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In Uncertain Times, Effective Risk Management is Key

1/5/2009

RIMS 2009 Annual Conference & Exhibition unveils rich program outlining latest leadership strategies and techniques

Amidst the recent turmoil in the financial markets, the risk management industry has been placed into the spotlight and risk practitioners are being asked to re-evaluate their risks and exposures. RIMS 2009 Annual Conference & Exhibition, taking place April 19-23 in Orlando, Florida will provide risk managers and other executives charged with risk management responsibilities with proven leadership strategies and techniques to successfully navigate this time of economic uncertainty, and the surfacing global threats.

"Risk professionals today face a very challenging economy with tough decisions to make for their organization. Now more than ever, it is vital that practitioners stay connected and informed," says Mary Roth, ARM, RIMS executive director. "What practitioners will learn, see and hear at RIMS 2009 Annual Conference & Exhibition should not be missed. This is the conference for risk professionals to question industry partners about business tactics, learn from experts about the latest leadership strategies and hear how peers are addressing challenges in their own organization."

Speakers
The Keynote speaker at the conference General Session is Dr. Dennis N.T. Perkins, leadership consultant and author, who will present his 10 strategies for success based on effective leadership in demanding environments. Other speakers include Harvard Business School professor, change consultant and author John Kotter, who will share the secrets to aligning business goals and embracing effective change management; and financial journalist and author Roger Lowenstein, who will discuss the downfall of U.S. hedge fund company Long-Term Capital Management and the issues facing the current global credit crises.

Educational Lineup
RIMS 2009 Annual Conference & Exhibition boasts more than 400 speakers who will lead some 120 workshops in the 10 category areas of claims management, employment risks, ERM, finance, industry, insurance, international, legal legislation, loss control and risk management. Sessions cover current issues such as tactics that will help to improve an organizations risk management approach, and how to address the risks involved in using products and materials from developing countries as well as traditional trading partners. "Hot Topic" sessions will be announced in January to offer attendees forward-looking content based on current events.

Networking Events
RIMS 2009 Annual Conference & Exhibition will offer several opportunities for risk practitioners to meet with peers in a relaxed atmosphere. RIMS will host its third Community Service Day, once again supported by Aon, at Give Kids the World—a 70-acre resort that fulfills the wishes of children with life-threatening illnesses and their families at central Florida's attractions. Other networking events include the Spencer Educational Foundation's annual golf and hockey tournament fundraisers, an internationally inspired Opening Reception held at Walt Disney World's Epcot® Center, a special Wednesday evening entertainment—SeaWorld Spectacular, and an Exhibit Hall wine and cheese reception.

RIMS Goes Green
RIMS will be working closely with the Orange County Convention Center to support and execute an environmentally-friendly event throughout the week. For example, to reduce energy consumption, the center's lights, heat and air conditioning will be turned off in rooms not in use. Also, many conference materials such as banners, carpeting, signage, badge holders, among others will use recyclable materials and soy-based inks.

The deadline for the Early Bird discount is February 20. More information on RIMS 2009 Annual Conference & Exhibition, travel arrangements and registration are available at www.RIMS.org/RIMS2009.

Attention Universities: Spencer Educational Foundation Seeks Proposals for Loss Prevention Courses

12/19/2008

On Thursday, Spencer Education Foundation, Inc. announced it established two grants for universities and colleges with risk management programs seeking to create a loss prevention course curriculum.

The grants, funded by FM Global, are two awards of up to $50,000 each for the development of undergraduate course modules and graduate loss prevention course curricula for students studying risk management.

"Risk management programs have a growing need for current and more extensive loss prevention material at both the undergraduate and graduate levels," says Donna L. Galer, chairwoman at Spencer Educational Foundation, Inc.

"We hope that these educational grants will enable academic institutions with risk management programs to focus on the value of engineering in loss prevention and better prepare students to meet the challenges of the organizations they will one day represent," says Shivan S. Subramaniam, chairman and CEO at FM Global.

Grant applications are due by Jan. 30, and will be awarded March 2009. For more information, please contact Angela Sabatino, administrative manager at Spencer Educational Foundation, Inc., at (212) 655-6223 or asabatino@spencered.org.

RIMS Announces Board of Directors for 2009 Term

12/18/2008

RIMS Calls for United States Government Action on Terrorism Insurance Solutions for Nuclear, Biological, Chemical or Radiological Events

12/18/2008

The Risk and Insurance Management Society (RIMS) commends the Government Accountability Office (GAO) for its report on the availability of insurance coverage caused by acts of terrorism involving nuclear, biological, chemical or radiological (NBCR) weapons. The GAO was tasked to undertake the study by Congress when it passed the "Terrorism Risk Insurance Program Reauthorization Act of 2007" in December of last year.

RIMS has been actively involved in advocating for the availability of NBCR insurance and served as a resource to GAO when it conducted its study. RIMS applauds GAO for its comprehensive analysis of the extent to which NBCR is available; the difficulty in accurately predicting risk and damage associated with these events; and the consequent challenges with regard to insurance pricing. Despite concluding that insurance for NBCR is not widely available, the GAO stopped short of recommending specific policy solutions. RIMS maintains that the country's economic health and well being require a long-term solution that addresses both conventional and NBCR terrorism risks. The need for this solution was reinforced strongly in a recent study by the Commission on the Prevention of WMD Proliferation and Terrorism that declares that within the next five years it expects an NBCR-related attack to occur.

RIMS calls for a long-term solution that will assist organizations to manage NBCR risks by the creation of a separate federal insurance program, rather than a short-term solution requiring insurers to "make-available" insurance for these risks. Because NBCR exposure is not calculable for premium purposes—and is therefore an uninsurable risk—RIMS is concerned that smaller insurers may opt to exit the NBCR coverage market, leaving only larger insurers to offer minimum limits at a high price.  RIMS calls on the 111th Congress to revisit the issue of NBCR coverage in light of the GAO study findings.

Guilt Free Holiday Spending

12/15/2008

Give the gift of education this holiday season

If you’re in search of the perfect gift for the people on your list this holiday season, think of making a donation in their honor to the Spencer Educational Foundation. Your tax-deductible pledge will benefit gifted students pursuing a career in risk management or insurance.

“Spencer Educational Foundation takes much pride in the difference that we make in the lives of students and professionals in the risk management and insurance disciplines,” says Donna L. Galer, chair of Spencer Educational Foundation. “Without you, we couldn’t help as many talented risk practitioners and promising students as we do each year.”

Students like Aelon Porat, a student at Temple University who received the September 11 Memorial Scholarship in 2007, and Ashley A. Murphy, a student at the University of Louisiana at Monroe who received the XL Ian R. Heap Memorial Scholarship in 2008, have benefited from the donations from risk practitioners.

“I highly doubt that I could be where I am now without the support of Spencer Educational Foundation,” says Aelon. “Not only has the Foundation provided me with crucial financial aid, but it has given me an incentive to push my limits and excel academically.”

Ashley agrees. “I find it very encouraging to see a prestigious Foundation taking an interest and investing in the future of students across the country,” she says.

To make a donation, or learn more about Spencer Educational Foundation, visit www.spencered.org.

RIMS Supports NAIC Reinsurance Regulatory Modernization Framework Proposal

12/10/2008

The Risk and Insurance Management Society, Inc. (RIMS) is encouraged that the National Association of Insurance Commissioners (NAIC) has approved the Reinsurance Regulatory Modernization Framework Proposal at its recent Winter National meeting.

NAIC's adoption of the Framework is a small step forward in the process of developing a new regulatory regime for reinsurance; however, many details remain to be worked out.

The NAIC reinsurance task force proposal creates two classes of reinsurers in the United States. One class is for reinsurers domiciled in the United States and the second is for non-United States based port of entry (POE) reinsurers. Features of the new framework include modified collateral requirements for eligible entities, new state-based reinsurance regulations based on supervisory recognition, single-state licensure for United States reinsurers and single-state certification for non-United States reinsurers from approved jurisdictions.

RIMS is hopeful that this modified regulatory framework, when fully implemented, will result in additional capacity and the equitable and efficient regulation of the reinsurance industry in a manner that meets the needs of commercial policyholders.

Top Reasons to Submit Data to RIMS Benchmark Survey

12/10/2008

Risk practitioners who submit data before December 31 will receive a complimentary copy of the 2009 edition of RIMS Benchmark Survey book after it is published in May 2009. And, as an added benefit, participants will also receive a complimentary subscription to the professional edition of Advisen's Front Page News.

RIMS Benchmark Survey™ is the leading source of market intelligence for risk management decisions, with industry data from nearly one third of the Fortune 500 companies and across 70 industry categories. The survey captures information on the state of the insurance marketplace and provides the only independent fact-based review of the cost of risk to insurance purchasers-unbiased by brokers or insurers involved.

Visit www.RIMS.org/Benchmark to submit data online. Or simply complete the broker authorization form and we'll contact your broker for the information.

RIMS Chicago Chapter Pledges $100,000 to Spencer Educational Foundation

12/8/2008

Spencer Educational Foundation has received a $100,000 commitment from RIMS Chicago Chapter. The scholarship will be awarded annually to risk management or insurance students at colleges and universities in Illinois, Indiana, Iowa, Michigan and Wisconsin. The first recipient will be announced in March of 2009.

"RIMS Chicago Chapter has always supported the goals of Spencer Educational Foundation, but this gift is its most generous to date," says Donna L. Galer, chairwoman of Spencer Educational Foundation, Inc. "The Foundation is proud to receive the support of one of the largest RIMS chapters. The donation is evidence of the chapter's profound dedication to the future of the risk management and insurance profession."

For more information on Spencer Educational Foundation, or to donate, visit www.spencered.org.

RIMS Board of Directors Approves Five Percent Dues Increase

12/1/2008

Some years ago, in order to avoid dramatic dues increases that could impact member budgets, RIMS board of directors determined that small dues increases every-other-year would be more acceptable to members while keeping the Society fiscally sound. The last dues increase went into effect on January 1, 2007.

At its October meeting, RIMS board of directors approved a five percent dues increase for corporate, associate and additional deputy dues effective January 1, 2009. Corporate membership, covering up to two deputy members, will increase to $490 while additional deputy dues will increase to $160.  Associate dues, which are individual, will increase to $500. All other dues categories—affiliate, retired, educational and student—will remain at the 2008 levels.

For more information, contact Jill Levy, RIMS director of membership and chapter services, through RIMS online contact form, or 212-655-6030.

New RIMS Study Links ERM to Higher Credit Ratings

11/19/2008

RIMS and LogicManager have published the first in-depth study on ERM practices—RIMS State of ERM Report 2008. The report substantiates the value of ERM for organizations of all types and indicates that companies that have greater risk management and ERM maturity levels enjoy higher credit ratings. In addition to key findings, RIMS State of ERM Report 2008 uniquely outlines priorities for best practice criteria that organizations may use to improve ERM competency.

Conducted from December 2006 to January 2008, corporate risk practitioners from 564 organizations assessed their risk management strategy with RIMS Risk Maturity Model for ERM© (RMM).

Report Key Findings include:

• Organizations that have embraced ERM have realized a concrete advantage in their risk management competency. The study found that 93% of organizations with formalized ERM programs in place make better risk-informed decisions—a recognized competitive advantage over those that do not have an ERM program.
• Organizations that report they have an ERM program in place still fall significantly short of achieving managed or better risk maturity. The study demonstrates that, based on the ERM guidelines presented in RIMS Risk Maturity Model for ERM, only 4% of these companies have achieved a managed or better level of risk management competency in all risk competencies. This suggests that organizations may have a false sense about all that is required for an effective risk management program.
• Data from the study verifies that formalized infrastructures in well-managed ERM programs embody the 68 best practice guidelines for efficient and effective risk management programs as presented in RIMS Risk Maturity Model for ERM.
• The study links ERM to better business performance. There is a distinct correlation between companies that score higher on RIMS Risk Maturity assessment and companies that possess higher credit ratings. The same is true of low scoring companies that, typically, possess lower credit ratings. Hence, better managed companies in terms of ERM practices benefit from better business performance.

"In order for organizations to capitalize on the strategic and tactical value creation enabled by ERM, management--from the board room to the front line--must play an active role in the risk management process," says Carol A. Fox, ARM, senior director of risk management at Convergys Corporation and chair of RIMS ERM Development Committee whose members, risk practitioners, contributed to the report. "This report identifies fundamental requirements for management to build and maintain a resilient and sustainable organization."

For organizations that want to further develop their current ERM program, or learn how to implement one, RIMS recommends that an important first step is to understand where they stand. RIMS Risk Maturity Model for ERM and the free online Risk Maturity Assessment allows companies to assess their current practices against validated risk competencies and develop an action plan to take your risk management program to the next level. RIMS State of ERM Report 2008 is available for free to risk practitioners who complete an online Risk Maturity Assessment at: http://www.RIMS.org/RMM. Others may purchase the report online.