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Prepared Buildings
Reducing your exposure to risk & loss
Kathleen M. NickersonSVP, Robert M. Currey & Assoc.
About Kathleen: Kathleen has over 30 years experience addressing the insurance and risk management needs of large, diversified real estate clients.
She chairs the Real Estate Practice of Robert M. Currey & Associates, Inc. - the largest independent risk management consulting firm in the nation. Ms. Nickerson is a highly respected and well known professional in corporate risk management and has appeared on the PBS's Jim Lehrer Report to explain the impact of terrorism when structuring insurance programs that include properties in high risk areas. Ms. Nickerson has presented and participated in seminars on many insurance and risk management topics including the NMHC Property/ Risk Management Forum.
Sarah [email protected] & CommunicationsBuilding Engines
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Event Videocast: Executive Briefing Breakfast-The Energy Roadmap
Webinar: Emergency Preparedness
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Prepared BuildingsReducing Your Exposure to Risk & Loss
Today’s Webinar Topics
• What are some of the key drivers causing building owners and operators to increase their levels of risk management activities?
• What are key best practices for how companies are managing risk?
• How does Kathy recommend you get started?
• What are the key criteria for a successful program – what does management need to do, who needs to be involved?
Prepared BuildingsReducing Your Exposure to Risk & Loss
State of the IndustryRisk & Liability
Increase in Natural & Terrorist Events
Increased Concerns About Costs! $$
Economic Downturn
A formula for risk management policy & procedure
Primary Drivers for Risk Management
What other factors are driving interest in risk management?
• Transparency from investors• Investment and SEC regulations• Increase in catastrophic events/losses worldwide
Evaluating Your Risk Management Program
Current Risk
Management
Procedures
Operational
Facilities Oversight
Insurance Brokers
vs.Carriers
Contractual
Transfers
Internal vs.
Consultants
Indentifying Your Exposure to Risk
Many Companies Outsource Specific Risk Management Functions to Professionals:
• Environmental• Structural• Terrorism• Insurance• Fire & Life Safety• Etc.
First Steps: Risk Management Program
Choose an area an area to focus on first 1
Are they properly maintained?Are they in terrorist-prone areas?Are they in natural disaster-prone areas?
i.e. Physical Assets
First Steps: Risk Management Program
Choose an area an area to focus on first 1
i.e. Contractual
Do your contracts cover all parties-Tenants, vendors, contractors, loans?Is the coverage sufficient for each?Are the requirements for each achievable?
First Steps: Risk Management Program
Analyze the history of the property2
What are the past losses?What is unique to the portfolio?What corrections have been made?What is the likelihood of an event occurring again?
First Steps: Risk Management Program
Standardize Safety Procedures3
Are all building systems up to date?Do you have an emergency preparedness plan?What is your emergency broadcast plan?Do you have safety procedures in place for all stakeholders?
Creating Your Risk Management TeamCommitment is necessary from top management- there is
time and cost associated with doing the right thing!
• CFO • General Counsel• Controller• Human Resources
Dealing With Resource Constraints
Identify Areas of Low Hanging Fruit!
What are some of the quick and simple things that can be done to help improve your exposure to loss, or your exposure to risk?
Even small investments in risk management can have big insurance pay offs
The Critical Elements That Impact Success
Support from the Top1
2
3
Consistency & Standardization
Communication to all Parties and Properties
Contracts, Insurance, and COIs!
“Insurance is a dirty word to a lot of people, because it’s not always the most fun, or easiest arena to navigate… “
Tip: Law firms often use boilerplate language in all of their contracts that is outdated!
Tip: Do a contract review. Make corporate decisions that all of your contracts must maintain certain standards
Risk Management: The Role of Technology
Technology simplifies, automates and centralizes all of your risk management initiatives.
Visitor Access
Incident Tracking
Life Safety
Emergency Broadcast Messaging
Fire Safety
COI Tracking
Reduced Risk
Certificates of Insurance
“In addition to the ‘paper’ COI, have a contract in writing that they must maintain it.”
Tracking Your Risk Management EffortsDon’t stick your head in the sand!
The best pre-event risk management strategy is to adhere to Best Practices:
• Address issues quickly• Establish and emergency preparedness
program• Hold on-site training sessions
The result: You are become more attractive to tenants, investors and insurance companies!
Kathleen M. NickersonSVP, Robert M. Currey & Assoc.
About Kathleen: Kathleen has over 30 years experience addressing the insurance and risk management needs of large, diversified real estate clients.
She chairs the Real Estate Practice of Robert M. Currey & Associates, Inc. - the largest independent risk management consulting firm in the nation. Ms. Nickerson is a highly respected and well known professional in corporate risk management and has appeared on the PBS's Jim Lehrer Report to explain the impact of terrorism when structuring insurance programs that include properties in high risk areas. Ms. Nickerson has presented and participated in seminars on many insurance and risk management topics including the NMHC Property/ Risk Management Forum.
Prepared Buildings
Reducing your exposure to risk & loss
