Fisher’s 2016 Business Case Simulation Competition – A Student Perspective

Reardon, Megan 2016

 

By Megan Reardon
Sophomore, Finance Major
The Ohio State University Fisher College of Business

 


With many risk industry professionals retiring in the next 10 years, the Enterprise Risk Management field is experiencing a bottleneck. That being said, it is a great time for students to get involved in the industry. The number of risk management jobs increase every year, with great opportunities for quick movement up company management. However, hiring companies want to see that students are interested in the challenges and diverse job titles of risk managers. I have found that through The Risk Institute at Fisher, as well as the Risk Management Association, I have had opportunities to build my business acumen and meet with industry professionals. Recently, I was the given the opportunity to compete in a business simulation with other students, both graduate and undergraduate.

On April 14, 2016, The Risk Institute and the Risk Management Association co-hosted a “pre-dinner” for the business simulation, where the students had the opportunity to meet with other risk students, as well as Phil Renaud, Executive Director of The Risk Institute, and Denita Strietelmeier, Program Manager at The Risk Institute and RMA’s advisor. Phil and Denita had the opportunity to speak about what the goals of the Risk Institute are and why risk is important to companies. This event gave students the opportunity to meet the students they would be working with in a more casual setting, laying the foundation for a successful business simulation.

IMG_5120

Megan Reardon’s team for the 2016 Fisher Risk Management Business Simulation Competition

The following day, April 15, 2016, The Risk Institute and Risk Management Association co-sponsored Fisher’s first risk-centered business simulation. The all-day event provided an opportunity for the students to experience risk management from a practical perspective. Specifically, the simulation was a business continuity exercise focused on operational and supply chain risk. Students worked as a team to create a comprehensive reaction plan based on incident response, business resumption, recovery and restoration. There were four teams comprised of 3-4 members each, as well as coaches and judges from the Fisher College of Business and DHL. Participating in this event was both an educational experience as well as a great opportunity to network with other students also interested in risk. Though my team didn’t place first, I learned about the importance of corporate crisis management after a disaster. More broadly, the business simulation reiterated that Risk Management is heavily involved in both small business decisions as well as larger corporate strategies.


Megan Reardon will be spending the upcoming summer as a Supply Chain/ Logistics Intern at Rockwell Automation.  She will return to Fisher College of Business for her junior year and will serve as Vice President of the Risk Management Association.

Business Continuity Management: A Business Case Simulation

Risk Institute Portraits Fisher Hall - Third Floor Feb-02-2016 Photo by Jay LaPrete ©2016 Jay LaPrete

By  Philip S. Renaud II, MS, CPCU
Executive Director, The Risk Institute
The Ohio State University Fisher College of Business

 


Each and every day, businesses face the challenge of managing in the face of disruption. That disruption may be a result of a supply chain failure, natural catastrophe, cyber event, the list of disruptions goes on and on. With the volatility that businesses face, the need to structure proper business continuity / critical incident management plans has never been more important.

According to a recent study authored by Allianz Global Corporate and Specialty, 58% of participants reported that Business Interruption (including supply chain disruption) was a key risk to their businesses.  The Aon Global Risk Management Survey 2015 also lists business interruption as one of the top ten risks facing companies.

To quote Tony Hayward following the gulf oil blast that killed 11 workers and caused one of the worst environmental disasters in US history:

BP’s contingency plans were inadequate. We were making it up day to day. What was going on was some extraordinary engineering. But when it was played out in the full glare of the media as it was, of course it looked like fumbling and incompetence.”

With this in mind, The Ohio State University Fisher College of Business, held a business case simulation exercise for students on April 15th. The event was cosponsored by The Risk Management Association (a student-led organization) and The Risk Institute. Participating students were divided into teams and presented with a fact-based scenario.  Students were then asked to prepare action strategy against the following “4 R” components:

  • Response (Protect Life and Property, Manage the Incident)
  • Resumption (Resumption of Time Sensitive Operations)
  • Recovery (Recovery of Other Operations)
  • Restoration (Repair/Restore Facilities and Content)

Students worked diligently during the day exercise to think through options, respond to life and safety concerns, communication challenges, manage customer expectations, etc.

Judges for the event were:

  • Keely L. Croxton, Associate Professor of Logistics, Fisher College of Business, The Ohio State University
  • A. Michael Knemeyer, Assistant Professor of Logistics, Fisher College of Business, The Ohio State University, and;
  • Daniel Oglevee, Senior Lecturer in Finance, Academic Director of The Fisher Executive MBA Program, The Ohio State University.

Business Coach for the event was Gregory Clark, a graduate of The Ohio State University Fisher College of Business.  Greg is now Global Lead, Business Continuity DHL Supply Chain. Greg provided very meaningful coaching for the students as they worked through the simulation exercise.

Students were pleased to be able to participate in an exercise that provided the opportunity to exercise material presented in the classroom with a real world, hands-on scenario. The Risk Institute is pleased to have an opportunity to prepare our students for events that they will experience once in business. As has been said on numerous occasions, anyone can manage an organization when things are going well – it is when things become difficult that true leaders emerge.

The session proved thought-provoking for the students and demonstrated The Risk Institute’s unique role in uniting students, 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.

 


For more information about upcoming events, our students, partners or research, visit our website: fisher.osu.edu/centers/risk.

The Risk Management Association – A Bridge Between Students and Risk Professionals

Yuqi Wen 2016

By Yuqi Wen
Fisher College of Business
Class of 2016

 


In September 2012, I was a sophomore, and an email from one of my professors caught my attention. In the email, the professor pointed out the growing importance of the risk industry, and yet he lamented on the lack of a risk group at The Ohio State University serving as a professional organization for students. Several of my classmates and I responded to the challenge, and we partnered with The Risk Institute to build the Fisher College of Business chapter of Risk Management Association (RMA).

RMA

As a bridge between OSU students and risk management professionals, RMA aims to offer prospective graduates opportunities to connect with experienced risk practitioners as well as with public and private organizations operating in a world of continuous and unexpected risk. The reality is that risk management plays a significant role for every company’s sustainable development, and we hope our student organization can help bring best practices to light.

Our organization could not stand alone. We are blessed with the support of The Risk Institute, a consortium of leading academics and forward-thinking companies developing cutting-edge risk management practices. Through collaborations with The Risk Institute, our student members are granted exposure to new research along with a wide variety of prospective employers in the field.

To help advance students in their knowledge and in their involvement in the risk industry, RMA has hosted a series of guest speakers. Among the highlights from the last year are:

  • Greg Adams, director of management and financial reporting at AEP, who spoke on governance and culture
  • Jamie Jones, lead meteorologist at NetJets Aviation, Inc., who discussed weather disruption and its impact on the aviation industry
  • Helen Patton, OSU’s chief information security officer, who spoke about IT security
  • Donovan Gibson, vice president of analytics at JP Morgan Chase who spoke about the important role analytics plays in managing risk
  • Elizabeth Wilber, senior manager of advisory services at EY who spoke about how organizations can better manage and benefit from risk
yuqi wen pace setters 2016

Yuqi Wen was honored with a Pace Setters Award, the college’s top honor, in the spring of 2016.

A favorite event of the RMA students is The Risk Institute’s Annual Conference, held in the fall, in which members have the unique opportunity to volunteer and help coordinate the event. I have attended this conference the last two years, and I personally have benefited from the networking opportunities with faculty from other colleges within OSU and most importantly with industry leaders.

This spring, RMA also held a case simulation competition in which members worked together in teams to utilize their general business knowledge and risk management skills to propose the best solution to the given problem. The RMA’s year concluded with the Annual Banquet, which gave students networking opportunities with risk professionals while raising awareness of RMA and its goals.

My involvement in the RMA has enriched my college experience. Ultimately, it has helped deepen my understanding of risk beyond the classroom and advance my ability to solve problems and to conduct research on the risk industry.


Yuqi Wen served as president of the RMA during the 2015-2016 academic year, and will graduate from Fisher College of Business in May 2016 with a Bachelor of Business Administration, Accounting and Finance.  She is an honor student, has been on the Dean’s List since December 2012, and a recipient of Fisher’s Pace Setters Award in 2016.  After graduation, Wen will begin her career at PricewaterhouseCoopers.

 

Risk Modeling: The Past and the Future

Risk Institute Portraits Fisher Hall - Third Floor Feb-02-2016 Photo by Jay LaPrete ©2016 Jay LaPrete

By  Philip S. Renaud II, MS, CPCU
Executive Director, The Risk Institute
The Ohio State University Fisher College of Business

 


No one can foresee the future, but risk managers are tasked with anticipating and using all resources at their disposal to predict what lies ahead. Risk modeling, based on data analytics, is one of the critical tools any risk practitioner can employ. However, like all things, modeling has undergone a transformation in recent years as more data is available upon which to base the models.

With risk modeling playing an increasingly crucial role in risk management, The Risk Institute at The Ohio State University focused its March Executive Education Session on Risk Modeling: The Past and the Future. Over 70 attendees were at the program from 27 companies and universities that gathered for the presentations and insightful Q&A on the topic.IMG_4839 Crop

The half-day session included a three-person panel of experts moderated by The Risk Institute Academic Director, Dr. Isil Erel. The panel was comprised of:

  • Rongsheng Gong, Vice President, Head of Risk Modeling and Analytics, Huntington National Bank
  • Al Schulman, Vice President (retired), Enterprise Risk and Capital Management, Nationwide

The session focused on the essential nature of risk modeling as a risk management tool and its role for both financial and nonfinancial firms. The speaker presentations centered on how risk models have changed as business, regulatory and economic environments have evolved over time. The impact of the recent financial crises was cited numerous times during the discussion as the speakers highlighted how previous risk models created by industry, banking and government failed to identify the magnitude of the risk impact to multiple business sectors.

The trio of presenters went in-depth for session attendees to understand the evolving, complex and at times volatile economic conditions impacting a firm’s markets and operations.IMG_4971 Crop

According to our speakers, five key lessons on effective risk modeling include:

  1. The financial crisis has led to both an increased knowledge of risk models and a decreased confidence in those same models.
  1. Since the crisis, new model considerations include counterparty risk, funding liquidity, regime-switching and government guarantees.
  1. The current system of banks, insurance companies and nations is highly and dynamically connected.
  1. Managing model risk includes multiple levels of validation for every step of its development.
  1. No matter how sophisticated the risk model, the human element is still the most important.

The session emphasized how financial firms since the recession have adapted their risk models to the changing business, economic and regulatory environments. Additionally the speakers focused on the interconnectedness of institutions (banks, insurers and government) and how that plays a vital role in managing how risk is modeled.

The session proved thought-provoking and demonstrated 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 as a tool for competitiveness and growth.


For more information about upcoming events, our students, partners or research, visit our website: fisher.osu.edu/centers/risk.

Risk Culture Plays a Critical Role in the Financial Services Industry

Risk Institute Portraits Fisher Hall - Third Floor Feb-02-2016 Photo by Jay LaPrete ©2016 Jay LaPrete

By  Philip S. Renaud II, MS, CPCU
Executive Director, The Risk Institute
The Ohio State University Fisher College of Business

 


The Risk Institute at The Ohio State University held the first in a series of breakfast sessions that focused on Risk Culture in the Financial Services Industry.

The session was moderated by The Risk Institute Academic Director Dr. Isil Erel who guided the discussion of the four-person panel of experts comprised of:

The session concentrated on how the financial crisis has elevated regulatory risk to a more central point in the discussion of risk management. The panel focused on how an organization’s culture is measured. Measurement can include the more traditional standard, regulatory approach with the evaluation of policies and/or process breaches to the softer side of culture that measures the “tone at the top.” The softer actions can include “raising your hand” when a process, policy and/or an ethical challenge is observed.

Panel Risk Culture Financial Institutions 3.2016

Helga Houston, Kevin Allard, Steve Chenenko, Rick Wilson

The panel went into an in-depth discourse for session attendees on how three levels of defense need to be present in an institution to evaluate the proper culture within. Those include:

  1. Business Unit oversight
  2. Risk Management oversight
  3. Auditor and/or Regulatory oversight

It is vital for all three oversights to be integrated in an organization’s risk culture. Furthermore, it is important to consistently gauge the organizational culture to evaluate if associates are doing the right thing, and whether they believe in the organization and what it stands for or if they are acting simply because they are instructed to do so.

The session proved thought-provoking and demonstrated 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 as a tool for competitiveness and growth.


For more information about upcoming events, our students, partners or research, visit our website: fisher.osu.edu/centers/risk.

Growing My Professional Skills and Continuing My Buckeye Pride

Johnson Ainslee 2.2016By Ainslee Johnson
Senior Risk Analyst
American Municipal Power

 

 


I am a proud 2007 graduate of The Ohio State University and the Fisher College of Business. Saying you’re a proud graduate of OSU is most closely associated with cheering on the Buckeyes on Saturdays in the fall. While that still holds true, my sense of OSU pride soared to new heights in 2015. It was not because of the national football title, but because I discovered The Risk Institute at the Fisher College of Business.

I knew I wanted to be involved in the OSU center of learning, not because of my Buckeye pride, but because as a risk professional for American Municipal Power, I saw the value of this center for my professional growth. I attended my first Risk Institute Executive Education session in the spring, which focused on risk as it relates to Cyber Security. What I experienced at the session was a collaboration between academics and practitioners that benefits both those who study risk and those who practice it. I’ve witnessed how Fisher students are participating in these interactions and better preparing themselves for their careers in risk management.

As a Fisher student, I majored in finance and used that as my springboard to finding context around corporate data. My strong analytical background drew me to the risk models of organizations and a career in risk management. My time at Fisher taught me to be a lifelong learner, and I truly appreciate how Fisher is supporting o-h-i-omy continued growth even after graduation through the resources of The Risk Institute.

A career in risk has presented a new set of challenges and opportunities. I have a more broad view of the organization and work to use that knowledge base as a tool to overcome departmental barriers. The Risk Institute, with its foundation of collaboration, provides a unique and valuable forum for practitioners and academics to exchange ideas and learn from a broad cross section of industries. As new partners are added and sources of insight are brought into the discussion, the impact will grow.

The Risk Institute is a tremendous asset right in our backyard. I look forward to being active as both an alum – with the chance to give back and help mold the next generation of risk practitioners – and also as a risk manager – who sees a tremendous opportunity to identify and evolve best practices as well as expand my skill set.


Find out how you can get involved, by visiting http://fisher.osu.edu/centers/risk.

Can New Technologies Undermine Your Company’s Brand? The Employee and Customer Experience

minton bernadette 130x195By Professor Bernadette A. Minton
Academic Director and Interim Executive Director, The Risk Institute
Arthur E. Shepard Endowed Professor in Insurance
Professor of Finance
The Ohio State University Fisher College of Business


It’s almost 2016 (or it is already, depending on when you’re reading this). Everything is digital, and so you took the plunge and developed a mobile app for your customers. The launch of your new mobile app was supposed to streamline and enhance the customer experience, but since it was released it seems as if your customers and your employees rue the day the app appeared. Is it possible that this app has actually been detrimental to your business? Have you found yourself thinking, why haven’t my customers and my employees embraced this new technology?

From Apple to Zillow, digital disruption – the impact of new technologies on the existing consumer brand experience – challenges consumer business. The first thought that comes to mind is that digital disruptions continue to raise consumer expectations about the brand and their online and in-store experiences.

Yet, there is another side. One that is not often considered, but equally important: the digital expectations of the company’s employees. The employees who are charged with innovating the brand and enhancing customers’ brand experiences are also savvy digital users themselves with their own increasingly elevated digital expectations. Senior executives need to consider how digital disruptions also are influencing and modifying their employees’ behaviors and expectations.

At our upcoming Risk Series, Digital Disruption: Brand, Strategy and Technology, taking place on January 21, 2016, our session leaders Deborah Mitchell, Clinical Professor of Marketing, with The Ohio State University Fisher College of Business, and Keith Strier, Principal, with EY Advisory Strategy and Practice and Founder of IDEAS (Innovation, Digital Enterprise & Agile Strategy) collaborate to discuss applications of current research on consumer behavior to digital engagement with customers and employees to understand your organization’s digital vulnerabilities and opportunities.

I invite you to join us and other executives in this interactive session as we engage in conversations about the leading strategies to understand customers’ and employees’ digital experiences as well as discuss the current challenges firms face in today’s digital environment. You will gain insights into how you can develop an enterprisewide digital strategy aligned with your firm’s corporate strategy and brand vision. You will also be in the position of leveraging, and not just mitigating, digital disruptions with your employees and with your customers.


The Risk Institute Executive Education Series will continue on January 21, 2016 with Digital Disruption: Brand, Strategy and Technology, a half-day course for executives. For more information, or to sign up for the session, visit FISHER.OSU.EDU/RISK


The Risk You Can’t Avoid – Weather Disruption

minton bernadette 130x195By Professor Bernadette A. Minton
Academic Director and Interim Executive Director, The Risk Institute
Arthur E. Shepard Endowed Professor in Insurance
Professor of Finance
The Ohio State University Fisher College of Business


Weather plays a big role in our economy – from retail to agriculture to transportation, all industries are affected by it in some way or another.

A summer drought in the Midwest can negatively impact the agriculture sector while simultaneously creating a boom in new housing construction. Consumer behavior is also influenced by the weather. Consumers in Phoenix in light rain and 75° react differently than those in Portland, Oregon in similar conditions.

NOAA_Wavewatch_III_Sample_Forecast

Over the recent years, climate variability has been increasing with extreme weather occurrences becoming more normal. Thus, understanding your organization’s vulnerabilities to weather disruptions is important to achieving corporate objectives and creating value.

In the upcoming Risk Institute Executive Education Risk Series, we will explore the risk management and strategic implications of weather disruptions. Our session leaders from The Bryd Polar and Climate Research Center at The Ohio State University and from Analytics and Impact Forecasting Services at Aon Benfield (Aon is a founding member of The Risk Institute) will collaborate to provide executives with insights into how:

  • It is less about the averages and evolving weather trends and more about the increasing extremes in our global and regional weather patterns. The use of recent advances in technology, data collection and data quality has led to new predictive analytics tools to more reliably project the weather risks.
  • These new analytical tools can improve managers’ abilities to better understand their business’ exposures to weather and more effectively manage these risks.

No one can control the weather, but planning for weather disruptions and its impact on your business is vital. If you wish to join us for this timely and thought provoking discussion, there are still seats available for the session.


The Risk Institute Executive Education Series will continue on Nov 12, 2015 with Weather Disruption and Risk Management, a half-day course for executives. For more information, or to sign up for the session, visit FISHER.OSU.EDU/RISK


Who are Your Disrupters?

Jim McCormick photoBy Jim McCormick
Founder and President
Research Institute for Risk Intelligence

 

 


So, let’s say you’ve decided that you need to cause some disruption in your industry.  You have come to see the value of the mantra of The Risk Institute and want to “leverage risk to create value.”

Likely at the core of your decision is the need to strengthen your competitive advantage.  Perhaps you need to respond more quickly and effectively to changes in the competitive environment such as –

  • new competition from unexpected sources,
  • competitors with new products, offerings or distribution channels, or
  • competitors with cost structures you cannot currently match.

Or perhaps you need to be more responsive to changes in the marketplace like –

  • new payment methods,
  • generational preference changes, or
  • transient customers or clients with no loyalty.

It may be that you need to up your game on the innovation front and develop more new products, services and methods.

So, who do you put on the team that is going to drive the disruption?

  • All risk-takers so they will charge ahead?
  • Perhaps people who are all risk-adverse so they won’t do anything crazy?
  • Or a healthy mix to achieve some balance?

But how do you know even know the Risk Inclination of your people?

At the Research Institute for Risk Intelligence, we have spent a lot of time and effort studying personal risk inclination.  Because like The Risk Institute at Ohio State, we feel it is vital that organizations move away from conventional risk management and its emphasis on minimizing risk to the more current approach of utilizing risk.  And that process of utilizing risk to create or respond to disruption requires understanding the risk inclination of your people.

Because fueling innovation, inspiring initiative and attaining organizational agility are not just desirable – they are now mandatory if your organization is going to survive and prevail in today’s hyper-competitive, technology-accelerated, global world of business.

At The Risk Institute’s annual conference October 7 and 8 I will discuss these issues and provide insights that will help you answer these questions.  I will present insights based on our research into personal risk inclination that will help you better lead and persuade.

 

DISRUPTION: Implications for Risk Management

minton bernadette 130x195By Professor Bernadette A. Minton
Academic Director and Interim Executive Director, The Risk Institute
Arthur E. Shepard Endowed Professor in Insurance
Professor of Finance
The Ohio State University Fisher College of Business

 


In just over a week, The Risk Institute at The Ohio State University Fisher College of Business will host its second annual conference on the Columbus campus.

This year’s conference focuses on DISRUPTION – a trendy and perhaps overused word these days in corporate America, but very much relevant and worthy of discussion.

Consider the two sides of DISRUPTION:

You or your organization can cause disruption by creating a new business model for which your competitors’ revenues and cost infrastructures do not allow them to respond quickly.  In this case, the disruption has the potential to create value.

Or, alternatively, you or your organization can be subject to disruption when your business strategy, process or infrastructure, for example, are interrupted by an unexpected event.  In this case, disruption has the potential to negatively impact the firm.

Save the Date  6.8.15During our upcoming conference on Wednesday, October 7 and Thursday, October 8, senior executives will have the opportunity to engage in conversations with experts and peers about leading practices and current challenges related to DISRUPTION.

Highlights include our keynote speakers, Kenny Dichter, founder and CEO of Wheels Up, and retired General Michael Hayden, former director of the National Security Agency and the Central Intelligence Agency.  General Hayden, speaking on the opening night, will focus on Managing DISRUPTION.  Mr. Dichter will headline the second day of the conference and present on DISRUPTION as a Catalyst.

Conference attendees also will be challenged during a collection of six 20-minute RISKx talks, modeled after the high-impact and popular TED Talks, to consider DISRUPTION strategically and to generate new insights and influence risk management practice. The RISKx session includes topics such as a firm’s risk appetite, employees’ attitudes toward risk, consumer payment methods and the activist investor.

We will conclude our conference with panel discussions focusing on strategic risk management implications of DISRUPTION in Financial Business Transactions and DISRUPTION in Core Systems.


To learn more, visit The Risk Institute Annual Conference page.