Risk Insider: Jack Hampton

What’s the Greater Risk: Student Debt or Internet Scorn?

By: | April 10, 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.

The media spotlight is merciless and the Internet only magnifies the viral possibilities. We see the danger on a daily basis. Even the best and the brightest must be careful.

Thus far criticism has not developed for Ifeoma White-Thorpe, a New Jersey teenager recently accepted into every Ivy League college. Nor should it for the young lady who is a student council president at her public high school, winner of a national essay contest and who wants to pursue a career in global health policy.

Her biggest problem now is to decide which school offers the most financial aid. At least that’s what she said when interviewed by the media.

The high school senior recently told ABC NY, “I got into Harvard early action so I figured I’ll just go there … then I got into all the others and I was like, wait now, I don’t know where I want to go.”

She told CBS News, “It will likely come down to whichever university provides the best financial aid package.”

Whoops. Do these statements open the door for critics?

Let’s hope that we sort out some of the larger issues facing higher education. Many people are hurt by unbearable student debt, unethical recruiting practices, and emotional discussions that discourage bright foreign students from attending U.S. colleges and universities.

Some disgruntled souls might be tempted. How about the parents of students rejected by Harvard? Some 40,000 students applied for the 1,700 openings in the freshman class, a five percent acceptance rate.

A sadder story involves the hundreds of thousands of young people who together owe more than $1.3 trillion on student loans. Many of them will spend years if not decades getting out from under the debt load.

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Not to mention that they don’t have Ivy League degrees to help them dig out of that hole. Many have no degrees at all.

With the reputational dangers of the media, you never want to open doors for critics to rush in. Did Ifeoma accidentally do that?

Go back to the words “early action” and “best financial aid package.” If you are the middle-class parent of a bright teenager, you know what these words mean. Or do you?

Are “early action” applications binding? That is, if accepted by the school, do you have to attend it? Many people think yes, but the answer is no. The binding requirement goes with something called “early decision.” This does not apply to Ifeoma.

The financial package can also be misunderstood, even by Ifeoma herself. Ivy League schools don’t give “merit” financial aid.

Harvard and the others are quite explicit that they only give need-based financial assistance. For a family income below $60,000, Harvard does not expect parents to make any contribution to the cost of attending. Ninety percent of students attend Harvard at the same or lower cost than attending a public university in their home state.

Let’s hope that we sort out some of the larger issues facing higher education. Many people are hurt by unbearable student debt, unethical recruiting practices, and emotional discussions that discourage bright foreign students from attending U.S. colleges and universities.

It has been a few weeks since we learned the good news about Ifeoma. So far, no media firestorm has ignited.

As we congratulate Ifeoma, let’s hope a critical story does not go viral as she and her family move toward their final decision.

More from Risk & Insurance

More from Risk & Insurance

Risk Management

The Profession

Verizon’s risk manager David Cammarata loves when his team can make a real impact on the bottom line.
By: | May 2, 2017 • 4 min read

R&I: What was your first job?

I was a financial analyst with the N.J. Casino Control Commission.

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

I was told at a Christmas luncheon in 2003 that I was being promoted into a new job.

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

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I think the risk management community is getting a lot better at utilizing big data and analytics to manage risk. Significant improvements have been made, but there is still much more room for improvement.

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

I think that the insurance and brokerage communities need to really start thinking about what this industry is going to look like in 10 years. They need to start addressing how they are going to remain relevant. I think that major disruptions to existing business models will occur and that these disruptions combined with innovation and technological advances may catch many of today’s industry leaders by surprise.

David Cammarata, assistant treasurer, risk management and insurance, Verizon Communications Inc.

R&I: What was the best location and year for the RIMS conference and why?

San Diego, any year.

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

I think the advent of cyber risk and cyber insurance. For several years it has been, and it continues to be, the main topic of discussion at industry meetings.

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

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I think the most scary scenarios include a nuclear, biological, chemical or radiological event, a widespread global health epidemic and/or a widespread state sponsored cyber shutdown.

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

We do almost all of our business through a broker.

R&I: Is the contingent commission controversy overblown?

No. It’s a conflict.

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

Optimistic because hopefully President Trump’s policies (lower taxes and less regulation) will be pro-business and good for the economy.

R&I: Who is your mentor and why?

My dad, who passed away many years ago. He was very influential during the formative years of my career. He taught me how important integrity and reputation were to your brand and he had a very strong work ethic.

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

I would have to say raising two awesome kids. My daughter is graduating from James Madison University this year as co-valedictorian. My son is finishing his sophomore year at Rutgers and has near perfect grades. But more importantly, both of my kids have turned out to be really good people.

R&I: How many emails do you get in a day?

A lot.

“I love it when the risk management organization is able to contribute in a way that makes a real impact to the corporation’s overall objectives. On several occasions we have been able to make real contributions to the bottom line.”

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

“My Cousin Vinny.” That movie makes me laugh no matter how many times I watch it.

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

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My dad used to take me to a place called Chick & Nello’s. It was an Italian place that did not have a menu. They came to your table and told you the two or three items they were making that day. The food was out of this world.

R&I: What is your favorite drink?

Iced tea. The non-alcoholic kind.

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

I can think of several places but for me it would be a tie between India and Italy. India just has such a different culture and way of life and Rome has breathtaking historical sites.

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

Well, one of the best thrill rides I’ve been on was Kingda Ka at Great Adventure. It feels risky but probably isn’t all that risky. I flew in a prop plane with my brother-in-law one time … that felt kind of risky. I have also parasailed, does that count? I think it definitely has to be driving on the N.J. Turnpike day in and day out.

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

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What about the Fukushima 50? I don’t think I could have done what they did.

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

I love it when the risk management organization is able to contribute in a way that makes a real impact to the corporation’s overall objectives. On several occasions we have been able to make real contributions to the bottom line.

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

I don’t think they really know. My children see me as dad; others just see me as an executive with Verizon.




Katie Siegel is a staff writer at Risk & Insurance®. She can be reached at [email protected]