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Do You Speak Digital?

It has been proven time and time again that communication is a pivotal and essential cornerstone of business and individual professional success. Throughout business, whether in presentations to the board or chatting with co-workers around the Nespresso machine, communication can make or break a relationship. Often, the key to building that relationship is making an effort to learn another discipline’s language.

Today, no matter what industry your company may be in, executives are increasingly focusing on the technological advances that can help achieve a competitive advantage. And just as the insurance industry has its own unique language (and a plethora of acronyms—don’t get me started on that), so too does the digital world. If risk managers want to continue rising in the executive ranks, we will need to get on the same page as the technological innovators changing our world. That means learning to speak digital.

You don’t have to be a developer or coder to have a tech-based discussion. But, you do need to make the effort to understand some key terms and concepts in order to successfully communicate, particularly within your organization.

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You can start simply—find a colleague in your IT group to help bridge the language gap. It can not only help you understand the tech world, but it can also allow others to better understand yours.

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Call it a beneficial opportunity for mutual mentoring.

In my own experience over the past year working with insurtech start-ups, I have found the tech community to be extremely open and receptive, regardless of whether you are speaking with the CEO, co-founder, data scientist or developer.

It can be daunting at first. When I was first asked to review wireframes (website structural plans) or user story mapping (outlines of website visitor behavior) or when they said they’ll “Slack me” (contact me via the popular messaging and file-sharing app Slack), I have to admit, there was a bit of Googling involved. But, what I have found is that they are just as eager to learn about the risk management world as much as they are to impart knowledge and understanding about the technology ecosystem.

If you are still somewhat intimidated about diving into the deep end at the office, get your feet wet by starting small. Read an article on a technology that may resonate with your company’s strategy, current business plan or operational initiative. Attend an industry event that has insurtech or risktech (or whatever-tech) on the agenda. There are events in every geographical jurisdiction from formalized conferences to social meet-ups. If you can’t find one in your backyard, webinars and podcasts are also great resources.

No matter what, it is important to take that first step. It may be scary or uncomfortable, but that’s a good thing.

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You will soon find yourself wading outside of your comfort zone, which means you will be growing professionally and will be on your way to learning that new language.

Tips to Prepare Your Organization For An Older Workforce

People are living and working longer today than in the agricultural and industrial ages. The growth in the number and percentage of individuals over 60 and 80 years of age is already having a global impact.

From 1980 to 2017, the number of individuals over the age of 60 doubled to roughly 900 million. This segment of the world’s population will double again by 2050 to nearly 2 billion, according to the 2017 World Population Prospects report by the Department of Economic and Social Affairs of the United Nations Secretariat.

Risk professionals can prepare their organizations for the coming changes and opportunities of an older workforce with the following strategies:

  1. Customize a workplace safety program. Organizations can utilize various levels and different methods of training to improve safety awareness.
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    These include new hire training, annual mandatory compliance refreshers, on-the-job training, shadowing and formal mentoring programs, educational programs, and certifications. Training can focus on areas such as safety awareness, new technology, ergonomics and workstation setup, life skills, and other soft knowledge. This will also help with safety in general among the entire staff.

  1. Update the education and onboarding process. An important consideration is how different generations of employees learn, so specific training methods tailored to each generational group can be offered. Where online training modules may work for younger employees, older employees may prefer on-the-job or in-person training. It is up to each company to best identify the methods for training its workforce so the content of the training is effectively delivered and understood by its intended audience.
  2. Review training styles. In addition to receiving ongoing training, older employees may feel more engaged if they are asked to teach newer or less experienced employees. One area often overlooked is training for managers who may have older employees under their supervision. Much has been written about training and approaching millennials, however, the reverse is an emerging risk. Companies should begin focusing efforts on how to relate to and the best way to supervise older workers. This is an area of opportunity to enhance a company’s culture and develop the employee-employer relationship.
  1. Know a role’s physical demands. Employers need to ensure they have a good understanding of the actual physical demands of each job position in addition to the physical limitations of individual employees.
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    Post-offer and pre-employment functional capacity exams are recommended for all age groups in industrial and manufacturing sectors. Job rotation is an important safety tool, and can be used for all age groups in an effort to break up the monotonous nature of the work, avoid fatigue, and ultimately develop a well-rounded staff that can cover gaps as needed.

  1. Consider the intersection of technology, comfort and well-being. There are many low- and no-cost ideas that can make the workload more manageable for older employees. For example, in its Dingolfing, Germany plant, BMW hires older workers on an auto assembly line with accommodations for their age such as larger computer screens, special shoes, and chairs for some operations. And Microsoft offers an online Guide for Individuals with Age-Related Impairments, showing older workers how to create slower-moving pointers or magnified screen displays by adjusting their computer’s settings. Standard workstations can be improved with ergonomics in mind. Features like built-in back support in office chairs, standing desks, lighting created to minimize shadows and dark zones, and desks that are easily adjustable all contribute to employees’ comfort and minimize discomfort. On-site clinics save time and are geared toward prevention as well as early disease detection. Investing in the health of all employees through wellness programs is a timeless and ageless benefit and will contribute to productivity and reduce costs.
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  1. Promote an age-diverse business culture by recognizing and appreciating the skills/values of older workers. There are common misunderstanding and stereotypes with older employees that they are less efficient than their younger co-workers. However, from the Organisation for Economic Co-operation (OECD) in 2016 that the working proficiency (in both literacy and numeracy) of older employees is actually not significantly lower than their younger peers. In countries like the U.S., the proficiency of older workers is even at the same level as younger employees (see below charts). A follow-up study in 2018 by OECD indicated that older employees are more likely to involve in more complex tasks, such as supervise colleagues, have higher task discretion, use planning skills and influence others, which makes them as valuable assets as their younger co-workers. So it is important to promote an age-diverse business culture to appreciate the skills and value of older workers.
  1. Improve training against discrimination and negative attitudes to older workers on hiring, termination, compensation, and promotion. As risk management professionals, it is important to remind your organizations to review and improve the policy against discrimination and negative attitudes to older employees, in order to mitigate the potential legal risk. A 2013 AARP study indicated that “64% of U.S. workers have either experienced or observed age discrimination.” Given this background, in 2016, EEOC received 20,857 charges of age discrimination, which counted for more than 20% of all discrimination charges received by EEOC.

As the global working population continue to grow older, corporations around the world could expect to see more age discrimination litigations to come. Risk managers can play an important role by taking initiatives to help their organizations against discrimination and negative attitudes to older employees.

Several members of the RIMS International Council contributed to this article.

RIMS Report: Making Sense of AI

The risk of not adopting some form of artificial intelligence (AI) can be much greater than the potential risks of implementation according to the new RIMS Professional Report: Making Sense of Artificial Intelligence and Its Impact on Risk Management.

Authored by RIMS Strategic and Enterprise Council member and director, Microsoft Enterprise Risk Management Tom Easthope, the report explores forms of AI available to organizations, common implementations scenarios for risk professionals to consider, as well as opportunities for those professionals to advance their careers in light of the emergence of AI technologies.

“While the discussions about the long-term impacts of artificial intelligence on society are important to understand and track, the more pressing issue is to understand the impacts on your industry, your organization and, ultimately, your career,” Easthope said.

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“Risk professionals should find ways to participate in strategic discussions around AI and educate themselves on the world of possibilities it offers them and their organizations.”

The report explores AI’s foundational concepts, such as data and algorithms. It also discusses forms of AI, such as artificial general intelligence, (often referred to as “thinking machines” along the lines of C-3PO from the “Star Wars” films) and artificial narrow intelligence (ANI) which focuses on tasks that have major business impacts, including image recognition, credit card fraud detection and speech recognition. Citing research that AI-derived business value will be worth $3.9 trillion in the next three years, ANI presents risks and opportunities for risk professionals and their companies.

And while the report suggests that changes introduced by AI innovation and automation will impact jobs and tasks in the risk, compliance and insurance industry, it also presents methods to keep professionals less expendable, if they’re willing to embrace the technology.

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“But while change is inevitable, it does not mean that your risk career must end,” the report said. “Essentially, if you understand the organization’s strategy and how it can enhance its operations with ANI or the context around data, then you have something to offer.”

RIMS Strategic and Enterprise Risk Management Council (SERMC) is organized to provide leadership on strategic and enterprise risk management research, practices, topics and issues, in alignment with RIMS’ vision, affiliations and partnerships. SERMC comprises RIMS members, academics, strategists, consultants and other practitioners who are experienced with strategic and enterprise risk management and related issues.

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The report is currently available exclusively to RIMS members. To download the report, visit RIMS Risk Knowledge library at www.RIMS.org/RiskKnowledge. For more information about the Society and to learn about other RIMS publications, educational opportunities, conferences and resources, visit www.RIMS.org.

Infographic: 16 Blockchain Disruptions

Underpinning the heart of digital currencies, blockchain has graduated from being merely a buzzword to revolutionizing how companies conduct business. Services and products that are powered by blockchain pose financial and operational risks that can challenge traditional models. With new cryptocurrencies popping up regularly and law firms creating practice groups around it, blockchain is bound to impact your industry.

If you need a quick primer on the topic ahead of the many blockchain education sessions at the RIMS 2019 annual conference, the folks at Bitfortune have created the voluminous infographic below to help you understand how the technology will improve 16 different industries, from music to government.

Explore how blockchain goes beyond Bitcoin and real-world applications that affect you and your organization.

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Discover ways that blockchain increases transparency and could potentially benefit your organization’s overall resilience.

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