Los Angeles Chapter of Risk and Insurance Management Society
 
 

News Items Archive

Tuesday, November 07th, 2017
High Performance Risk Management
LOS ANGELES--Risk managers, whose job once focused on a basic "bucket of risks," and making decisions about which risks are transferable and which ones the company should retain, have been "migrating along an evolutionary path which is allowing us to be more strategic," Chris Mandel, senior vice president of strategic solutions at Sedgwick, said at the RIMS ERM Conference 2017 here.
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Thursday, November 02nd, 2017
Critical Infrastructure, Security and Resilience Highlighted in November
National Critical Infrastructure Security and Resilience Month (CISRM) kicked off on Nov. 1. The month's initiatives address risks such as extreme weather, aging infrastructure, cyber threats and acts of terrorism. Its timing is certainly appropriate, as the effects of recent hurricanes on infrastructures in southern states and Puerto Rico continue to be assessed, as well as Northern California's devastating wildfires and the deadliest shooting massacre in modern U.S. history.
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Wednesday, November 01st, 2017
Coverage, Breaches Highlighted at Advisen Cyber Conference
NEW YORK--Advisen's Cyber Risk Insights Conference, held during Cyber Week, featured risk management professionals and more than 20 panels and sessions on Oct. 26. The keynote was delivered by former New York City Mayor Rudolph W. Giuliani, currently the chair of Greenberg Traurig LLP's Cybersecurity, Privacy and Crisis Management practice. Giuliani used sports analogies to describe the...
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Tuesday, October 31st, 2017
Zombie Risk Management 101
An emerging risk over the past 10 years has been the rise of undead walkers, or "zombies" and their influence on supply chains, natural resources, and mortality rates. These once-alive individuals thrive on human flesh and spread deadly diseases; their exploits have been well documented in California and Georgia for years on basic cable television.
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Thursday, October 26th, 2017
Keeping Halloween Parties Safe in the Workplace
This year, Halloween is expected to be celebrated by a frightening number of Americans - 179 million. According to the National Retail Federation, 48% of adults plan to celebrate in-costume. These 18-year-olds-and-older are not just chaperoning young trick-or-treaters, many are also employees with their own collective sweet tooth. If you plan to indulge these kids-at-heart with a voluntary workplace celebration, here are some tips to consider:
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Tuesday, October 24th, 2017
Protecting Your Company from Rogue Employees
While employee malfeasance rarely takes down entire companies, it can result in serious fines, sanctions, court judgments, settlements and reputational damage. Big data analytics is one way leading companies are able to mitigate risk, by proactively detecting threatening or illegal behavior.
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Monday, October 23rd, 2017
Recovery Plans Critical Following Active Shooter Incidents
October has been mired by mass shootings in the United States. Incidents in which four or more people were shot--the criteria for a mass shooting--have occurred 15 times in the last 18 days. The Oct. 18 occurrence at a business park in Maryland, involving an employee who killed three co-workers on-site and injured two more, has increased the interest in workplace violence and active shooter preparedness plans. As previously reported, only 21% of U.S businesses surveyed felt they were prepared to manage an active shooter situation. And while preventative plans are priorities - and rightfully so - businesses should also consider how to appropriately handle their aftermath.
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Friday, October 20th, 2017
RIMS Legislative Summit 2017: Focus on Flood
WASHINGTON--The RIMS Legislative Summit kicked off on Wednesday in Washington, D.C. with a panel lead by Congressional office staff.

Panelists included: Democratic Staff in the U.S. House of Representatives; Jason Tuber, Senior Advisor to Senator Menendez (D-NJ); Ed Skala, Deputy Staff Director for the House Financial Services Committee; and Brandon Beall, Professional Staff Member, Office of Senate Committee on Banking, Housing and Urban Affairs; as well as Lisa Peto, chief counsel for the Financial Services Committee
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Thursday, October 19th, 2017
How Small Businesses Can Prepare for the Next Natural Disaster
As we have witnessed these past two months, Hurricanes Harvey, Irma and Maria devastated many parts of the south coast and the economies of Texas, Florida and Puerto Rico. The damage from the storms is expected to halt U.S. GDP by an entire percent. Recent estimates put the costs of recovery at around $85 billion and $59 billion for Harvey and Irma respectively.
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Wednesday, October 18th, 2017
New Voluntary Hot Air Balloon Safety Program Announced
The Balloon Federation of America (BFA) has instituted new safety accreditation for companies and pilots. The Envelope of Safety program was the result of the Federal Aviation Administration's (FAA) year-long call to action from the commercial hot air balloon industry in response to last year's mid-air accident in Lockhart, Texas which caused 16 fatalities.
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Friday, October 13th, 2017
When Nature’s Wrath Alters Your Business Travel Plans
The recent devastation of Hurricanes Harvey, Irma and Maria pulverized Texas, Florida and Puerto Rico, displacing hundreds of thousands of residents and racking up billions of dollars in property loss. These massive storms, as well as others, also wreaked havoc on corporate travel, crippling a good portion of the business economy by preventing companies from getting employees to their destinations.
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Thursday, October 12th, 2017
N. Calif. Wildfires Continue Widespread Destruction
The National Interagency Fire Center (NIFC) increased the National Preparedness Level to 3 today due to wildfire activity in eight Northern California counties, including Napa, Sonoma and Mendocino, where evacuations, road, trail and area closures are in effect. Since their start on the night of Oct. 8, the wildfires in California's wine country have caused 23 deaths and forced more than 20,000 to evacuate, including the entire city of Calistoga. Additionally, hundreds of residents are missing.
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Tuesday, October 10th, 2017
Hurricane Devastation Impacts Health Care Supply Chains
The destruction caused by Hurricane Maria in Puerto Rico last month has created major disruptions for the island's pharmaceutical product and medical device manufacturing facilities. Days of interruption and damage to manufacturing plants are affecting international supply chains for products such as cancer and HIV treatments, immunosuppressants for patients with organ transplants, and small-volume bags of saline, which are necessary for patients who need intravenous solutions.
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Monday, October 09th, 2017
Words (and Clauses) Matter
A recent report published by RIMS highlights the importance for risk professionals--or the person within the organization tasked with the responsibility--to fully understand the language included in their insurance policies
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Friday, October 06th, 2017
Lawsuits Question Arkema Emergency Preparedness Plan
Last week officials in Harris County, Texas were granted permission to file a lawsuit against international chemical company, Arkema, Inc., in attempt to recover the costs of responding to the crisis at the company's plant in Crosby during Hurricane Harvey in August into September. The County has asked a court to review the plant's environmental practices and disaster preparedness plan and to determine how, if at all, it was updated to reflect the projections of 50-plus inches of rain in the days leading up to Harvey's landfall.
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Monday, October 02nd, 2017
October is National Cyber Security Awareness Month
National Cyber Security Awareness Month (NCSAM) kicks off this week. And in the wake of last month's Equifax breach announcement--in which nearly 145.5 million Americans learned their personal information may have been compromised, coupled with the government's recent efforts to combat cyber threats--NCSAM's timing could not be better.
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Monday, October 02nd, 2017
8 Legal Developments You Need to Know About
In a new RIMS Professional Report, attorneys Mark Plumer and Xandra Bernardo (of Pillsbury Winthrop Shaw Pittman LLP) and Patrick Walker, a risk professional at mining company Rio Tinto Group, shed light on the top risk management legal developments of 2017.
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Thursday, September 28th, 2017
Jones Act Waiver Granted for Puerto Rico
A request to temporarily waive the Jones Act for Puerto Rico that was denied on Monday has been approved. President Donald Trump waived shipping restrictions on Thursday to help speed up fuel and supply deliveries to Puerto Rico, devastated by Hurricane Maria, the White House said.
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Tuesday, September 26th, 2017
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.
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Monday, September 25th, 2017
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.
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Wednesday, September 20th, 2017
Hurricane Debris Removal Costs Climbing
It's difficult to find a photo of Houston, Miami, or any city hit by Hurricanes Harvey and Irma that doesn't contain mountains of debris. As cleanup continues, more trash is piling up everywhere. Cities and towns are faced with a number of issues including costs, expediency, manpower and just what to do with all that trash.
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Tuesday, September 19th, 2017
Hurricane Flooding Impacts Harvests and Supply Chains
The trillions of gallons of water dumped by Hurricane Harvey on Texas and Louisiana and Hurricane Irma in Florida have created major problems for agricultural producers in these states. The damage is expected to affect supply chains in for businesses including grocery chains, restaurants and livestock ranches as massive rainfall and flooding have interrupted harvesting cycles for crops like wheat, rice, corn and citrus fruits. Short-term economic losses are already being estimated, while concerns persist about the storm's long-term effect on crops, soil and machinery.
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Friday, September 15th, 2017
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.
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Tuesday, September 12th, 2017
Beware of Fire Ants During Hurricane Cleanup
While Texas, Florida and other states dry out from the trillions of gallons of water dumped by Hurricanes Harvey and Irene, there is much to be done and many hazards to watch out for when clearing trees and removing soggy remains from homes and offices.
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Friday, September 08th, 2017
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 the Treadway 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.
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Wednesday, September 06th, 2017
Post-Harvey Lessons For Chemical Plant Managers
One of the many hazards exposed by Hurricane Harvey occurred in Crosby, Texas, when the Arkema chemical plant suffered fires and small explosions on Aug. 31 and Sept. 1. Floodwaters caused the fires by penetrating the facility and shutting down the cooling systems designed to stabilize 500,000 pounds of highly flammable materials inside. This ultimately caused a mandatory evacuation for all residents within a 1.5-mile radius of the plant. Local news outlets reported that Arkema had no plan in place for six feet of flooding and its last risk assessment was submitted in 2013.
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Friday, September 01st, 2017
Ensuring Your Company’s Disaster Relief Donations Are Well Received
With Hurricane Harvey's effects being felt in Texas and Louisiana for some time to come, businesses may want to help victims by making corporate donations. Corporate decision-makers should carefully consider ways to contribute, since some recent post-disaster efforts have not helped as intended.
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Thursday, August 31st, 2017
Harvey Losses Could Reach $90 Billion
With weeks to go before floodwaters recede in some parts of Texas, Hurricane Harvey--which delivered more than three feet of rain in areas of Houston--has so far caused at least 38 deaths and numerous injuries. Harvey was downgraded to a storm Wednesday night, but tens of thousands of people are still in shelters, some of which are also flooded, fearful of what they will find when they return to their homes.
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Monday, August 28th, 2017
Hurricane Harvey Hits Texas with Up to $30 Billion in Damages
Hurricane Harvey, which made landfall in Texas on Friday night as a Category 4 hurricane, has so far caused at least five deaths and more than a dozen injuries. Now a tropical storm, Harvey has dumped more than 30 inches of rain on the Houston area, with another 15 to 20 inches anticipated by Friday.
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Monday, August 28th, 2017
RIMS Survey Reveals Continued Confidence in Cyber Insurance
Cyber insurance is still a priority for risk professionals and stand-alone policies continue to gain international prominence, according to the 2017 RIMS Cyber Survey.

The survey's 288 respondents represented industries ranging from financial services, government and non-profit and manufacturing to retail, health care and more.

Based on survey insights it is clear that cyber exposure is a primary concern, with nearly half of respondents confirming they are spending more now than they did last year to protect against it. The most alarming elements of risk continue to include business interruption and its consequent expenses, reputational harm, and notification and response costs. In light of recent ransomware attacks, 72% indicated that cyber extortion is also an important and growing first-party exposure their organizations are facing--a 9% increase from 2016.
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Friday, August 25th, 2017
Manufacturers Vulnerable to Cyberrisk
Manufacturing companies face a serious threat from cyber criminals. According to IBM's latest intelligence index, theirs is now the second-most targeted sector, after attack numbers increased significantly year-on-year. This heightened risk is compounded by increased vulnerability: the connectivity that manufacturers have embraced to bring about greater operational efficiencies is accompanied by significant and largely uninsured exposures, such as physical damage arising from cyber incidents or loss of income due to stolen intellectual property.
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Wednesday, August 23rd, 2017
Eclipse Sheds Light On Western Wildfires
Just before American news reporters could excitingly begin covering the total solar eclipse from Oregon on Monday morning, they had to acknowledge the wildfire smoke caught by their cameras. "Wildfire Threatening the View" was one brief TV headline leading into the eclipse's coverage. It was threatening a little more than that.
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Friday, August 18th, 2017
Workplace Safety Tips for the Total Solar Eclipse
On August 21st, a total solar eclipse will be visible from North America for the first time in nearly 40 years. Many employers across the country will host viewing parties or may allow employees to take an extra break to observe the phenomenon, while those who employ outdoor workers can expect employees to have a front-row seat for the big event.
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Thursday, August 17th, 2017
A New Approach to Managing a Classic Reputation
A new Coca-Cola-sponsored contest seems to publicly acknowledge its reputational risk, but at a minimal cost that could manage or even reduce it.

In early August, the beverage giant announced its Sweetener Challenge, seeking non-employees (preferably scientists or agriculture or nutrition professionals) who can bring the company a "natural, safe, reduced, low- or no-calorie compound that generates the taste sensation of sugar when used in beverages and foods." The winner will be announced in Fall 2018 and will receive $1 million.
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Wednesday, August 16th, 2017
Tips for Managing a Hurricane Claim
Despite early predictions of a mild 2017 Atlantic hurricane season, the latest forecasts reflect the likelihood of more named storms than originally anticipated. If that is not ample motivation for risk managers to double-check their hurricane preparation, then the reality that it only takes one major storm to generate a widespread disaster should be sufficient to warrant a review of their claims preparation.
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Monday, August 14th, 2017
Oroville Dam Flood Claims Filed
California residents in the path of water spilled from the Oroville dam in February had until Aug. 11, six months after the incident, to file claims.

The Mercury News reported that Butte County farmer George Onyett, manager of J.E.M. Farms and Chandon Ranch, filed a $15 million claim, saying that after the flooding in February, about 25 acres of walnut trees were washed away by the Feather River. He said that 1% to 2% of the trees in his walnut orchard were lost and that his land is now "irrecoverable."
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Friday, August 11th, 2017
Can You Have Too Many Coffee Shops?
The collective mood among Starbucks (SBUX) shareholders may have been dark and intense on Wednesday, following a 1% downgrade of the coffee company's share price by BMO Capital Markets due to "store overlap." BMO analyst Andrew Strelzik wrote: "There are now 3.6 Starbucks locations within a one-mile radius of the typical Starbucks in the U.S. relative to 3.3 and 3.2 stores in 2014 and 2012 respectively."
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Tuesday, August 08th, 2017
Going Lo-Fi At Sea May Mitigate Cyberrisk
Cyberthreats have become seaborne in recent years, and preventative measures are on the radars of governments and the shipping industry.

GPS and other electronic systems have proven to help ensure safe and accurate navigation, but they have also put digital bullseyes on ship decks. These technology upgrades have unwittingly exposed ships to cyberrisk because their signals are weak enough for remote perpetrators to jam.
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Monday, August 07th, 2017
The ERM Value Connection
Research has shown that enterprise risk management (ERM) adds value. One research paper showed that ERM adds to the value metric called Tobin's Q. Other award-winning research has shown that ERM enables better decision making. The authors of that research state:
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Wednesday, August 02nd, 2017
The Risk of Being Too Delicious
Shockwaves were felt around the wing-eating world last week, when Buffalo Wild Wings announced it will be discontinuing its Tuesday night half-priced wing promotion. According to reports, the franchise's decision was a difficult one as the promotion was "a major driver of traffic" and "boosted same-store sales" for some locations. Ultimately, the deal was just too delicious. With wing prices on the rise (jumping 11 cents per pound in a year), the promotion started to impact the company's bottom line. In fact, the food chain blamed the historically high wing prices for its 63% profit drop in the second quarter, turning the crowd-pleasing promotion into a losing proposition.
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Friday, July 28th, 2017
Companies Must Evolve to Keep Up With Hackers
If you ask a CFO if their company's current cybersecurity strategy is working, it's very likely that they do not know. While at first they may think it is, because the company's bank accounts are untouched, an adversary could be lurking in their network and collecting critical data to later hold for ransom--threatening to destroy it if the money isn't paid. The truth is that many organizations are lacking effective risk management that ensures the integrity and availability of their most essential data.
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Tuesday, July 25th, 2017
Combating Risks to the Electric Grid
Electricity is the foundation of society, making the electric grid one of our most critical infrastructures. It is also one of the most vulnerable, and is subject to a number of variables, according to, Lights Out: The risks of climate and natural disaster-related disruption to the electric grid, a study by students of Johns Hopkins University's School of Advanced International Studies and sponsored by Swiss Re.
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Wednesday, July 19th, 2017
Protecting Your Business from Wildfires
There are currently about 60 large wildfires burning in the United States, mostly in western states. But a combination of high temperatures and dry and windy conditions can make wildfires a threat almost anywhere. Adding to the situation is the fact that more and more businesses are expanding into the wildland-urban interface (WUI)--wildfire-prone areas where homes and businesses are located. This creates a growing wildfire risk to businesses, according to the Insurance Institute for Business and Home Safety (IIBHS).
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Tuesday, July 18th, 2017
Corporate Culture and Risk Management
According to an April New York Times article, "Uber's core company values included making bold bets, being "obsessed" with the customer, and to "always be hustling." The company emphasized meritocracy, setting employees up as rivals and overlooking transgressions of its high performers. At its worst, Uber maintained an "unrestrained culture" that has since resulted in several allegations of harassment. A published blog post by engineer Susan Fowler, indicated that "the culture was stoked--and even fostered--by those at the top of the company."
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Wednesday, July 12th, 2017
Wildfires Blaze through Western U.S. and Canada
Following a wet spring, at least six western states are now fighting wildfires, which have been intensified by extremely high temperatures, wind gusts and lightning.

In northern California, about 4,000 people evacuated and more than 7,000 were told to prepare to leave as fires burned in the Sierra Nevada foothills, about 60 miles north of Sacramento, according to the California Department of Forestry and Fire Protection.
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Monday, July 10th, 2017
Reputational Crises Put CEOs at Risk
When reputational crises hit, market cap, sales, margins and profits are all on the line. And these situations are becoming more frequent--and more costly--than ever, with a recent study showing an increase in losses from reputational attacks increasing by more than 400% in the past five years.
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Thursday, July 06th, 2017
Second Quarter Sees 1% rise in Commercial Lines Rates
Closer attention to underwriting and losses has led to premium increases averaging 1% in the second quarter of 2017, continuing an upward trend this year. The transportation sector, most notably auto-related exposures, is seeing the highest increases, up to 4%, according to a report released today by MarketScout.
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Wednesday, July 05th, 2017
Telemetry Data: What Information Works Best?
Direct measurement of driving behavior, the heart of usage-based insurance (UBI), is the best way to match risk to premium. Insurers offer insurance discounts to safe drivers via UBI in order to acquire and retain the best risks. As a result, safer driving is promoted among these customers, which can amount to savings for organizations insuring drivers.
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Wednesday, June 28th, 2017
Lessons from Distracted Driving Awareness Month
June is Distracted Driving Awareness Month, and while it is quickly drawing to a close, the message remains: Distracted driving is escalating, with 25% more vehicle accidents resulting from drivers talking or texting on cellphones. More cars on the road, especially during summer months, also translates to more accidents.
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Monday, June 26th, 2017
Marsh Tracks Top Captive Trends
The number of captive insurers continues to increase globally, from 5,000 in 2006 to more than 7,000 in 2016. Once formed primarily by large companies, the captive market has opened up to mid-size and small businesses. The industry is also seeing a trend in companies forming more than one captive, using them for cyber, political risk and other exposures, according to a recent Marsh report, Captives at the Core: The Foundation of a Risk Financing Strategy.
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Tuesday, June 20th, 2017
Should You Respond to a Reservation of Rights Letter?
An organization buys insurance to transfer certain types of risks (depending on the policies purchased). If a covered event occurs that results in a loss, you submit a claim and get paid. Simple, right? That's how it would seem, but many experienced risk managers know it doesn't always go that smoothly.
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Monday, June 19th, 2017
Record Snowpack Brings Mixed Blessings to California
This year's Sierra Nevada snowpack, one of the largest on record, has brought relief to California, which is still reeling from a five-year drought followed by record flooding. The snowpack is twice its average size, with some areas as deep as 80 feet, according to NASA. But with some rivers and dams still at higher than average levels, the fear is that warm temperatures or heavy rainfall will cause the snows to melt faster and bring more flooding.
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Wednesday, June 14th, 2017
Implementing a Safety Culture for Company Drivers
Organizations with a safety policy in place for drivers of company vehicles may believe they are protected from liability in case of an accident. What they may not realize, however, is their defense could hinge on documentation
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Friday, June 09th, 2017
5 Strategies to Maximize Your Risk Assessments
While risk assessments enable organizations to understand their business issues and identify uncertainties, the best assessments go further. They prioritize top risks, assign risk ownership, and most critically, integrate risk management and accountability into front line business decision-making. Simply put, "checking the boxes" just isn't enough to achieve an organization's real objectives.
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Wednesday, June 07th, 2017
Lloyd’s Plans for Post-Brexit Subsidiary
Just one day after the U.K. set in motion its process for withdrawal from the European Union by triggering Article 50, Lloyd's announced it was establishing a subsidiary in Brussels, intending to be able to write EU business for the Jan. 1, 2019, renewal season.
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Monday, June 05th, 2017
RIMS 2018 Annual Conference & Exhibition
Do you have a great risk management idea or success story that you want to share with 10,000 of your colleagues from around the world?
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Friday, June 02nd, 2017
Preventing Heat Illness: Water, Rest, Shade
With summer comes hot, humid weather and a greater chance of heat-related illness for outdoor workers. How to prevent heat illness? Three words: water, rest and shade, according to the Occupational Safety and Health Administration (OSHA).
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Wednesday, May 31st, 2017
More Insurers Opting to Form EU Subsidiaries
A growing list of insurers are choosing to form subsidiaries in the European Union to ensure continuous coverage for their European clients following the United Kingdom's withdrawal from the EU in June 2016. They wish to protect themselves in case Brexit impacts their ability to sell insurance policies and products across the EU from bases in Britain.
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Tuesday, May 30th, 2017
Large Venues Reviewing Security Measures
Venues that attract crowds, such as large sports events and concerts are reviewing their security measures, both inside and out, to prevent an attack such as the suicide bombing after an Ariana Grande concert in Manchester, England, that killed at least 22 people.
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Thursday, May 25th, 2017
Fewer Sleepless Nights for Compliance Executives
Improved compliance programs, sufficient resources and board access have meant fewer concerns about personal liability for compliance executives, according to a study by DLA Piper.
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Tuesday, May 23rd, 2017
Workforce Drug Positivity Rate Highest Since 2004
Workforce use of illicit drugs across the board-including cocaine, marijuana and methamphetamine-has climbed to the highest rate in 12 years, a study by Quest Diagnostics found.
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Tuesday, May 16th, 2017
North Korea Now Suspected in Ransomware Attack
The massive cyberattack that has struck businesses, government agencies and citizens in more than 150 countries may be tied to hackers affiliated with North Korea. Called WannaCry, the ransomware encrypts the victim's hard drive and demands a ransom of about $300 in the virtual currency bitcoin.
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Thursday, May 11th, 2017
Make Your Hurricane Preparations Now
With the Atlantic hurricane season's official start on June 1, the time to check your buildings and existing contingency plans-or start a new one-is now, during hurricane preparedness week.
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Tuesday, May 09th, 2017
Navigating Risk Management Around the Globe
Over the past few years, I'e had the wonderful opportunity to travel the world and visit factories, distribution centers, ports, warehouses, and several offices for the company where I work. Apart from being a great way to see the world, it has also been an opportunity to learn from the ways different cultures see and manage risk.
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Tuesday, May 09th, 2017
CSUN Students Sponsored by LA RIMS attend RIMS Conference -Philadelphia, PA
Each participating student receives a LA RIMS scholarship of $1,100 to attend this conference.
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Wednesday, May 03rd, 2017
In a Changing World, Questions For the CRO
Before the financial crisis in 2008-2009, many businesses didn't think of risk as something to be proactively managed. After the crisis, however, that paradigm shifted. Companies began perceiving risk management as a way to protect both their reputations and their stakeholders.
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Tuesday, May 02nd, 2017
Ransomware Attacks Increase, With U.S. the Primary Target
Ransomware attacks constituted the greatest cybercrime danger in 2016 as the volume and value of attacks rose sharply, according to a new report from internet security firm Symantec.
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Monday, May 01st, 2017
Total Cost of Risk Drops for Third Straight Year, RIMS Finds
Despite the challenges of a slowed economy in an election year, a shifting risk landscape as a result of technological advances, and a slow to negative growth rate in some sectors, 2016 saw the total cost of risk (TCOR) decline for the third consecutive year, according to the 2017 RIMS Benchmark Survey.
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Tuesday, April 25th, 2017
Disruptive Technologies Present Opportunities for Risk Managers, Study Finds
PHILADELPHIA - Disruptive technologies are used more and more by businesses, but those organizations appear to be unprepared. What's more, companies seem to lack understanding of the technologies and many are not conducting risk assessments, according to the 14th annual Excellence in Risk Management report, released at the RIMS conference here.
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Monday, April 24th, 2017
And the 2017 RIMS Awards Go to…
PHILADELPHIA-At today's RIMS 2017 Awards Luncheon, the society issued its top honors for achievement in the risk management and insurance industry.
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Thursday, April 20th, 2017
GM Halts Venezuela Operations Following Plant Seizure
General Motors has ended its operations in Venezuela after authorities in the strife-torn country seized the company's plant there on Wednesday.
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Monday, April 17th, 2017
It’s a Great Time to Be a Risk Manager
2017 has so far been a wild ride of change. Companies are navigating through a new U.S. administration, Brexit and cyber risks that are more daunting each day. We are bombarded with uncertainty and unchartered waters. Nevertheless, it's a great time to be a risk manager.
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Thursday, April 13th, 2017
Protecting Employees in the Face of International Risks
Increasing globalization and the growing world market presents employees with opportunities to travel and experience new countries and cultures. With travel comes risk, however. In the event of an unforeseen incident, it is an organization's top priority to ensure its employees are safe and out of harm's way.
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Wednesday, April 12th, 2017
Firestorm Over Forced Removal Proves Costly for United
United Airlines stock tumbled nearly 4% in early trading Tuesday morning before recovering late in the day as the company continued to deal with fallout after video surfaced showing a passenger being forcibly dragged from a United flight at Chicago’s O’Hare International Airport. United shares were down by as much as 6% in premarket trading Tuesday morning, according to MarketWatch.
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Tuesday, April 11th, 2017
Dallas Alarms Hack a Warning of Infrastructure Vulnerability
Dallas residents were wide awake and in a state of confusion late Friday night when the city’s outdoor emergency system was hacked, causing all of its 156 alarms to blast for an hour-and-a-half until almost 1:30 a.m.
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Thursday, April 06th, 2017
2017 Atlantic Hurricane Season Outlook
With the official opening of 2017 Atlantic hurricane season fast approaching, researchers appear cautiously optimistic the relatively quiet streak will continue.
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Wednesday, April 05th, 2017
First Quarter 2017 Sees Upward Rate Movement
U.S. insurance buyers may see higher rates this year, as the composite rate index for commercial accounts increased plus 1% for the first time in 20 months, MarketScout reported today.
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Thursday, March 30th, 2017
Lloyd's to Establish EU Base in Brussels
One day after the UK set in motion its process for withdrawal from the European Union by triggering Article 50, Lloyd's announced that it has chosen Brussels as the location for its European Union subsidiary
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Wednesday, March 29th, 2017
Disaster Losses Climb as Protection Gap Widens: Swiss Re Sigma Study
Global Economic losses from disaster events almost doubled in 2016 to $175 billion from $94 billion in 2015, according to the most recent Sigma Study from the Swiss Re Institute.
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Monday, March 27th, 2017
Accounts Receivables Coverage Helps Fill Supply Chain Gaps
It is standard for companies to insure and protect cash, inventory, property, plants and equipment, and more recently, data. Companies are insuring every step in the supply chain and sales process from concept to delivery. What is often not insured, however, is the last but most important part of a sales transaction-getting paid. You can safely bring your product to market, but if a partner or customer defaults on payment and you have no recourse, you've lost your total investment. Your balance sheet takes the hit.
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Friday, March 24th, 2017
Sears Suppliers Wary as Shares Plummet
Sears Holding Corps' "going concern" filing has vendors and their insurers running for cover as the venerable American department store appears heading for bankruptcy or some other final disposition.
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Thursday, March 23rd, 2017
Increasing Risk Complexity Outpaces ERM Oversight
More organizations are recognizing the value of a structured focus on emerging risks. The number of organizations with a complete enterprise risk management (ERM) program in place has steadily risen from 9% in 2009 to 28% in 2016, according to the N.C. State Poole College of Management's survey "The State of Risk Oversight: An Overview of Enterprise Risk Management Practices."
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Tuesday, March 21st, 2017
8 Steps to Stronger Passwords Enterprise-Wide
Passwords remain one of the most critical security controls widely used to protect and secure company infrastructure and data. While the need for strong passwords has long been discussed, they continue to be the difference between a secure infrastructure and a potential cyber catastrophe.
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Thursday, March 16th, 2017
RIMS Conference Veterans Offer Advice to First Time Attendees
Last week a member of the RIMS Opis online community asked an important question: "What advice can RIMS Annual Conference & Exhibition veterans give to someone attending the show for the first time?" Luckily, the risk management community rushed in with some sage advice.
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Tuesday, March 14th, 2017
Software May Help Oil Companies Determine a Location's Earthquake Potential
New software for monitoring the probability of earthquakes in a targeted location could help energy companies determine where they can operate safely.

The free tool, developed by Stanford University's School of Earth, Energy & Environmental Sciences, helps operators estimate how much pressure nearby faults can handle before rupturing, by combining three important pieces of information...
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Friday, March 10th, 2017
Food Defense Initiatives Can Safeguard Your Company
When most people think of product contamination and recalls, the first thing that comes to mind is food poisoning cases from bacteria such as e-coli and listeria. Food and drug companies, however, are experiencing malicious and intentional product tampering that can be equally deadly and dangerous. Many of us can't forget the 1982 cyanide Tylenol crisis, Johnson & Johnson's worst nightmare as reported cases of death from their products came pouring in, causing recalls nationwide.
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Wednesday, March 08th, 2017
International Women's Day: Risk Management Issues to Watch
A 2013 piece on the role of women in risk management remains the most controversial article we've ever run in Risk Management magazine and the one that received the most comments and letters to the editor, hands down. Many of those reader comments were...let's just say less than kind or receptive.
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Tuesday, March 07th, 2017
Most Organizations Deny Prevalence of Fraud
At a loss of more than $6 billion annually, experts have found fraud occurs in most organizations, but 80% of respondents to a recent survey by ACL believe their organization has "medium to no" exposure.
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Thursday, March 02nd, 2017
Closing the Vendor Security Gap
What do organizations really know about their relationships with their vendors?

It’s a question that most companies can’t answer, and for many, that lack of knowledge could represent increased risk of a security breach. This year, Bomgar conducted research into vendor security on a global scale, and the findings underscore that much work remains to be done to shore up third-party security.

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Wednesday, March 01st, 2017
Costs Climb as Companies Move to Mitigate Supply Chain Interruptions
Some 70% of companies have experienced at least one supply chain interruption during the past year, with an unplanned IT or telecommunications outage the leading cause, according to the eighth edition of the Business Continuity Institute's (BCI) Supply Chain Resiliency Report, produced in association with Zurich Insurance Group.
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Monday, February 27th, 2017
Falling Trees Can Cause Property Damage, Injury or Death
During and after large storms, especially those with high winds, there are always reports of fallen trees and tree limbs, which can cause injury or death to those who are in the wrong place at the wrong time. In the past few months in California alone, a woman was killed by a falling tree in the San Francisco Bay area on Jan. 9; another woman was struck and killed by a falling tree while walking on a golf course in the Bay area on Jan. 8; and the mother of a bride was killed when a tree fell on a wedding party in Southern California on Dec. 19. In New York City's Bryant Park, a woman was killed and five people were injured when a massive tree snapped in half on Sept. 4, 2015.
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Friday, February 24th, 2017
Insurance Rate Declines Moderate as Cyber Shines
Global insurance rates declined for the 15th consecutive quarter, remaining competitive for most of 2016, according to the Marsh Global Insurance Market Index, Q4, 2016, which tracks industry data.
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Thursday, February 23rd, 2017
New York Cybersecurity Regs to Take Effect March 1
The state of New York is implementing sweeping new regulations designed to protect insurers, banks and others from the growing wave of electronic security breaches which are making headlines and causing headaches across the financial services industry.
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Wednesday, February 22nd, 2017
Bribery and Corruption: What's the best approach?
On Feb. 17, Samsung empire's heir Lee Jae-yong was arrested on corruption and bribery charges connected to a nationwide political scandal in South Korea. While this is unlikely to directly impact the global tech behemoth in day-to-day matters, it is important to investigate how firms and governments can work together more successfully to combat white collar crime and corruption.
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Friday, February 17th, 2017
10 Lessons Learned from Breach Response Experts
SAN FRANCISCOâ€"As hacking collectives target both the public and private sectors with a wide range of motivations, one thing is clear: Destructive attacks where hackers destroy critical business systems, leak confidential data and hold companies for ransom are on the rise. In a presentation here at the RSA Conference, the nation's largest cybersecurity summit, Charles Carmakal and Robert Wallace, vice president and director, respectively, of cybersecurity firm Mandiant, shared an overview of some of the biggest findings about disruptive attacks from the company's breach response, threat research and forensic investigations work.
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Wednesday, February 15th, 2017
Greenberg, New York State Settle Long-Running Civil Case
One of Wall Street's longest-running dramas closed Feb. 10 as New York State and Maurice "Hank" Greenberg finally ended a legal clash which began in 2005 under the stewardship of then Attorney General Elliot Spitzer.
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Tuesday, February 14th, 2017
Weather Threatens Oroville Dam Emergency Efforts
As measures are taken to repair a damaged spillway at the Oroville Dam in Northern California, weather forecasters are calling for rain later this week. Almost 200,000 people were evacuated from their homes below the dam, the largest in the country, on Feb. 12 as erosion of the dam's emergency spillway threatened to flood the towns below.
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Monday, February 13th, 2017
ILS Roars into 2017 as Maturities Loom
Alternative capital markets continue to see robust activity and at least one major carrier is bullish for the future of insurance-linked securities (ILS), even as the added capacity continues to pressure rates overall.
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Friday, February 10th, 2017
Weighing In on Stand-Up Workstations and Exercise Balls
Stand-up workstations and exercise balls used for sitting in place of an office chair are gaining popularity. This has been fueled by reports of workers at Google, Facebook and other companies trading in their chairs to stand, or bounce, while working. They cite studies of the harm that hours of sitting can do.
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Tuesday, February 07th, 2017
Mitigating Environmental Risks at Argos
Ana Maria Duque is the environmental assessment manager at Argos in Colombia. Here's what she had to say about the environmental challenges her company faces.
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Thursday, February 02nd, 2017
Eliminating Language Barriers Between Information Security and the C-Suite
Whether or not security operations pose a core focus to a company or are an afterthought, the largest obstacle now affecting business and security outcomes is the language barrier that exists between security teams and the C-Suite.
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Tuesday, January 31st, 2017
Delta Outage Spotlights Technology Risks
Delta's computer outage on Jan. 29 was over by midnight, but its effects have extended into the week, not only resulting in 170 cancelations on Sunday, but grounding more than 100 flights on Monday and causing many delays. Adding to the frustration was the fact that the company's mobile apps were also not working.
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Monday, January 30th, 2017
Can ORSA Work For All Businesses?
In addition to impacting the way countless organizations conduct business, the 2008 financial crisis was an awakening for regulators charged with reviewing and setting the rules that shape the way organizations assume risk. Insurance, perhaps the riskiest business of them all, did not go unscathed.
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Friday, January 27th, 2017
Aon Introduces Single-Parent Captive Cyber Insurance Program
With cyberattack listed as one of their top risks, organizations are looking for ways to mitigate their risk in a market where cyber insurance rates are quickly rising. According to the Center for Strategic and International Studies, the annual cost of cyber crime and economic espionage to the world economy runs as high as $445 billion, or about 1% of global income.
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Thursday, January 26th, 2017
Flood, Wind Dominant Natural Hazards in 2016
While most natural hazards occurring in the United States last year saw average or below average activity, the exceptions were flood and wind, according to the CoreLogic report Natural Hazard Risk Summary and Analysis, released today.
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Tuesday, January 24th, 2017
Authorities Examine Hotel Owner's Request for Help Before Italian Avalanche
As the search for survivors at an Italian hotel buried during an avalanche continues, an investigation has been launched into a distress call and emails for help by the hotel's owner. Triggered by a series of earthquakes, the avalanche claimed the lives of at least 14 people, with 15 still missing, according to reports. A staff of eight and 20 guests were reported to have been at the hotel at the time.
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Thursday, January 19th, 2017
Organizational Complexity Poses Critical Cyberrisk
According to a recent survey on IT security infrastructure, 83% of businesses around the world believe they are most at risk because of organizational complexity.
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Wednesday, January 18th, 2017
Fraud Incidents Rise in 2016, Kroll Finds
Reports of fraud have risen in the past year. In fact, incidences of every type of fraud have reached double-digit levels, according to the Kroll Global Fraud & Risk Report 2016/2017. Overall, 82% of executives reported falling victim to at least one instance of fraud in the past year, up from 75% in 2015.
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Thursday, January 12th, 2017
Risk Management Profession Given an 'A' by CNN Money
Risk management is a career that has long flown under the radar. Because it is not a common job choice, a frequent question of risk managers is how they found their way into the profession. Risk managers say they wouldn't do anything else. The reasons they list include interesting duties that differ from day to day, opportunities for creative thinking and problem-solving, and collaboration with other areas in their company.
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Wednesday, January 11th, 2017
Business Interruption Seen as Top Risk Globally
A survey of more than 1,200 risk managers and corporate insurance experts in over 50 countries identified business interruption as the top concern for 2017. According to the sixth annual Allianz Risk Barometer of top business risks, this is the fifth successive year that business interruption has been seen as the biggest risk.
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Friday, January 06th, 2017
Act Now to Prevent Frozen Water Pipes
Freezing weather can bring the unexpected, from slippery sidewalks and ice dams to one of the most common problems--frozen water pipes. Knowing what conditions can cause pipes to freeze is the first step to prevention. If pipes do freeze, a quick response can keep them from bursting, avoiding the expense of replacement, possible water damage to walls, floors and electrical systems, or even a business shutdown.
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Thursday, January 05th, 2017
2016 Ends with 1% Average Rate Reduction
The year ended with few surprises in commercial insurance pricing in the United States, after 2016 started out with a composite rate decrease of 4%. In April, rates began to moderate and continued reductions of 1% to 2% per month. The year closed with a composite rate reduction of 1%, according to MarketScout.
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Tuesday, January 03rd, 2017
Moving Employees Safely is Critical in Oil & Gas Industry
The oil, gas and marine industry has always teetered on the brink of unfortunate circumstances. Oil rigs and oil tankers, by the very nature of their massive size and exposure to the elements, are susceptible to myriad dangers. And when those risks materialize, the safety of the men and women operating these maritime behemoths must take top priority.
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Thursday, December 22nd, 2016
Happy Holidays From the Risk Management Monitor

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Wednesday, December 21st, 2016
Flint Water Investigation Leads to Felony Charges for Mich. State Employees
A driving effort to save the state money was said to be the reasoning behind the Flint, Michigan water crisis, which has been tied to lead poisoning in children, among other issues. On Tuesday the state announced felony charges against former state emergency managers, Darnell Earley and Gerald Ambrose, accused of false pretenses and conspiracy to commit false pretenses. The two were said to have been focused on balance sheets rather than the welfare of citizens when they made the decision in 2014 to switch the city's water supply from treated water in Lake Huron to water from the Flint River.
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Monday, December 19th, 2016
Key Steps to a Robust Risk Management Program
Our business environment is constantly changing-technologies improve, regulations are modified, competition increases, and demand evolves. Effective risk management grants an ability to adapt to these changes.
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Monday, December 19th, 2016
Plan Now for the Political and Risk Landscape Ahead
With a new president in office in 2017, there are sure to be changes ahead for businesses in the United States. Yet of risk professionals surveyed, fewer than half are actively preparing. Organizations are expected to see impact in areas including regulation and enforcement strategies, a new national trade policy, and a potential rollback of Affordable Care Act (ACA) provisions, according to Marsh.
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Friday, December 16th, 2016
2016's Worst U.S. 'Judicial Hellholes'
This year's Judicial Hellholes report, published by the American Tort Reform Association, identifies nine "hellholes" in light of changes in the U.S. state court system, the types of cases being seen and the courts' balance between defendants and plaintiffs.
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Wednesday, December 14th, 2016
Annual Report Card Finds Vermont Has the Best Insurance Regulatory System
Examining a matrix of variables affecting a state's insurance regulations, the R Street Institute determined that Vermont has the best regulatory system for insurance and that North Carolina has the worst, according to the Insurance Regulation Report Card.
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Monday, December 12th, 2016
Driver Data: Advances in Innovative Exchange
With an innovation worthy of the digital age, the field of vehicle telematics is bringing auto manufacturers and insurance companies into sharper alignment. Now, data recorded in an individual vehicle can be "crunched" to yield insights about driving behavior-insights that can shed light on a driver's risk category. In a further innovation, 2016 brought the establishment of a telematics data exchange, enabling risk managers to make use of this data with the consent of drivers.
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Thursday, December 08th, 2016
Lloyd's Finds Extreme Weather Can Be Accurately Modeled Independently
In a new report based on research from UK national weather service the Met Office, Lloyd's has found that extreme weather events may be modeled independently. While extreme weather can be related to events within a region, these perils are not significant correlated with perils in other regions of the world.
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Wednesday, December 07th, 2016
Fed Program Initiates Life-Saving Training for Shootings, Terror Attacks
The length of time victims wounded in school shootings and terror attacks must wait for help from an EMT could be minutes or hours--during which time they could bleed to death. This has happened in a number of cases, including a shooting at an Orlando nightclub in June, when a woman bled to death while waiting for help to arrive.
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Monday, December 05th, 2016
November Composite Rate -1%, Up From -2% in October
The November composite rate for insurers in the United States moved from minus 2% to minus 1% in November, with commercial insurance seeing the largest increases, according to MarketScout.
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Wednesday, November 30th, 2016
Recap of 2016 Weather Events
The 2016 hurricane season, which ends today, has been the deadliest since 2005 and the most active and costliest since 2012. In all there were 15 named storms and seven hurricanes, three of them major hurricanes. Hurricane Matthew, a Category 5, was responsible for more than 1,600 deaths and insured loss estimates of about $7 billion.
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Tuesday, November 29th, 2016
Building a Successful ERM Program
Corporation (KPC) and its subsidiaries since 2004. She is the team leader, coordinator and project manager for the ERM program and its strategic implementation across the Kuwait oil sector. Al-Gharabally, a speaker at RIMS' Middle East Risk Forum 2016, taking place Dec. 13 and 14 in Dubai, United Arab Emirates, discusses the implementation strategies and successes of KPC's ERM program.
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Monday, November 28th, 2016
Retail Data Security: Preparing for the Top Threat for Holiday Breaches
Here's the question of the season: What is the true cause of the retail breaches we read about year after year? While malware or ransomware may get most of the scary security press, they aren't in fact the main culprit. The primary cause of most retail breaches is, by far, stolen credentials. These are the usernames and passwords of employees, contractors or partners of a retail firm. Victim firms such as Target Corp., Home Depot, eBay and others have fallen prey to similar attacks in recent years: a trusted insider's credentials were stolen and hackers used those to access the network. In some cases, the credentialed access led to the installation of malware on card reader systems, while in others, hackers took different paths.
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Tuesday, November 22nd, 2016
Wells Fargo: What Should Have Happened
When Wells Fargo fired 5,300 employees in September for inappropriate sales practices, then-CEO John Stumpf approached the scandal with an outdated playbook. In response to the $185 million in fines levied by regulators, he first denied any knowledge of the illegitimate accounts. Attempting to mitigate press fallout by distancing the company from a group of "bad eggs" acting independently is not the answer, however. Even if Stumpf had maintained this assertion of innocence, changes in the risk environment over the past few years demand a proactive approach.
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Monday, November 21st, 2016
Establishing Company Gift-Giving Guidelines
With increased regulatory oversight around the globe, companies' external and internal gift-giving are under scrutiny. With the holiday season upon us, it is up to organizations, no matter what the size, to clearly state policies and leave no question about what is and what is not allowed. Establishing monetary limits for gifts given and received is also a good idea.
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Thursday, November 17th, 2016
Best Practices for Protecting Against Fraud
In 1987, during arms control negotiations between the United States and the USSR, President Ronald Reagan popularized the phrase "trust but verify." The maxim is pithy and oft-quoted, but for companies looking to mitigate risk and financial fraud, it should be reworded slightly to "Verify and monitor continuously."
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Wednesday, November 16th, 2016
Creating a Strong Defense and Offense in Your Risk Management Program
Stakeholders demand that companies grow, but at the same time, they expect growth to be managed to make sure the brand is not tarnished. That means enabling value as well as protecting value, which comes down to striking the appropriate balance between risk agility and risk resiliency.
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Thursday, November 10th, 2016
Charting the Rise of Ransomware
At the beginning of the year, Risk Management put ransomware at the top of the list when surveying the 2016 cyberrisk threat landscape, and these attacks have arguably come to the fore as cyberthreat of the year, whether you measure by buzz or by increase in incidents.
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Monday, November 30th, -0001
New Voluntary Hot Air Balloon Safety Program Announced
The Balloon Federation of America (BFA) has instituted new safety accreditation for companies and pilots. The Envelope of Safety program was the result of the Federal Aviation Administration's (FAA) year-long call to action from the commercial hot air balloon industry in response to last year's mid-air accident in Lockhart, Texas which caused 16 fatalities.
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