On the latest episode of Risk Management: Brick by Brick, Jason Reichl is joined by Melissa Hollingsworth, Enterprise Risk Manager at Atlanta Housing.
In this episode, Jason and Melissa explore how to promote diversity in the industry, the profit potential of captives, and how to form strong relationships with third parties.
To find out how TrustLayer manages risk so that people can build the physical world around us, head to TrustLayer.io.
Promoting Diversity in the Industry
There is a significant talent gap in the risk management industry—one that could be reduced by hiring young, diverse talent. Yet this is not happening.
Many companies make the excuse that they do not have diverse talent applying for positions, but fail to look inwardly and consider whether it is the recruitment efforts that are failing to target diverse groups. It is down to the C-suite to make active efforts towards a diverse workforce, and build a career path for everyone.
"This is our industry, and we have to take care of it for the future."
For young people looking to get into the industry who are concerned about a company’s efforts towards promoting diversity, Melissa recommends bringing up the subject in interviews. It’s not taboo, and it should be discussed. Further, do some research to verify their claims and ensure diversity is more than a buzzword to them.
The Potential of Captives
We live in a time characterized by hard market cycles, cyber risks, and climate change, so it is no surprise that people want more control over their insurance costs and risk management, and are thus exploring captives as a viable option.
Their benefits are endless, but a key one includes their ability to transform risk management from a checkbox activity into a revenue stream, with the potential to provide financial returns to stakeholders.
"Turning your captive into a profit center, which is something that I've done before, is the best feeling in the world."
However, that is only possible if they are properly set up. They need adequate funding, an educated and dedicated team, and buy-in from the C-suite to be successful.
Building Strong Third-Party Relationships
Risk managers are constantly required to work with third parties to ensure insurance coverage and maintain safe operations. This means they have to be very good at forming strong relationships.
Communication is critical for this. Ensure your third parties are aware of hidden liabilities and necessary coverage limits. Make sure to be clear on the importance of these requirements, guaranteeing that everybody is on the same page and the ball will not get dropped.
Remember that it takes diligence, understanding, and empathy.
"With some diligence, understanding, and even a little bit of empathy, it can go a long way with getting the results that you're looking for that you need to be able to keep going."
To find out more from Melissa, tune in to this episode of Risk Management: Brick by Brick.
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Podcast Host: Jason Reichl
Executive Producer: Don Halliwell
