Risk Insider: Joe Boren

The Truth About The Keystone Pipeline

By: | May 11, 2015 • 2 min read
Joseph L. Boren is Chairman of the Environmental product line at Ironshore Holdings (U.S.) Inc., Executive Vice President of Ironshore Insurance Services, LLC, President of U.S. Field Operations and Director of Strategic Relations. He has experience in every segment of the environmental market; a regulator, practitioner, and insurer. Joe can be reached at [email protected]

Did you know that the Keystone Pipeline is actually in operation?

Most people don’t.

But then again, most people believe that TRIA has actually covered terror events — but that will be a different article.

Maybe we should start with the facts:

  • Phase I of the pipeline runs from Hardesty, Alberta, to Steele City, Nebraska (2147 miles), then on to a refinery in Wood River, Illinois. This was finished in 2010.
  • Phase II runs 300 miles from Steele City to storage facilities in Oklahoma. This was finished in 2011.
  • Phase III is from Oklahoma to Port Arthur, Texas, where it finished in 2014 with a lateral pipeline connected to refineries at Houston, Texas, to be finished in mid-2015.

So what is it that we keep hearing about? Well that would be Phase IV of the pipeline project. This would start in the same place in Canada, go to the same place in Nebraska, but be wider and have a shorter route. It is this phase that has been the focus of all the discussion, for what seems like forever.

Those who are opposed to the pipeline say, “It’s BAD. It’s bad for the climate, for health, for the environment, for the economy … just BAD.” Those who are for the pipeline say it will create 40,000 jobs, albeit temporary. (But aren’t all construction jobs temporary anyway?) It is also built without government financing. It helps our neighbors to the North, who have approved the project, and helps our economy.

In the United States, we have made it a political question. Congress has approved it, the President has vetoed it, but as the great philosopher Yogi Berra said: “It ain’t over ’til it’s over.”

Only in dreams can we live risk free, so we manage the risks to the best of the industry’s ability.

As for the alternatives, nothing really provides a consensus of agreement. For example, move it by rail. This can and has caused problems. In July of 2013, a parked train of crude oil came loose, rolled down a hill and exploded in a ball of fire in the town of Lac-Megantic in Quebec. The inferno claimed 47 people and the town was practically destroyed. Groups opposed to moving crude by rail commonly refer to the trains as “bomb trains.”

How about by water? In March of 2014, a barge carrying 924,000 gallons of crude oil collided with a ship in Galveston Bay, spilling 170,000 gallons along a route heavily travelled by birds during their seasonal migration.

Ok, let’s move it by truck … well, you get the point.

As a nation, we are now energy independent — something we have talked about since 1973. But we need to move the product from where it is, to where it is needed. We need to do it as safely as possible, human life is sacrosanct and our precious environment needs to be protected.

Only in dreams can we live risk free, so we manage the risks to the best of the industry’s ability. We insure them, we regulate them. What we can’t do is to say “no” to everything.

Let’s finish the pipeline.

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.

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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.

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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. &

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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]