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Risk Insider: Grace Crickette

Waging War & the Sheathed Sword

By: | September 17, 2014 • 2 min read
Grace Crickette, a leader in enterprise risk management, is special administrator, Finance and Administration for San Francisco State University. She can be reached at [email protected]

This is the second chapter in Grace Crickette’s series of posts focused on how to gracefully bring together traditional risk management, change management techniques and enterprise risk management concepts by using phrases and tactics to develop strategies devised by Sun Tzu, a Chinese military general, strategist and philosopher.

MAKE ERM, NOT WAR

rainbow peace sign copyChapter II: On Waging War (Pick Your Battle) and Chapter III: The Sheathed Sword (Offensive Strategy)

Chapters II and III of Sun Tzu’s The Art of War are about knowing who is with you and who is against you. War among friends? The implementation of your program is the war and the best place to pick your first battle (implementing change) is with those who are for you and who want what the program will deliver.

A theme that is embedded in virtually every other theme of the Art of War, especially in regard to knowing self and opposition, is the importance of knowledge, wisdom, and understanding.

These are borne from asking questions and listening. When implementing ERM, it is critical to spend time meeting with people in the organization, but not talking about ERM. Rather, focus on listening to their issues and problems. Inquire, listen and acknowledge, but don’t solve. Walk away and study the issues before returning with a plan as to how an ERM program can be a tool for the owner of the risk.

Who will we engage with first? Can we identify a quick win?

These are the first questions to ask and answer when choosing your first battle. Even if you have a mandate from the Board to implement ERM, you will still face resistance. You need to be able to evidence value and to do that you need to deliver results in a timely fashion. Choose to implement ERM activities with those who have indicated an interest and to which the activity will deliver measurable results.

Example: Complete a risk registry with an ERM approach that can be part of a business plan used to support a budget request for a department. An ERM risk registry does not have to “boil the ocean”; it can be completed down at even a project level. This approach can yield a quick win that you can communicate to others to gain further support.

Who will be against us? What will they do/say and how will we counter?

Prior to even starting your first battle (implementation), brainstorm with others on who might be against you and what they will say. A productive way to do this is to prepare and publish a Q&A document. Think of all the questions and challenges that those who might not embrace the program will make and develop responses. This exercise will benefit your program several ways:

  • It will punch holes in your program and prompt you to make needed improvements.
  • It will win over doubters by evidencing that the program is sound and has value.
  • For those that may never buy-in, it will evidence that you are a worthy opponent and possibly not worth their time (they can move onto weaker opponents).

Key Takeaway: Listen and learn from others before you ask them to participate in your ERM program. Know who, where and what to first implement. Prepare for those who will be resistant.

Remember — it’s not Risk Management, it’s Change Management!

Read all of Grace Crickette’s Risk Insider articles.

More from Risk & Insurance

More from Risk & Insurance

Risk Management

The Profession: Curt Gross

This director of risk management sees cyber, IP and reputation risks as evolving threats, but more formal education may make emerging risk professionals better prepared.
By: | June 1, 2018 • 4 min read

R&I: What was your first job?

My first non-professional job was working at Burger King in high school. I learned some valuable life lessons there.

R&I: How did you come to work in risk management?

After taking some accounting classes in high school, I originally thought I wanted to be an accountant. After working on a few Widgets Inc. projects in college, I figured out that wasn’t what I really wanted to do. Risk management found me. The rest is history. Looking back, I am pleased with how things worked out.

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

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I think we do a nice job on post graduate education. I think the ARM and CPCU designations give credibility to the profession. Plus, formal college risk management degrees are becoming more popular these days. I know The University of Akron just launched a new risk management bachelor’s program in the fall of 2017 within the business school.

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

I think we could do a better job with streamlining certificates of insurance or, better yet, evaluating if they are even necessary. It just seems to me that there is a significant amount of time and expense around generating certificates. There has to be a more efficient way.

R&I: What was the best location and year for the RIMS conference and why?

Selfishly, I prefer a destination with a direct flight when possible. RIMS does a nice job of selecting various locations throughout the country. It is a big job to successfully pull off a conference of that size.

Curt Gross, Director of Risk Management, Parker Hannifin Corp.

R&I: What’s been the biggest change in the risk management and insurance industry since you’ve been in it?

Definitely the change in nontraditional property & casualty exposures such as intellectual property and reputational risk. Those exposures existed way back when but in different ways. As computer networks become more and more connected and news travels at a more rapid pace, it just amplifies these types of exposures. Sometimes we have to think like the perpetrator, which can be difficult to do.

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

I hate to sound cliché — it’s quite the buzz these days — but I would have to say cyber. It’s such a complex risk involving nontraditional players and motives. Definitely a challenging exposure to get your arms around. Unfortunately, I don’t think we’ll really know the true exposure until there is more claim development.

R&I: What insurance carrier do you have the highest opinion of?

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Our captive insurance company. I’ve been fortunate to work for several companies with a captive, each one with a different operating objective. I view a captive as an essential tool for a successful risk management program.

R&I: Who is your mentor and why?

I can’t point to just one. I have and continue to be lucky to work for really good managers throughout my career. Each one has taken the time and interest to develop me as a professional. I certainly haven’t arrived yet and welcome feedback to continue to try to be the best I can be every day.

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

I would like to think I have and continue to bring meaningful value to my company. However, I would have to say my family is my proudest accomplishment.

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

Favorite movie is definitely “Good Will Hunting.”

R&I: What’s the best restaurant you’ve ever eaten at?

Tough question to narrow down. If my wife ran a restaurant, it would be hers. We try to have dinner as a family as much as possible. If I had to pick one restaurant though, I would say Fire Food & Drink in Cleveland, Ohio. Chef Katz is a culinary genius.

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

The Grand Canyon. It is just so vast. A close second is Stonehenge.

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

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A few, actually. Up until a few years ago, I owned a sport bike (motorcycle). Of course, I wore the proper gear, took a safety course and read a motorcycle safety book. Also, I have taken a few laps in a NASCAR [race car] around Daytona International Speedway at 180 mph. Most recently, trying to ride my daughter’s skateboard.

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

The Dalai Lama. A world full of compassion, tolerance and patience and free of discrimination, racism and violence, while perhaps idealistic, sounds like a wonderful place to me.

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

I really enjoy the company I work for and my role, because I get the opportunity to work with various functions. For example, while mostly finance, I get to interact with legal, human resources, employee health and safety, to name a few.

R&I: What do your friends and family think you do?

I asked my son. He said, “Risk management and insurance.” (He’s had the benefit of bring-your-kid-to-work day.)

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