Insurance Executive

Six Questions for Grace Ries

Risk & Insurance® caught up with FM Global's Grace Ries to discuss the insurer's latest cyber products and its approach to helping clients manage their cyber exposures.
By: | February 7, 2017 • 3 min read

In July 2016, FM Global announced that Grace Ries, assistant vice president and manager of cyber risk insurance products, would lead a dedicated unit to develop an underwriting approach and coverage capabilities to meet clients’ needs for first-party cyber solutions. We caught up with her to ask her about the initiative and FM Global’s approach to the market.

R&I: Grace, part of your background is providing risk management support to the chemicals industry. What lessons learned will you be bringing forward as you underwrite this pressing issue of cyber risk?

Ries: My background is in chemical engineering and material science engineering. Many clients in the chemical sector have global exposures, and in my mind that is similar to cyber. Cyber is a global risk. Our clients’ data can be anywhere in the world. The solutions we provide for cyber need to be applicable globally. Both cyber and chemical risks also are high hazards. High hazards require a specialized risk management and underwriting approach, which is how we are approaching cyber.

R&I: How does FM Global plan to bring its engineering expertise to bear in managing cyber?

Ries:  We are treating cyber the same way that we approach any other risk. We always start with the science and research to determine what kind of standards, tools and methodologies are needed to help our clients address their risk at a location level and at a corporate level. We expect to offer some new cyber products and services in 2017. I am working closely with Mel [Carmelina] Borsellino, FM Global’s vice president and manager of cyber hazards, on this.

R&I: With so much insurance product now out there targeted at cyber, how is FM Global going to be able to differentiate its product?

Ries: Three things come to mind. First, FM Global is a specialty company. We focus on commercial and industrial property only. Cyber policies are usually driven by third-party liability. We focus solely on first-party exposure.

Our current FM Global cyber offerings address five areas: malware, denial of service, off premises data services, resultant damage and we provide a cyber optimal recovery endorsement. There’s more to come in 2017.

Second is that cyber is offered as part of our all-risk FM Global Advantage policy, in contrast to the marketplace, where cyber policies are usually a stand-alone offering. Also, FM Global has been providing coverage for cyber for more than 10 years.

And third, our insurance product is linked to our loss prevention engineering expertise. We look for ways to help clients access, quantify and improve their risk and to help them stay resilient.

R&I: Can you give us an idea of the traits you are looking for as you seek candidates to build your underwriting team?

Ries: To keep up with this rapidly evolving risk, you’ve got to have some fun! The people that we’re looking for on the FM Global cyber underwriting team are people who share the belief that the majority of loss is preventable and are focused on enhancing FM Global’s leadership in the industry.


We also are looking for people who are visionary, forward thinking and client-focused because, as a mutual insurance company, we are owned by our policyholders. And lastly, they’ve got to be passionate about always seeking ways to better protect the value our clients create and keep them resilient.

R&I: Can you tell us what some of your products will address specifically?

Ries: Our current FM Global cyber offerings address five areas: malware, denial of service, off premises data services, resultant damage and we provide a cyber optimal recovery endorsement. There’s more to come in 2017.

R&I: What’s the most challenging aspect of this new assignment, the one that keeps you up at night?

Ries: I work with a talented and dedicated team and believe our organization has the right people in place to address cyber. So, I sleep well at night and so should our clients. &

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

More from Risk & Insurance

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Risk Management

The Profession

After 20 years in the business, Navy Pier’s Director of Risk Management values her relationships in the industry more than ever.
By: | June 1, 2017 • 4 min read

R&I: What was your first job?

Working at Dominick’s Finer Foods bagging groceries. Shortly after I was hired, I was promoted to [cashier] and then to a management position. It taught me great responsibility and it helped me develop the leadership skills I still carry today.

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

While working for Hyatt Regency McCormick Place Hotel, one of my responsibilities was to oversee the administration of claims. This led to a business relationship with the director of risk management of the organization who actually owned the property. Ultimately, a position became available in her department and the rest is history.

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


The risk management community is doing a phenomenal job in professional development and creating great opportunities for risk managers to network. The development of relationships in this industry is vitally important and by providing opportunities for risk managers to come together and speak about their experiences and challenges is what enables many of us to be able to do our jobs even more effectively.

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

Attracting, educating and retaining young talent. There is this preconceived notion that the insurance industry and risk management are boring and there could be nothing further from the truth.

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, the biggest change in risk management and the insurance industry are the various types of risk we look to insure against. Many risks that exist today were not even on our radar 20 years ago.

Gina Kirchner, director of risk management, Navy Pier Inc.

R&I: What insurance carrier do you have the highest opinion of?

FM Global. They have been our property carrier for a great number of years and in my opinion are the best in the business.

R&I: Are you optimistic about the US economy or pessimistic and why?

I am optimistic that policies will be put in place with the new administration that will be good for the economy and business.

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


The commercial risks that are of most concern to me are cyber risks, business interruption, and any form of a health epidemic on a global scale. We are dealing with new exposures and new risks that we are truly not ready for.

R&I: Who is your mentor and why?

My mother has played a significant role in shaping my ideals and values. She truly instilled a very strong work ethic in me. However, there are many men and women in business who have mentored me and have had a significant impact on me and my career as well.

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

I am most proud of making the decision a couple of years ago to return to school and obtain my [MBA]. It took a lot of prayer, dedication and determination to accomplish this while still working a full time job, being involved in my church, studying abroad and maintaining a household.

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

“Heaven Is For Real” by Todd Burpo and Lynn Vincent. I loved the book and the movie.

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


A French restaurant in Paris, France named Les Noces de Jeannette Restaurant à Paris. It was the most amazing food and brings back such great memories.

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

Israel. My husband and I just returned a few days ago and spent time in Jerusalem, Nazareth, Jericho and Jordan. It was an absolutely amazing experience. We did everything from riding camels to taking boat rides on the Sea of Galilee to attending concerts sitting on the Temple steps. The trip was absolutely life changing.

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

Many, many years ago … I went parasailing in the Caribbean. I had a great experience and didn’t think about the risk at the time because I was young, single and free. Looking back, I don’t know that I would make the same decision today.

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

I would have to say the relationships and partnerships I have developed with insurance carriers, brokers and other professionals in the industry. To have wonderful working relationships with such a vast array of talented individuals who are so knowledgeable and to have some of those relationships develop into true friendships is very rewarding.

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

My friends and family have a general idea that my position involves claims and insurance. However, I don’t think they fully understand the magnitude of my responsibilities and the direct impact it has on my organization, which experiences more than 9 million visitors a year.

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