Risk Management

The Truth About Facts

By: | March 3, 2017 • 3 min read
Joanna Makomaski is a specialist in innovative enterprise risk management methods and implementation techniques. She can be reached at [email protected]

When I arrived at my friend’s home, I gave a candy bar to her two small children, as all good “aunties” do.

They were elated; mom not so much. From the corner of my eye, I saw her son digging into his candy — even though he was explicitly told by mom to eat it after dinner.

As we got ready to head out for a walk, he came over with chocolate smeared on his face. Mom asked whether he ate the candy. He adamantly denied it. As she and I walked, I asked her: “How do you feel when your children lie to you?”

She quickly corrected me: “He didn’t lie, he fibbed. A fib is a lie about something unimportant.”

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Fibs, lies, falsehoods, fudged truths, disinformation, misleading information — and let’s not forget a new term trying to penetrate our vernacular — “alternative facts.” They are terms-of-art that seriously concern me.

It was mindboggling for me to hear White House spokesman Sean Spicer explain the president’s overstated inauguration attendance numbers by paralleling it to weather forecasting.

“There are times, like anything else, it’s not alternative facts, it’s that there’s sometimes you can watch two different stations and get two different weather reports. That doesn’t mean the station was lying to you.”

A fact is a stable, real, verifiable, objective piece of information.

Mr. Spicer, weather stations do not lie or make false claims. Weather stations make forecasts about the weather — a future event.

A lie is a false claim. A truth is a claim of facts. The weather becomes a fact only after it occurs. Only then can we definitively state the weather of that day and make it an irrefutable fact.

A fact is a stable, real, verifiable, objective piece of information. A fact is considered dead and the reason why we use the expression, “cold, hard facts.” A fact is not dissuaded by opinion, beliefs or temporary passions. You cannot have “false facts,” but you can have false claims of fact. A false statement that claims something is a fact, is a lie.

Why does this matter to me as a risk manager?

Our jobs as risk management professionals are hard enough without introducing lying into our daily equations. We can’t let lying become acceptable. We, as an industry, cannot collaborate in lies and we simply cannot marginalize lying.

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We are an industry that makes daily decisions, often life and death decisions, on behalf of people who trust us to say the truth, even when it’s uncomfortable or unpleasant. The decision to buy kidnap, ransom or terrorism coverage is hard, often unpleasant. It requires facing ugly facts.

We often guide our clients’ decisions using forecasts but we genuinely try to perfect our prophecies using facts so that our clients can rely on them. When we go to court defending or prosecuting a claim, only facts must be in our briefcases.

We must remember that our clients often treat our predictions as real. We must have the highest duty of care when it comes to truth and facts. &

More from Risk & Insurance

More from Risk & Insurance

Risk Management

The Profession

Pinnacle Entertainment’s VP of enterprise risk management says he’s inspired by Disney’s approach to risk management.
By: | November 1, 2017 • 4 min read

R&I: What was your first job?

Bus boy at a fine dining restaurant.

R&I: How did you come to work in this industry?

I sent a résumé to Harrah’s Entertainment on a whim. It took over 30 hours of interviewing to get that job, but it was well worth it.

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

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The Chinese citizen (never positively identified) who stood in front of a column of tanks in Tiananmen Square on June 5, 1989. That kind of courage is undeniable, and that image is unforgettable. I hope we can all be that passionate about something at least once in our lives.

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

Cyber risk, but more narrowly, cyber-extortion. I think state sponsored bad actors are getting more and more sophisticated, and the risk is that they find a way to control entire systems.

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

Training and breaking horses. When I was in high school, I worked on a lot of farms. I did everything from building fences to putting up hay. It was during this time that I found I had a knack for horses. They would tolerate me getting real close, so it was natural I started working more and more with them.

Eventually, I was putting a saddle on a few and before I knew it I was in that saddle riding a horse that had never been ridden before.

I admit I had some nervous moments, but I was never thrown off. It taught me that developing genuine trust early is very important and is needed by all involved. Nothing of any real value happens without it.

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

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Setting very aggressive goals and then meeting and exceeding those goals with a team. Sharing team victories is the ultimate reward.

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

Disney World. The sheer size of the place is awe inspiring. And everything works like a finely tuned clock.

There is a reason that hospitality companies send their people there to be trained on guest service. Disney World does it better than anyone else.

As a hospitality executive, I always learn something new whenever I am there.

James Cunningham, vice president, enterprise risk management, Pinnacle Entertainment, Inc.

The risks that Disney World faces are very similar to mine — on a much larger scale. They are complex and across the board. From liability for the millions of people they host as their guests each year, to the physical location of the park, to their vendor partnerships; their approach to risk management has been and continues to be innovative and a model that I learn from and I think there are lessons there for everybody.

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

We are doing a much better job of getting involved in a meaningful way in our daily operations and demonstrating genuine value to our organizations.

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

Educating and promoting the career with young people.

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

Being able to tell the Pinnacle story. It’s a great one and it wasn’t being told. I believe that the insurance markets now understand who we are and what we stand for.

R&I: Who is your mentor and why?

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John Matthews, who is now retired, formerly with Aon and Caesar’s Palace. John is an exceptional leader who demonstrated the value of putting a top-shelf team together and then letting them do their best work. I model my management style after him.

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

I read mostly biographies and autobiographies. I like to read how successful people became successful by overcoming their own obstacles. Jay Leno, Jack Welch, Bill Harrah, etc. I also enjoyed the book and movie “Money Ball.”

R&I: What is your favorite drink?

Ice water when it’s hot, coffee when it’s cold, and an adult beverage when it’s called for.

R&I: What does your family think you do?

In my family, I’m the “Safety Geek.”

R&I:  What’s your favorite restaurant?

Vegas is a world-class restaurant town. No matter what you are hungry for, you can find it here. I have a few favorites that are my “go-to’s,” depending on the mood and who I am with.

If you’re in town, you should try to have at least one meal off the strip. For that, I would suggest you get reservations (you’ll need them) at Herbs and Rye. It’s a great little restaurant that is always lively. The food is tremendous, and the service is always on point. They make hand-crafted cocktails that are amazing.

My favorite Mexican restaurant is Lindo Michoacan. There are three in town, and I prefer the one in Henderson as it has the best view of the valley. For seafood, you can never go wrong with Joe’s in Caesar’s Palace.




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