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Yosemite Visitors Risk Disease

Yosemite National Park is one of the most visited places in the U.S. with more than 3.7 million people treking to the California hotspot each year. Some of those nature lovers may be at risk for a serious disease, however.

It was recently reported that approximately 1,700 Yosemite visitors who stayed in tent cabins this summer may have been exposed to a deadly rodent-borne virus — a disease that has already claimed the lives of two people.

After learning that a Pennsylvania visitor’s death was caused by hantavirus, Yosemite officials sent emails Monday evening to those who stayed in the “signature tent cabins” in Curry Village between mid-June and late August, said park spokesman Scott Gediman. Letters were sent to visitors whose email addresses were not on record.

The fatality marked the third confirmed case of the rare rodent-borne disease linked to the park. Last week, park officials said a 37-year-old Bay Area man had died and an Inland Empire woman in her 40s was recovering after being exposed to the virus. Park officials believe there may be a fourth case but had yet to receive confirmation Tuesday.

All four stayed separately at the signature tent cabins in June, Gediman said. Officials have traced the outbreak to deer mouse droppings in the area.

Jana McCabe, a Yosemite park ranger, called the hantavirus outbreak “unprecedented.” Though the park dealt with the same type of outbreak in the past (2000 and 2010), neither instance caused a fatality, and since then employees of the park have been trained on proper hantavirus protocol.

Since this most recent outbreak, the park has stepped up its response, implementing “rolling closures” of the cabins for deep cleaning, McCabe said. Crews are tearing down interior walls to look inside and repairing holes where mice could get into the structures. Meanwhile, Yosemite is suffering a reputation setback. As word continues to spread about the deadly hentavirus outbreak, the park will undoubtedly see a drop in tourist attendance.

There have been only 587 documented cases on hentavirus in the U.S. since the virus was indentified in 1993.

 

The State of the Insurance Market

Yesterday, a meeting of minds discussed the state of the insurance market and the RIMS Benchmark Survey in a webinar that was broadcast live from the RIMS offices in Manhattan. The panel of experts included:

  • Jim Blinn, principal at Advisen (moderator)
  • Richard W. Sarnie, vice president of risk management for The Great Atlantic & Pacific Tea Company
  • Carol Fox, director of strategic and enterprise risk practice for RIMS
  • Pamela Ferrandino, executive vice president, national practice leader casualty, placement and senior director for Willis North America

Presented as insider views and opinions from behind-the-scenes, the webinar allowed the audience of buyers and brokers to gain a perspective that is intentionally broad and could influence how they adjust their risk appetite for the second half of 2012.

Jim Blinn: What is driving the increase in total cost of risk (TCOR)?

Rich Sarnie: I expand the TCOR beyond just the insurable cost. Look at things like the cost of capital. We also look at our safety expenditures. What I try to do is use the benchmark data as a starting point, but then add to it.

Blinn: In 2011, a record year for catastrophes, how have they had an impact on risk management and the types of questions you see underwriters asking?

RS: They’re really drilling down on our supply chain. Risk managers really need to be in tune with operations — where you’re getting your products and how you’re going to get it to marketplace, and if there’s a supply chain interruption, how are you going to deal with that?

What challenges do you see and how do you explain them to senior management and the board?

Carol Fox: I have an embarrassing example in regards to that. We had budgeted for a four-time increase and we missed it. My recommendation is to communicate with underwriters and brokers about cycles. If they aren’t communicating throughout the year, you really don’t get an opportunity to forecast things.

RS: This is what we get paid to do. Anyone can purchase cheap insurance. We have to say ‘listen, this is where pricing is going’ and if it comes to a certain point, you don’t buy it. This is were you really show your value to senior management. Again, it goes back to TCOR. Buying insurance is just one tool of many, it’s not the only one.

Pamela Ferrandino: I think it’s also a responsibility of the broker to communicate with you well in advance about a renewal.

As concerns risk, what are the biggest issues for senior management?

RS: Senior management is now much more focused on risk management. But their biggest concern is not insurance or insurable risks, it’s other risks, such as availability of affordable finance, supply chain, reputation, social media. you should have tools to address those risks. Those are the things senior management cares about the most.

Are there similar concerns at the board level?

CF: They’re most concerned about strategic risks. The other thing we’re hearing is that they’re getting a lot of data, but not a lot of information. To Rich’s point, the board is not necessarily focusing on insurance, but the question really is, what are the deviations? It all ties back to the risk appetite of an organization and its tolerances.

The workers comp industry has been under stress. How have comp carriers responded and how has this affected your clients?

PF: We have an aging workforce and that has presented a problem in the workers comp market.

What about reputation risk? cyber issues?

Carol: Organizations that actually rate reputation impact separately from any other impact they may have have a better handle on their risks. Reputation is always going to be important. From an emerging risk perspective, the biggest concern is not being prepared. Organizations may identify an emerging risk but they’re doing it in a very siloed way.

Bath Salt Makers Face Strange Reputational Risk

I’m willing to bet that “drug-fueled, cannibal zombies causing reputational risk” never came up on any corporate risk management plans. But that’s just the problem that companies that sell bath salts now face.

For those who don’t know what I’m talking about, just Google “bath salts.” Five years ago, the results page would likely return only mentions of the aromatic, colorful crystals designed to accompany you in a nice, warm, soothing, relaxing bath.

Now? Yeah … not so much.

The results I came across on the first page include info from DrugAbuse.gov on an “emerging and dangerous products”; a Washington Post headline heralding a “Zombie Apocalypse,” and an ABC News article titled “Bath Salts: Use of a Dangerous Drug Increasing Across U.S.”

This isn’t exactly the type of search-engine association that Lee Williamson, president of the San Francisco Bath Salt Company, ever expected his company to receive. San Francisco Bath Salts Company sells the bath salts you put in your tub. It has nothing to do with the “bath salts” drug similar to methamphetamine that has been increasingly (and often erroneously) linked to bizarre, violent attacks throughout the United States.

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The frenzy began — literally and figuratively — when a naked, rampaging man reportedly tried to eat the face of a homeless man in Miami. Ever since, the media has continued to hype a series of gruesome and just-plain-strange incidents that have any connection to the drug.

But as Time details, the companies who sell legitimate, harmless bath salts are also being caught up in the depravity.

So now, Williamson and his company are trying to redraw the line between their product and the drug that’s gripped the nation.

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The industry has seen slumping demand since 2009, as consumers have cut down on luxury bath items, Headline News reports. But now that they have to contend with the drug abusers who want to rip faces off, it’s game time.

“I’m sure people are afraid of actual bath salts from the headlines and have not pulled the trigger because they are confused by the headlines, which is a shame because they have the opposite healing effects of this deadly drug with an unfortunate name,” Williamson told HLN.

I’ve heard of a lot of odd “emerging risks” in my day, but I would have to say this is the most unusual. Just goes to show that reputational risk can come from anywhere nowadays.

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Work Teams: What’s the Risk?


The following is a guest post written by Therése Palmiotto, senior underwriter for Travelers Select Accounts.

Many companies today are turning towards the integration of work-teams into the traditional office environment. Managers are hopeful that this new work structure will help the organization improve in areas of efficiency, production and effectiveness.

The alignment of employees into individual work teams is a relatively new concept in the United States.  Although it is growing in popularity within many different organizations, there is still not enough historical information gathered in order to establish a coherent set of rules, values or formulas. Companies adopt the concept and it is uniquely applied to each work situation since we are essentially still in the learning process when it comes to developing strong work teams within an organization.

Teamwork can be exciting and can lead to some of the most rewarding experiences of an individual’s working career. It can also be frustrating, difficult, and challenging, however.

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Any change to the way that a company operates internally can also be a potential risk to it’s reputation in the marketplace. Aligning your staff into a more team-focused environment may mean better collaboration and communication behind the scenes, but the shift in roles could also expose your employees to negative perception. Competitors’ ears seem to perk up just enough to catch wind of organizational changes and opportunities to poke holes in a company’s reputation. Most difficulties can actually be predicted and with the use of proper tools, can be tackled and overcome. Recently, Billy Beane, the general manager of Major League Baseball’s Oakland Athletics and the subject of the best-selling book and Academy Award-nominated film Moneyball discussed  how risk and data play a part in running a baseball team. In his discussions, Beane speaks about how using risk management techniques had helped him develop and lead a successful baseball team. If risk management skills can benefit a professional sports team, then we can apply the strategies of successful sports teams to help risk management and insurance professionals in developing successful work team environments within their own organizations.

The design of work teams is based on the theory of synergy. The productivity of the whole is greater than the sum of its parts.

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This is a concept that sounds like something I remember hearing many times, beginning with the first practice at t-ball at age five. Teams that are well-functioning offer mutual support of its members, which helps increase morale and generally brings out the best in its members. These are positive by-products that any manager would want to see among baseball players or office employees. Both on the field and behind a desk, the creation and maintenance of successful teams comes down to effective management, strong leadership and clear communication.

MANAGEMENT starts from the top down. Key decisions on the baseball field start well in advance of opening day. The entire baseball season starts at the top with the owners — in the business world, we call them high-level executives. Deciding to incorporate work teams is a major organizational change. It needs to be well-supported at the top and clearly communicated down the lines. When the foundations and concepts are established at the senior management level, employees are more apt to buy into the change. In the story of Moneyball, the coach desperately wanted to build ateam with big names and high salaries, but that was not the message that Billy Beane had in mind. Using a theory based on data analytics and risk management, Beane could not see paying for skill sets that didn’t correlate with winning. It was his unique strategy and in order for it to work, it had to be established at the top and carried out and supported by the lower level managers and coaches.

ACCOUNTABILITY is crucial. Baseball players know exactly what is expected of them. They know what their responsibilities are and they know how they fit into the big picture. A pitcher knows that a bad pitch will impact the catcher’s performance. The same rules apply when talking about work teams in an office environment. Establishing accountability will also hold very strong to the success of the ultimate change. Specific objectives are important not only to identify the achievement goal, but also to pinpoint who will be responsible for these changes. The human resource department will most likely have to develop new approaches towards incentive pay and bonuses, and depending on the strategic nature of the objectives, new performance metrics may also be necessary.

COMMUNICATION that is clear and consistent is the absolute key to success. Managers need to communicate with employees who are affected by an organizational change, not at them. For any change efforts to be effective, there must be a level of buy in from those who are affected by it. Early involvement and communication are two ways this can be accomplished. It is important to recognize the value of involving employees when planning change through various methods, including task force committees, focus groups, surveys hotlines or conversations, both formal and informal. Ball clubs also communicate by collecting feedback from those on the field. After each game, players go into the locker room, where the managers, coaches and players all talk about what went well and what didn’t. The team’s performance is analyzed and teammates offer recommendations on how to do better next time. Much like players spend hours watching game tapes, organizations should be stepping back to review and evaluate the organization’s performance amidst such a change.

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 Seeking feedback from their employees is another way to analyze the situation. Asking people how they feel and what they think makes people feel more involved. When employees feel involved, they’re more accepting of change and feel more support for the change initiative.

Managers of baseball teams have relatively easy ways of measuring success. If the team makes it to the playoffs, it’s a pretty clear sign that the team is working well together. When ticket sales are low, and the team finishes the season with a losing record, owners understand immediately that the team is seriously lacking. In business, we don’t have the luxury of such cut and dry performance feedback, but we can rely on reputation as a litmus test for success. Don’t forget that internal changes don’t just impact the employees. Using strategies from the field to develop strong workteams will help to successfully manage your organization.