Education, On-The-Job Training Critical To Build A Career In Risk Management

Working with a recruiter, I was offered a multiclaims adjuster position with The Hartford in Greenville, S.C. This position provided extensive experience in managing problematic situations related to various coverages, industries and professions.

I spent almost three years in that position and then another six months with American International Group in Atlanta as a workers' compensation adjuster, before moving on to AJC International in Atlanta.

As claims manager for this international food trading corporation, I managed claims such as recovery of a load of chicken wings that arrived in Hong Kong all green and slimy, to an investigation of stolen boxes of pork loins from a reefer in Puerto Rico.

When I was promoted to the traffic manager position, I had the oversight of the traffic coordinators arranging transportation schedules with truckers and shipping lines, moving food to and from approximately 120 countries, in addition to the claims department management. My tenure there was approximately seven years.

I first heard the term "risk management" in 1995 when I began working for RSC Equipment Rental in Scottsdale, Ariz., as a loss control specialist while reporting to the risk manager.

When the company went public a year or so later, the risk manager absorbed the environmental responsibilities and I was promoted to the risk manager position. At that time, the corporation had approximately 40 locations. When I left in 2005 they had nearly 500 locations as a result of acquisitions and organic growth.

The first action I took upon moving into the risk manager position was to earn my Associate in Risk Management (ARM) designation, and when the Certified Risk Manager (CRM) designation appeared in 1997, it took only nine months for me to pass the five courses.

I cannot overemphasize how important these designations were to my career. They truly got me off to a running start. Without them and the broker's assistance, I would not have had the basic knowledge and skills needed to effectively perform my job.

Over the next 10 years, I assumed additional responsibilities of the safety and environmental program management. I could never have learned from a book what I gained from the practical experience with RSC.

In 2005, when I left RSC, I was midway through the Executive MBA program at Arizona State University. I completed the MBA in 2006 and was intrigued by a posting for the Certified Risk Managers International (CRM) manager position with The National Alliance.

It appeared I could use my risk management background in addition to working with professionals in the academic environment to manage one of the premier risk management designations–one that had been very instrumental and important to my own career. More importantly, this position has provided me the opportunity to help influence the careers of others like me.

While every risk manager's career is unique, certain basic elements are the same.

For example, all risk managers should reference what they learned and experienced in the early phases of their career. They should take those life lessons and make them an effective part of their practice as risk managers.

The roles I had as a claims management professional with The Hartford and the traffic/claims management position at AJC International provided me with a very valuable exposure to many areas of the business environment in preparation for the risk manager position with RSC.

I learned insurance coverages, accident investigation procedures, and effective tools for negotiation and claims settlements. Although I did not realize it at the time, the claims role helped me recognize the importance of exposure identification.

In addition, the opportunity I was given to communicate, build and nurture relationships with attorneys, third-party administrators, vendors and many others has proved to be extremely beneficial for me in positions I have held since.

Working for an international corporation, as I did at AJC International, certainly expanded my horizons. It forced me to use creativity to explore various ways of doing business.

Scheduling the pickup of a load of beef in Iowa, negotiating rates with the truckers to transport it to the port, and then ensuring it was loaded timely on a ship bound for an international port is very demanding and stressful.

It was necessary to have a sharp pencil because the profit margins were so lean. This position reinforced my multitasking skills and the importance of viable relationships and networking.

What about the next generation of risk managers?

I have had the good fortune recently to work with The National Alliance's University Associate Certified Risk Managers (UACRM) program, which provides college students with an opportunity to get a head start on earning a CRM designation.

The National Alliance conducts webinars for students in the program to reinforce the learning of the material. Many of these students–all in risk management and insurance degree programs–already have a desire to become risk managers.

My advice to them is as follows:

o Become familiar with the foundation and basic concepts of risk management.

o Speak the risk management lingo.

o Be able to take a look at an organization in an industry attractive to them, understand and classify its risks and exposures, and have an idea of how to control and manage them.

I suggest students get their foot in the door of an organization that invokes their interest and keep a keen eye on the risk management area for an open position.

I also suggest that new risk managers continuously think of how they can add value to the bottom line of an organization and how to set it apart from the competitors.

This education can certainly be attained by earning designations, staying current with emerging trends and issues, and networking with others in the risk management industry.

In addition, it is important to develop a strong understanding of finance. I remember giving a presentation to senior management at RSC early on in my career with several charts, graphs and numbers. Then, at one point in the presentation, I referenced "net income" when it should have been "gross revenue."

I will never forget that day. In spite of the mistake, I got a standing ovation for my presentation. I am not sure a risk manager today could get away with that kind of confusion!

Additional advice to the new risk manager is to work toward having consistent and transparent communication with all levels of the organization. They should use careful judgment to highlight areas that need attention and when senior management should be notified of certain information.

All employees need to realize they are a risk manager of their specific area of responsibility.

Given its dynamic function, the risk management field is ever changing. With organizations adopting new roles such as chief risk officer, and with enterprise risk management expanding the definition of risk management, the opportunities for the risk manager are continually becoming broader and more challenging.

In my own case, every step along the path leading to the role of risk manager was exciting in its own way. I encourage future risk managers to create their own unique career experiences and take advantage of every opportunity this exciting field offers to make a difference for organizations and society.