The ALS Group Risk Management Articles

It’s almost Thanksgiving, and if your holiday is anything like my family’s, the football games are as much a part of the tradition as the stuffing. So this year, should you find yourself on the couch, watching the games and struggling to keep your eyes open after all the turkey, try a little thought experiment (it will help you digest): watch the game as a risk management consultant.

Just a few months ago, a senseless and tragic mass shooting at a midnight movie screening in Aurora, Colorado left twelve people dead and nearly sixty injured.  Now, in the wake of the devastating tragedy, three of the victims’ families are suing Cinemark USA Inc., the owner of the Colorado theater, for negligence in its failure to provide the necessary security to its patrons. These developments raise the question, “Does your organization have the proper risk mitigation procedures in place to protect your organization’s bottom line in the event of random acts of violence?”

In January of this year country music star Garth Brooks was awarded $1 million by a jury in a lawsuit stemming from a donation made to Integris Rural Health Inc.  The civil dispute arose from a $500,000 donation Brooks made to the hospital.  Brooks insisted the donation was made in exchange for the naming rights for a new women’s health center opening at the hospital, which he intended to name after his deceased mother.  The hospital, for its part, claimed that the donation was made anonymously, had no spending restrictions, and that the discussions for a $15 million gift in exchange for naming rights had eventually broken down.  Despite the

The first step for many businesses seeking to operate abroad usually involves the transport of goods internationally. Initial shipments are often vital to the success of the venture, so protecting them in case of a catastrophic event is as important as getting the shipments to their proper destination. This is especially relevant considering the recent natural disasters that have affected the shipping trade. Carriers who write Ocean Cargo have suffered a spate of heavy losses, and as a result are actively seeking to narrow their exposures. Ocean Cargo Insurance is subject to less stringent regulation than other types of coverage as state regulators do not require rate and form filing.

Recently, ABC News was hit with a $1.2 billion defamation lawsuit by a meat processing company that accused the network of misleading viewers into believing that their product was unsafe. The company filed its complaint alleging ABC “knowingly” and “intentionally” published nearly 200 false, defamatory and disparaging statements in on-air and online reports, and in social media postings. They claim this ultimately destroyed their reputation by causing major consumer backlash which, subsequently, impacted revenue as several of their national customers publicly vowed to discontinue selling their product. The lost revenue (over $20 million monthly) forced the meat processing company to shut three of its four plants and eliminate more than

An indication of how Enterprise and Strategic Risk Management have become discussion topics in all circles of the business world is the fact that Business Insurance Magazine has devoted a recent issue solely to this topic.  The issue contains numerous articles that range from discussing Risk Appetite, to how ERM can become the spring board for a company’s Strategic Risk Management program. The magazine also describes success stories of companies such as Lego and Paychex who utilized Strategic Risk Management to increase their company’s profits even in these tough economic times.  However, it was an article in the Perspectives section of the magazine that stood out in its honest assessment

A major consideration for American Companies doing business abroad is the Foreign Corrupt Practices Act of 1977. This far-reaching piece of legislation is both largely misunderstood and incredibly broad in scope. The classic images of briefcases full of cash slipped under the table or millions siphoned into private bank accounts are part of it, but the Act can extend towards much more innocent activities. The Department of Justice can bring proceedings against a company for the conduct of a “stockholder acting on behalf of a firm” (say, an agent, or a local sales representative).