Risk Insider: Dante Disparte

Governing Risk or Governed by It?

By: | March 9, 2017 • 2 min read
Dante Disparte is an entrepreneur, business leader and global risk expert. He is the founder and CEO of Risk Cooperative, an innovative strategy and risk advisory firm based in Washington, D.C. He is the co-author of Global Risk Agility and Decision Making.

Senior executives and boards are learning the hard way that the buck does, in fact, stop with them.

This is painfully true when it comes to risk governance and the reality that in the smoking crater of complex risks such as cyber threats, reputation risk and the erosion of stakeholder trust, they are the ones left to pick up the pieces.

At best, they can endeavor to reassemble their organizations under the discretion and dignity of privacy — a luxury in the era of rampant cyber threats. At worst, they are carted in front of an angry Congressional hearing only to watch their share price and egos take a hit.

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Somewhere between these two extremes, the reality that most organizations are governed by risk is revealed. Addressing this risk governance gap is an organizational priority requiring the uncomfortable admission among boards and C-suite executives that they are ill-prepared in their human capital, knowledge, organizational “muscle memory” and general levels of resilience and decision making under duress.

Risk is a surprise event, or better still a process under the adage complex systems fail in complex ways. It does not respect board meeting schedules or when quorum can be formed in the crisis management committee.

Because of this misalignment between the dynamic forces of risk and the static forces of maintaining the semblance of status quo, organizational responses to surprise events are perceivably “clumsy” and all too often they amplify negative consequences, rather than abate them.

Breaking the habit and presumptions of being inured to risk and adverse consequences is the first psychological obstacle to overcome.

Shifting this reality and giving leaders the upper hand — albeit gingerly — enabling them to govern certain risks, they must train and train again. Breaking the habit and presumptions of being inured to risk and adverse consequences is the first psychological obstacle to overcome.

When you look at the personal characteristics, income levels and stature many board members and executives enjoy, their relative personal resilience does not convey to their organizations — and the many millions of employees and stakeholders and trillions in economic value that depend on their ability to suppress hubris, ask the right questions, and motivate information sharing.

Running risk simulations, addressing the knowledge gap and generally stress-testing risk readiness and their organizations is a low-cost, low-consequence way to prepare for the era of man-made risk.

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Unlike natural hazards, such as earthquakes and windstorms, which are capricious by design, man-made risks like cyber threats, terrorism and activist shareholders all have agency. This gives man-made risks an incredibly dangerous plotting quality, which makes it difficult to control and even harder to respond to when it rears its ugly head.

Rather than presuming safety and that everything is “covered” by an IT security professional, insurance policy or crisis communication strategy, senior leaders would be well advised to remember that risk favors the prepared. From a platform of healthy respect and continuous risk governance simulations, senior leaders can train their organizations to not only shield themselves from the powerful forces of risk, but to add value by harnessing it.

More from Risk & Insurance

More from Risk & Insurance

Risk Management

The Profession

After 20 years in the business, Navy Pier’s Director of Risk Management values her relationships in the industry more than ever.
By: | June 1, 2017 • 4 min read

R&I: What was your first job?

Working at Dominick’s Finer Foods bagging groceries. Shortly after I was hired, I was promoted to [cashier] and then to a management position. It taught me great responsibility and it helped me develop the leadership skills I still carry today.

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

While working for Hyatt Regency McCormick Place Hotel, one of my responsibilities was to oversee the administration of claims. This led to a business relationship with the director of risk management of the organization who actually owned the property. Ultimately, a position became available in her department and the rest is history.

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

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The risk management community is doing a phenomenal job in professional development and creating great opportunities for risk managers to network. The development of relationships in this industry is vitally important and by providing opportunities for risk managers to come together and speak about their experiences and challenges is what enables many of us to be able to do our jobs even more effectively.

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

Attracting, educating and retaining young talent. There is this preconceived notion that the insurance industry and risk management are boring and there could be nothing further from the truth.

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

In my 20 years in the industry, the biggest change in risk management and the insurance industry are the various types of risk we look to insure against. Many risks that exist today were not even on our radar 20 years ago.

Gina Kirchner, director of risk management, Navy Pier Inc.

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

FM Global. They have been our property carrier for a great number of years and in my opinion are the best in the business.

R&I: Are you optimistic about the US economy or pessimistic and why?

I am optimistic that policies will be put in place with the new administration that will be good for the economy and business.

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

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The commercial risks that are of most concern to me are cyber risks, business interruption, and any form of a health epidemic on a global scale. We are dealing with new exposures and new risks that we are truly not ready for.

R&I: Who is your mentor and why?

My mother has played a significant role in shaping my ideals and values. She truly instilled a very strong work ethic in me. However, there are many men and women in business who have mentored me and have had a significant impact on me and my career as well.

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

I am most proud of making the decision a couple of years ago to return to school and obtain my [MBA]. It took a lot of prayer, dedication and determination to accomplish this while still working a full time job, being involved in my church, studying abroad and maintaining a household.

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

“Heaven Is For Real” by Todd Burpo and Lynn Vincent. I loved the book and the movie.

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

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A French restaurant in Paris, France named Les Noces de Jeannette Restaurant à Paris. It was the most amazing food and brings back such great memories.

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

Israel. My husband and I just returned a few days ago and spent time in Jerusalem, Nazareth, Jericho and Jordan. It was an absolutely amazing experience. We did everything from riding camels to taking boat rides on the Sea of Galilee to attending concerts sitting on the Temple steps. The trip was absolutely life changing.

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

Many, many years ago … I went parasailing in the Caribbean. I had a great experience and didn’t think about the risk at the time because I was young, single and free. Looking back, I don’t know that I would make the same decision today.

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

I would have to say the relationships and partnerships I have developed with insurance carriers, brokers and other professionals in the industry. To have wonderful working relationships with such a vast array of talented individuals who are so knowledgeable and to have some of those relationships develop into true friendships is very rewarding.

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

My friends and family have a general idea that my position involves claims and insurance. However, I don’t think they fully understand the magnitude of my responsibilities and the direct impact it has on my organization, which experiences more than 9 million visitors a year.




Katie Siegel is a staff writer at Risk & Insurance®. She can be reached at [email protected]