Best From Around The Web For April 6th, 2018

By: | April 9, 2018
Topics: R&I ONE

Mexico Earthquake Devastation Spurs California Cities to Action, Despite the Costs
//Los Angeles Times
Some cities may spend up to $1 million to identify their most vulnerable properties.

Coastal Flooding on the East Coast Is Worsening, Causing Roadways to Suffer, Report Says
//Boston Globe
Tidal flooding jeopardizes more than 7,500 miles of roads along the East Coast, including more than 400 miles of interstate highway.

Brutal Choice in Houston: Sell Home at a Loss or Face New Floods
//New York Times
As climate change increases the frequency and intensity of storms like Harvey, no neighborhood is immune from being flooded again.

Homeowners in US Virgin Islands Sue Insurance Companies
//Virgin Islands Daily News
Owners with so-called “force-placed insurance” are filing lawsuits against various insurers, claiming their efforts to receive hurricane damage payouts are being ignored.

FEMA: Flood insurance premiums to rise this year
//Philadelphia Inquirer
Rates may increase by up to 25 percent for vacation homes, commercial properties and homes with repeated flood losses.

Hard Choice for Cities Under Cyberattack: Whether to Pay Ransom
//New York Times
Local governments are seen as more vulnerable than private businesses, both in their technology and in their limited ability to tolerate system failures and down time.

Cryptojacking Skyrockets to the Top of the Attacker Toolkit
//Business Insider
Detected incidents of unauthorized cryptocurrency mining, known as cryptojacking, increased by 8,500 percent in 2017.

EU Data Laws Risk Aiding Cyber Criminals, Internet Body Warns
//The Telegraph
The EU’s General Data Protection Regulation (GDPR) could compromise or close crucial databases used to identify and shut down attacks.

California Judge Rules That Coffee Requires Cancer Warning
Such a warning would likely apply to all coffee products sold, because of the costs and challenges of creating California-only packaging.

Judge Allows 2,300 Women to Proceed with Gender Bias Lawsuit Against Goldman Sachs
//The Independent
The lawsuit is one of the highest-profile cases targeting Wall Street’s alleged unequal treatment of women, a claim raised in a variety of litigation against many banks for decades.

Vaping Leading to New Generation of Nicotine Addicts
//New York Times
The growing vaping industry is targeting a youth audience, which many consider predatory marketing.

Japan to Place Accident Liability on Self-Driving Car Owners
//Nikkei Asian Review
Japan plans to hold owners responsible for accidents involving self-driving cars, easing liability concerns among automakers and likely accelerating commercialization efforts.


The R&I Editorial Team can be reached at [email protected]

2018 Risk All Stars

Stop Mitigating Risk. Start Conquering It Like These 2018 Risk All Stars

The concept of risk mastery and ownership, as displayed by the 2018 Risk All Stars, includes not simply seeking to control outcomes but taking full responsibility for them.
By: | September 14, 2018 • 3 min read

People talk a lot about how risk managers can get a seat at the table. The discussion implies that the risk manager is an outsider, striving to get the ear or the attention of an insider, the CEO or CFO.


But there are risk managers who go about things in a different way. And the 2018 Risk All Stars are prime examples of that.

These risk managers put in gear their passion, creativity and perseverance to become masters of a situation, pushing aside any notion that they are anything other than key players.

Goodyear’s Craig Melnick had only been with the global tire maker a few months when Hurricane Harvey dumped a record amount of rainfall on Houston.

Brilliant communication between Melnick and his new teammates gave him timely and valuable updates on the condition of manufacturing locations. Melnick remained in Akron, mastering the situation by moving inventory out of the storm’s path and making sure remediation crews were lined up ahead of time to give Goodyear its best leg up once the storm passed and the flood waters receded.

Goodyear’s resiliency in the face of the storm gave it credibility when it went to the insurance markets later that year for renewals. And here is where we hear a key phrase, produced by Kevin Garvey, one of Goodyear’s brokers at Aon.

“The markets always appreciate a risk manager who demonstrates ownership,” Garvey said, in what may be something of an understatement.

These risk managers put in gear their passion, creativity and perseverance to become masters of a situation, pushing aside any notion that they are anything other than key players.

Dianne Howard, a 2018 Risk All Star and the director of benefits and risk management for the Palm Beach County School District, achieved ownership of $50 million in property storm exposures for the district.

With FEMA saying it wouldn’t pay again for district storm losses it had already paid for, Howard went to the London markets and was successful in getting coverage. She also hammered out a deal in London that would partially reimburse the district if it suffered a mass shooting and needed to demolish a building, like what happened at Sandy Hook in Connecticut.

2018 Risk All Star Jim Cunningham was well-versed enough to know what traditional risk management theories would say when hospitality workers were suffering too many kitchen cuts. “Put a cut-prevention plan in place,” is the traditional wisdom.

But Cunningham, the vice president of risk management for the gaming company Pinnacle Entertainment, wasn’t satisfied with what looked to him like a Band-Aid approach.


Instead, he used predictive analytics, depending on his own team to assemble company-specific data, to determine which safety measures should be used company wide. The result? Claims frequency at the company dropped 60 percent in the first year of his program.

Alumine Bellone, a 2018 Risk All Star and the vice president of risk management for Ardent Health Services, faced an overwhelming task: Create a uniform risk management program when her hospital group grew from 14 hospitals in three states to 31 hospitals in seven.

Bellone owned the situation by visiting each facility right before the acquisition and again right after, to make sure each caregiving population was ready to integrate into a standardized risk management system.

After consolidating insurance policies, Bellone achieved $893,000 in synergies.

In each of these cases, and in more on the following pages, we see examples of risk managers who weren’t just knocking on the door; they were owning the room. &


Risk All Stars stand out from their peers by overcoming challenges through exceptional problem solving, creativity, clarity of vision and passion.

See the complete list of 2018 Risk All Stars.

Dan Reynolds is editor-in-chief of Risk & Insurance. He can be reached at [email protected]