Skip to content

The Art of Risking It All: The surprising connection between romance and insurance

This Valentine’s Day, we’re looking at the biggest risk of all: being vulnerable in the name of love. This is the season of celebrating love, and we’re taking the opportunity to turn a more professional eye to relationships—and the important way we protect ourselves as both organizations and individuals. In both love and work, we often look for ways to feel secure in our relationships. Though insurance for organizations and romantic relationships may seem to have nothing in common, they share quite a few critical characteristics.

Trust and Commitment

You’ll rarely meet a strong relationship that doesn’t require trust and commitment. Just as partners in a romantic relationship need to trust each other and commit to each other's wellbeing, organizations need to trust their insurance provider to fulfill their promises and commitments in times of need. The relationship between organizations and providers, like RiskVersity, is built on the trust that we will help you find exactly what you need. Even though past performance is not always an indication of future success, organizations can investigate our references or ratings from third-party agencies to see how other people have experienced our services.

Risk Management

Business and romantic relationships involve some level of risk management. In a romantic relationship, partners often work together to navigate life's uncertainties. Similarly, organizations rely on third parties to mitigate risks and protect themselves financially from unexpected events. In relationships, we manage our risks by ensuring our partners are well served and we do our best to mitigate risks that threaten our relationships. Insurance has a similar principle of protection at play. For example, the best insurance carriers have a stellar reputation for customer service and processing claims efficiently while ensuring that any discrepancies are in favor of the client. Over time, this builds the professional relationship and customer loyalty with these carriers.

Communication

Effective communication is essential in all relationships. Clear communication strengthens relationships and ensures that both parties understand each other's needs and expectations. Organizations who communicate their requirements accurately to their insurance providers to ensure they have the right coverage. In both professional and interpersonal relationships, mutual respect and clear communication about unmet needs are important parts of establishing healthy, strong partnerships. Akey to communicating effectively is listening to what the other party has to say. In business relationships this is often codified through a written agreement.

Cost vs. Benefit Analysis

While not the most romantic term, the cost versus benefit analysis happens all the time in relationships. We constantly measure the pros and cons of continuing relationships with people. After all, we always have a choice. But in healthy relationships, the pros of being with a partner outweigh the cons—hopefully by a lot! Similarly, organizations assess the costs and benefits of different insurance policies. They need to find a balance between the premiums they pay and the coverage they receive to ensure they're getting the best value for their investment.

Adjusting and Adapting

Just as partners in a romantic relationship need to adjust and adapt to each other's changing needs and circumstances, organizations may need to review and update their insurance coverage as their business evolves, ensuring they remain adequately protected. RiskVersity can help organizations remember to review, assess, and respond to changing environments.

At the end of the day, comparison between insurance for organizations and romantic relationships highlights the importance of trust, communication, and ongoing support. At RiskVersity, we love working with our clients to mitigate risks and find a path to happily ever after.

Houti and the Insurance Blowfish

When we consume the evening news, the developments in other countries can often feel worlds away and disconnected from our everyday lives. The connection between strife in the Middle East, attacks on trading vessels in faraway straits may feel distant, but they have a very tangible impact on our daily lives. There’s a hidden link between war and our consumer goods—and that link is insurance.

Think of insurance as a protector of our economy. When companies send goods across the world, there are lots of risks, like storms and raids. In some periods of history, like the current one, there is also a risk of military strike. Insurance is a safety net for shipping companies as it helps them out by lessening the financial impact of unexpected events.

Unfortunately, war strikes on trade ships are not uncommon. Sometimes, conflicts between countries affect the seas, disrupting the flow of goods. Today, we’re witnessing ongoing attacks from the Houtis, a Yemen militia group, on sea vessels. This is where insurance and war strikes are connected. Insurance, especially for things that happen at sea, plays a big role in helping businesses recover money they lost during times of conflict.

Imagine a situation where a ship carrying things we buy, like clothes or electronics, gets hit in a war strike. This, most importantly, puts lives at risk—and the loss of any life is a huge risk that operating companies must try to avoid and, in some cases, insure against. Any risk of losing a ship, including the goods it’s carrying, is a massive problem for the company that owns the ship and for the businesses waiting for those goods. Insurers won’t cover a ship that will be moving through a zone with active strikes. Without insurance, a company cannot risk losing all the value and investment held on that ship—both the vessel itself and the goods it carries. Ships that are insured when they set sail but receive a strike while at sea then become uninsurable, representing the loss of millions of dollars of trade.

The things we buy every day are tied to how international trade works. When war strikes impact the movement of goods, it directly affects what's available and how much things cost. Insurance becomes extremely important in these situations. It helps businesses deal with the challenges of war strikes, making sure that even when there are problems, we still get the things we need without them being too expensive. If sea trade is at risk, air freight is an option—but a much more expensive one at four or five times the cost.

Insurance helps businesses go through these tough times, making sure that problems from war strikes don't make things scarce or too costly for us consumers. It acts like a strong support that stops issues in the supply chain from reaching us and making our lives harder—though undoubtedly, there will be impacts to the costs of goods being transported, as the cost of insurance needs to be recovered at some point during the transaction.

To sum it up, the connection between insurance, trade ships, and the things we buy shows how everything in our world is connected. Insurance helps companies handle the challenges of conflicts and still bring us the things we use every day.

When Insurance Gets Risky

The role of reinsurance during times of natural disasters

At any given time, the Federal Emergency Management Agency (FEMA) has up to 4,000 reservists ready to deploy to disasters across the United States. These disasters, especially those like Hurricane Otis that escalate very quickly and cause major unpredicted damage, can wreak havoc on communities—and on the economies within those communities. Insurance is designed to help individuals and organizations recover costs from such losses, but natural events pose a significant challenge to both insurers and policyholders. In the face of such uncertainties, the reinsurance market emerges as a crucial player, providing a safety net for insurers and helping to stabilize the financial impact of natural disasters.

What is Reinsurance?

Reinsurance is a strategic risk-management tool that insurers use to transfer a portion of their risk to other entities. In the context of natural events and property insurance, reinsurers play a pivotal role in absorbing a portion of the financial burden associated with large-scale and catastrophic events. Reinsurers step in to share the risk with primary insurers, creating a more robust insurance setup for organizations.

The Dynamics of Natural Events and Property Insurance

Natural disasters are inherently unpredictable, making it challenging for insurers to assess and manage the associated risks with any certainty. Property insurance, which covers damages to buildings and personal property, is particularly vulnerable to the impacts of natural events. The financial strain on insurers can be immense when widespread destruction occurs, leading to increased claims and potential solvency issues.

When a natural disaster strikes, the reinsurance market steps in to provide financial support to primary insurers. Those massive losses, as noted in the video, need to be recouped, and so reinsurance then raises rates for insurance companies, which then pass the rate increases to organizations and property owners in the following year. As a result, property insurance goes up. In some cases, this results in a massive economic loss or organizations. In others, the government can intervene and underwrite the cost of insurance through rate adjustments for consumers. However, even with rate increases, the role of reinsurance is to mitigate the risk absorbed by a single insurance company—a critical need when facing massive losses that strike all at once, such as those losses created by natural disasters.

Mitigating Financial Risks & Innovating for the Future

The reinsurance market acts as a crucial shock absorber, mitigating the financial risks associated with natural events. Through various reinsurance structures, insurers can tailor their risk transfer mechanisms to align with their specific needs.

With the increasing frequency and severity of natural events, the reinsurance market has undergone significant innovation. Catastrophe bonds, for instance, are financial instruments that allow insurers and reinsurers to transfer risk to capital markets. These bonds pay investors interest, but if a predefined catastrophic event occurs, the principal is used to cover losses. Such innovative solutions contribute to the overall resilience of the insurance industry in the face of natural disasters.

The relationship among natural events, property insurance, and the reinsurance market showcases the dynamic nature of risk management in the insurance industry. As the frequency and severity of natural disasters continue to rise due to factors like global warming, the importance of a robust reinsurance market cannot be overstated. It serves as the backbone that enables insurers to provide coverage, reassures policyholders, and ensures the stability of the entire insurance ecosystem in the face of unpredictable forces of nature.

The Risk-Mitigation Power of Equity Theory

Equity theory, developed by J. Stacy Adams in the 1960s, is a psychological concept that focuses on the idea of fairness and balance in the workplace. It suggests that employees compare their input (effort, skills, time) and output (salary, benefits, recognition) to that of their colleagues to determine whether they are being treated fairly. Equity theory is neither good nor bad on its own; however, when employees end up feeling that they are being treated unjustly or learn that they are being compensated differently for similar work, it can create a work environment that is prone to risk. Employees generally go through three steps to reach a conclusion:

  1. Comparison Process: Employees engage in a mental comparison process where they assess the ratio of their contributions to their rewards (input-to-outcome ratio). They also compare this ratio to the input-to-outcome ratio of their coworkers.
  2. Equity: When employees perceive a balance or equity between their input and outcomes compared to their colleagues, they feel content and satisfied with their job and believe they are being treated fairly. This perception of fairness fosters positive workplace attitudes and motivation.
  3. Underpayment and Overpayment: If an employee perceives that they are receiving less than they deserve compared to their peers (underpayment inequity), they may experience feelings of injustice and may reduce their effort, seek a raise, leave the organization, or engage in counterproductive behaviors to restore equity. Conversely, if they perceive they are receiving more than their peers (overpayment inequity), they may feel guilty or anxious and may try to rectify the situation. (See note on Equity Sensitivity Below)

Impact on Organizational Leaders

Equity theory highlights the importance of fairness in the workplace. Leaders should strive to create a work environment where employees believe their contributions are recognized and rewarded fairly. This involves transparent and consistent reward systems, clear communication about performance expectations, and addressing any perceived inequities promptly. It's important to note that equity is subjective, and what one person considers fair may not be the same for another. Therefore, managers must consider individual perceptions and be aware of the potential for bias or misinterpretation when assessing equity in the workplace. One such influence is equity sensitivity.

Equity Sensitivity: What is it and how do organizations achieve it?

Being “equity-sensitive” refers to an individual’s or organization’s heightened awareness and sensitivity to issues of fairness, justice, and equity, especially in the context of decision-making, policies, and practices. Equity-sensitive individuals and organizations prioritize the promotion of fairness and strive to ensure that opportunities, resources, and outcomes are distributed fairly among all members or stakeholders. These people and organizations tend to:

  • Be Fairness Advocates: Equity-sensitive individuals or organizations are strong advocates for fairness and justice in various aspects of life, including the workplace, education, society, and beyond. They are committed to ensuring that everyone has equal opportunities and is treated fairly, regardless of their background, characteristics, or circumstances.
  • Have Acute Awareness of Bias and Discrimination: Equity-sensitive individuals and organizations are acutely aware of bias, discrimination, and systemic inequalities that can exist in society. They actively seek to identify and rectify instances of bias or discrimination in policies, procedures, and practices.
  • Desire Inclusivity and Diversity: Equity-sensitive people and organizations place a high value on diversity and inclusivity. They recognize that diverse perspectives and backgrounds enrich decision-making processes and contribute to a more equitable environment. They actively promote diversity initiatives to create inclusive spaces.
  • Adhere to Equitable Decision-Making: Equity-sensitive decision-making involves considering the potential impact of decisions on different groups and striving to make choices that do not disproportionately benefit or harm any particular group. This can apply to hiring practices, resource allocation, promotions, and more.
  • Listen with Empathy: Equity-sensitive individuals and organizations listen actively to the experiences and concerns of marginalized or underrepresented groups. They demonstrate empathy and a willingness to address these concerns, making efforts to create a safe and supportive environment for open dialogue.
  • Seek Continuous Learning and Improvement: Being equity-sensitive involves recognizing that equity is an ongoing process. Individuals and organizations continually educate themselves about social justice issues, update their policies and practices, and adapt to changing circumstances to enhance fairness.

In short, being equity-sensitive means prioritizing fairness, justice, and inclusivity in decision-making and actions. It involves recognizing and actively addressing issues related to bias and discrimination while advocating for equitable outcomes and opportunities for all individuals or groups, especially those who may be marginalized or disadvantaged.

Equity theory can be a strong tool in framing the behaviors that are witnessed. It can also provide some direction on what can be done to address equity sensitive employees.

In summary, equity theory in the workplace emphasizes the significance of fairness and balance in employee-employer relationships. It underscores the idea that employees' perceptions of fairness in the distribution of rewards and recognition play a crucial role in their job satisfaction, motivation, and overall performance. When employees perceive that there is not fairness or equity in the workplace, according to equity theory, they may take various actions to address the perceived inequity. These actions are motivated by their desire to restore a sense of balance and fairness. While the motives are genuine, the results can leave an organization teetering in bewilderment on why productivity and employee satisfaction has dropped.

By focusing on equity, organizations can reduce the risk of high turnover rates, low productivity, employee burnout, and resistance to change—creating a more efficient, more satisfied workforce and a stronger organization overall.

© virtosmedia, 123RF Free Images

RiskVersity Welcomes Alvina Nyako

A native from West Africa (Ghana and Liberia), Alvina has over 10 years of experience in Safety and Risk Management, where she has been developing and implementing comprehensive risk management policies across various public entity organizations. With a dynamic and proactive approach, she excels at identifying and analyzing a wide range of enterprise risks and devising effective solutions to mitigate them.

As the former risk manager for a medium size city in North Carolina, Alvina utilizes her knowledge and experience to assist public entity risk managers and senior public entity executives to optimize the design and functioning of their risk management & insurance programs, with a focus on risk control, safety, OSHA, and claims/incidents in order to help control and reduce losses.

Alvina has a B.A. in Psychology from Hampton University and an MBA in Business Management and Administration from Wingate University. She is well-versed in several key areas critical to her field, including OSHA regulations, risk management, ADA compliance, workers' compensation, insurance and claims management, policies and procedures, safety inspections and audits, compliance with NFPA and EPA standards, and effective recordkeeping.

Her professional journey and qualifications reflect her dedication to safety and risk management. Alvina’s ability to navigate complex risk scenarios and her commitment to ensuring compliance with regulatory standards make her an asset to any organization. Her educational background, extensive experience, and relevant certifications reinforce her expertise in managing risk and promoting safety across various domains.

5 Signs Your Organization Could Be at Risk of Cyber Attacks  

Organizations are never completely safe from cyber criminals and subsequent attacks. Cyber criminals are constantly changing the way they target organizations through new tactics and mechanisms, which makes it more difficult to reduce and minimize risk. Because of this, organizations must constantly reevaluate the way they protect themselves from cyberattacks.  

Common Cyber Threats Among Organizations  

Cyber risk involves outsiders breaching an organization’s sensitive and confidential data such as customer information, important financial statements and business operations. Cyber risks include malware, ransomware, data leaks, phishing, cyberattacks and insider threats. There are a few common things that increase an organization’s risk at being targeted by cyber criminals.  

Old Operating Systems.  

Operating systems control the hardware and software on computers, which allow organizations to function. Operating systems also contain security features that have to be updated in order to provide the best protection from cyber criminals. When old operating systems are used, it puts sensitive information at risk of exposure. Organizations should update their operating systems every couple of years to make sure the security features are operating effectively.  

Remote Workforce.  

Within the last couple of years, organizations have implemented policies that allow their employees to work remotely. While this has a lot of lasting benefits, it also comes with increased risks. Employees who use their own devices when working from home can put their organizations at risk without realizing. Organizations can’t properly monitor security protections, when an employee accidentally downloads malicious software or if there is important business data that isn’t properly protected. However, organizations can manage the process with adequate training, education and additional security measures.  

Lack of Policies.  

An organization is at an increased risk of falling victim to cybercrime when they don’t have cybersecurity policies put in place. To help protect themselves, many organizations will implement policies such as two-factor authorization, mandatory password changes and continuous education for employees on malicious links and phishing scams.  

Phishing Attacks  

Phishing attacks are fraudulent emails, text messages and phone calls that are specifically designed to trick users into sharing sensitive information or important business related data. Many phishing emails mimic individuals within a person’s organization so it looks like the real thing. An increased number of phishing attacks could result in spreading malware and other unwanted viruses throughout an organization, putting them at risk of exploiting confidential information.  To help reduce this risk, many organizations create their own test emails that mimic real phishing emails to help their staff better identify real-time phishing threats.   

 Changes in Finances 

If your organization deals with a high number of financial transactions, they are at greater risk of cybersecurity attacks than organizations that do not. It’s imperative that organizations check their financial accounts everyday with the sole purpose of looking for strange changes. Organizations should also enroll in transaction monitoring programs that notify them of any changes in their accounts.   

Preparing for Cybersecurity Threats at RiskVersity  

At RiskVersity, we know how difficult keeping up with cyber criminals can be for all organizations. Our team helps organizations find their vulnerabilities and prepare strategies that keep their businesses and employees protected from online risks. To learn more, please contact us.   

Building Resilience from the Ground Up: RiskVersity's Hyper-Local Approach

In the world of risk management, resilience is a buzzword. We aim to build more resilient nations, communities, and organizations. The reality is that in our ever-changing lives filled with uncertainties and challenges, building resilience at any level begins with nurturing resilient individuals. RiskVersity aims to foster resilience through proper education and training, astute and comprehensive services and risk management practices, and a commitment to improving the organizations and communities that we touch.

Resilient Individuals: The Foundation

At the core of any resilient community, organization, or nation are resilient individuals. These are people who possess the mental, emotional, and physical fortitude to bounce back from adversity. RiskVersity recognizes that building resilience in individuals involves equipping them with the necessary skills, and many times, employers are critical in delivering the proper training and resources.

  • Mental Resilience: Employers can help build mental resilience by hosting workshops and programs that provide individuals with tools to manage stress, anxiety, and adversity. This helps individuals become better equipped to face life's challenges.
  • Emotional Resilience: Emotional resilience is key to maintaining mental well-being. Programs that encourage emotional self-awareness and teach strategies to cope with difficult emotions can foster a strong foundation for resilience.
  • Physical Resilience: Physical health is intertwined with overall resilience. Organizations that promote a healthy lifestyle through fitness programs, nutrition education, and stress-reducing activities can help individuals and their families build better habits for a healthy, balanced life.

Resilient Communities and Organizations: The Building Blocks

Once individuals are fortified with resilience, the next step is to build resilient communities. Our organizations play a role in this, as each organization and each community serves as the building blocks of a stronger nation.

  • Social Connectivity: Organizations and communities thrive when people connect and support each other. Strong organizations promote community engagement and social cohesion to create networks of resilience within employees and among their peers.
  • Local Sustainability: Resilient communities are sustainable communities. We encourage sustainable practices that support organizations’ growth and the community in which it works and operates.
  • Emergency Preparedness: A resilient community is prepared for emergencies of all kinds. Proper planning and sufficient resources enable organizations to be prepared for both natural disasters, workplace emergencies, and other unexpected challenges.

Resilient Cities and States: The Bigger Picture

As resilient communities and organizations grow and prosper, they contribute to the resilience of cities and states. RiskVersity's hyper-local focus recognizes that strong cities and states make for a more robust nation.

  • Economic Resilience: Resilient organizations are the lifeblood of cities and states. RiskVersity collaborates with local organizations to enhance their resilience through risk management and continuity planning.
  • Infrastructure Resilience: Resilient infrastructure is vital for urban areas. RiskVersity advocates for resilient planning, proper risk-mitigation efforts, and infrastructure development to withstand environmental and societal challenges.
  • Policy Advocacy: Our team encourages organizations and municipalities to be aware of and proactively address areas of risk and weakness in their local operations. This is an effort to create a supportive environment for resilience-building efforts at the city and state levels, ensuring that policies align with the goal of a stronger, more resilient nation.

Why Resiliency Matters for Organizations

The principles of building resilience in individuals, communities, and cities are directly applicable to the business world.

  • Employee Resilience: Just as individuals benefit from mental, emotional, and physical resilience, employees in organizations thrive when equipped with these skills. RiskVersity assists organizations in fostering employee resilience, resulting in a more adaptable workforce.
  • Supply Chain Resilience: Resilient communities and local supply chains are crucial for organizations to weather disruptions. RiskVersity helps organizations strengthen their supply chains through diversity and by promoting local sourcing and contingency planning.
  • Organization Continuity: The ability of a organization to continue operations in the face of adversity is a hallmark of resilience. RiskVersity aids organizations in developing robust continuity plans to ensure they can bounce back from disruptions.

RiskVersity's hyper-local focus on building resilience, starting with individuals and extending to communities, cities, states, and organizations, is a blueprint for a stronger and more resilient nation. We’re also proud to partner with strong organizations like Asfalis, whose advisors help organizations prepare crisis management plans to reduce an organization’s losses and impact when disaster—whether natural, financial, security, or other—strikes.

By recognizing the interdependence of these elements, we can create a society that is better equipped to face challenges, adapt to change, and thrive in an uncertain world. Resilience, after all, is the key to a brighter, more secure future.

Photo by David Alberto Carmona Coto: https://www.pexels.com/photo/selective-focus-photo-of-green-plant-seedling-on-tree-trunk-1151418/

Importance of Cybersecurity Protection in Education

The new school year is an exciting time for parents, students and teachers, but it’s also a popular time for hackers, cybersecurity threats, and identity theft. At surface level, schools don’t seem to be an attractive target for online criminals. However, school systems host a large amount of private and confidential data including contact information, grades, health records, counselor notes and financial records. Before the school year begins, educational institutions should focus on instructing their staff and students on Internet safety and implement policies and risk management strategies to keep their students safe from online threats.  

Tips for School Safety  

  • Use multi-factor authentication (MFA). MFA is a best practice when it comes to online platforms that require a username and password. Sites that use MFA require their users to use an additional layer of protection by entering a security code sent to their private email or cell phone, a push notification that needs to be accepted or a physical key that needs to be plugged into your computer. This makes it more difficult for bots or hackers to access confidential information hosted on the website. Schools, especially those that offer a portal for tuition payment, should implement MFA to protect their students’ private information. While it can make logging into a website more time consuming, it makes your users’ accounts much safer. 
  • Require the use of strong passwords. As school begins, make sure to educate your staff and students on the importance of using a strong, unique password to ensure their online safety. Passwords shouldn’t be used more than once and should contain a mix of alphabets, numbers, and symbols.  
  • Protect minors from fraternization. When possible, educational institutions should look into providing school owned laptops and devices to students and staff members. This allows school administration to monitor students’ usage and intercept any inappropriate fraternization between minors and adults. In addition, parents should be educated on proper teacher/student relationships and look out for any signs of potential abuse. School leadership should also host routine seminars that educate staff and students on appropriate behaviors and what to do and who to inform if those boundaries are crossed.   
  • Educate parents. It’s critical that parents take concrete steps to protect their child when learning online or using online devices as a part of their education. Schools should consider providing a password protected VPN (virtual private network) that allows students to access their school’s online network from home. Parents should be informed on how to access the VPN and encourage their student to change their passwords frequently and monitor any social media usage within reason.  
  • Avoid scams. Scammers are becoming more savvy and often mimic in-network emails such as impersonating school staff through similar email addresses, or sending unsafe links from familiar school affiliated email addresses. Educational institutions should consider implementing online safety courses that educate their staff and students on suspicious online activity.  

If you need help protecting your school and students this coming year, RiskVersity can help you get prepared. Our project-based services allow organizations to implement risk management strategies that are unique to your institution. In addition, our staff will help educate you on best practices and provide step-by-step instructions on reducing cybersecurity risks. Ready to get started? Contact us here!  

Corporate Office
151 W. Fourth Street #27
Cincinnati, Ohio 45202
513-644-1085

© 2024 RiskVersity. All rights reserved.

linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram