholarships themselves should be a powerful recruiting tool for boosting RMI enrollment.  Absolutely true, but there is much more to the student decision to major in RMI and I believe that the individual RMI schools are in the best position to convey the overall value proposition (including abundant scholarship opportunities) to prospective students – but not many schools have budgeted funds specifically for marketing their RMI academic programs.

This could be an interesting short-term tactical shift for some scholarship sponsors that pays off with a long-term strategic success of awarding more scholarships to the most deserving students (however each awarding organization may define that) a few years down the road.

Flexible Career

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Practical Education, Flexible Career, Rewarding Life.

Last week, I posted about the practical education element of the Ferris State RMI program’s tagline.  In the continuing spirit of Insurance Careers Month, I will discuss the flexible career aspect this week.  I’d like to begin by highlighting one example of insurance career flexibility: me.

I was one of the many “accidental” insurance professionals who stumbled into a commercial underwriting position fresh out of college.  A few years later, I moved into a risk management role with a large retailer.  Applying my interests and aptitudes for technology, I eventually started my own consulting practice where I worked on several Fortune 500 risk management information system projects.  An opportunity came along to develop a system and process for tracking certificates of insurance, and an entirely new business was born.  Over the course of ten years, I was able to grow and then sell that business, and then pursue the bucket list objective of earning a doctoral degree.  Shortly thereafter, Ferris State revived its RMI academic program and began searching for a lead faculty and program coordinator, and here I am today.

Over the years, I’ve talked to countless risk and insurance professionals, some who intentionally entered the industry and many who discovered it accidentally.  I am always intrigued by the unique stories of these career arcs.  They are always a fascinating story of career evolution that starts in one area of the industry and then twists and turns through a variety of different roles, opportunities, firms, and locations.  Many in the industry have had the chance to live in some wonderful places, including overseas.  Here in Michigan, insurance professionals can work in the metropolitan areas of Detroit and Grand Rapids, or near the exquisite shorelines of Grand Haven and Traverse City, or in the pristine wilderness (and sportsman’s paradise) of the Upper Peninsula.  The key takeaway from my and many other stories is that a risk and insurance career is not stagnant, but rather it allows for evolution through a number of interesting, challenging, and meaningful positions in a variety of locations.

A flexible career has another meaning besides career path mobility and opportunity.  Numerous articles describing the desire for workplace flexibility have appeared in recent years, particularly when discussing the Millennial generation.  However, I believe that this desire for flexibility is not unique to the Millennials.  In this age of instant, always-on communication, I think we all value the ability to work from anywhere we wish, and at the times that we wish.  Technology certainly supports our ability to be productive from our home office or even from the bleacher seats as we watch our children and grandchildren play sports.  The risk and insurance industry offers this type of flexibility.  Many professionals are now based out of home offices.  Field personnel who do loss control or claims work often schedule their own appointments.  I’ve spoken with many insurance agents over the years who treasure the ability to work in the office during the morning, have a client meeting over lunch, spend time on a family activity during the afternoon, and finish up their day with a little work in their home office.  The next day’s schedule may look entirely different – it’s up to them.

Let me be clear.  There is work to be done.  I don’t intend to paint a picture of insurance professionals spending all of their afternoons on the golf course,  During my consulting days, I traveled 50-75% of the time and I was away from my young family more than I cared to be at times.  Nevertheless, the work was always interesting, never boring, and I always had a degree of control over when I scheduled projects.  On the whole, I have enjoyed a tremendous amount of flexibility and variety in my risk and insurance career, and you can too.

 

Practical Education

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February is “Insurance Careers Month” during which risk and insurance professionals make a concerted effort to highlight the industry’s career opportunities for young people facing a myriad of academic and professional choices.  A few years ago, when Ferris State University revived its storied risk management and insurance academic program, we re-engineered the curriculum and co-curricular opportunities for the 21st century.  As the new program took shape, I sat down with an advisory board sub-committee to craft a tagline for the program that would capture its essence and the potential that it offered students:

Ferris State University Risk Management and Insurance:  Practical Education.  Flexible Career.  Rewarding Life.

 In the context of insurance careers month, I decided to break this tagline down and discuss each of its component parts over the next few weeks.

“Practical Education” is not just lip service – it’s part of the Ferris State DNA.  The school was founded in 1884 by Woodbridge and Helen Ferris as Big Rapids Industrial School.  A review of the school’s history clearly demonstrates a focus on teaching practical skills that prepare students for gainful employment and successful careers in fields where workers are needed.  To this day, Ferris offers programs in such fields as Heavy Equipment Technology, Welding Engineering Technology, Plastics Engineering Technology, Pharmacy, Optometry, and yes, Risk Management and Insurance.  All of these are fields clamoring for young, educated talent.  The Ferris State mission and core values clearly emphasize the practical nature of a Ferris State education.

The new Ferris State RMI academic program has been designed from the ground-up to provide this practical education.  Our students learn the foundational concepts of the risk management process, insurance coverages, insurance law, and terminology.  But that’s not all.  The reality is that in many fields, a significant portion of the technical knowledge a person gains in school will be obsolete within ten years of graduation.  The truth is that the technical learning continues well beyond college graduation, and in fact, never really ends.  Insurance coverages will evolve with emerging risks such as cyber-risk, and who knows what comes next in the 2030s, 2040s, and beyond.

At the heart of our practical education is an emphasis on experiential learning, adaptable degree programs, and development of timeless skills.  Practical education means that our students will complete internships where they go to work in the “real world” of risk and insurance.  It means they attend industry conferences where they are exposed to emerging industry issues and begin building a professional network.  It means that they participate in co-curricular activities such as Gamma Iota Sigma.

Practical education means that students complete the foundational RMI courses and then have the opportunity to draw a variety of other courses from across the University to complete their degree and to suit their interests and career direction.  Interested in becoming a cyber-security/cyber-risk expert? Take a few of our information security courses.  Interested in predictive analytics for risk and insurance? Take data analytics and data mining courses.  Interested in the agency side of the business? Take our agency operations course along with a few small business management courses.  Examples of practical tailored education abound.

Practical education means that students learn and practice the skills that every employer seeks.  The RMIN 489 capstone course includes units, exercises, and activities in such areas as critical thinking skills, logic, problem-solving, and collaboration, to name a few.  Just next week, the RMIN 489 students will be addressed by an industry veteran who will be coaching them through several case studies drawn from genuine situations from the realms of underwriting, claims, sales, and risk management.  The cases we use in this course are not canned textbook cases – they are real-world (with names changed to protect the guilty/innocent) situations for which there is rarely “one correct solution.”  The intent is to exercise the students’ problem-solving and analytical skills as they evaluate each case against the foundational risk and insurance knowledge they have gained.

This is real-world stuff.  This is a practical education.

Back to School

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Next week marks the beginning of a new academic year at Ferris State University, and it is going to be a busy one.  The FSU Risk Management and Insurance program officially launches a re-engineered curriculum this fall.  One of the most important features of the updated curriculum is a 15-credit block wherein students will tailor their education (with academic and professional advice) to suit their interests and aptitudes.  Some students may decide to enhance their RMI degree with an area of emphasis in data analytics by completing coursework in data mining, statistics, and predictive analytics.  Other students may focus on risk management by adding coursework in advanced risk management, enterprise risk management, and risk management technologies.  These are but two examples of potential specializations which might also include other areas such as cyber-risk, entrepreneurship, agency operations, and more.  Fun stuff!

Earlier this year, the Ferris State RMI program launched a strategic planning process.  The bulk of the committee’s planning work is now complete.  Execution of the strategic plan is already underway, and will be an ongoing process over the next few years.  This will result in considerable activity both inside and outside of the academic classroom, adding to our students’ success and strengthening the program for future students.

On a personal note, I am beginning my fourth year in academia this fall.  After spending the first 25 years of my career working in and around the risk and insurance industry in a variety of roles, I can honestly say that the past three years have been the most intrinsically rewarding years of my career.  But what really excites me is what I see ahead.  Ferris State has established a fantastic foundation for the RMI program, the risk and insurance industry is eager to hire ambitious graduates, and now we just need to fill more of the seats.  It is going to be a busy and exhilarating year.  Let’s get started.

Present, but absent

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Presenteeism, according to one recent research report, is ten times more costly to business than absenteeism.  Presenteeism is what happens when employees show up for work but put forth significantly less than a full effort.  This is not a new phenomenon.  I’ve witnessed it anecdotally in various work settings throughout my career. The cult-classic film “Office Space” provides an entertaining depiction of presenteeism.

In fact, to be totally honest, there have been days in my working life when I’ve been “present, but absent” on the job.  Not recently, but there have been those days.  As the Office Space character Peter Gibbons says, “It’s not that I’m lazy, it’s that I just don’t care.”  There were times in my professional past when the work wasn’t challenging, the bureaucracy and politics were oppressive, and the mission was unclear.  All of those conditions result from poor leadership in the enterprise.  When the work environment is such that the effort seems futile, presenteeism is the result.  The truly alarming fact is that no employee is immune, and presenteeism can become an insidious cancer within an organization.

There is more to the costs associated with presenteeism than just lost productivity.  Customer and supplier relationships can be damaged, co-workers can be “infected,” and employees can suffer long-term physical and mental harm.  It has long been known that distracted employees are more likely to be injured on the job, and long-term presenteeism can result in atrophy of a worker’s skills and abilities.  Presenteeism is more than just a productivity issue – it is also an employee wellness issue (for the benefits staff to consider) and a workers compensation issue (for the risk management staff to consider).

The natural inclination among managers with an industrial-era scientific management mindset (archaic in this knowledge-economy era, but still very much alive) is to “buckle down” to make sure that employees are working to their full potential at all times.  That’s a knee-jerk reaction that leads to micromanagement and paternalism.  Approaching presenteeism from that angle is anathema to employee engagement and knowledge worker productivity.  My own doctoral research examined this area quite closely.

The true answer to presenteeism is not to treat the symptoms but to cure the underlying disease.  Remove the conditions that cause employees to “check-out” and do just enough work to avoid getting fired.  That means providing challenging work, adequate authority, opportunities for personal development and mastery, and then get out of their way.  A great book that gets at the heart of motivation for modern-day knowledge workers is “Drive” by Daniel Pink, or check out his TED talk on the same material.

Employers, specifically leaders and managers, must come to grips with the magnitude of the presenteeism problem.  Perhaps more importantly, they need to recognize the difference between effective and counterproductive responses to the presenteeism problem.   Our economic health as well as the physical and mental health of our employees depends on it.