2014 Risk All Star: Jeff Driver

A Driven Visionary

Jeff Driver was an 18-year-old orderly in a hospital emergency room when a child died before his eyes. The child had been misdiagnosed and moved to the wrong floor before his respiratory tract closed up.

The experience launched Driver into health care risk management, where he’s been for a quarter-century, always “chasing the effectiveness” of loss control and patient safety. One could say he’s caught it.

Jeff Driver, chief risk officer, Stanford University Medical Center

Jeff Driver, chief risk officer, Stanford University Medical Center

Driver is no stranger to the risk management limelight — he was president of the American Society for Healthcare Risk Management in the past decade — but Risk & Insurance® is placing him back in the light in large part for the creativity of his most recent efforts as chief risk officer at the Stanford University Medical Center.

The highlight is his creation of a new reciprocal risk retention group (RRG) called the Professional Exchange Assurance Co. (PEAC) to help Stanford keep ahead of mandates from the Affordable Care Act.

All health care entities, particularly hospital groups, are feeling the urge to consolidate because of the efficiencies of size and the drive to create Accountable Care Organizations (ACOs). In California, Stanford faces the twist that state law prohibits hospitals from directly employing doctors; they must be employed through “physician foundations.”

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Stanford has two such foundations with plans to include 500 community physicians within three years. Driver had to devise a way to bring these doctors into the Stanford risk management and patient safety program, while mitigating liability and brand risk.

The particular RRG structure, now in place for nearly two years, works for a few reasons. Namely, it gives the affiliated physicians “skin in the game” because they technically own the captive and will enjoy profit-sharing if losses are kept low.

It also works because Stanford Medical’s other captive—the 20-year old, segregated cell, Bermuda-based SUMIT—cannot provide insurance to for-profit physician groups because of tax rules. So SUMIT still provides coverage and services to its in-house faculty physicians while PEAC steps in for affiliated doctors.

With both, Driver can ensure risk management consistency across the enterprise and that effectiveness he has pursued his whole career.

“He has created a vehicle to kind of indoctrinate these newly acquired physicians in much more modern risk management practices,” said Gigi Norris, Aon managing director.

“Jeff is very visionary … and he is very mission driven.”

Driver and his risk management team of 25 are spreading Stanford’s best practices beyond the university as well. One benefit of the RRG structure is that Driver created another entity, The Risk Authority, to serve as its necessary attorney-in-fact, as well as a service provider for external health care entities.

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It delivers Stanford risk management products and services — like tools for early resolution and loss, claims and litigation management, patient safety consulting and value-driven enterprise risk management — around the world.

Driver’s success comes in part because of his leadership. He is able to build a team, empower its members, and motivate them toward success with his vision.

Success builds trust with senior management, which leads to larger teams, bigger projects and more success.

And he’s succeeded because he’s willing to try anything to succeed.

“If people really focus in on how they can do things better rather than doing the same thing, that would serve our patients and our communities very well,” he said.

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350px_allstarRisk All Stars stand out from their peers by overcoming challenges through exceptional problem solving, creativity, perseverance and/or passion.

See the complete list of 2014 Risk All Stars.

More from Risk & Insurance

More from Risk & Insurance

Risk Management

The Profession

As a professor of business, Jack Hampton knows firsthand the positive impact education has on risk managers as they tackle growing risks.
By: | April 9, 2018 • 4 min read

R&I: Who is your mentor and why?

Ellen Thrower, president (retired), The College of Insurance, introduced me to the importance of insurance as a component of risk management. Further, she encouraged me to explore strategic and operational risk as foundation topics shaping the role of the modern risk manager.

Chris Mandel, former president of RIMS and Risk Manager of the Year, introduced me to the emerging area of enterprise risk management. He helped me recognize the need to align hazard, strategic, operational and financial risk into a single framework. He gave me the perspective of ERM in a high-tech environment, using USAA as a model program that later won an excellence award for innovation.

Bob Morrell, founder and former CEO of Riskonnect, showed me how technology could be applied to solving serious risk management and governance problems. He created a platform that made some of my ideas practical and extended them into a highly-successful enterprise that served risk and governance management needs of major corporations.

R&I: How did you come to work in this industry?

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From a background in corporate finance and commercial banking, I accepted the position of provost of The College of Insurance. Recognizing my limited prior knowledge in the field, I became a student of insurance and risk management leading to authorship of books on hazard and financial risk. This led to industry consulting, as well as to the development of graduate-level courses and concentrations in MBA programs.

R&I: What was your first job?

The provost position was the first job I had in the industry, after serving as dean of the Seton Hall University School of Business and founding The Princeton Consulting Group. Earlier positions were in business development with Marine Transport Lines, consulting in commercial banking and college professorships.

R&I: What have you accomplished that you are proudest of?

Creating a risk management concentration in the MBA program at Saint Peter’s, co-founding the Russian Risk Management Society (RUSRISK), and writing “Fundamentals of Enterprise Risk Management” and the “AMA Handbook of Financial Risk Management.”

A few years ago, I expanded into risk management in higher education. From 2017 into 2018, Rowman and Littlefield published my four books that address risks facing colleges and universities, professors, students and parents.

Jack Hampton, Professor of Business, St. Peter’s University

R&I: What is your favorite book or movie?

The Godfather. I see it as a story of managing risk, even as the behavior of its leading characters create risk for others.

R&I: What is your favorite drink?

Jameson’s Irish whiskey. Mixed with a little ice, it is a serious rival for Johnny Walker Gold scotch and Jack Daniel’s Tennessee whiskey.

R&I: What is the most unusual/interesting place you have ever visited?

Mount Etna, Taormina, and Agrigento, Sicily. I actually supervised an MBA program in Siracusa and learned about risk from a new perspective.

R&I: What is the riskiest activity you ever engaged in?

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Army Airborne training and jumping out of an airplane. Fortunately, I never had to do it in combat even though I served in Vietnam.

R&I: If the world has a modern hero, who is it and why?

George C. Marshall, one of the most decorated military leaders in American history, architect of the economic recovery program for Europe after World War II, and recipient of the 1953 Nobel Peace Prize. For Marshall, it was not just about winning the war. It was also about winning the peace.

R&I: What about this work do you find the most fulfilling or rewarding?

Sharing lessons with colleagues and students by writing, publishing and teaching. A professor with a knowledge of risk management does not only share lessons. The professor is also a student when MBA candidates talk about the risks they manage every day.

R&I: What is the risk management community doing right?

Sensitizing for-profit, nonprofit and governmental agencies to the exposures and complexities facing their organizations. Sometimes we focus too much on strategies that sound good but do not withstand closer examination. Risk managers help organizations make better decisions.

R&I: What could the risk management community be doing a better job of?

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Developing executive training programs to help risk managers assume C-suite positions in organizations. Insurance may be a good place to start but so is an MBA degree. The Risk and Insurance Management Society recognizes the importance of a wide range of risk knowledge. Colleges and universities need to catch up with RIMS.

R&I: What emerging commercial risk most concerns you?

Cyber risk and its impact on hazard, operational and financial strategies. A terrorist can take down a building. A cyber-criminal can take down much more.

R&I: What does your family think you do?

My family members think I’m a professor. They do not seem to be too interested in my views on risk management.




Katie Dwyer is an associate editor at Risk & Insurance®. She can be reached at [email protected]