Risk Insider: Jack Hampton

Help Wanted: Cyber Security Neurologist

By: | January 10, 2017 • 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.

When we think about how some companies protect their electronic assets, it brings to mind “leech therapy.” This method has been used since ancient times to treat illness and disease. Many cyber security efforts resemble it. We perform a procedure and the patient improves. We don’t know if it was our treatment or just luck. We take credit for the success either way.

Medical advancement recognized that the human body is constantly under attack by unseen aggressors. At a basic level, antibiotics kill bacteria. We prevent heart attacks by reducing cholesterol and high blood pressure. Surgeons eliminate cancer by exorcising tumors.

At more complex levels, doctors move past a single remedy.  Pharmaceutical cocktails treat HIV, and cancer and holistic medicine helps us understand the need to make lifestyle changes.

These lessons are needed in cyber risk management. Information technology specialists build firewalls and insist upon complex passwords. They work at one level but fall short in the face of constantly mutating electronic pathogens.

To start, we need agreement on cyber security goals. The risk manager seeks to avoid damage to assets, interruption to operations and liability lawsuits. The underwriter wants to identify and insure named perils and avoid all-risk policies that cannot identify black swans. The CFO wants insurance to protect big losses but balks at incurring high costs without assurance that massive cyber damage will be reimbursed by the coverage.

These individual viewpoints can be reconciled by a “cyber security neurologist,” an individual with the knowledge and training to protect the total cyber body.

A neurological disorder is an abnormality in the brain, spinal cord or nervous system. Damage includes paralysis, seizures, confusion and pain.

A cyber neurological disorder can affect the (1) “brain” (computers, servers, and knowledge of work force), (2) electronic “central nervous system” (business disruption and liability) and (3) “peripheral nervous system” (liability exposures with customers, suppliers, partners and regulators).

There are many medical neurological disorders, some relatively common, but many quite rare. They may be treated by different specialists using preventative measures, lifestyle changes, physiotherapy, pain management and surgery.

Cyber neurological disorders are often treated differently. Organizations build firewalls without changing practices, processes and cultural lifestyles that leave doorways open. If this is your perspective, the next step is likely to be pain management.

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What if we treat cyber risk like a peanut disorder, a type of hypersensitivity provoked by an allergen? A medical study just turned treatment on its head. Previously, doctors diagnosed the allergy and told us to keep totally away from any food with even a trace of peanut content. Teenage and adult peanut intolerance soared with this guidance.

A new study shows allergen immunotherapy or desensitization dramatically increases tolerance. Small doses of peanut butter starting with infants greatly reduces the likelihood of the disorder later on.

Cyber immunotherapy could treat the whole system. We can sensitize authorized users and correct behaviors that are careless or unmindful. We can separate data that needs the highest security from routine information available all over the internet. We can recognize that cyber risk is not a disease that needs an IT brain surgeon when the real problem is we are not protecting the entire electronic neurological system.

In conclusion, you may ask, “Why does everyone pick on poor leech therapy?” To comply with the Equal Time Rule, you are directed to Mehdi, a self-described Leech Therapist in Australia. He points out bloodletting “is still thriving today.”

Sony Pictures, Yahoo and the Democratic National Committee are victims of recent cyber attacks. Maybe they needed more than electronic “bloodletting.”

More from Risk & Insurance

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Risk Management

The Profession

Wawa’s Director of Risk Management knows that harnessing data and analytics will be key to surviving the rapid pace of change that heralds new risk exposures.
By: | July 27, 2017 • 5 min read

R&I: What was your first job?

My first job was at the age of 15 as a cashier at a bakery. My first professional job was at Amtrak in the finance department. I worked there while I was in college.

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

A position opened up in risk management at Wawa and I saw it as an opportunity to broaden my skills and have the ability to work across many departments at Wawa to better learn about the business.

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

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The advancements in analytics are a success for the industry and offer opportunities for the future. I also find value in the industry focus on emerging and specialty risks. There is more alignment with experts in different industries related to emerging and specialty risks to provide support and services to the insurance industry. As a result, the insurance industry can now look at risk mitigation more holistically and not just related to traditional risk transfer.

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

Developing the talent to grow with the industry in specialization and analytics, but to also carry on the personal connections and relationship building that is a large part of this industry.

Nancy Wilson, director, quality assurance, risk management and safety, Wawa Inc.

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

I have had successes at all of the RIMS events I have attended. It is a great opportunity to spend time with our broker, carriers and other colleagues.

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

I think the biggest challenge facing most companies today is related to brand or reputational risk. With the ever-changing landscape of technology, globalization and social media, the risk exposure to an organization’s brand or reputation continues to grow.

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

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The changing consumer demands and new entrants into an industry are concerning. This is not necessarily something new but the frequency and speed to which it happens today does seem to be different. I think that is only going to continue. Companies need to be prepared to evolve with the times, and for me that means new risk exposures that we need to be prepared to mitigate.

R&I: Are you optimistic about the U.S. economy or pessimistic and why?

I try to be optimistic about most things. I think the economy ebbs and flows for many reasons and it is important to always keep an eye out for signs of change.

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

I am fortunate to have opportunities professionally that make me proud, but I have to answer this one personally. I have two children ages 12 and 9 and I am so proud of the people that they are today. They both are hardworking, fun and kind. Nothing gives me a better feeling than seeing them be successful. I look forward to more of that.

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

This is really hard as there are too many favorites. I do prefer books to movies, especially if there is a movie based on a book. I find the movie is never as good. I have multiple books going at once and usually bounce back and forth between fiction and non-fiction.

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

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I have eaten at a lot of different restaurants in many major cities but I would have to pick Horn O’ Plenty in Bedford, PA. It is a farm to table restaurant in the middle of the state. The food is always fresh and tastes amazing and they make me feel like I am at home when I am there. My family and I eat there often during our trips out that way.

R&I: What is your favorite drink?

I do love a good cup of coffee (working at Wawa helps that). I also enjoy a good glass of wine (red preferably) on occasion.

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

Vacations aside, I do get an opportunity to travel for work and visit our food suppliers. The opportunities I have had to visit back to the farm level have been a very interesting learning experience. If it wasn’t for my role, I would have never been able to experience that.

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

My husband, kids and I recently did a boot-camp-type obstacle course up in the trees 24 feet in the air. Although I had a harness and helmet on, I really put my fear of heights to the test. At the end of the two hours, I did get the hang of it but am not sure I would do it again.

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

The first people that come to mind are those who are serving our country and willing to sacrifice their own lives for our freedom.

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

Every day is different and I have the opportunity to be involved in a lot of different work across the company.

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

My husband and children have a pretty good sense of what I do, but the rest of my family has no idea. They just know I work for Wawa and sometimes travel.




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