Risk Management

The Profession

The risk manager for Columbus, Ga., discusses law enforcement liability and venturing into a coal mine at 15.
By: | December 14, 2015 • 5 min read

R&I: What was your first job?

I worked for The Women’s Royal Naval Service — part of Britain’s Royal Navy. I was a so-called wren and worked in communications: I did coding, decoding, air traffic control, ship-to-shore communications, that sort of thing.

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

When I was still living in England I worked for a P&I club — a third party liability insurer. I was a maritime adjuster. This was back in the late ’70s and early ’80s. Soon thereafter I came to America.

R&I: What precipitated the move?


Koch Industries asked me to come to America and work for them. [They] had been one of the companies whose claims I handled in London. The company needed my maritime law expertise so they asked me to come and work in their risk management department. I was there for over two years. I got back into risk management in 2000, when I was hired by the Chesapeake, Va., public works department.

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

We’re realizing there’s a lot more to risk management than just looking at the bottom line and finding a way to incorporate into our plans the less obvious factors that lead to increased risk.

What the risk management community is doing more of, I think, is looking beyond the bottom line at things like: What are the other parts of the company or the entities doing that we can incorporate into improving safety, reducing our exposure to injuries and the costs of injuries, and asking more questions from the other parts of our organizations. One sign of that is we’ve begun talking a lot about predictive analysis, which incorporates a lot of factors that never used to be incorporated.

“We have a ‘geographic isolation’ tendency as American businesses. We tend to think that we are safe from a lot of things.”

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

That’s the other side of the coin. For those still working under the old system we used to operate by, we do need to bring more people into the wheelhouse. This is why I try to go out to other parts of the organization so I can see them in action. That helps me to identify areas we need to look at. It also helps people in the other parts of the organization to communicate with me their needs and how we can work together.

Anne-Marie Amiel, Risk Manager, Columbus Consolidated Government, Ga.

Anne-Marie Amiel, Risk Manager, Columbus Consolidated Government, Ga.

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

For public entities, law enforcement liability is one of the big issues these days. In the past year, there has been so much in the news about police and lawsuits against law enforcement. I know that is something that is concerning many public entities right now and this is going to be a big one for us as a local government.

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

CCG is basically self-insured. However, our excess coverage on workers’ comp is carried by Safety National of St. Louis, and I really like Safety National.

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

Most of our business is through a broker. We place our workers’ comp excess coverage through broker APEX Insurance, and we are doing property and casualty insurance through a different broker.

R&I: How do you grade the insurance industry’s response to the threat of cyber attacks?

This is a big issue for us as well. For the industry as a whole, I think it’s been a little off the mark. We have a “geographic isolation” tendency as American businesses. We tend to think that we are safe from a lot of things. For instance, look at how the U.S. credit card industry has only recently begun to catch up to what Europe is doing in terms of the upgraded security of the card.


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

In the short term, I think we are basically treading water but long-term, I am optimistic. Americans work hard and want to succeed so I think that in the long term, we will.

R&I:  Who is your mentor and why?

There have been a lot of people who come to mind but probably the key person would be my boss when I was a temporary researcher working for the Secretariat at the Council of Europe in Strasbourg. He told me I could do or be anything at a time when there were no women or almost no women in my field.

R&I: What did you do there?

I was a temporary researcher working for the Secretariat. I actually prepared the documentation for the first ever European Parliamentary hearing on maritime pollution. I even got to meet Jacques Cousteau.

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

I think probably it was when I worked for a nonprofit organization that helped people uphold their constitutional rights. It was for people who couldn’t afford expensive lawyers.

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

The Chop House in London.

R&I:  What is your favorite drink?

Peach Bellini.

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

It’s a hard question since I have been around the world since I was 15. Probably New Zealand, because there is a bit of every country in the world in New Zealand in terms of its landscape and weather.

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

Probably going down into a coal mine, which happened to be in New Zealand. It was an educational expedition. I was only about 15 at the time and in the summers we went on wonderful field trips with my school and I got to pan for gold and all sorts of wonderful things.


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

Our military. They risk their lives to save ours and to keep us free.

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

I get to help our employees recover their health and get fit while at the same time saving the taxpayers money.

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

They think I try to make things safer for our employees, that I talk to a lot of unhappy people, and that I’m always trying to save money!

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 Focus: Cyber

Expanding Cyber BI

Cyber business interruption insurance is a thriving market, but growth carries the threat of a mega-loss. 
By: | March 5, 2018 • 7 min read

Lingering hopes that large-scale cyber attack might be a once-in-a-lifetime event were dashed last year. The four-day WannaCry ransomware strike in May across 150 countries targeted more than 300,000 computers running Microsoft Windows. A month later, NotPetya hit multinationals ranging from Danish shipping firm Maersk to pharmaceutical giant Merck.


Maersk’s chairman, Jim Hagemann Snabe, revealed at this year’s Davos summit that NotPetya shut down most of the group’s network. While it was replacing 45,000 PCs and 4,000 servers, freight transactions had to be completed manually. The combined cost of business interruption and rebuilding the system was up to $300 million.

Merck’s CFO Robert Davis told investors that its NotPetya bill included $135 million in lost sales plus $175 million in additional costs. Fellow victims FedEx and French construction group Saint Gobain reported similar financial hits from lost business and clean-up costs.

The fast-expanding world of cryptocurrencies is also increasingly targeted. Echoes of the 2014 hack that triggered the collapse of Bitcoin exchange Mt. Gox emerged this January when Japanese cryptocurrency exchange Coincheck pledged to repay customers $500 million stolen by hackers in a cyber heist.

The size and scope of last summer’s attacks accelerated discussions on both sides of the Atlantic, between risk managers and brokers seeking more comprehensive cyber business interruption insurance products.

It also recently persuaded Pool Re, the UK’s terrorism reinsurance pool set up 25 years ago after bomb attacks in London’s financial quarter, to announce that from April its cover will extend to include material damage and direct BI resulting from acts of terrorism using a cyber trigger.

“The threat from a cyber attack is evident, and businesses have become increasingly concerned about the extensive repercussions these types of attacks could have on them,” said Pool Re’s chief, Julian Enoizi. “This was a clear gap in our coverage which left businesses potentially exposed.”

Shifting Focus

Development of cyber BI insurance to date reveals something of a transatlantic divide, said Hans Allnutt, head of cyber and data risk at international law firm DAC Beachcroft. The first U.S. mainstream cyber insurance products were a response to California’s data security and breach notification legislation in 2003.

Jimaan Sané, technology underwriter, Beazley

Of more recent vintage, Europe’s first cyber policies’ wordings initially reflected U.S. wordings, with the focus on data breaches. “So underwriters had to innovate and push hard on other areas of cyber cover, particularly BI and cyber crimes such as ransomware demands and distributed denial of service attacks,” said Allnut.

“Europe now has regulation coming up this May in the form of the General Data Protection Regulation across the EU, so the focus has essentially come full circle.”

Cyber insurance policies also provide a degree of cover for BI resulting from one of three main triggers, said Jimaan Sané, technology underwriter for specialist insurer Beazley. “First is the malicious-type trigger, where the system goes down or an outage results directly from a hack.

“Second is any incident involving negligence — the so-called ‘fat finger’ — where human or operational error causes a loss or there has been failure to upgrade or maintain the system. Third is any broader unplanned outage that hits either the company or anyone on which it relies, such as a service provider.”

The importance of cyber BI covering negligent acts in addition to phishing and social engineering attacks was underlined by last May’s IT meltdown suffered by airline BA.

This was triggered by a technician who switched off and then reconnected the power supply to BA’s data center, physically damaging servers and distribution panels.

Compensating delayed passengers cost the company around $80 million, although the bill fell short of the $461 million operational error loss suffered by Knight Capital in 2012, which pushed it close to bankruptcy and decimated its share price.

Mistaken Assumption

Awareness of potentially huge BI losses resulting from cyber attack was heightened by well-publicized hacks suffered by retailers such as Target and Home Depot in late 2013 and 2014, said Matt Kletzli, SVP and head of management liability at Victor O. Schinnerer & Company.


However, the incidents didn’t initially alarm smaller, less high-profile businesses, which assumed they wouldn’t be similarly targeted.

“But perpetrators employing bots and ransomware set out to expose any firms with weaknesses in their system,” he added.

“Suddenly, smaller firms found that even when they weren’t themselves targeted, many of those around them had fallen victim to attacks. Awareness started to lift, as the focus moved from large, headline-grabbing attacks to more everyday incidents.”

Publications such as the Director’s Handbook of Cyber-Risk Oversight, issued by the National Association of Corporate Directors and the Internet Security Alliance fixed the issue firmly on boardroom agendas.

“What’s possibly of greater concern is the sheer number of different businesses that can be affected by a single cyber attack and the cost of getting them up and running again quickly.” — Jimaan Sané, technology underwriter, Beazley

Reformed ex-hackers were recruited to offer board members their insights into the most vulnerable points across the company’s systems — in much the same way as forger-turned-security-expert Frank Abagnale Jr., subject of the Spielberg biopic “Catch Me If You Can.”

There also has been an increasing focus on systemic risk related to cyber attacks. Allnutt cites “Business Blackout,” a July 2015 study by Lloyd’s of London and the Cambridge University’s Centre for Risk Studies.

This detailed analysis of what could result from a major cyber attack on America’s power grid predicted a cost to the U.S. economy of hundreds of billions and claims to the insurance industry totalling upwards of $21.4 billion.

Lloyd’s described the scenario as both “technologically possible” and “improbable.” Three years on, however, it appears less fanciful.

In January, the head of the UK’s National Cyber Security Centre, Ciaran Martin, said the UK had been fortunate in so far averting a ‘category one’ attack. A C1 would shut down the financial services sector on which the country relies heavily and other vital infrastructure. It was a case of “when, not if” such an assault would be launched, he warned.

AI: Friend or Foe?

Despite daunting potential financial losses, pioneers of cyber BI insurance such as Beazley, Zurich, AIG and Chubb now see new competitors in the market. Capacity is growing steadily, said Allnutt.

“Not only is cyber insurance a new product, it also offers a new source of premium revenue so there is considerable appetite for taking it on,” he added. “However, whilst most insurers are comfortable with the liability aspects of cyber risk; not all insurers are covering loss of income.”

Matt Kletzli, SVP and head of management liability, Victor O. Schinnerer & Company

Kletzli added that available products include several well-written, broad cyber coverages that take into account all types of potential cyber attack and don’t attempt to limit cover by applying a narrow definition of BI loss.

“It’s a rapidly-evolving coverage — and needs to be — in order to keep up with changing circumstances,” he said.

The good news, according to a Fitch report, is that the cyber loss ratio has been reduced to 45 percent as more companies buy cover and the market continues to expand, bringing down the size of the average loss.

“The bad news is that at cyber events, talk is regularly turning to ‘what will be the Hurricane Katrina-type event’ for the cyber market?” said Kletzli.

“What’s worse is that with hurricane losses, underwriters know which regions are most at risk, whereas cyber is a global risk and insurers potentially face huge aggregation.”


Nor is the advent of robotics and artificial intelligence (AI) necessarily cause for optimism. As Allnutt noted, while AI can potentially be used to decode malware, by the same token sophisticated criminals can employ it to develop new malware and escalate the ‘computer versus computer’ battle.

“The trend towards greater automation of business means that we can expect more incidents involving loss of income,” said Sané. “What’s possibly of greater concern is the sheer number of different businesses that can be affected by a single cyber attack and the cost of getting them up and running again quickly.

“We’re likely to see a growing number of attacks where the aim is to cause disruption, rather than demand a ransom.

“The paradox of cyber BI is that the more sophisticated your organization and the more it embraces automation, the bigger the potential impact when an outage does occur. Those old-fashioned businesses still reliant on traditional processes generally aren’t affected as much and incur smaller losses.” &

Graham Buck is editor of gtnews.com. He can be reached at riskletters.com.