“Where was the risk management?” asked PRIMA's outgoingpresident, Ron Hayes.

Mr. Hayes, who lives and works as risk manager for theCalcasieu Parish School Board in Louisiana, has a lot to lose fromthis disaster. He spoke to me about it a few days ago at the PublicRisk Management Association annual conference in Orlando,Fla.

Visibly upset by what is happening, and could happen to hisstate, he said that while he is aware that BP has a risk manager,he wondered how this could have come to pass. “We're required to IDrisks and have a plan in our school system. How was this allowed tohappen?” After all, he said, a risk manager's job is to identifyrisks--no matter the size.

The ramifications of the spill are huge, he said, not only forhimself, but for his entire state and the region. From the governoron down, he added, Louisiana residents are angry. And withhurricane season looming, thoughts are on the possibilities atropical depression could bring. Homes flooded with sea water andmud is a bad enough scenario. Mixing crude oil in with that waterwould be a nightmare. One underwriter told me that oil in a home orbuilding would mean a tear-down rather than a renovation. Imaginethe impact this could have on coastal real estate as well.

Mr. Hayes talked about the stench in some areas—of oil and deadanimals and rotting vegetation wafting inland—and this is only thebeginning. This huge plume is growing every day and could travel upthe East Coast, according to reports.

Other risk managers I've talked to here are also puzzled. Onerisk manager told me he didn't think this spill was getting theattention the Exxon Valdese in Alaska did. “But wait until itstarts staining the sandy white beaches up the East Coast,” hesaid. “It'll get attention then.”

BP is being criticized for paying out shareholder dividends andairing a national TV ad touting its environmental efforts.

I've seen the ad, portraying BP pulling out the stops to arrestthe flow, clean up wetlands and save wildlife—and vowing to doeverything possible to take care of the mess.

Meanwhile, Tony Hayward, BP's executive director and groupchief executive, declared he wants this all behind him so he can“get on with his life.” Tell that to the people who lost theirlives in the blast, the fisherman without a livelihood and thecoastal business owners. And tell it to the shore birds and animalslosing their habitat and their lives.

For more on the BP oil spill:

http://www.property-casualty.com/News/2010/6/Pages/Ambac-Commutes-Remaining-CDO-Obligations-Future-Uncertain.aspx