Meet the Risk Institute team during ‘Fan Fest’

Come meet the Risk Institute team and mingle with 20,000 or so of your closest friends during the “Fan Fest” held before the Ohio State-Cincinnati game, September 7, 2019.

We’ll be in a tent between St. John Arena and Ohio Stadium the morning before the game, 9 a.m – noon, where we will be highlighting research into safe driving.

Joining us will be Brittany Shoots-Reinhard, senior research associate in the Cognition and Affect in Decision Making (CAIDe) Lab for the Department of Psychology. She is also a member of the Distracted Driving Task Force, a collaborative initiative begun in 2017 spearheaded by the Ohio Department of Transportation and the Ohio Department of Public Safety. The task force leans on expertise from a variety of resources, including law enforcement, insurance companies and educators. Its purpose is to give recommendations on how to curb distracted driving.

Earlier this year, as part of this state-wide initiative, the Risk Institute hosted Gov. Mike DeWine, WBNS anchor Dom Tiberi, university researchers and insurance experts to discuss the latest research and technology aimed at curbing distracted driving. “Our phrasing is putting the brakes on distracted driving,” said Phil Renaud, executive director of the Risk Institute.

Renaud said the effort to reduce distracted driving must include solutions that go beyond new laws. He said behavior, technology and urban planning and design are needed to reduce accidents and save lives.

Fans are also encouraged to take a look at a immersive driving game created by Driving Essentials XE, which is part of a complete training curriculum that teaches teen drivers to learn and refine critical skills essential to safe driving.

Ohio State institute highlights efforts to stop distracted driving

Every day in the U.S., approximately nine people are killed and more than 1,000 injured in crashes that are reported to involve a distracted driver, according to the Centers for Disease Control and Prevention. The Risk Institute at The Ohio State University Fisher College of Business is working to bring those numbers down.

Last week, the Risk Institute hosted Gov. Mike DeWine, WBNS anchor Dom Tiberi, university researchers and insurance experts to discuss the latest research and technology aimed at curbing distracted driving.

“Our phrasing is putting the brakes on distracted driving,” said Phil Renaud, executive director of the Risk Institute.

The Risk Institute is a collaboration of companies and researchers that work to understand and develop effective risk management strategies. The institute helps organizations understand and manage risk from legal, operational, strategic and financial perspectives, among others.

Renaud said the effort to reduce distracted driving must include solutions that go beyond new laws. He said behavior, technology and urban planning and design are needed to reduce accidents and save lives.

DeWine agreed. He said he views highway safety as one of his top priorities as governor.

“If you look at the essential function of government, certainly at the core, it’s protecting people and protecting our families,” he said.

DeWine said he will be releasing a final report from the Ohio Distracted Driving Task Force soon. The Ohio departments of Transportation and Public Safety formed the task force last year. Ohio State researchers and the Risk Institute joined law enforcement, highway safety officials, auto insurers and others working to develop recommendations for the task force.

“When you look at distracted driving, we have to change people’s attitudes,” DeWine said.

Tiberi delivered the most emotional message on the subject. In 2013, his daughter was killed when the car she was driving crashed into the back of a semi-truck at high speed.

Tiberi and his wife started a foundation that supports organizations that encourages defensive driving and educates about the dangers of distracted driving.

“The bottom line, folks, is we have an epidemic. Not only in Ohio but in the United States, and it’s claiming our youngest and our brightest,” Tiberi said.

Motao Zhu, associate professor in the College of Public Health, Zhenhua Chen, assistant professor in City and Regional Planning at the Knowlton School of Architecture, and Brittany Shoots-Reinhard, a research associate in the university’s CAIDe (Cognition and Affect in Decision-Making) lab, discussed the scientific challenges behind distracted driving.

Shoots-Reinhard said a study conducted by CAIDe found that 66.5 percent of drivers used their phones while their car was in motion at least some of the time. The researchers used the findings to develop more effective advertising to curb the behavior.

“We want to give them easy, positively framed messages,” she said.

Shoots-Reinhard said the messages have to offer not only memorable and emotional messages but also simple alternatives to avoid distractions. That includes reinforcing use of the “do not disturb” function on cell phones.

Industry experts featured new technologies that allow drivers and insurance companies to better track safe driving habits. In addition, community leaders from ODOT, Hilliard and Franklin County discussed the increased use of roundabouts to cut down on serious crashes.

This article originally appeared on Ohio State News.

Economic Nationalism & Trade Conference

On February 8, 2019, The Risk Institute, Moritz College of Law, Fisher College of Business and the College of Food, Agricultural and Environmental Sciences examine — through an interdisciplinary lens — the legal, business and economic consequences of U.S. trade policy.

“Trade policy is an important and complex issue requiring understanding and solutions made through collaborative sharing of the information and ideas from multiple areas of specialized knowledge,” said The Risk Institute Executive Director Phil Renaud. “Interdisciplinarity is one of our hallmarks of our academic efforts at Ohio State, and it is fitting that three of our colleges would co-sponsor this conference.”

The day was broken up into three distinct sections, each focusing on different aspect of economic nationalism: law, economics and business.

Daniel C.K. Chow, Frank E. and Virginia H. Bazler Chair in Business Law at The Ohio State University Moritz College of Law argued that as practiced by the US and China, the two main proponents of economic nationalism in the modern global economy, the term refers to the “adoption of national policies that promote exports while at the same time creating barriers to imports.”

Many of the panelists agreed that tariffs as a trade policy are simply blunt instruments, but the implications and instrumentation of that instrument have tangible political and economic consequences. For example, farmers in China are able to get into global manufacturing and that’s a big job compared to low skill workers in Ohio. An obvious solution then is to reduce the number of low-skill workers in highly developed countries.

The Economic Nationalism and Trade Conference raised as many questions as it was positioned to answer especially surrounding hot-button issues: redistribution of wealth, globalization, economic and actual mobility. The Colleges were very pleased to bring together three connected disciplines – economics, business and law – to discuss about international trade, an issue that affects everyone in our nation and beyond. By sharing perspectives, we broaden our common understanding, and aim to improve the well-being of our state, regional, national and global communities.

2018 Year in Review

The Risk Institute at The Ohio State University Fisher College of Business operates at the intersection of risk research and risk management practice. Focused on an integrated, interdisciplinary approach to risk management.

In 2017 we focused on building connections — across the university, across industries and across the nation.

In 2018 our focus was on time and change — we wanted get the word out about the future of enterprise risk management, the fourth industrial revolution and how to leverage a dramatically changing landscape to create value.

2018 By the Numbers

  • Hosted more than 550 people at Risk Institute event
  • Collaborated with 120+ organizations
  • Garnered more than 200 million media impressions from publications like The Washington Post, Financial Times, Bloomberg Businessweek, Columbus Business First and the Columbus Dispatch
  • Funded nearly $160,000 in research in the form of six research projects, eight class projects, and representing four countries
  • Time & Change 5th Annual Conference welcomed more than 150 C-Suite executives and world-renowned speakers for an enlightening two-day event

We continued our national initiative to predict and curb distracted driving behaviors through our Distracted Driving Initiative.

Distracted Driving Initiative

This past year was full of action, changes and learning. To our members, thank you for your continued support and vision for the future of risk management. We couldn’t do any of this without you.

Looking forward to 2019 expect to see even more research on integrated risk management, distracted driving, and weather and climate. We’d also love to see you at one of our upcoming events like AI, Predictive Metrics and Modeling on January 24th or at the Economic Nationalism & Trade Conference on February 8th.

Onward!

Philip S. Renaud, II
Executive Director
The Risk Institute

Isil Erel
Academic Director
The Risk Institute

6 Tips to Be a Better Winter Driver

With the holidays upon us, here are six quick tips to be being a safer driver this winter.

1. Put your phone down and place hands on the wheel at 9 and 3 for the most control of your vehicle.
As learned from driving instructors at Mid-Ohio School hosted by Maria’s Message Safe Driving Day, it’s impossible to overcorrect when your hands are in the proper position.

2. Drive slowly, do not tailgate, even when roads look clear, black ice has the potential to loom when you least suspect it.
Black ice forms just about the freezing point, the heat of tires and cold air are a dangerous combination

3. Wear your seatbelt
Being uncomfortable is no excuse. Plus it’s way more uncomfortable being dead. If you won’t wear it for your own safety, wear it for the safety of others riding with you.
But seriously, your loved ones don’t want to hear you weren’t wearing your seatbelt because it was uncomfortable. Protect yourself and protect others. This is what an unrestrained body looks like in a crash.

4. If you hit ice, take your feet off the brake and gas; steer the car to an open space. Allow the car to stop/slow on its own before using the gas.
In a recent class I took, the instructors spoke about an open field and one tree, and the spinning vehicle inevitably will hit the tree, the driver is so focused on the tree that the car and energy propel towards the object instead of away from it. In times of panic, focus on wide open spaces away from others, and allow the car to come to a stop.

5. Before heading out on the winter road
Take your vehicle to your mechanic to ensure it’s up to date on its winter car car.

6. Always have an emergency kit
For those unexpected circumstances, you can pick up one various store or make your own with extra items you already have. Runners, next time you’re in a race hold on to those shiny silver thermal blankets. Toss it in the emergency kit; they take up virtually no room and will allow warmth in case of emergency.

Have a safe and happy holiday season from all of us at The Risk Institute!

Risk Institute Seeking Researcher for Impacts of Opioids in the Workplace

Detecting and Dealing with Workplace Opioid Abuse

From Safety Management Group

To supervisors and managers who grew up during the 1960s and 1970s, the mention of addiction to heroin and other opiate drugs conjures images of skinny junkies wasting away in a filthy apartment, an alley, or a gutter. It was something that happened to other people in other places.

But that’s no longer true. The problems associated with abuse of these drugs appear to be greater than ever, and the users are well-hidden throughout America’s workplaces. A recent study of 200 Indiana employers conducted by the National Safety Council and the Indiana Attorney General’s Prescription Drug Abuse Prevention Task Force reported that prescription drug abuse currently affects 80 percent of companies.

Think there’s a difference between prescription drugs and heroin? Think again. Among the most-abused drugs are synthetic opioids that are prescribed by well-meaning doctors. Familiar painkillers such as Vicodin, OxyContin and Percocet were developed to mimic the effects of opiate drugs such as heroin in a more controlled fashion.

About two in three of the employers who were surveyed saw prescription drug abuse as a bigger problem in their workplaces than illegal drugs, with one in five reporting that there had been an injury or a near-miss related to prescription drugs. A quarter said employees had borrowed or sold prescription drugs at work, and 40 percent said that an employee had missed work time because of prescription drug abuse.

According to a medical journal, American employers lost more than $25 billion to prescription opioid abuse in 2009, and experts believe the problem has grown far larger. Just as chilling, the Centers for Disease Control reports than 44 Americans die each day as a result of abusing prescription opiates.

Opioids and workers
According to the federal Substance Abuse Mental Health Services Administration, roughly 10 to 12 percent of workers are under the influence of alcohol or illegal drugs while at work. Those numbers are likely to be higher in a number of industries, particularly construction, manufacturing, and trucking.

Even if workers aren’t addicted and are simply following a doctor’s directions, the powerful painkillers can create a hazard. The familiar “do not operate heavy machinery” labels are there for a reason, and heavy machinery includes cars and other worksite vehicles.

Signs of abuse
The old stereotype of the junkie described earlier is less applicable today. Many opiate abusers with costly habits are not readily identifiable as addicts. They come from nearly every walk of life, and many have good jobs and what appear to be stable families. But as addiction progresses, their hunger for and focus on their next “high” tends to crowd out the other aspects of their lives.

Opioid addicts tend to be in one of two stages while at work. If they are under the influence of the drugs, at first glance, they may seem to be relaxed and functioning well. However, there may be evidence of mood swings or major changes in energy level. They may appear to nod off while on the job or fall asleep at their workstations, in their cars, or even while using the bathroom.

Then, as the effects of the last dose wear off and the craving for the next begins, they may display signs of withdrawal. The symptoms often appear to be the same ones associated with flu or gastrointestinal “bugs,” including nausea, diarrhea, sweating, shaking, aches, and a runny nose. They may also become irritable and anxious. A worker whose addiction has progressed to injected heroin may need to repeat a dose every few hours, going through the cycle several times a day.

Other warning signs of abuse include an unusually high number of pill bottles in trash cans. Addicted employees may develop serious financial problems, requesting advances on pay or trying to borrow money from or sell things to co-workers. It’s not unusual for addicts to withdraw from the social aspects of work, and a once-gregarious worker may suddenly become quiet and sullen.

Steps to take
Pre-employment and random drug screenings are an excellent strategy for detecting (and providing a deterrent against) drug abuse in the workplace. However, the survey of Indiana employers discovered that while 87 percent of the employers conduct drug testing, just 52 percent include screens for opioids. In addition, only 53 percent of the employers had policies addressing the use of prescription drugs on the job (although 80 percent reported having had an issue with such use in the past).

Would you or your team recognize that an employee was abusing opioids? The Indiana survey found that 60 percent of employers doubted their staff’s ability to spot warning signs, but fewer than 30 percent offer supervisors training about detecting abuse of prescription drugs. The National Safety Council recommends that employees and supervisors receive training to help them spot addiction and respond effectively.

Don’t ignore it
It’s human nature to not want to confront someone about addiction, or to mention a colleague’s apparent addiction to a manager. But when it comes to opioid addiction, there are two important reasons that people should be encouraged to speak up. The first is that a worker with an addiction will place himself and his fellow workers at risk of injury, and could become involved in criminal acts such as theft to support his habit.

Even more important, addictions may become significantly worse over time, possibly ending in an accidental overdose. Speaking up about what appears to be an abuse problem could very likely save that worker’s life.

Ohio State Researchers Find Road Design Changes Can Reduce Distracted Driving Crashes

Columbus, Ohio (Nov. 19, 2018) – While efforts to combat distracted driving have primarily focused on passing new laws and changing driver behaviors, a new study from The Ohio State University’s Risk Institute reveals the important impact that modifying road design can have on reducing the frequency and severity of distracted driving crashes.

Researchers Zhenhua Chen and Youngbin Lym, assistant professor and his PhD student, in city and regional planning at The Ohio State University, found a 35 percent increase in distracted driver fatalities in Ohio and a 23 percent increase in serious injuries for the period 2003-2013. Additionally, distracted driving crashes were more severe in some road environments, such as work zones where they were up to two times more likely to be fatal.

This research found that urbanized areas such as Columbus, Cleveland and Cincinnati had much higher risk in vehicle crashes than other regions in Ohio. Even the length of a roadway segment or number of lanes had an impact on the frequency of distracted driving crashes. On the other hand, roundabouts had a significant effect on reducing the severity of distracted driving-related crashes. Other road environments that have a median or a shoulder with an asphalt pavement were also found to have fewer distracted driving crashes.

“This study helps to highlight that there is a need to improve traffic safety and road management,” said Phil Renaud, executive director of The Risk Institute at The Ohio State University Fisher College of Business. “It provides new evidence that supports taking steps to improve traffic signs and safety regulations for distracted driving in specific areas. There are things we can do on a local, city level to lower crash frequencies and severities.”

Key findings also include:

  • Distracted driving-related crashes account for approximately 18 percent of overall Ohio crash fatalities and 16 percent of Ohio serious injuries.
  • Distracted driving-related crashes are up to 49 percent more severe when they occur on a highway system.
  • The risk of vehicle crashes due to distracted driving is found to be highest in the Columbus area.
  • Distracted driving crashes are 5-10 times more likely to be fatal than severe in a rear end and or angle crash.
  • Roundabouts were found to be the single most effective road design in reducing the rate of crashes and crash severity. Overall, within the data (2013-2017) there were no fatal crashes within roundabouts.

The increase in distracted driving-related crashes in Ohio has become a major concern to various stakeholders, including insurance companies, transportation planners and policymakers. To help address this problem, which is so costly in terms of lives, medical bills, car repairs and insurance costs, the Property Casualty Insurers Association of America (PCI) funded The Risk Institute’s study and is working to raise awareness about the dangers of distracted driving.

“Those of us in the insurance industry hear far too many stories of how families are devastated because someone was texting behind the wheel,” said Bob Passmore, assistant vice president for PCI. “This research confirms some of the trends we have seen in auto insurance claims. Congested, urban roadways, infrastructure challenges along with the ubiquitous use of electronic devices combine to create hazardous driving conditions. As we have seen with other motor safety issues such as seatbelt use and drunk driving, there is no single answer to addressing the problem of distracted driving. It takes a coordinated strategy combining the enactment of laws, strong enforcement, drivers taking personal responsibility to avoid distractions and improvements in transportation infrastructure design.”

About the Risk Institute

The Risk Institute at The Ohio State University Fisher College of Business is a collection of forward-thinking companies and academics that provide effective risk management strategies to not only protect firms, but position firms to create growth and value. The Risk Institute helps members consider risk from all perspectives: legal, operational, strategic, reputational, talent, financial and many more. The Risk Institute operates at a unique intersection between faculty, students and professionals from a broad cross-section of industries. With a leading-edge approach to risk management, The Risk Institute creates a unique exchange for risk-centered conversations, ideas and strategies that can’t happen anywhere else.

About PCI
PCI promotes and protects the viability of a competitive private insurance market for the benefit of consumers and insurers. PCI is composed of approximately 1,000 member companies and 340 insurance groups, representing the broadest cross section of home, auto, and business insurers of any national trade association. PCI members represent all sizes, structures, and regions, which protect families, communities, and businesses in the U.S. and across the globe. PCI members write $245 billion in annual premium, which is 38 percent of the nation’s property casualty insurance marketplace.

Time & Change: Risk Institute Annual Conference 2018

Our 2018 Annual Conference — an invitation-only, two-day event (Sept. 26 & 27) — was attended by C-suite executives and senior risk professionals from around the globe and featured Eddie George, Ohio State Football legend and Jeff Eggers, Executive Director of the McChrystal Group. This year our conference focused on managing talent pipeline and workforce development in the face of massive technological change and economic upheaval.

Our annual conference is an ongoing dialogue between risk management practitioners on risk management successes, challenges and leading practices related to the evolution of risk.

Attendees heard from 15 talented speakers. Each coming from a unique perspective on managing talent pipelines in the face of massive technological change and economic upheaval.

“Some say that Gen Z has an 8-second attention span, but I don’t believe it. I think they have an 8-second BS meter. They can tell in a snap if something is relevant to them — if it’s bogus, if it’s worth their time,” said Marcie Merriman, Chief Culture Hacker at EY. “The millennial boat has sailed and Gen Z is here.”

Professor Joseph Fuller from Harvard University’s Future of Work Initiative offered insight into how Boomers approach a rapidly changing job market, “While Baby Boomers might recognize the job titles of today, many would lack the skills required to do the jobs they had when they retired.”

In addition to discussing demographic changes, Eddie George, Ohio State Legend and Entrepreneur offered attendees some sage advice, “You are going to be uncomfortable in life. So why not learn to be comfortable in the uncomfortable?” He encouraged attendees to eliminate the metaphorical box governing their life, citing his own experience of becoming a wealth manager, getting his MBA, and acting on Broadway after a successful career in the NFL.

We live in a digital world, which means that the risks we face are changing more rapidly than ever before. Over the course of two days, we sought to cultivate a greater understanding of how an organization can approach the many sides of talent risk — and leverage it to create value.

As Greg Khairallah, Senior Manager for Big Data and Analytics at Amazon Web Services, put it, “We simply cannot afford to think about risk the same way we’ve thought about it in the past.”

The Risk Institute Releases Fourth Annual Survey on Integrated Risk Management

Data Reveals Risk Management Funding Growing, Opportunity to Improve Corporate Objectives

Columbus, Ohio – Today The Risk Institute at The Ohio State University Fisher College of Business, a leading risk-management research organization, reveals its Fourth Annual Survey on Integrated Risk Management. The report surveyed more than 500 financial, nonfinancial, public and private firms to understand how U.S. companies view the role of risk management, the influence of governance and culture and how risk impacts business decisions.

The data reveals 70% of firms have an integrated risk management unit and companies are
increasing funding for risk management, but the size of those units continues to decrease. Despite recognizing the need to invest in risk, firms are not investing in people. Among the other 2018 findings:

  • 60% of risk managers believe that artificial intelligence will play a role in risk management in the future.
  • 28% of firms surveyed have been victims of a cyber attack – a risk that continues to grow each year.
  • 55% of respondents do not use predictive analytics, and those that do have been using them for less than two years.
  • 44% expect to outsource some or all of their risk function.

Risk management policies play an increasingly critical role in a firm’s ability to create value and remain competitive. Both financial firms and nonfinancial firms reported that when they integrate risk management into business processes, they are able to improve corporate objectives.

“One of our key objectives at The Risk Institute is to create a greater understanding of how organizations can proactively leverage risk management to create shareholder value,” said Phil Renaud, Executive Director of the Risk Institute. “Volatility in the current economic and political environment, as well as cyber risk becoming a real threat to many firms, lead to a more vulnerable business environment, making the role of risk management more integral.”

To learn more about the Risk Institute and its Fourth Annual Survey on Integrated Risk Management, please visit: http://go.osu.edu/risksurvey

About the Risk Institute

The Risk Institute at The Ohio State University Fisher College of Business is a collection of forward-thinking companies and academics that provide effective risk management strategies to not only protect firms, but position firms to create growth and value. The Risk Institute helps members consider risk from all perspectives: legal, operational, strategic, reputational, talent, financial and many more. The Risk Institute operates at a unique intersection between faculty, students and professionals from a broad cross-section of industries. With a leading-edge approach to risk management, The Risk Institute creates a unique exchange for risk-centered conversations, ideas and strategies that can’t happen anywhere else.

 

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The Risk Implications of Smart Technology

Artificial intelligence, drones, and the internet of Things are some of the most exciting developments happening in the tech world, but with these advancements come new and unforeseen risks for companies, governments and private citizens.

Last week, The Risk Institute hosted a continuing professional development session on the risk implications of smart technologies with experts from DHL, Cisco, EY and The Ohio State University.

“Ten years ago, people thought of drones as something used by the military on covert operations. Today, drones are available for a couple bucks and can fit in your pocket,” said Jim Gregory, Director of the Aerospace Research Center at The Ohio State University.

Gregory believes that the possibilities of drones are far-reaching, from package delivery to search and rescue, but that in order for the economics to work themselves out, the legality of drones needs to shift because under the current FAA regulations, most of these use cases are still illegal.

The most significant risks involving drones are

  • Loss of control link
  • Collision with another aircraft
  • Collision with people or property on the ground
  • Emergent behavior of autonomous system

Many of those risks can be mitigated with “redundancies on redundancies,” which according to Gregory can take the form of robust control links and never allowing one system to become so important that its failure results in catastrophic failure of the entire system. These redundancies are also essential in artificial intelligence.

“Artificial intelligence is not a singular concept,” said Chris Aiken, Executive Director, Advisory Services. “It’s a science-based, multi-disciplinary combination of software and computations presented in a human-like manner.”

Just as the cotton-gin spurred on the first industrial revolution, many experts believe that artificial intelligence will fundamentally shift the workforce, but are also quick to point out that AI is not necessarily smarter that humans, it’s just different.

“The real power of AI is to augment and amplify human intelligence and performance,” said Aiken.

And world leaders are taking notice with the competition between countries like China, Russia, Canada and the United States heating up for a global arms-race to dominate AI.

But what value is there in artificial intelligence really? According to Aiken, the real value of AI exists in five areas:

  1. Revealing insights
  2. Optimize performance
  3. Harness automation
  4. Enhance experience
  5. Sustain trust

As with any disruptive technology, it’s valuable to consider the predominant ethical, legal, risk and social issues associated with it. In the case of AI, companies should:

  • Start any project by examining the ethical and legal impacts
  • Evaluate the consequences on jobs
  • Communicate to win employee approval

Building trust between the user/impacted parties and AI is imperative for the success of the technology and business. Taking a holistic, human-centered approach, focusing on outcomes, and being pragmatic and ethical are common sense steps to take in order to build trust.

The Risk Institute remains committed to leading the conversation on risk in partnership with our member organizations. We examined the risk impacts of artificial intelligence in the risk function in our 2018 Survey on Integrated Risk Management. The findings might surprise you.