Risk Insider: Lance Wright

The HR and Risk Management Nexus

By: | March 28, 2017 • 3 min read
Lance Wright is Partner and CEO at Lance Wright & Associates. He has decades of global business experience, with the bulk of his career spent as an international oil and gas executive. He can be reached at [email protected]

Business leaders, CFOs, risk managers and HR professionals should continually review how the organization approaches people-related risk management issues. Today, as part of their critical strategic business processes, successful organizations are constantly looking for ways to better understand the nexus between HR — the human resources of an organization — and effective risk management. Here is a quick review of the key things to consider.

Develop a cross function partnership.

An effective enterprise risk management program invariably focuses at some point on the big chunk of an organization’s financial resources associated with the pension, insurance, savings and other benefits plans that the HR function usually manages and administers. As a result, a partnership is developed in many organizations between HR, the finance organization and the risk management function to make sure that the risks associated with these HR plans and programs are well understood and properly addressed.


Continually rethink HR-related risks.

This cross function partnership makes sure that advancements in technology and computing power are used to identify, analyze, model and ameliorate not only the HR-related financial risks in the organization but also those that emerge from the behavior of people.  This continual rethinking of the HR and risk management nexus often leads to increased understanding of the events and actions that can impact, or be done by, the people in an organization.  From planning for pandemics to identifying and protecting against physical and information security vulnerabilities, forward-thinking organizations make sure there is a coordinated HR and risk management review process overseen by senior management.

Understand the insider threat.  

Well-run organizations that have been rethinking the HR and risk management nexus understand that the actions of its human resources, whether malicious or inadvertent, can represent one of the greatest potential risks to the bottom line. They understand and guard against the “insider threat,” the employee who may, for example, introduce a virus into an organization’s information system through an infected thumb drive. They know that even if unwittingly done, this sort of action by an employee can bring an enterprise’s operation to its knees.


Look for hidden HR-related risk issues.

Thoughtful organizations know that despite the progress they have made in rethinking the HR/risk management nexus, there are always seemingly people-related processes that in actuality are really about organization risk.  For example, many organizations think of succession planning and leadership development as solely an HR-related process.  However, progressive organizations that have been rethinking the HR and risk management nexus believe succession planning should be viewed as a process designed to prevent the risks associated with not being able to fill vacancies in critical positions with the right people. They seek out other so-called HR processes that may really deal with risk.

The continual review of the HR and risk management nexus is well underway in top-notch organizations. More organizations should follow suit.

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Risk Management

The Profession

Verizon’s risk manager David Cammarata loves when his team can make a real impact on the bottom line.
By: | May 2, 2017 • 4 min read

R&I: What was your first job?

I was a financial analyst with the N.J. Casino Control Commission.

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

I was told at a Christmas luncheon in 2003 that I was being promoted into a new job.

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


I think the risk management community is getting a lot better at utilizing big data and analytics to manage risk. Significant improvements have been made, but there is still much more room for improvement.

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

I think that the insurance and brokerage communities need to really start thinking about what this industry is going to look like in 10 years. They need to start addressing how they are going to remain relevant. I think that major disruptions to existing business models will occur and that these disruptions combined with innovation and technological advances may catch many of today’s industry leaders by surprise.

David Cammarata, assistant treasurer, risk management and insurance, Verizon Communications Inc.

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

San Diego, any year.

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

I think the advent of cyber risk and cyber insurance. For several years it has been, and it continues to be, the main topic of discussion at industry meetings.

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



I think the most scary scenarios include a nuclear, biological, chemical or radiological event, a widespread global health epidemic and/or a widespread state sponsored cyber shutdown.

R&I: How much business do you do direct versus going through a broker?

We do almost all of our business through a broker.

R&I: Is the contingent commission controversy overblown?

No. It’s a conflict.

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

Optimistic because hopefully President Trump’s policies (lower taxes and less regulation) will be pro-business and good for the economy.

R&I: Who is your mentor and why?

My dad, who passed away many years ago. He was very influential during the formative years of my career. He taught me how important integrity and reputation were to your brand and he had a very strong work ethic.

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

I would have to say raising two awesome kids. My daughter is graduating from James Madison University this year as co-valedictorian. My son is finishing his sophomore year at Rutgers and has near perfect grades. But more importantly, both of my kids have turned out to be really good people.

R&I: How many emails do you get in a day?

A lot.

“I love it when the risk management organization is able to contribute in a way that makes a real impact to the corporation’s overall objectives. On several occasions we have been able to make real contributions to the bottom line.”

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

“My Cousin Vinny.” That movie makes me laugh no matter how many times I watch it.

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



My dad used to take me to a place called Chick & Nello’s. It was an Italian place that did not have a menu. They came to your table and told you the two or three items they were making that day. The food was out of this world.

R&I: What is your favorite drink?

Iced tea. The non-alcoholic kind.

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

I can think of several places but for me it would be a tie between India and Italy. India just has such a different culture and way of life and Rome has breathtaking historical sites.

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

Well, one of the best thrill rides I’ve been on was Kingda Ka at Great Adventure. It feels risky but probably isn’t all that risky. I flew in a prop plane with my brother-in-law one time … that felt kind of risky. I have also parasailed, does that count? I think it definitely has to be driving on the N.J. Turnpike day in and day out.

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


What about the Fukushima 50? I don’t think I could have done what they did.

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

I love it when the risk management organization is able to contribute in a way that makes a real impact to the corporation’s overall objectives. On several occasions we have been able to make real contributions to the bottom line.

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

I don’t think they really know. My children see me as dad; others just see me as an executive with Verizon.

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