Navigating Musical Chairs: Unconventional Approaches to Developing Risk Management Expertise

Effective public-sector risk managers have specialized institutional knowledge and unique skills. When one of us retires or moves to other opportunities, it often begins a cycle of vacancies as risk management shifts among a region’s agencies. But in this constantly changing industry, stability, and reliability are crucial qualities for a risk management team.

In this session at PRIMA 2024, a panel discussed practical and sometimes unconventional strategies for succession planning, talent identification, and technology integration. 

Speakers included:

• Richard Spiers – Claims and Risk Management Consultant, Spiers Consulting
• Ann-Marie Sharpe – Risk Manager, City of Miami
• Megan Damato, J.D. – Founder, New England PRIMA

With increasing premium costs, how would you approach renewals?

Megan: Include experts based on the line of business. For example, have your CISO in the room if it involved your cyber policy. Communicate with your carrier and broker frequently.

Ann-Marie: In a way, we’re at the mercy of the market. You represent your organization better to the underwriter than your broker can. Incorporate as much information as possible in the executive summary like the resilience of your department. It should communicate to the market how you are managing exposures relative to your property.

What recommendations would you give for appropriate succession planning?

Megan: Have everything in one place, so if someone does step into that role, they have a thorough understanding of what’s occurring in the department. Consultants will likely help with onboarding for a new hire.

Ann-Marie: I have a staff of about 20-24 people, including claims, insurance, and safety. These divisions work within themselves. I created risk management specialists and senior risk management specialists, so I can grow someone from the bottom-up to understand each role and then work into a risk management position.

Richard: I have a transition handbook because I do not know where the next person is coming from. It may not be from the public sector. Your predecessor does not expect it, but will be immensely thankful. We need to focus not just on the technical side, but on developing good leadership.

What tips would you have for familiarizing yourself with all different aspects of the role, like claims and policy language?

Megan: I rely heavily on PRIMA’s network of risk managers. They may have similar circumstances. But to understand your specific exposures, learn one department at a time. Rely on the people in the community that can help identify issues when you can get out to them.

Ann-Marie: Understand you are not the first person to feel overwhelmed. Reach out other risk managers that can help answer questions. You might not get an exact answer, but just talking to someone who can commiserate can be extremely helpful.