RIMS rising to the challenge

Gloria Brosius, director of risk management and insurance for Pinnacle Agriculture Distribution, one of the largest independent distributors of agricultural crop inputs and value-added agriculture services in the US, was named president of RIMS in January of this year, for the 2019 term. The experienced risk manager and long-time RIMS member spoke to Commercial Risk Europe editor Adrian Ladbury about her background, the role of the society and its impressive growth, the state of the profession, and big challenges and opportunities facing the profession now and in the years ahead, not least the rise of insurtech.

Adrian Ladbury (AL): How did you become a risk manager – was it planned or by accident? Almost all I meet never originally planned to get into risk or insurance but, once they did, found that they enjoyed and stayed.

Gloria Brosius (GB): I was no different from my peers and fell into risk management by accident. But, as with most, I am thankful that I did enter this fascinating and rewarding profession. I started as an administrative assistant in a risk management department and was lucky with my first risk management boss, who was a true mentor and really encouraged me to pursue risk education. I have been in the profession for nearly 30 years now and really enjoyed it. One of the reasons is that it really does make a difference to a company in important areas such as loss prevention and strategic decision-making.

AL: Why did you take on the presidency of RIMS – what value does an association like RIMS bring for a business community such as risk managers?

GB: I volunteered for RIMS 20 years ago. I was president of the Rocky Mountains chapter based in Denver, Colorado and then moved up to board level in 2014, and finally was invited to become president of the society for 2019. I agreed so that I could give something back to the society, which has given me so much personally and professionally over the years. This is an incredible community of 10,000 members who you can always ask for help and guidance at any point. RIMS is a great source of education, you can always grow and learn and there is always someone who can share their experience and help with new challenges and risks, which are always changing and evolving.

AL: What are your big goals and objectives for your year at the helm?

GB: It is not my intent to make any dramatic changes to the wonderful things that have been achieved in the past. It is a process of continuing to build. One big topic is insurtech and this is why we decided to hold the inaugural ‘RIMS Tech, the Insurtech Competition’ competition at the conference in Boston. The six competitors who made it through to the final have the chance to demonstrate their technologies in a Shark Tank-style showdown. The presentations are judged by an expert panel of risk professionals. The six companies have really exciting and cutting-edge technology. I think it’s fair to say that until recently it has not been that obvious how this technology is going to benefit the corporate risk management community, but it is becoming a lot clearer now.

AL: Is RIMS a society for risk managers or insurance managers? How do you see the evolution of the community over time? Will risk and insurance management diverge or merge into one function?

GB: For many people, the risk and insurance management function has already merged. I handle both risk management and insurance for my organisation, which many people do now. But it really depends upon the individual organisation. You could say generally that as organisations recognise the importance and value offered by strategic risk management and enterprise-wide risk management, then a separate role will continue to emerge – particularly in larger organisations.

AL: What do you believe are the core qualities that a risk and insurance manager needs to be successful?

GB: A risk manager needs analytical skills and an eye for detail. Risk managers need to appreciate the broader strategic aspects of the business, but at the same time they cannot lose sight of the small details – what places organisations at risk. Another important factor is knowledge of the insurance industry and market. You need to really understand what is happening in the risk and insurance business and keep on top of the news – at least the headlines – because you need to be aware of what impact it could have on your organisation. Another really important quality is of course the ability to communicate effectively and clearly.

AL: How could and should risk and insurance managers gain the interest and attention of the c-suite to show the true value that they bring and shift the focus from cost to value? Do US senior managers generally understand the value that insurance can bring to a business?

GB: I have been fortunate throughout my career because my c-suite really does understand the value of risk management. But I do feel that it is really up to the risk professional to know what the organisation needs and to demonstrate the value to others. The risk professional also needs to know what data needs to be reported and will be of value, particularly in loss prevention. To communicate effectively and gain attention, you have to think like a speaker at a conference and really concentrate on what the audience needs and wants to hear.

AL: What role could and should risk and insurance managers have in the identification, management and transfer of cyber risk?

GB: The risk professional should have a strong role in cyber risk management, but this does need to be done in conjunction with other departments such as IT and legal. The risk manager needs a relationship with the IT manager, because they have the detailed knowledge and can help navigate this ever-changing risk. No department is immune. The legal function is currently very interested in cyber and loss prevention; they want to know what is being done to protect the organisation.

AL: Are you and the RIMS membership worried about the ongoing process of M&A in the international insurance and reinsurance market among both carriers and brokers? Are you worried about lack of choice and competition?

GB: I think there is quite rightly a concern about M&A, but not just in the insurance sector. It is happening in all sectors and this should be a concern because the options are fewer. You have to look at the M&A and ask: why is it happening and for whose benefit is it occurring? But M&A does not always have to be negative, it can create. Expert teams will inevitably leave the bigger operations to create innovative new ventures in both the broker and insurer markets. So, it can also lead to growth, innovation and more choice.