Community, Diversity Spotlighted at RIMS Canada

TORONTO—The 2017 RIMS Canada Conference quickly found its groove on Monday morning, kicking off the annual conference with performances by a choir of local schoolchildren and an opening session centered on the theme of community.

Focusing first on the RIMS community, the RIMS Canada Council announced its top honors for accomplishment in the risk management field. RCC Chair Rieneke Lips presented the Fred H. Bossons Award—given to the risk management professional earning the highest average mark on the three examinations required to attain the Canadian Risk Management (CRM) designation—to Deborah Moor, vice president of HIIG Underwriters Agency (Canada) Ltd.

In recognition of outstanding contributions to the risk management profession, Christina Gardiner, president of the RIMS Ontario chapter (ORIMS), and Val Fox, special advisor to ORIMS, presented the Donald M. Stuart Award to Tony Lackey, director of risk and insurance services for Carleton University in Ottawa. Lackey has not only managed the university’s risk management program and developed and implemented its annual enterprise risk assessment process, but has been deeply involved in the education of other risk managers. Indeed, after obtaining his Associate from the Insurance Institute of Canada (AIIC now CIP) and helping forge the relationship between his university and RIMS to promote and administer CRM programming, he became an instructor, teaching the CRM course at Carleton University’s Sprott School of Business.

In his opening keynote, workplace diversity expert Ted Childs shifted the focus from community to an exploration of the human and strategic imperatives of fostering and maintaining diversity programs. Childs, who oversaw such programs and policies as part of his 39-year tenure at IBM, laid out what he called the “business context for diversity.” He noted that creating the strongest business depends on recruiting and retaining the best talent, which requires an enterprise-wide culture that actively works to ensure representation and advancement.

These goals, however, cannot be considered synonymous, Childs cautioned. “Diversity is the picture, inclusion is the test,” he said, explaining that anyone could likely walk through a business and select enough people who “look different” to fill a photo. When that lens is narrowed by various levels of seniority, however, it remains much more difficult.

Building community builds business, Childs argued, and while this should be motivated in part by the obvious factors, from moral imperative to the competition for talent, he focused heavily on the impact to every business’s bottom line as well. “Workforce diversity is the bridge between the workplace and the marketplace,” he said. Customers want to see themselves reflected in the companies that serve their needs.

Should that be insufficient compulsion, however, Childs has copyrighted his argument in blunter terms: “No matter who you hate, you don’t hate them more than you love money.”

Drive Safely Work Week Campaign Revs Up in October

American workers’ safety on the road continues to affect careers and companies. According to the Department of Labor’s National Census of Fatal Occupational Injuries in 2015, transportation incidents caused that year’s most fatal work injuries at a staggering 26%; the 1,264 roadway incidents also marked a 9% rise from 2014. When paired with other sobering statistics—such as positive urine drug testing in the workplace increasing 5% from 2014 to 2015, as previously reported—awareness groups are reacting to combat these statistics.

The Network of Employers for Traffic Safety (NETS) reports that vehicle crashes are the number one cause of death and injury in the workplace. In addition to the pain and suffering caused, traffic crashes cost employers more than $60 billion annually in the U.S. alone. Studies by the National Highway Traffic Safety Administration have concluded that 80% of all crashes and 65% of near-crashes are due to some form of driver inattention.
NETS is addressing fleet safety and the dangerous combination of impaired driving while at work beginning Oct. 2, when it launches Impaired Driving, its newest Drive Safely Work Week campaign.

The goal for the week is to equip employers with the means to improve awareness of the risks of impaired driving—operating a vehicle under the influence of alcohol, illicit and prescription drugs, and other substances—by offering tangible solutions employers can implement to reduce them. The NETS site, trafficsafety.org, offers an online toolkit which will be updated in October with Impaired Driving campaign activities that reinforce the program’s safe-driving messages. This includes customizable employer launch letters, fact sheets, pledge cards and interactive employee presentations.

While the campaign’s top priority is to save lives, it also sheds light on the major financial risks employers face when employees drive under the influence. NETS information indicates that the average cost of an on-the-job crash to employers is:

  • $670,000 per fatality,
  • $65,000 per non-fatal injury, and
  • $6,000 for property damage.

Impaired Driving is DSWW’s third campaign of the year. The safety week had been observed annually for many years, but NETS updated its structure to quarterly deliveries in 2017. Its focus will not be time-sensitive or tied in with certain events or holidays. This way, any of the campaigns can be tailored to the employer’s schedule, without consuming significant time from the work day, said NETS executive director Joe McKillips.

“With these changes, our mission remains the same,” McKillips said. “[That mission is] to improve the safety and health of employees, their families, and members of the communities in which they live and work by preventing traffic crashes that occur both on-and off-the-job.”

For employers looking to host a safety week, NETS suggests alerting employees up to two weeks prior to the week by email and posting notices.

During a scheduled Drive Safely Work Week:

  • Post social media announcements
  • Distribute employee fact sheet(s)
  • Conduct distracted driving training workshop and/or webinar using the PowerPoint presentation contained in the downloadable campaign materials

Founded by the National Highway Traffic Safety Administration (NHTSA), NETS is an employer-led road safety organization comprising global traffic safety leaders across private industry and government, whose fleets range from fewer than 100 vehicles to more than 50,000.

Paying it Forward: Industry Leaders Celebrate at Spencer Gala

Every year in September, leaders in the insurance world celebrate the profession and show their support for the next generation of risk management and insurance professionals. This year, close to 700 executives made their way to the Spencer Educational Foundation’s 9th Annual Gala on Thursday night at the New York Hilton Midtown. Nearly $1 million in donations were accepted at the event, a critical fundraising initiative for the Foundation. Proceeds will directly fund grant, scholarship and internship programs for undergraduate and graduate students who are pursuing careers in the field.

“The Gala is a wonderful reminder of just how generous and passionate professionals in this industry are,” said Ron Davis, executive vice president at Zurich and Spencer Educational Foundation chairman. “Tonight we’re celebrating the profession that has afforded us so much by giving back and creating meaningful opportunities for future risk professionals.”

The Gala honored 2017 Spencer Scholars Jayde Lim Ah Tock, a junior from Temple University, and James Pappas, a senior at St. John’s University. “Being a Spencer Scholar has allowed me to focus on my university’s program,” Tock said. “I want to thank the donors for allowing me to pursue something that is so important to me.”

When speaking about the support Spencer provided, Pappas said he is now “confident, optimistic and energized” about his future and knows he is “joining an amazing industry that truly makes a difference.”

Among the industry leaders in attendance were honorees Joseph Tocco, chief executive, north America insurance at XL Catlin, and Michael Rice, chief executive officer at JLT Specialty USA. Both are longtime Spencer supporters and were recognized for their efforts to move the Foundation’s mission forward.

The night’s festivities concluded with remarks from the honorees whose comments focused on the industry’s talent gap and the aging risk management workforce.

“The world needs our industry and our industry needs to attract and develop new talent,” Rice said. “Spencer is a wonderful conduit that allows us to celebrate this talent and the future of the profession.”

Tocco added, “I’m proud to be in an industry that places so much energy on education. Enlisting the next generation of risk professionals is more imperative now than ever before. We need to make “risk management” students’ first choice and not a profession by accident.”

Students around the world have benefited from Spencer funding. Since its inception, the charitable nonprofit has awarded 970 scholarships totaling about $6.4 million, and $3.25 million in grants to universities and professional institutions for educational programs and conferences.

RIMS Membership Has a Say in COSO’s New ERM Framework

When Risk & Insurance Management Society (RIMS) members use the new ERM framework published Sept. 6 by the Committee of Sponsoring Organizations of theTreadway Commission (COSO), they may recognize their own ideas prominently displayed. Carol Fox, RIMS vice president of strategic initiatives announced the call for public comment on Risk Management Monitor in June 2016. She said feedback from the industry, and particularly RIMS members, is reflected in COSO’s ERM Framework: Integrating with Strategy and Performance.

“RIMS members took advantage of the unique opportunity to influence one of the industry’s major guidance documents. For several weeks, members collaborated and drafted a response, which was publicly available through the end of last year,” said Fox, who participated on the project’s advisory council. “We were very appreciative that COSO reached out to RIMS and other professional associations, whose input strengthened the content, ideas and approaches featured in Integrating with Strategy and Performance.

A summary of the public comment feedback includes:

  • More than 200 responses–double that of the internal control update
  • Over 70% of responses from individuals
  • Over 50% of participation outside of North America
  • Almost 50% had affiliations beyond COSO memberships
  • Almost 50% of respondents had 10 or more years of risk management experience
  • Positive ratings outnumbered negative ratings by 4.5 to 1

The new publication serves as an update to 2004’s Enterprise Risk Management – Integrated Framework, which is internationally regarded as the standard for applied risk management frameworks. Developed by PwC under the direction of the COSO Board, its simple, five-component structure considers various viewpoints and operating structures while highlighting the importance of enterprise risk management in strategic planning. It also emphasizes embedding ERM throughout an organization, as risk influences strategy and performance throughout the organization.

“The complexity of risk has changed, new risks have emerged, and both boards and executives have enhanced their awareness and oversight of enterprise risk management while asking for improved risk reporting,” said COSO Chair Robert B. Hirth Jr. “Our overall goal is to continue to encourage a risk-conscious culture.”

Enterprise Risk Management: Integrating with Strategy and Performance is available in printed form, e-book, on-line subscription and pdf licensing for large organizations, accounting and consulting firms. Additionally, COSO is planning for the framework to be translated into several languages, including Chinese, Japanese, Spanish and French.

Visit www.coso.org for purchase information and for a link to the framework’s executive summary.