As we go to press for our December issue, the news media isawash in stories involving Penn State, Jerry Sandusky and childmolestation. Whatever your opinion of the guilt or innocence of theparties involved, a quick study of the timeline makes it clear thatPenn State mishandled an already bad situation by failing to followup on internal reports of suspected abuse.

Yet based on reader comments to an article I wrote forpropertycasualty360.com ("Penn State Sex Abuse Scandal: From the Start, a Risk ManagementNightmare") on the risk management aspects of the case, youwould think I had tied Joe Paterno to the bumper of a Hummer anddragged him through a field of broken glass. Some readers postedoutraged comments that writing about Penn State’s risk managementsituation was sensationalistic and that all parties were innocentuntil proven guilty.

To which I reply: Hey, chill. I’m on your side.

In our world of instantaneous access, nobody—least of all thosewho position themselves as trusted advisors—can afford to closetheir eyes and plug their ears to ugly news. We may not have brokenthe story of the Penn State scandal, but once it’s out there, wecan’t ignore it. Agents and brokers must be able to counsel theircustomers on how to avoid similar situations in their ownbusinesses.

Because believe it or not, there’s a good news angle to thishorror story, an angle that makes insurance professionals look likegeniuses. Basic risk management principles might not have preventedthe Penn State fiasco but could very well have ameliorated it. Moreto the point, following basic risk management principles also is inline with something even more important: doing the right thing.

It’s been pointed out to me that Pennsylvania is not one of the13 states that require reporting suspected sexual abuse to thepolice. That may be, but wouldn’t that have been the right thing todo—especially because the allegations involved a grown mansodomizing a grammar-school kid?

In its quest to protect the client from liability, riskmanagement requirements often go above and beyond the letter of thelaw—and in the process, intersect with a higher ethical standard.And in a world where insurance too often suffers aless-than-positive image, the convergence between doing what’ssmart and doing what’s right is a good thing.

This issue of AA&B includes our annual Review& Outlook coverage, more of which can be viewed online atpropertycasualty360.com. As we do every year at this time, we spokewith agents and brokers, insurers, wholesalers, associations,consultants and young insurance professionals on the year justpassed and the year ahead. As always, their comments provide anilluminating look at the state of the industry on the cusp of a newyear.

Here’s hoping 2012 brings the best of everything to you andyours!