How did FM Global's book of business do against Superstorm Sandy? Was Sandy a true test of FM Global's loss prevention engineering philosophy?
While Superstorm Sandy was one of the costliest natural disasters in our company's 178-year history, our financial capacity enabled us to absorb the losses we incurred with manageable bottom-line impact. Most damage seen was from storm surge and was preventable. Property owners with either fixed protection or strong flood emergency response plans designed to keep their business resilient saw considerably less impact than those without such plans.
Is FM Global doing anything new to help clients address flood risk?
Yes. FM Global is conducting considerable scientific research to develop a reliable understanding of flood exposures around the world for our clients. That might range from a broad analysis for less-populated areas, such as exposed sites versus not exposed or detailed hydrological studies of specific river basins or levees.
What's next in loss mitigation for commercial structures? What is on the horizon to improve loss-prevention efforts?
As data centers grow in number, sophistication and criticality, the technology they employ is changing quickly. For example, we're seeing, in some cases, oil now being used to cool servers operating at high temperatures. The presence of oil may introduce a new fire hazard for such facilities without proper fire protection. So, FM Global is researching viable solutions to help organizations cost-effectively address that potential property risk.
You hold a degree in structural engineering and you've served in multiple engineering-consulting roles. How does having that technical background inform the way you view various types of property risk?
It is essential to first have a thorough understanding of a client's business and production process, and then apply loss prevention principles to minimize risk to that process. A prudent engineer seeks to first understand the unique conditions of a client's site, process, or piece of equipment and then overlay the potential risk and engineering solutions to help keep the business resilient. A solid technical background is a major advantage to quickly gather the context of a client's operations.
As chief engineer, you've said your mission is to act as FM Global's "primary catalyst for implementing, supporting and strengthening the attitude that the majority of all loss is preventable." Can you expound on that philosophy a bit?
Risk is a part of life. In the same way that I believe in maintaining my mountain bike and wearing a helmet when biking, I believe sensible solutions can be developed to manage just about any type of risk. By taking prudent steps to protect property from major loss, one can protect their business continuity, their ability to supply their customers and their shareholder value.
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