Risk Management

The Profession

Drawn to the industry since college, Elisa Atwell, the risk manager for a Fortune 500 company, is at the pinnacle of her career.
By: | February 20, 2017 • 4 min read

R&I What was your first job?

I started my career in property broking at Aon in New York. I spent five years there and [then] relocated to Tampa for one year as a Lean Six Sigma facilitator.

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

I studied risk management and insurance in college. As a freshman at Florida State University, I wanted to attend the business school and secure accounting and finance degrees. On a whim, I took the Introduction to Risk Management course and the professor suggested that I take her next course, Employee Benefits. If I didn’t like it, I could use it as an elective toward my other majors. I knew very quickly that risk management was the right career for me, and I never looked back! I was very involved in the RIM program and Insurance Society at Florida State, and was even awarded a scholarship to the PRIMA conference in Las Vegas my senior year.

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


The risk management community is wonderful at encouraging networking and professional development. There are many designations, conferences and continuing education opportunities available to risk managers at all levels. The community has also done a good job of elevating the profile of risk management as a strategic finance discipline both in the industry and within companies.

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

Talent retention and recruitment of new college graduates. A handful of colleagues that I started with in the industry have left insurance for other careers in the finance sector. There were also very few entry level risk management positions available when I graduated in 2007, although I have seen improvements in this area over the last 10 years.

R&I What’s been the biggest change in the risk management and insurance industry since you’ve been in it?

I would say with respect to the overall insurance market, for better or for worse, there really hasn’t been much change. I started in the industry at the beginning of the financial crisis, and since then the insurance market has been relatively stable.

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

Chubb. In my opinion, the ACE/Chubb acquisition was seamless. Both companies did a great job of communicating the changes in a clear and professional manner. I also enjoyed working with both carriers and members of the various underwriting teams prior to the acquisition.

R&I Who is your mentor and why?


I have had a few mentors … in different stages of my career development. Dr. Cole and Dr. McCullough at Florida State University helped me with internships, interview skills, career placement and preparing my resume. Vincent Flood, Joan Jakowski and Janine Smith at Aon guided me through my first years in the industry, and I still seek advice from all three.

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

Getting to the position that I am currently in. I have worked, since college, with the goal of becoming a risk manager. I am proud to have advanced my career to this level.

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

Malala Yousafzai. Her life story is incredible and inspiring. As such a young girl she had the strength to stand up for what she believed to be right. Not only has she been strong enough to persevere through all that she has had to endure, but she has actually thrived and continued her mission with the Malala Fund. Worldwide access to education should be a basic human right and the work she is doing to improve these circumstances for girls is unparalleled.

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

This is a tough question since I love travelling and trying new restaurants. But, Eleven Madison Park [in New York City] was a memorable treat; I went for lunch and have been meaning to go back for dinner. The service is exceptional and the menu is creative and fun.

I would say with respect to the overall insurance market, for better or for worse, there really hasn’t been much change. I started in the industry at the beginning of the financial crisis, and since then the insurance market has been relatively stable.

R&I What is your favorite drink?

The Stoli Doli from the Capital Grille is my favorite cocktail (paired with a Kona crusted filet, of course).

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


Wai’anapanapa Black Sand Beach in Maui, Hawaii. My husband and I went to Hawaii on our honeymoon and we were surprised that the beach consisted of smooth lava rocks instead of fluffy, powdery sand. We had never seen anything like it.

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

Driving to work every day on I-95. Joking aside, zip lining and rappelling in Belize.

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

The partnership and relationships that I have built with my brokers, insurance carriers and team members. They are wonderful to work with and I am thankful that I am surrounded by talented, thoughtful people. We all work together with a common goal of reducing risk and losses.

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

Most people think that I work in personal lines insurance and I have had family members ask me to review their home and auto policies.

The views represented here are the views of Elisa Atwell, not those of her employer.

Katie Dwyer is an associate editor at Risk & Insurance®. 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.