Is our word choice causing more car wrecks?

It’s a car crash, not an accident. That’s the message coming from behavioral researchers partnered with The Risk Institute Distracted Driving Initiative at The Ohio State University Fisher College of Business, who recommend that people need to stop using the word “accident” when comes to distracted driving crashes, as well as several other behavioral recommendations.

“One of the keys to curbing distracted driving fatalities and crashes is to change behavior and attitudes towards driving while distracted,” said Stacey Emert, partner at InAlign Partners and lead of the initiative’s behavior team. “One of the most effective methods is called social norming. This is essentially the collective thought about a behavior. Over the last 50 years, we’ve successfully flipped the collective thought on smoking, drunk driving, and child safety seats. We need to flip the collective mindset on distracted driving. We do this in part by changing the language we use: distracted driving accidents become crashes. You wouldn’t call a plane crash a plane accident.”

The Distracted Driving Initiative at The Risk Institute at is a nationwide endeavor comprised of dozens of companies, government entities, and researchers seeking to combine key partnerships, critical research, and leading-edge technology to predict and curb distracted driving behaviors.

“Unfortunately, people make choices that harm their ability to drive, like driving drunk, and so many traffic deaths could’ve been prevented if people stayed off the roads when drunk,” says Brittany Shoots-Reinhard, a psychology researcher at The Ohio State University. “In the 1980s, people were resistant to laws against drinking and driving, but now, we don’t drive drunk or let our friends drive drunk, either.”

The number of fatal traffic accidents rose 7.2 percent nationally in 2015 according to the National Highway Traffic and Safety Administration. It is the greatest year-over-year increase since 1966. Distracted driving was a factor in about 10 percent of auto deaths; the exact percentage is difficult to determine due to privacy rules and other factors.

“We can change the norms about distracted driving, too. These crashes are entirely preventable; at Ohio State, we’re working together to figure out how to help people not drive distracted”,” said Shoots-Reinhard.

The Risk Institute at The Ohio State University Fisher College of Business brings together practitioners and researchers to engage in risk-centered conversations and to exchange ideas and strategies on integrated risk management. Through the collaboration of faculty, students and risk management professionals, The Risk Institute addresses risk at a broad cross section of industries and is dedicated to developing leading-edge approaches to risk management.

The Distracted Driving Initiative at the Risk Institute began in February 2017. Industry partners involved with the project are Honda Inc., Aon Benfield, Nationwide, NiSource, Ford, Motorists Insurance, DHL, State Auto, Freer Logic, TrueNorth, and others. Representing the legal and governmental branches are the Ohio Attorney General’s Office and the Ohio Department of Public Safety. Ohio-based Root Insurance, Smart Drive, Greenroad, and eDriving Fleet make up the technology voices in the conversation. A dozen researchers and thought leaders from OSU representing behavioral science, engineering, automotive research, risk and others make up the research arm of the initiative.

The Risk Institute Creates a Distinctive Student Experience

My name is Luis Garcia-Fuentes, alumna of The Ohio State University Fisher College of Business. I now work for PwC in New York helping banks navigate financial reporting requirements. During my time at Ohio State, one of the organizations that furthered my education the most was The Risk Institute. The Risk Institute compliments Fisher’s academic programs by providing insights into the art and science of risk management, a theme that any business student must be familiar with in order to succeed in this ever-changing world. The Institute achieved this by providing networking sessions with risk professionals from multiple industries and by providing first-hand experiences through business simulations. I was able to participate in two of these simulations. The first was co-hosted by DHL professionals, and for the second I was a team member of the prestigious RIMS national case competition, which allowed me to better understand the risk environment of the Fintech sector.

My experience at the RIMS case competition was unique, as I worked within a group of five talented business and actuary science students to understand the risk environment of PayPal. Unlike any other case competition, where a problem is presented to be solved, the RIMS case competition asked a broader question; what PayPal risks are and what the best way to mitigate them is. This forced our team to spend weeks of research getting to know PayPal’s business environment, leveraging our findings with the guidance of our project mentor Philip Renaud, Executive Director of The Risk Institute. Our experience during that semester long project closely mirrored the profession of a risk consultant. We even had the opportunity to spend an hour in a conference call with one of PayPal’s C-suite executives.

To say that the Risk Institute creates value to the university by co-organizing case competitions and hosting networking events is an understatement. The Risk Institute serves as a host for ideas across different business disciplines, where all students can learn how to think about risk and how to act during a business crisis. Furthermore, The Risk Institute not only focuses on enhancing the education of Ohio State students, but they also host executive courses for professionals and share their industry expertise with the community of Columbus. The Risk Institute, through the active engagement of all its members, has made of my education at Ohio State a distinctive experience.

 

Introducing the SCRAM™ Tool

The Risk Institute is excited to announce SCRAM™, a supply chain resilience assessment and management tool, developed by researchers at The Ohio State in collaboration with the U.S. Air force, Dow Chemical, L Brands and a number of other companies.

Businesses Need Resilience
In an age of global turbulence, resilience is a key competency for corporations. How can a company improve the resilience of its supply chain processes, so that it can recover rapidly from unexpected disruptions, assure business continuity and adapt effectively to changing external conditions?

The Solution
SCRAM™ is a facilitated process, supported by a computer-based toolkit, that provides a diagnostic assessment of an organization’s preparedness and fitness for coping with turbulent change. The process identifies resilience gaps and then suggests enhancements that will strengthen the company’s capacity to survive, adapt, and flourish—even when surprises occur.

What Can SCRAM™ Do For You?
SCRAM™ offers businesses a unique, comprehensive approach to understand the pattern of their potential vulnerabilities and to design a portfolio of supply chain capabilities that will offset those vulnerabilities.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For more information about SCRAM™, please contact us at The Risk Institute.

 

Growing in My Risk Perspective: SMF Graduate’s Story with The Risk Institute

We often associate risk with something that has a negative connotation, while missing out on the fact that risk is faced with any unexpected outcome, whether good or bad. Before starting my master’s degree, I worked in a bank where for us, the word “risk” meant that there was a fair chance of events going awry.

When I started the SMF program at The Ohio State Fisher College of Business, The Risk Institute’s Monday evening sessions caught my eye and I soon realized that risk meant so much more. There were different aspects of risk such as financial, political, operational and cyber, to name a few. Risk management teams would work to ensure that the risks faced by an organization were mitigated/reduced.

The Risk Institute hosted educational sessions with an array of speakers to give insight into the diverse risks that their companies anticipated, faced and tackled. All these sessions were immensely informative and interesting. What I had anticipated being a subject with a negative connotation, turned out to be a whole new world of meanings. In addition to the guest speakers, Phil and Denita at The Risk Institute guided us in the scope of risk in this day and age, which led me to take on coursework for enterprise risk management.

As a part of the Enterprise Risk Management course, I worked on one of the risk projects for Abbott Nutrition at their Columbus Plant. The project seemed fairly simple on paper, however, as our team began working we soon realized its complexities. The scope of the project was a bit broad and we were still in the process of getting acquainted with the risks that Abbott Nutrition’s plant faced vis-à-vis other technical risks that we had studied in classrooms. We decided it would be best to seek out The Risk Institute’s advice on how to go about our project. Phil was more than happy to help us formulate a plan of action and to advise us on how such projects were done by The Risk Institute. Throughout the short term of our project, Phil, Denita and our sponsors at Abbott Nutrition were involved and continually provided feedback. This helped us in delivering a product that was ultimately appreciated by Abbott Nutrition.

In addition to the curriculum, the members of The Risk Institute have also helped me with my job search. They suggested prospective employers, networking events and connected me with professionals who have considerable expertise in the field of risk management.

To sum up my experience, it was wonderful working with the members of the Risk Institute and I plan to give back to The Risk Institute in whatever way possible in the future. I graduated in spring of 2017 from Fisher College of Business after completing my SMF degree. I am currently on the lookout for roles and opportunities.

Assessing The Quality Risk of Offshore Manufacturing

Does offshore production pose an added quality risk relative to domestic production? And if so, what factors influence quality risk? The study, “Quality risk in offshore manufacturing: Evidence from the pharmaceutical industry” by John V. Gray and Michal J. Leiblein at the Fisher College of Business at Ohio State, co-authored with Aleda V. Roth at Clemson University’s College of Business and Behavioral Sciences, attempts to answer these questions by examining a series of invariant quality-risk measurement controls.

Companies are hopeful that offshore plants will become lower-cost “clones” of U.S. operations. While many believe this to be a significant cost-cutting strategy, the study proves that quality risk suffers in offshore manufacturing. The research defines quality risk as the propensity of a manufacturing establishment to fail to comply with good manufacturing practices. It is a proxy for the likelihood that a product shipped from a given establishment will not perform as intended due to manufacturing-related issues.

The researchers focused on U.S. pharmaceutical companies with offshore production in Puerto Rico, where 16 of the top 20 drugs in the United States were produced at the time of the study. To assess quality risk, the authors used inspection data from the Food and Drug Administration, providing a consistent, unbiased, third-party measure of quality risk in the highly regulated industry. To assess quality risk, they examined 30 matched pairs of U.S. and Puerto Rican pharmaceutical manufacturing facilities. The pairs had the same parent companies and produced similar products.

The researchers measured and controlled factors influencing quality risk in offshore manufacturing, finding: greater potential for expropriation of assets and intellectual property; political, social, and currency instability; issues related to insufficient worker experience and infrastructure; more pronounced cultural issues, language, and communications incompatibilities.

When these factors were measured in depth, they revealed the following:

  • The higher the educational level of the local population from which the plant’s employees are hired, the lower a plant’s quality risk
  • The greater the agglomeration of related plants in the geographic area of the plant, the lower the quality risk of an individual plant in that area
  • The greater the geographic distance between the plant and company headquarters, the higher the quality risk of the plant
  • The greater the cultural distance between the firm’s home country and the offshore plant, the greater the increase of quality risk at the offshore plant

In conclusion, the study warns, “Many top-level executives may be easily blindsided by the numerous perceived upsides of offshoring, and may too easily dismiss the downside operational risks beyond the obvious.”

View the full research here.

Join us for the June 20th Executive Education Session

Growth through M&A is a high stakes game – every merger can have an impact on both the risk exposures and risk management strategies of the combined entity. Whether your company is seasoned in these types of transactions or embarking on its first acquisition, risk management plays a crucial role in providing the right risk due diligence, risk transfer solutions, as well as providing insight into the strategy, objectives, valuation, funding, costs, and integration.

Getting it right matters – there are large sums of money, time, and resources wrapped into each organizational change.

Join The Risk Institute and our experts from academia and industry for a lively discussion about the delicate balance of risk and reward in M&A.  Guest speakers include:

Isil Erel, PhD
Professor of Finance, The Ohio State University Fisher College of Business

Elizabeth A. Mily
Managing Director, Global Healthcare Group, Investment Banking Division, Barclays

Mike Repoli
Mergers & Acquisitions, Gallagher Bassett

Gavin Waugh

Vice President and Treasurer, The Wendy’s Company


This event has been rescheduled for Fall 2017. More details to come.

July summer session takes deep dive into critical work-force challenges

The U.S. work-force is at a turning point, with change swirling everywhere: Millennials are now the largest generation in the workplace. Baby boomers – and their decades of institutional knowledge – are nearing retirement after putting it off during last decade’s recession. Constant technological leaps are rewriting the rules for the skill sets that matter.

What does this mean for organizations trying to attract and hire today’s talent? How does this change the game for their ongoing efforts to build culture and develop their existing employees?

The Center for Operational Excellence is teaming up with three other centers for a pair of summer sessions focused on today’s greatest business challenges. The first, “Human Capital and Talent Management,” tackles these vital work-force development issues and on the morning of Tuesday, July 18, at the Fawcett Center.

At this session, gain insights on this issue from three compelling angles:

  • M. Gootman, Brookings Institution

    The Big Picture: Brookings Institution Fellow Marek Gootman will be unveiling results of a new work-force survey conducted in conjunction with the National Center for the Middle Market. The survey, set to be released in late June, looks at how middle-market companies – the fastest-growing segment of the economy – are responding to large-scale shifts in work-force dynamics to hire and retain workers.

  • The Ground War: Join talent management VPs Maura Stevenson (Wendy’s) and Kelly Wilson (Cardinal Health), and Kathy Smith, AVP Executive Succession and Development at Nationwide Insurance, for a moderated panel and audience Q&A session on how their organizations are responding to these work-force trends.
  • The Pipeline: Jamie Mathews-Mead, senior director of graduate career management at Fisher closes out the session with a look at how the college is preparing students to best meet companies’ rapidly evolving needs.

After the presentations, enjoy a networking lunch with members of other Fisher and Ohio State centers. Registration is set to open in June, with limited seating available for members and partners of each center.

The second summer session, set for Wednesday, Aug. 16, focuses on the explosion of data and digital disruption companies face and features a keynote from Jeremy Aston, senior director at communication tech giant Cisco. More details will be announced next month.

The One with The Risk Institute: SMF Student’s Success Story on Graduation and Employment

I landed in the U.S. less than a year ago. During this brief period, I completed my master’s degree (phew!) and got a job. Before joining Fisher’s Specialized Master’s in Finance program, all I knew was that I was interested in working in risk management. Ten months hence and I now know I am “passionate” about working in risk management. The SMF was an intensive course, but the professor’s class diversity and student consulting projects made it worthwhile. I chose Risk Management and Corporate Finance as my specialization tracks. As part of the Risk Management track, I signed up for Enterprise Risk Management 1 and 2. It was during ERM 2 that we did our first student consulting project for Abbott Nutrition. The Risk Institute, in collaboration with Abbott Nutrition and Prof. Daniel Oglevee, gave my class the opportunity to work on 3 risk-based projects for Abbott.

All 3 projects were focused on quality assurance. The teams worked on creating a risk model for enabling decision-making, a survey to better understand and improve the risk culture within the company, and risk-based market research. Welcome to the real world! We had learned VAR’s, derivatives and all other academics needed to complete the risk track, but now was the time to use them. The projects we did for Abbott gave us a unique perspective on how risk management was much more than what we learned inside the classroom. During all this, The Risk Institute, especially Executive Director, Philip Renaud, was a huge resource for insights regarding these projects.

During the time we were working with Abbott, we were also working with Vantiv, a partner of the Risk Institute, as part of SMF’s capstone project. For Vantiv, my teammates and I created a risk framework for their M&A activities. This framework added a risk-based dimension to the evaluation of a target for acquisition. It is a unique framework in that it disrupts the traditional valuation methods. I am big on disruptive innovation. I believe we are at a stage where simple innovation no longer gives you the upper hand. I gained an immense amount of experience from working these two projects, and hopefully, we were able to deliver results that were productive for the companies.

During this project, with help from Philip Renaud of The Risk Institute, I was able to connect with a recruiter from Vantiv. That connection went a long way to help me get a job at Vantiv on their lean Enterprise Risk Management team. I plan on staying in touch with The Risk Institute and furthering the work we did for Vantiv. Plus, it always feels good to be back on campus (GO BUCKS!!). I would like to thank Philip Renaud and Denita Strietelmeier for helping me during my year at Fisher and in my job search.

It is a good time to be in Risk management.

Post Executive Education Session Summary: ERM for Nonfinancial Institutions

In our environment of continuing economic uncertainty, attention to risk at the Enterprise Level is important. On May 23, The Risk Institute at The Ohio State University, Fisher School of Business presented, as part of its 2017 Executive Education series, the topic, “Enterprise Risk Management (ERM) for Nonfinancial Institutions”.

This session presented options for businesses just getting started with ERM, businesses trying to improve their current process or those managing economic and business disruptions. The political and economic spheres have ushered in disruptions across the business environment landscape. There is no better time than now to develop and enhance your firm’s enterprise risk management process.  Our session brought to the forefront leading academic work within the ERM space, tools that are being developed to facilitate a smoother process, along with real-world examples of programs currently in place. Our speakers provided applicable examples highlighting the ERM Journey from their industry perspective and how senior leadership approached the challenge.

The session raised conversation with regard to Enterprise Risk Management processes and risk mitigants that businesses can take. Participants involved themselves in a “Think Tank” exercise facilitated by founding member, EY. That facilitated exercise created the opportunity to review a tool that is in place to extend the ERM risk mapping challenges from spreadsheets to a much more user-friendly and interactive process for businesses.

Session leaders, Professor Bernadette Minton, Chair, Fisher College of Business Department of Finance, The Ohio State University; Tammy Izzo, EY Central Region Government and Public Services Leader; Nick Kaufman, Director of Risk Management, Battelle Memorial Institute, Columbus, Ohio and; Ray Roshek, Director of Risk Management and Employee Benefits, Lancaster Colony Corporation collaborated to provide insight into:

  • ERM and the Current Environment
  • Targeted Risk Management for the Current Political Climate
  • Leveraging Risks and Values
  • Investing in ERM: Motivating your Company

The session emphasized how our member companies are going about proactively using risk management tools and methodology to balance the risks related to Enterprise Risk Management in order to meet business goals and enhance business performance.

The session provided thought provoking ideas and advanced The Risk Institute’s unique role in uniting industry thought leaders, academics and highly respected practitioners in an ongoing dialog to advance the understanding and evolution of risk management. The Risk Institute’s conversation about risk management is open and collaborative with its relevance across all industries and its potential for competitiveness and growth.

 

 

Executive Education Session Next Week: ERM for Nonfinancial Institutions

Photo by Jay LaPrete
©2016 Jay LaPrete

In an environment of continuing economic uncertainty, attention to risk at the Enterprise Level is important. On May 23, 2017, The Risk Institute at The Ohio State University Fisher College of Business will be presenting, as part of its Executive Education series, the topic “Enterprise Risk Management (ERM) for Nonfinancial Institutions”.

Whether you are just getting started with ERM, or trying to manage the myriad of economic and business disruptions, or want to learn how you may improve your current process, this session is for you. The political and economic spheres have ushered in disruptions across the business environment landscape. There is no better time than the present to develop or enhance an enterprise risk management process.

The session will raise conversation with regard to the Enterprise Risk Management processes, but will also look at risk mitigants that businesses can take.  Our session will bring together thought leadership from academia, consulting and corporations to discuss the latest ideas and trends within ERM.

Session leaders, Professor Bernadette Minton, Chair, Fisher College of Business Department of Finance, The Ohio State University; Tammy Izzo, EY Central Region Government and Public Services Leader; Nick Kaufman, Director of Risk Management, Battelle Memorial Institute, Columbus, Ohio and; Ray Roshek, Director of Risk Management and Employee Benefits, Lancaster Colony Corporation will collaborate to provide insight into:

  • ERM and the Current Environment
  • Targeted Risk Management for the Current Political Climate
  • Leveraging Risks and Values
  • Investing in ERM: Motivating your Company

The session will emphasize how to proactively use risk management to balance the risks related to Enterprise Risk Management in order to meet business goals and enhance business performance.

The session will provide thought provoking ideas and advance The Risk Institute’s unique role in uniting industry thought leaders, academics and highly respected practitioners in an ongoing dialog to advance the understanding and evolution of risk management. The Risk Institute’s conversation about risk management is open and collaborative with its relevance across all industries and its potential for competitiveness and growth.