Risk Insider: Jack Hampton

Truthiness: The New Threshold of Reality

By: | February 28, 2017 • 3 min read
John (Jack) Hampton is a Professor of Business at St. Peter’s University and a former Executive Director of the Risk and Insurance Management Society (RIMS). His recent book deals with risk management in higher education: "Culture, Intricacies, and Obsessions in Higher Education — Why Colleges and Universities are Struggling to Deliver the Goods." His website is www.jackhampton.com.

In 2016, the media reported that Ringling Brothers Circus ended its elephant show. Subsequently, it announced the Circus was closing down completely after more than 100 years in operation. Are these messages true? Who knows?

To understand what’s going on the world, we must confront new definitions of “truth.” Not serious, you say? Tell that to the editors of dictionaries.

“Truthiness” was Merriam Webster’s Word of the Year in 2006. It refers to a truth that won’t allow itself to be held back by evidence. We know truthiness intuitively “from the gut” or because it “feels right.” We completely ignore evidence, logic, intellectual examination, or contradictory information.

Post-truth was Oxford dictionary’s Word of the Year in 2016. It describes circumstances when appeals to emotion and personal belief shape public opinion despite sharply conflicting and largely accurate facts. Evidence is ignored as a message is accepted and repeated.

The concept of “truth” has been changing but it exploded during the 2016 presidential campaign. Umpteen candidates vied for attention in endless rude skirmishes that seized the attention of a widely-divided electorate: “The country is in serious trouble.” “The economy is in great shape.” “You are a crook.” “She is a liar.” “He is an idiot.” Who should we believe?

People play with facts. Are they lying?

PolitiFact.com, a project operated by the Tampa Bay Times, checks the “facts” in statements by members of Congress, the White House, lobbyists and interest groups. It proclaims itself to be a non-partisan effort.

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In the 2016 election campaign, PolitiFact graded the statements of Democratic and Republican candidates. It found dozens of questionable statements identified as mostly true, half true, mostly false, false, and pants-on-fire (my personal favorite).

The sad truth about politics is a person can get elected by appealing to sticky messages that have no substance. Truth is nowhere to be found because we ignore messages that conflict with what we believe. Don’t blame the media. The fault is ours. We believe what sounds good.

“A diamond is forever.” Does it really matter when our lifespan is 80 or so years, if we are lucky?

“Maxwell House: Good to the last drop.” Who drinks coffee to the last drop?

“BMW: The Ultimate Driving Machine.” What about Ferrari or Lamborghini?

People play with facts. Are they lying?

Advertising slogans are one thing. It is far more dangerous for us to be guided by false statements that win elections but do not address the risks we face solving real world problems. Does it hurt us when we cannot or do not separate truth from falsehood? When we try to manage the risks in our lives, shouldn’t we know the difference?

Remember the story of the six blind men touching different parts of an elephant and describing what it looked like. Everybody has an accurate picture of something but nobody grasps the concept of “elephant.”

Does anybody really care about the truth? Of course they do. Pick a version.

I want to go to the Ringling Brothers Circus next summer. Thanks to truthiness, I have that option. I am particularly looking forward to touching an elephant.

More from Risk & Insurance

More from Risk & Insurance

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?

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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?

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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?

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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]