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THE TEN BUILDILNG BLOCKS OF RISK LEADER SUCCESS
Chris Mandel, RF, RIMS-CRMP, CPCU, ARM-ESVP Strategic Solutions, Sedgwick
Director, Sedgwick Institute
AFERMOctober 2018
Capability Evolution
Key Business,
Financial &
Operational Risks
Ad
op
tio
n o
f E
RM
Pra
cti
ce
s
Ability to Align Strategies for Company Performance
Insurable Risks
All Risk Stakeholders
Fully Enabled to Manage
All Significant Risks To
Mission
Accomplishment
ERM
Audit
Legal
Compliance
Planning
HR
Finance
Hazard Risk
Management
•Corporate Insurance
•Contractual Risk Transfer
•Active Claims Management
•Robust Prevention
Culture
Basic ERM
Implementation
Formal enterprise wide:
• All risks
• Risk Identification
• Risk Assessment
• Risk Response
• Risk Control Activities
• Risk Monitoring
• BU Reporting
Full ERM
Implementation
• Common terminology/standards
• Fully integrated into planning
• Data quantified where possible
• Fully integrated across functions & BUs
• Fully understood accountabilities for risk
• Cost of all risk types tracked & managed
• Compliance & regulatory reqmts met
Advanced
Performance
• Leaders have key
risk info to inform
strategy & manage
performance
• Fully integrated &
embedded in culture
The Way We Were?High appetite
for risk
Low tolerance
for risk
Risk
profile
Tactical Strategic
Organizational mind-set
Image makers Adventuresome visionaries
Daily operators Operational leaders
Risk
Manager
Internal Auditor
Controller
CRO
CIO
COO
CFO
Sales
Marketing Line Executive
CEO
Strategist
Source: IBM Global Business Services, The Global CFO Study 2008
WHILE THIS WAS THE VIEW OF CFOs IN 2008 THE EVOLVING ROLE OF SR RISK LEADERS AND THE IMPACT THEY’RE HAVING ON THEIR ORGANIZATIONS IS MOVING THEM UP THE AXIS
Career Snapshot
➢ BS Business Management
➢ MBA Finance
➢ Insurance Co. Claims – 4 years
➢ Broker/Consultant – 2 years
➢ Risk Sub-functions – 5 years
➢ #1 Risk Leader – 21 years
➢ ERM Consultant – 3 years
➢ Strategic Role – current
➢ Educator - current
➢ Industry Contributor – 24 years
➢ AIC - 1984➢ CPCU - 1989➢ ARM - 1992➢ CCSA - 2004➢ RIMS Fellow - 2013➢ ARM-E – 2015➢ RIMS-CRMP – 2017➢ CRM - 2018
The First 5 Building Blocks
Risk Leader Success
Breaking In
Educational Strategy
The “Right” Experience
Industry Involvement
Credibility& Influencing
6
Coming from the insurance industry
Skill requirements and transfer
Industry experience and backgrounds
Success/failure more than where you start
Breaking in
1
2
3
4
Getting to # 1
No one right educational strategy
Criticality of leadership skills
Reporting structure challenges/opportunities
Continuing education
Educational strategy
3
2
1
4
5
Industry nuances
Increasing skill expectations
Experience with specific exposures
Getting dirty in the trenches
The ‘right’ experience
1
2
3
4
Building higher order skillsets
Broadening knowledge
The HIPO dilemma
Trade and professional organizations
Developing governance skills
Industry involvement
1
2
3
4
5
A critical skill to success: overcoming “no”
TCOR or strategic impact?
Credibility and contributing
Timing and politics
Communicating and “risk-speak”
“Don’t I already manage risk well?”
Credibility and influencing
1
2
3
4
5
6
The Next 5 Building Blocks
Risk Leader Success
Bench Development
The Two Sides of Risk
Vision & Strategy
Collaboration &
Stakeholders
Giving Back
12
The small team dilemma
People and aspirations
Recruitment and retention strategy
Skill development for the enterprise
Vendors as partners
Interns can do more than make copies
Bench development
1
2
3
4
5
6
Value preservation >>>> creation
Connecting risk and strategy
A seat at the table
Educating management
Risk owner focus
The two sides of risk
1
2
3
4
5
Risk and innovation
Innovation in risk process
Continuous improvement
Strategies/frameworks/models
Long term view
Vision and strategy
1
2
3
4
5
Becoming essential
Criticality of relationships
Moving others from the traditional
BU priorities vs. your priorities
Collaboration and stakeholders
1
2
3
4
Next generation focus
Community matters
Enhancing the profession
Sharing knowledge
Broadening your network
Personal satisfaction
Giving back
1
2
3
4
5
6
What do risk pros want to be known for?
M I S S I O N
T E A M P L A Y E R
E X C E P T I O N A L E X P E R T
B U S I N E S S P E R S O N
V I S I O N A R Y“Growth comes from innovation which can’t be achieved without taking risk”
➢ Identifies key risk metrics and/or indicators to assist the board and senior management in fulfilling their risk management responsibilities
➢ Provides risk leadership support to executive management, business units, resources units and lines of business in their respective risk management efforts
➢ Collaborates with key risk stakeholders on risk identification, assessment and controls implementation
➢ In cooperation with other risk management functional areas, makes risk an explicit factor in selecting controls to be tested
➢ Reports to management and the board
Risk leaders as strategic advisors
➢ Influence and gumption➢ Consistency➢ Process rigor➢ Data interpretability➢ Communication clarity
➢ Reliable measure-ability➢ Downside protection J1➢ Value creation J2➢ Embedded risk culture➢ Managing to appetite and capacity➢ Aligning, if not integrating with strategy and
objectives
What really matters to sr management?
➢ Appearances of being too close to the vendor community
➢ Disregard for the pecking order or rank➢ Knowing when your soapbox has been
kicked out from under you➢ Hiring poorly ➢ Failing to develop a sufficient bench
➢ Failing to validate results with objective benchmarking
➢ Failing to take appropriate initiative & risk➢ Excessive self promotion➢ Failing to align objectives and priorities with
those of the enterprise➢ Failing to build a “resilient” enterprise
Things to avoid along the path
Competencies
for all leaders
Technical
competence
Communication
effectiveness
Developing &
motivating
teams
Stakeholder
management
Influencing and
perceptions of
expertise &
strategic skills
Delivering
results
Key drivers of long term success
Thank you!
Questions?
Chris Mandel, RF, CPCU, ARM-ESVP Strategic Solutions, Sedgwick
& Director, the Sedgwick Institute
Contact information
Source: “The Ten Building Blocks of Risk Leader Success”
Available for free at www.irmi.com
www.sedgwickcms.com www.sedgwickinstitute.com
Christopher E. Mandel, RF, CPCU, ARM-ESVP, Strategic Solutions, Sedgwick, Inc. &
the Director of the Sedgwick Institute
Christopher E. Mandel is the SVP for Strategic Solutions at Sedgwick and the Director of the Sedgwick Institute. In both roles he is engaged in helping Sedgwick chart its future through the long term planning for products, services and strategic solutions for this claims and productivity management firm. He is also co-founder and EVP, Professional Services for rPM3 Solutions, LLC as well as founder and president of Excellence in Risk Management, LLC. both independent consulting firms specializing in governance, risk and compliance, with a special emphasis on enterprise risk management. rPM3 Solutions holds a patent for a unique risk measurement process known as ARQ™. Prior to electing early retirement and for ten years from 2001-2010, Mr. Mandel was head of enterprise risk management for USAA Group, a $165 billion diversified financial services organization. At USAA, he designed, developed and led the enterprise-wide risk management and corporate insurance centers of excellence. He also served as President and Vice Chairman, Enterprise Indemnity CIC, Inc., an Arizona based alternative risk financing facility. He is also an adjunct professor at Florida State School of Law and at George Mason University.
Mr. Mandel has more than 25 years of experience in risk management and insurance in large, global corporates. He has pioneered the development of cross-enterprise risk management capabilities resulting in S&P rating USAA as “excellent and a leader in ERM” from 2006 through 2010. In 2007, Treasury and Risk Magazine bestowed the Alexander Hamilton Award for “Excellence in ERM” on USAA. Mr. Mandel has been a long term senior leader in the Risk and Insurance Management Society including being elected President and Chief Risk Officer and was named Risk Manager of the Year in 2004. He also received RIMS’ Goodell Award (2016) for lifetime achievement.
Mr. Mandel’s deep, wide and diverse experience in all facets of risk management and insurance allows him to offer those interested in managing risk with excellence to engage him to provide everything from a comprehensive strategy and complete ERM framework to targeted guidance, tools, techniques and/or training. Mr. Mandel’s innovative approach to making risk a key strategically placed and results oriented function results from solidly connecting risk management outputs to a company’s key performance metrics and ultimately, mission accomplishment.
Mr. Mandel received his B.S. in Business Management from Virginia Polytechnic Institute and State University and an MBA in finance from George Mason University. He holds the RIMS-CRMP, CRM, CCSA, CPCU, ARM and AIC designations and is a frequent industry speaker, teacher and writer. He writes the “Risk Innovation” column for Risk and Insurance magazine and in 2008 was elected a member of Risk Who’s Who (RWW). He also wrote the Ask a Risk Manager column for Business Insurance from 1996 through 2008.
CONTACT: [email protected] 210-698-8056 o 210-845-5804 m https://www.sedgwick.com
25
Chris Mandel, RF, RIMS-CRMP
SVP Strategic Solutions, Sedgwick
& Director, the Sedgwick Institute
210-845-5804
Contact information
www.sedgwickcms.com www.sedgwickinstitute.com
Sedgwick © 2013 Confidential – Do not disclose or distribute. 27
Sedgwick CMS
The leader in innovative claims and productivity
management solutions
Sedgwick Claims Management Services, Inc. is the leading North American provider of
innovative claims and productivity management solutions. Sedgwick and its affiliated
companies deliver cost-effective claims, productivity, managed care, risk consulting, and
other services to clients through the expertise of more than 21,000 colleagues in 900
offices located in 65 countries. The company specializes in workers’ compensation;
disability, FMLA and other employee absence; managed care; general, automobile and
professional liability; warranty and credit card claims services; fraud and investigation;
structured settlements; and Medicare compliance solutions. Sedgwick and its affiliates
design and implement customized programs based on proven practices and advanced
technology that exceed client expectations. For eight years in a row, Sedgwick has been
awarded the distinguished Employer of Choice® certification, the only third-party
administrator (TPA) to receive this designation. In 2011 and 2012, the company was
named the Best Overall TPA by buyers of risk services through an independent survey
conducted by Business Insurance. For more see www.sedgwick.com.
© 2018, Sedgwick Claims Management Services, Inc. applies to all content except where otherwise noted
Sedgwick © 2013 Confidential – Do not disclose or distribute. 28
The Sedgwick Institute
Vision
Launched I 2016, the Sedgwick Institute serves as an incubator for some of the best and
brightest minds to advance the conversations that affect all the players in our industry,
including injured and ill members of the workforce, insurance carriers, employers, property
owners, third party claims administrators, brokers, lawmakers and medical providers. The
institute’s thought leaders work individually and collaboratively to examine selected
complex challenges facing the various stakeholders in our space and propose innovative
options and solutions to improve public and private decision making on these issues.
Purpose
The Sedgwick Institute is an interdisciplinary community of thought leaders dedicated to
helping drive dialogue and action around issues affecting the risk and benefits industry.
Who
To fulfill its evolving agenda, the Sedgwick Institute leverages both full- and part-time
expertise from business, government, academia and other industry sources, through
visiting or full-time fellow positions. While no specific minimum criteria are anticipated,
decisions about institute appointments will be primarily a function of the issues selected to
populate the agenda as it develops and evolves.
Visit us at: www.sedgwickinstitute.com & at LinkedIn
© 2016 Sedgwick Claims Management Services, Inc. - Do not disclose or distribute.
