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

As a professor of business, Jack Hampton knows firsthand the positive impact education has on risk managers as they tackle growing risks.
By: | April 9, 2018 • 4 min read

R&I: Who is your mentor and why?

Ellen Thrower, president (retired), The College of Insurance, introduced me to the importance of insurance as a component of risk management. Further, she encouraged me to explore strategic and operational risk as foundation topics shaping the role of the modern risk manager.

Chris Mandel, former president of RIMS and Risk Manager of the Year, introduced me to the emerging area of enterprise risk management. He helped me recognize the need to align hazard, strategic, operational and financial risk into a single framework. He gave me the perspective of ERM in a high-tech environment, using USAA as a model program that later won an excellence award for innovation.

Bob Morrell, founder and former CEO of Riskonnect, showed me how technology could be applied to solving serious risk management and governance problems. He created a platform that made some of my ideas practical and extended them into a highly-successful enterprise that served risk and governance management needs of major corporations.

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

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From a background in corporate finance and commercial banking, I accepted the position of provost of The College of Insurance. Recognizing my limited prior knowledge in the field, I became a student of insurance and risk management leading to authorship of books on hazard and financial risk. This led to industry consulting, as well as to the development of graduate-level courses and concentrations in MBA programs.

R&I: What was your first job?

The provost position was the first job I had in the industry, after serving as dean of the Seton Hall University School of Business and founding The Princeton Consulting Group. Earlier positions were in business development with Marine Transport Lines, consulting in commercial banking and college professorships.

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

Creating a risk management concentration in the MBA program at Saint Peter’s, co-founding the Russian Risk Management Society (RUSRISK), and writing “Fundamentals of Enterprise Risk Management” and the “AMA Handbook of Financial Risk Management.”

A few years ago, I expanded into risk management in higher education. From 2017 into 2018, Rowman and Littlefield published my four books that address risks facing colleges and universities, professors, students and parents.

Jack Hampton, Professor of Business, St. Peter’s University

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

The Godfather. I see it as a story of managing risk, even as the behavior of its leading characters create risk for others.

R&I: What is your favorite drink?

Jameson’s Irish whiskey. Mixed with a little ice, it is a serious rival for Johnny Walker Gold scotch and Jack Daniel’s Tennessee whiskey.

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

Mount Etna, Taormina, and Agrigento, Sicily. I actually supervised an MBA program in Siracusa and learned about risk from a new perspective.

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

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Army Airborne training and jumping out of an airplane. Fortunately, I never had to do it in combat even though I served in Vietnam.

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

George C. Marshall, one of the most decorated military leaders in American history, architect of the economic recovery program for Europe after World War II, and recipient of the 1953 Nobel Peace Prize. For Marshall, it was not just about winning the war. It was also about winning the peace.

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

Sharing lessons with colleagues and students by writing, publishing and teaching. A professor with a knowledge of risk management does not only share lessons. The professor is also a student when MBA candidates talk about the risks they manage every day.

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

Sensitizing for-profit, nonprofit and governmental agencies to the exposures and complexities facing their organizations. Sometimes we focus too much on strategies that sound good but do not withstand closer examination. Risk managers help organizations make better decisions.

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

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Developing executive training programs to help risk managers assume C-suite positions in organizations. Insurance may be a good place to start but so is an MBA degree. The Risk and Insurance Management Society recognizes the importance of a wide range of risk knowledge. Colleges and universities need to catch up with RIMS.

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

Cyber risk and its impact on hazard, operational and financial strategies. A terrorist can take down a building. A cyber-criminal can take down much more.

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

My family members think I’m a professor. They do not seem to be too interested in my views on risk management.




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