Risk Insider: Jack Hampton

The Changing Concept of Privacy

By: | December 7, 2016 • 2 min read
John (Jack) Hampton is a Professor of Business at St. Peter’s University and a former Executive Director of the Risk and Insurance Management Society (RIMS). His recent book deals with risk management in higher education: "Culture, Intricacies, and Obsessions in Higher Education — Why Colleges and Universities are Struggling to Deliver the Goods." His website is www.jackhampton.com.

Classical Chinese Mandarin had no word that conveyed the modern meaning of privacy. Its closest term conveyed a message close to “shameful secret,” as when a person wanted to hide a disgraceful behavior from others.

Everybody knows the meaning of “privacy.” It is freedom from being observed or disturbed by others. Legally, it is a right to control access to our personal information.

Is the issue of privacy about to change as a major theme in our society?

We can ask German Chancellor Angela Merkel, “Did you feel violated when you learned the U.S. National Security Agency listened to and recorded your cell phone conversations?”

We could contact 32 million members of Ashley Madison, the commercial website that facilitates discreet sexual affairs for married adults. Did bad things happen after the release of their full names, home addresses, and credit card transactions?

We might be curious about what happened to Ashley Madison’s clients in Saudi Arabia where adultery is a crime punishable by death.

Curiosity is one thing. Managing the exposure from a privacy breach is a potential disaster.

Risk managers are concerned about privacy violations that increasingly are coming from out of nowhere. We should be concerned too.

Ask Erin Andrews, the ESPN reporter who was videotaped naked in her hotel room. A jury verdict was $55 million from Marriott for violation of privacy.

You can’t ask Tyler Clementi, an 18-year-old student at Rutgers University. He jumped to his death from the George Washington Bridge after his roommate used a webcam and shared an Internet video of Clementi kissing another man.

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Privacy violation is big business. The collection of our private data is a $300 billion-a-year industry employing millions of people in the United States. They gather information without regard to how it will be used. They digitally scour Facebook for information about people going on vacation, match it with email addresses, and sell it to vendors in destination locations who promote events for tourists. Unintentionally, the information can wind up in the hands of burglars who break into empty homes.

Elsewhere, recruiters uncover personal data not volunteered in applications for employment. Unscrupulous proprietary schools identify financially struggling students and put them into debt pursuing programs they will not complete.

The quest for sensitive data and other secrets is part of a new discipline called “business analytics.”

Privacy violation is big business. The collection of our private data is a $300 billion-a-year industry employing millions of people in the United States. They gather information without regard to how it will be used.

The definition is quite harmless. It refers to continuous and repeated exploration and investigation of data to improve performance.

It uses the availability of the massive amount of data collected by companies, governments, and other parties who have little or no respect for privacy.

The situation is complicated because we actually train people to violate privacy. Business analytics is a “hot” academic program on college campuses. Students learn how to pore through our personal lives to create “meaning” that will be used for or against us by complete strangers.

What is the reality of personal privacy? It’s gone.

Politicians use business analytics to find friendly voters. The media tracks down hidden stories that inform, entertain, or titillate. Lawyers pursue clients. Employers dig for conflicts of interest. Netflix manages its business based on our viewing patterns.

Everybody is sharing the data. Nobody is taking much time to respect privacy.

We might conclude with a mission statement that could apply to a modern company.

“We have to be forthright with our customers. We must earn their confidence. We have to show them we care about them and will protect them. Then, we can find their shameful secrets and invade their privacy.”

Risk Management

The Profession

Maila Aganon is the personification of the American dream. The vice president of treasury and risk for Caesars Entertainment Corp. immigrated from the Philippines and worked her way to the top.
By: | October 12, 2017 • 4 min read


R&I: What was your first job?

I actually had three first jobs at the same time at the age of 16. I worked as a cashier in a fast-food restaurant, a bank teller and a debt collector for an immigration law firm.

R&I: Who is your mentor and why?

I have a few. The first one would be the first risk manager I reported to. He taught me the technical part of the job, risk financing, captives and insurance. I am also privileged to be mentored by Lori Goltermann (CEO of U.S. Retail for Aon Risk Solutions).  From her I learned to be resilient and optimize life/work balance. Then of course I also have a circle of ladies at work who I lean in to!

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

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I was once a bank teller and had a client who was an insurance agent. He would come in every day to make deposits. One day, he offered me a job. He said, “How would you like to have your own desk, your own phone and your own computer?” And I said, “When do I start?” I worked for this personal lines insurance company for six years.

R&I: Did you take to it immediately?

Yes, I did sales, claims and insurance accounting. I left for a couple years and that is when AAA came calling, which was my first introduction to risk management. I didn’t know there was such a thing as commercial insurance. They called me and the pitch was “how would you like to run a captive insurance company?”

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

It is not so much the job but I say that I am the true product of the American Dream. I came to the U.S. when I was 16. I worked three jobs because I didn’t want to go to high school (She’d already graduated high school in the Philippines.) I spoke very little English, and due to hard work, grit and a great smile I’m now here working with all of you!

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

In movies, it is a toss-up between Gone with the Wind and Big Daddy.

R&I: What is your favorite drink?

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I like anything sweet. If you liquify a dessert that’s my perfect drink.

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

This is easy because I just got back from Barcelona on a side trip. I visited the Montserrat Monastery, which is a thousand-year old monastery. It was raining and foggy. I hiked for three hours and I didn’t see a single soul. It was a very peaceful place.

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

This is going back to working at a fast food chain when I was young. I worked in a very undesirable location in San Francisco. At 16 I used to negotiate with gang members so they wouldn’t rob me during my shift. I had to give them chicken so they wouldn’t rob me.

Maila Aganon, VP, Treasury and Risk, Caesars Entertainment Corp.

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

I can’t say me. They have to be my kids Kyle and Hailey. They can make me laugh and cry within a half-minute of each other. Kyle is 10, a perfect Mama’s boy. Hailey is seven going on 18.

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

I think the most fulfilling part is how you build relationships with people and then after a while they become your friends.

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

Risk managers do a great job of networking. They are number one. Which is not a surprise because the pillar of our work is building a relationship with underwriters, clients and brokers.

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

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I am experiencing that right now; talent.  We need to a better job in attracting and retaining talent. Nobody knows about what we do. You tell someone ‘I’m as risk manager’ and they give you a blank look. What does that mean?

We’re great marketers and we should use this skill set in attracting talent. We should engage our universities, our communities, even our yoga groups and talk to them about the exciting world of risk. It is an exciting career because there is nothing like it.

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

It would have to be the increasing cyber risk and the interdependency of systems.

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

I took my seven year old daughter once to an insurance event that had live music, dancing and drinks. She thinks that whenever I go to an insurance meeting, I’m heading to a party.




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