Risk Management

The Profession

Being a hero, said Ensign-Bickford Industries' Rick Roberts, depends on the way a person behaves when they succeed or fail at a task.
By: | December 10, 2014 • 5 min read

R&I: What was your first job?

It was back with Aetna in 1979. The area I worked in designed forms for use on new computers. It was insurance-related work but not underwriting. This work was the beginning of Aetna’s move to major automation.

R&I: How did you get your start in the business?

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Rick Roberts, director, risk management & employee benefits, Ensign-Bickford Industries

I moved around Aetna in various internal consulting positions and then completed the three-course ARM program. I had applied for a risk management position at Aetna in 1987 and was not selected. However, the person they hired to handle risk management left within a year and I reapplied. I guess due to my perseverance, they gave me a chance and I got the position. Best luck I have had in my career.

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

I guess at the top of the list now is cyber risk. Like many risk specialists I’m trying to figure out its impact to our operations. For us, we think the issue would be if someone was able to get in and close our systems down for a long period of time. Are we prepared for a cyber attack that closes our system down for a two- or three-week period?

R&I: Where do you think the risk management community is providing its most vital function?

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I think the risk management community is better at elevating key risk issues in our respective companies and making sure that these risks are being reviewed and are known by senior management.

R&I: What are some of those key issues?

Taking a more holistic look at risk, for one thing. What will the impact be if a couple of non-related events happen at the same time, for instance? Like, if you have a tsunami at one site and a major fire at another site and they are simultaneous events. This helps to address catastrophic or “tail events” that could occur outside of the three standard deviations from the mean. It provides a good review of high CAT, very low-frequency events. These are the “black swan” events that have not been assessed before an event like 9/11.

R6-14p42_Profession.inddR&I: Do you find that colleagues can frequently help you solve coverage issues?

Through RIMS, risk specialists are willing and able to share a lot of experiences. … At one point, my organization was looking into an international travel policy. I was able to go to two chapter contacts, including a former boss of mine. They gave me a wealth of information I used prior to approaching our broker to see what type of program would work best for us.

R&I: What surprises you most about the way the risk management and insurance industries have changed over the last few decades?

For me personally when I first started in the job some 26 years ago, the business was very much insurance-focused. Insurance represented 85 to 90 percent of my job and that was the foundation of everything around risk. Now, it encompasses only 10 to 15 percent. I’m being asked to get into enterprise risk management and contract work, as well as involvement in different aspects of the company, such as supply chain and cyber.

R&I: What are some of the latest happenings at the Spencer Educational Foundation where you are a director?

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The Spencer Educational Foundation does a lot of work with students and younger risk professionals trying to attract these younger folks into the risk profession. Spencer also has a great program that I plan to utilize next year where it grants up to $4,000 to bring in interns from local universities to show them how the risk management function works at your company. These students get a great, first-hand experience in the working world and get to make many contacts that can lead to work when they are done with college.

R&I: Is the contingent commission controversy overblown?

That’s a good question. My opinion is there should be complete transparency around all compensation received by brokers, then we as the buyer can determine whether it’s appropriate or not. There can be the appearance of a conflict of interest when the broker is being paid by the insurer as well as by the buyer when there is no disclosure.

“That unpredictability [of risk management] makes every day exciting.”    — Rick Roberts, director, risk management & employee benefits, Ensign-Bickford Industries

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

When I was younger I used to jump off a cliff, 65 or 70 feet down, at an old quarry in Southern Connecticut, which when I look at it now seems kind of stupid. But I might try some skydiving!

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

Going back to school to get my MBA as an old guy of 52 at the University of Hartford.

R&I: What is your favorite book?

“Start With Why” by Simon Sinek. He was a keynote at RIMS in L.A. two years ago. It’s a business book about decision-making. It forces you to ask the question “why?” “Why” customers buy versus “what” they buy. It talks about how we approach business situations to keep customers happy and coming back.

R&I: What is your favorite drink?

Blue Goodness. It’s a health drink made of a bunch of different berries. It’s a really good one!

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

The folks that appeal to me as heroes are golfers such as Phil Mickelson, Jack Nicklaus and Greg Norman. They’re on full display and the way they behave when they fail or succeed is impeccable, both in sports and all the different businesses they still are running today.

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

The diversity of the work and the fact that no two days are ever the same. That unpredictability makes every day exciting.

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

They’re beginning to understand the risk management function because of the publicity our work has received. Risk management seems to be seen in a very favorable light these days. People kind of get it when you say you’re involved in managing risk now because they understand the importance of loss control and the benefit of preventing injuries.

Janet Aschkenasy is a freelance financial writer based in New York. She can be reached at [email protected]

More from Risk & Insurance

More from Risk & Insurance

Risk Management

The Profession

As a professor of business, Jack Hampton knows firsthand the positive impact education has on risk managers as they tackle growing risks.
By: | April 9, 2018 • 4 min read

R&I: Who is your mentor and why?

Ellen Thrower, president (retired), The College of Insurance, introduced me to the importance of insurance as a component of risk management. Further, she encouraged me to explore strategic and operational risk as foundation topics shaping the role of the modern risk manager.

Chris Mandel, former president of RIMS and Risk Manager of the Year, introduced me to the emerging area of enterprise risk management. He helped me recognize the need to align hazard, strategic, operational and financial risk into a single framework. He gave me the perspective of ERM in a high-tech environment, using USAA as a model program that later won an excellence award for innovation.

Bob Morrell, founder and former CEO of Riskonnect, showed me how technology could be applied to solving serious risk management and governance problems. He created a platform that made some of my ideas practical and extended them into a highly-successful enterprise that served risk and governance management needs of major corporations.

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

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From a background in corporate finance and commercial banking, I accepted the position of provost of The College of Insurance. Recognizing my limited prior knowledge in the field, I became a student of insurance and risk management leading to authorship of books on hazard and financial risk. This led to industry consulting, as well as to the development of graduate-level courses and concentrations in MBA programs.

R&I: What was your first job?

The provost position was the first job I had in the industry, after serving as dean of the Seton Hall University School of Business and founding The Princeton Consulting Group. Earlier positions were in business development with Marine Transport Lines, consulting in commercial banking and college professorships.

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

Creating a risk management concentration in the MBA program at Saint Peter’s, co-founding the Russian Risk Management Society (RUSRISK), and writing “Fundamentals of Enterprise Risk Management” and the “AMA Handbook of Financial Risk Management.”

A few years ago, I expanded into risk management in higher education. From 2017 into 2018, Rowman and Littlefield published my four books that address risks facing colleges and universities, professors, students and parents.

Jack Hampton, Professor of Business, St. Peter’s University

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

The Godfather. I see it as a story of managing risk, even as the behavior of its leading characters create risk for others.

R&I: What is your favorite drink?

Jameson’s Irish whiskey. Mixed with a little ice, it is a serious rival for Johnny Walker Gold scotch and Jack Daniel’s Tennessee whiskey.

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

Mount Etna, Taormina, and Agrigento, Sicily. I actually supervised an MBA program in Siracusa and learned about risk from a new perspective.

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

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Army Airborne training and jumping out of an airplane. Fortunately, I never had to do it in combat even though I served in Vietnam.

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

George C. Marshall, one of the most decorated military leaders in American history, architect of the economic recovery program for Europe after World War II, and recipient of the 1953 Nobel Peace Prize. For Marshall, it was not just about winning the war. It was also about winning the peace.

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

Sharing lessons with colleagues and students by writing, publishing and teaching. A professor with a knowledge of risk management does not only share lessons. The professor is also a student when MBA candidates talk about the risks they manage every day.

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

Sensitizing for-profit, nonprofit and governmental agencies to the exposures and complexities facing their organizations. Sometimes we focus too much on strategies that sound good but do not withstand closer examination. Risk managers help organizations make better decisions.

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

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Developing executive training programs to help risk managers assume C-suite positions in organizations. Insurance may be a good place to start but so is an MBA degree. The Risk and Insurance Management Society recognizes the importance of a wide range of risk knowledge. Colleges and universities need to catch up with RIMS.

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

Cyber risk and its impact on hazard, operational and financial strategies. A terrorist can take down a building. A cyber-criminal can take down much more.

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

My family members think I’m a professor. They do not seem to be too interested in my views on risk management.




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