Risk Management

The Profession

At McKesson, Jane Sandler blends her passions for risk management and health care to help the organization develop innovative, forward-thinking solutions.
By: | December 14, 2016 • 4 min read

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R&I What was your first job?

My first paycheck came from bagging groceries at Kroger. I didn’t have a car and had to walk to work. My ultimate goal was to save enough money for my first car. The very car I later drove to my first insurance job in an underwriting department. It was a great feeling.

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

Growing up in a state-controlled environment of the former Soviet Union, risk management was not on my radar. I have always had a passion for health care as it touches and influences the lives of so many. I was pre-med when a friend told me about her major – risk management and insurance. It seemed fascinating.

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

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One of the things I appreciate the most about our industry is the depth of relationships. Trust and integrity are crucial. Risk managers form long-standing partnerships with insurers and other industry colleagues, enabling us to support each other and excel during challenging times.

At the core of everything risk managers do lays the desire to prevent injuries, enable new opportunities and protect our enterprise against volatility.

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

We could do a better job of attracting young talent. There is a stigma associated with the insurance industry — it’s perceived as boring, and that could not be further from the truth. I’ve been stretched and challenged every step of the way and feel that this is one of the more engaging professions.

I serve on the board of trustees for the Georgia State University Risk Management Foundation and one of our strategic initiatives focuses on educating college recruits on the breadth of opportunities afforded by our industry.

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, risk managers have made a huge move from being “insurance and claim guys” to becoming a trusted business adviser to the C-suite. We’ve embraced that we cannot eliminate or insure all risk. Risk-taking is an essential part of any business opportunity. But what we can do is partner with key stakeholders to better understand the risk and empower innovative solutions.

R&I What emerging commercial risk most concerns you?

It’s the risks associated with new technological breakthroughs and legislative developments. Most recent examples in the health care industry are interconnectivity and value-based reimbursements. In the early stages of any initiative, much is undefined.

R&I Who is your mentor and why?

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I have been very lucky to meet many colleagues along the way that have opened doors, given me a chance and shared their expertise. Deanna Allen gave me my first opportunity in health care risk management, welcomed me with open arms, pushed me and really helped me grow in my early career.

Another individual who comes to mind is Allan Bogenschutz. He’s one of the best colleagues you could have, always willing to share his candid feedback. Allan has been a great sounding board and adviser to me over the years.

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

Having emigrated here at the age of 17 from Ukraine, successfully establishing a new life is a point of both pride and immense gratitude to everyone who helped me along the way.  I am appreciative of the freedom and opportunities this country affords to anyone who’s willing to work hard and apply themselves.

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

Riding on an ATV with my husband. It was all fun and games until he flipped us over. So, my zip-lining experience, in comparison, was very safe.

R&I What is your favorite book or movie?

“Kafka on the Shore” by Haruki Murakami.

R&I What is your favorite drink?

Absinth.

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

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Travel is my escape and it is hard to narrow down the wonders of the world to just one. I would say for architecture it’s the magic of Gaudi’s Barcelona. For nature, it’s the grandeur of the Alps.

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

The most fulfilling part is blazing new trails and developing innovative solutions to support my company’s growth. I am very grateful for the opportunity McKesson has afforded me in leading the risk management department in a new direction. I am lucky to have an incredibly talented global team.

We are very focused on quantification of risk in a way that is easy to communicate across the organization. McKesson’s leadership team values the role and contribution of the risk management function.

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

I talk about it so much, I am pretty sure they know exactly what I do! To my kids, I explained that it’s planning in advance and having a plan B. Last time we were at the beach in the fall, their shoes got soaking wet and we had a spare pair in the car. I think they got it.




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

More from Risk & Insurance

More from Risk & Insurance

2017 RIMS

Resilience in Face of Cyber

New cyber model platforms will help insurers better manage aggregation risk within their books of business.
By: | April 26, 2017 • 3 min read

As insurers become increasingly concerned about the aggregation of cyber risk exposures in their portfolios, new tools are being developed to help them better assess and manage those exposures.

One of those tools, a comprehensive cyber risk modeling application for the insurance and reinsurance markets, was announced on April 24 by AIR Worldwide.

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Last year at RIMS, AIR announced the release of the industry’s first open source deterministic cyber risk scenario, subsequently releasing a series of scenarios throughout the year, and offering the service to insurers on a consulting basis.

Its latest release, ARC– Analytics of Risk from Cyber — continues that work by offering the modeling platform for license to insurance clients for internal use rather than on a consulting basis. ARC is separate from AIR’s Touchstone platform, allowing for more flexibility in the rapidly changing cyber environment.

ARC allows insurers to get a better picture of their exposures across an entire book of business, with the help of a comprehensive industry exposure database that combines data from multiple public and commercial sources.

Scott Stransky, assistant vice president and principal scientist, AIR Worldwide

The recent attacks on Dyn and Amazon Web Services (AWS) provide perfect examples of how the ARC platform can be used to enhance the industry’s resilience, said Scott Stransky, assistant vice president and principal scientist for AIR Worldwide.

Stransky noted that insurers don’t necessarily have visibility into which of their insureds use Dyn, Amazon Web Services, Rackspace, or other common internet services providers.

In the Dyn and AWS events, there was little insured loss because the downtime fell largely just under policy waiting periods.

But,” said Stransky, “it got our clients thinking, well it happened for a few hours – could it happen for longer? And what does that do to us if it does? … This is really where our model can be very helpful.”

The purpose of having this model is to make the world more resilient … that’s really the goal.” Scott Stransky, assistant vice president and principal scientist, AIR Worldwide

AIR has run the Dyn incident through its model, with the parameters of a single day of downtime impacting the Fortune 1000. Then it did the same with the AWS event.

When we run Fortune 1000 for Dyn for one day, we get a half a billion dollars of loss,” said Stransky. “Taking it one step further – we’ve run the same exercise for AWS for one day, through the Fortune 1000 only, and the losses are about $3 billion.”

So once you expand it out to millions of businesses, the losses would be much higher,” he added.

The ARC platform allows insurers to assess cyber exposures including “silent cyber,” across the spectrum of business, be it D&O, E&O, general liability or property. There are 18 scenarios that can be modeled, with the capability to adjust variables broadly for a better handle on events of varying severity and scope.

Looking ahead, AIR is taking a closer look at what Stransky calls “silent silent cyber,” the complex indirect and difficult to assess or insure potential impacts of any given cyber event.

Stransky cites the 2014 hack of the National Weather Service website as an example. For several days after the hack, no satellite weather imagery was available to be fed into weather models.

Imagine there was a hurricane happening during the time there was no weather service imagery,” he said. “[So] the models wouldn’t have been as accurate; people wouldn’t have had as much advance warning; they wouldn’t have evacuated as quickly or boarded up their homes.”

It’s possible that the losses would be significantly higher in such a scenario, but there would be no way to quantify how much of it could be attributed to the cyber attack and how much was strictly the result of the hurricane itself.

It’s very, very indirect,” said Stransky, citing the recent hack of the Dallas tornado sirens as another example. Not only did the situation jam up the 911 system, potentially exacerbating any number of crisis events, but such a false alarm could lead to increased losses in the future.

The next time if there’s a real tornado, people make think, ‘Oh, its just some hack,’ ” he said. “So if there’s a real tornado, who knows what’s going to happen.”

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Modeling for “silent silent cyber” remains elusive. But platforms like ARC are a step in the right direction for ensuring the continued health and strength of the insurance industry in the face of the ever-changing specter of cyber exposure.

Because we have this model, insurers are now able to manage the risks better, to be more resilient against cyber attacks, to really understand their portfolios,” said Stransky. “So when it does happen, they’ll be able to respond, they’ll be able to pay out the claims properly, they’ll be prepared.

The purpose of having this model is to make the world more resilient … that’s really the goal.”

Additional stories from RIMS 2017:

Blockchain Pros and Cons

If barriers to implementation are brought down, blockchain offers potential for financial institutions.

Embrace the Internet of Things

Risk managers can use IoT for data analytics and other risk mitigation needs, but connected devices also offer a multitude of exposures.

Feeling Unprepared to Deal With Risks

Damage to brand and reputation ranked as the top risk concern of risk managers throughout the world.

Reviewing Medical Marijuana Claims

Liberty Mutual appears to be the first carrier to create a workflow process for evaluating medical marijuana expense reimbursement requests.

Cyber Threat Will Get More Difficult

Companies should focus on response, resiliency and recovery when it comes to cyber risks.

RIMS Conference Held in Birthplace of Insurance in US

Carriers continue their vital role of helping insureds mitigate risks and promote safety.

Michelle Kerr is associate editor of Risk & Insurance. She can be reached at [email protected]