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Earth Day 2020: What Does Climate Change Mean for Risk Management?

On Earth Day 2020, risk professionals can reflect on ways to protect both the environment and their businesses. Worldwide, climate change poses countless risks, including increasing the frequency and magnitude of natural disasters, reducing access to resources and disrupting supply chains.

To celebrate Earth Day and help risk management professionals address environmental risks and climate change, here is a roundup of some of our coverage from the past year about these critical topics:

From Risk Management Magazine:

Aligning Sustainability and Risk Management: A collaborative approach between sustainability and ERM can best drive real change.

Taking Action on Climate Change: As the potentially devastating impacts of climate change become clear, risk managers must assess the resulting risk exposures and ­opportunities for their companies.

Insurers Divest from Coal Over Climate Risks: Insurers are pulling coverage and investments related to the mining and use of coal.

Will Climate Change Impact Reinsurance Rates?: As natural disaster losses mount, the reinsurance response could spur action on climate change.

Getting Serious About ESG Risks: Investors are increasingly scrutinizing environmental, social and governance activity.

From the Risk Management Monitor blog:

Venice Sees Near-Record Flooding: The city of Venice, Italy, faced the worst flooding of its famous canals since the devastating floods of 1966, suffering major economic impacts.

Catastrophic Floods More Frequent in 2019: Major flooding has become a normal occurrence for many regions of the country, and by all indications, it is becoming worse each year.

Global Heat Waves Signal Climate Risks: The pattern of dangerous heat waves has become a yearly occurrence across the globe. 

Texas Study Shows Business Impact of Major Storms: The large storms hitting the coast of Texas are having serious impacts on industries across the state and country.

Limit Organizational Exposure During the Polar Vortex: Tips for protecting businesses during the frigid weather phenomenon.

Converting a Conference to 100% Virtual in One Week

Conference organizers have been among the hardest hit by COVID-19. When your entire business is predicated on bringing people together, pivoting is not easy.

On March 12, 2020, the InsurTech NY team saw a dark future ahead. Officials had confirmed 500 people in the United States tested positive for the coronavirus, President Donald Trump had just announced restrictions on flights to and from Europe, and we were one week away from hosting the 2020 InsurTech NY Spring Conference, our annual New York City-based in-person event. We had planned to host seven panels, 20 startup competition pitches, and four TED-style talks, totaling more than 60 speakers. As part of the competition, more than 20 judges had to vote on winners in near real-time. We also promised to provide networking opportunities with one-on-one meetings for all attendees.

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For the health and safety of our guests we knew we could not continue this event in-person. Fortunately, we had experience running webinars and virtual communities and activated a preparedness plan that we created when coronavirus was still mainly in China.

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However, we knew pivoting to an all-virtual event would be a monumental challenge.

Immediately we went into action. Within 12 hours, we called every speaker and sponsor about the new format. All speakers stuck with us. We went on to draft communication to notify all attendees. We also created a full web page detailing our experience. For others who may need to shift their in-person events to virtual ones, here’s a brief roadmap with key steps that we took and may help you too:

Convert existing staff to new virtual roles. Current staff and volunteers need to be immediately converted and trained on new virtual roles. To be effective, you need people dedicated to wearing new hats and carrying out last-minute responsibilities. This may include working during after hours and weekends. Some of these roles were already defined, but others needed to be redefined. They include:

  • Speaker liaisons: Assign at least two people to ensure speakers join their sessions on time and their A/V works.
  • Stage manager: This person keeps track of time and communicates verbally to speakers to cue them.
  • Presentation controller: A dedicated person to share and run the slides for presentations.
  • Master of ceremonies (MC): A dedicated host to introduce speakers and lead transitions.
  • Help desk: At least two people with technical expertise to respond to any tech or access issues.

Over-communicate to everyone. Send “how-to” information constantly, specifically about accessing the conference itself. If possible, use multiple channels, including text and social. Even then, you may have some people who have difficulty accessing the sessions.

Organize dry runs of the entire event with your staff. This process will help you identify issues you may not have considered. Fix the issues and do another dry run. We only had time for one dry run, but could have benefitted substantially from a second.

Revamp the event to make it more entertaining.

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Attendees have other options during a virtual conference, so it is particularly essential to keep them engaged and entertained throughout the day. Some tips include:

  • Run polls and questions between sessions
  • Keep each session short and sweet
  • Create content during the breaks so they don’t “turn the dial.” We hired a professional comedian, but you can be creative on how to fill the time.

In retrospect, the event was successful for four reasons: (1) intense planning and preparation during the seven-day transition, (2) support from our speakers and sponsors to stay with us in the transition, (3) effective communication internally and externally to all stakeholders, and (4) a great team and set of volunteers that worked tirelessly to make it happen. A full guide is available with more details about how to make the transition at InsurTech NY.

Preparing for a Pandemic: Review Business Continuity Plans Amid Coronavirus Outbreak

Organizations worldwide have been reacting to the recent coronavirus outbreak, COVID-19, in a variety of ways, from restricting nonessential employee travel to canceling large events. The possibility of a pandemic has the potential to disrupt workforces, supply chains and economic activity in the months ahead. So, it is with a sense of urgency that prudent organizations review and update their business continuity plans to insure their operational resiliency.

A healthy and available workforce is any organization’s most valuable asset. A pandemic will incapacitate some employees and result in other employees being quarantined. This could result in a major disruption to normal operations, with potentially large numbers of employees working from home or remote locations.

To protect your workforce and help ensure its continued productivity, it is critical to:

  • Establish a strategy that enables employees to continue to function without endangering them.
  • Have a plan to isolate employees should the threat of possible infection arise.
  • Ensure employees can effectively work from home.
  • Verify that you have the tools, technology, capacity, and security measures in place to support a large remote workforce.
  • Review your HR policies to ensure employees will not be personally impacted if they must be quarantined for an extended period and modify any policies as appropriate to give greater flexibility to normal working arrangements. 
  • Determine your priorities and the minimum staffing requirements to support these priorities, in case you need to function with a significantly reduced workforce.
  • Identify key employees and ensure other staff members have received appropriate training to comprehensively cover their absence.
  • Create a communications plan that includes providing employees and other stakeholders with regular situation updates as well as actions taken.

In a global economy, virtually every organization is connected to or dependent upon others. You may not be directly affected by a pandemic, but could be impacted if a vendor at a critical point in your supply chain is. Understanding your dependence on entities outside your organization is critical. Are your critical third parties (e.g., suppliers, vendors and service providers) prepared?

To protect your operations and ensure continuity of services or products to your customers, it is important that you:

  • Map your dependencies to understand where disruptions might impact your value chains.
  • Review the preparedness of your critical third parties (suppliers, vendors, service providers, etc.).
  • Identify single points of failure in your ecosystem.

When assessing the impact of a disruption to your ecosystem, it is important to recognize the amount of time before the actual impact occurs. So, as you review and update your plans, you should also conduct walkthroughs and exercises. This is the best method for identifying gaps in your procedures and will give you the highest chance of successful execution. Active participants will become familiar with the goals and objectives of the plan and begin to use it as guidance rather than a prescriptive list of tasks to be followed without applying rational thought. Practicing the execution of your plan ensures all necessary parties understand their roles and responsibilities.

During preparedness reviews, you should also assess the tools used to maintain relevant information and assist in executing your plans. Old technologies and obsolete tools will put successful execution of even the best plans at risk. Identify any deficiencies in the tools available and create a comprehensive list of requirements that will enhance your ability to execute. The sooner you begin to upgrade your tool set, the sooner you will be able to reduce execution risk.

An organization’s ability to effectively respond to a disruption of its workforce or a critical third-party not only depends on how effective you were in the planning process, but also how effective you were with the tools you have and the training you implemented. The tools you use to communicate, maintain situational awareness, and provide current and accurate information will also have a major impact on the execution of the plan.

RIMS Risk Forum India 2019: Top Risks and a Special Edition Magazine

rims risk forum india 2019

MUMBAI—”Why are we here?” asked RIMS CEO Mary Roth, welcoming over 100 risk professionals to the recent RIMS Risk Forum India 2019 in Mumbai. “If you look around this room, I think we all share very similar reasons. Risks are changing. Today’s risks seem more complex, and they hit our organizations faster. Think about our climate: heat waves, droughts, and other extreme weather events we’re experiencing. Data: it’s abundant and rich. Technology: it’s evolving overnight, and so are the related risks and opportunities.

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She added, “Expectations have never been greater for our organizations to quickly adapt and implement emerging technologies, address cyber exposures, brace for political change, and uphold ethical and social standards.”

The day’s sessions delved into critical issues like emerging technology, fraud, regulation, and building a risk culture, drawing upon expertise from panelists ranging from the C-suite to regulators themselves. Another key theme was clear to all in attendance: the rapidly shifting role of risk management in organizations across India, and the opportunities that new risks are presenting here.

top risks india 2019According to the new Marsh and RIMS “Excellence in Risk Management” report State of Risk Management in India 2019, which was unveiled at the forum, many of these issues dominate the risk landscape for organizations operating in the country. Indeed, cyberattacks, extreme weather, and data fraud or theft top the agenda for risk professionals in India this year.

Across 23 industries, a vast majority of senior risk professionals cited cyberrisk as their top concern, with 62% agreeing cyber poses the greatest risk to their organization—nearly four times the number who prioritized the runner up, weather events.

“India, like other countries, has been susceptible to malicious cyber attacks and there is growing awareness among corporates of the need to ensure they have appropriate cybersecurity controls,” said Sanjay Kedia, Country Head and CEO, Marsh India. “Firms need to keep up with the evolution of cyber threats if they are to capitalize on technology-based opportunities.

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This will require organizations to make additional investment to ensure they have adequate protection.

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As the profession matures and expands in the region, risk professionals looking to earn a seat at the table are focusing on their potential to serve as a key strategic partner driving these investments.

“Global business leaders who have engrained risk management into the fabric of the organization’s strategic planning processes have become better equipped to make informed, proactive, and rewarding decisions,” said RIMS CEO Mary Roth.

“India’s risk management community continues to demonstrate its strength, as well as its passion for developing advanced capabilities that support growth and innovation.”

risk management india special edition coverTo that end, these top issues are also covered in greater depth in a recent special issue of Risk Management curated specifically for risk professionals in India. Originally available exclusively for attendees of this year’s RIMS Risk Forum India, Risk Management Special Edition: India is now available for readers worldwide. Check it out today and, if you have any feedback, we would love your input to help inform future international coverage—email your thoughts to HTuttle@rims.org.