Big Shifts with John Hagel, RIMS ERM Conference Keynote

Oct 8, 2024

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Welcome to RIMScast. Your host is Justin Smulison, Business Content Manager at RIMS, the Risk and Insurance Management Society.

In this episode, Justin interviews John Hagel, RIMS ERM Conference Keynote. John's keynote on November 18 will be titled Embracing Change to Manage Risk. Justin and John explore how risk has evolved over John's 40-year career and the last decade, and aligning risk management with technological innovation. John shares his thoughts on the RIMS Risk Maturity Model and a hint of what to expect in his November 18th keynote address at the RIMS ERM Conference 2024 in Boston. John concludes with his observation of positive trends in risk management.

Key Takeaways:

[:01] About RIMS.

[:15] About this episode. Our topic is ERM and our guest is John Hagel, who will be the opening keynote at the RIMS ERM Conference 2024 in Boston on November 18th and 19th.

[:46] RIMS ERM Conference! The full agenda is live. We will talk about everything from RMIS and AI to D&O, ESG, the SEC, and various other acronyms, in addition to future casting and risk quantification. RIMS.org/ERM2024.

[1:05] RIMS-CRMP holders can earn recertification points by attending the RIMS ERM Conference 2024! For those interested in studying for the exam, a pre-conference workshop will be held on-site on November 16th and 17th. Register now; a link is on this page!

[1:28] The next RIMS-CRMP-FED Exam Course will be hosted along with George Mason University from December 3rd through the 5th. Links to these courses can be found on the Certifications page of RIMS.org and through this episode's show notes.

[1:44] RIMS Virtual Workshops! On October 9th and 10th, Chris Hansen returns to deliver Fundamentals of Insurance. He's very popular in the Worker's Comp space.

[1:59] Elise Farnham of Illumine Consulting recently joined us here on RIMScast. On December 4th and 5th, she will host Applying and Integrating ERM. Other dates for the Fall and Winter are available on the Virtual Workshops calendar of RIMS.org/virtualworkshops.

[2:20] Interview! I am so excited to present an interview with our guest today, John Hagel! He will deliver the opening keynote address at the RIMS ERM Conference 2024. It's titled Embracing Change to Manage Risk.

[2:37] John is a visionary with more than 40 years of experience as a management consultant, entrepreneur, and thought leader in Silicon Valley. He will kick off our conference, exploring how technological innovation is transforming the global economy, society, and the risk landscape.

[2:55] John will also explore how these concepts will influence and intersect with three critical risk tenets: strategy alignment, culture and accountability, and risk capabilities. There's so much to discuss. Let's get to it!

[3:09] John Hagel, welcome to RIMScast! John joins a long line of impactful keynote speakers for the RIMS ERM Conference. He is excited about it!

[3:54] John was drawn to Silicon Valley decades ago because of the sense of optimism and the energy around addressing opportunities in the future and also because it's the seedbed of some amazing digital technology.

[4:17] John founded a couple of tech startups. He was a senior executive with Atari in the video game business from 1982 to 1984, a partner at McKinsey & Company, helping found their Silicon Valley office, and led a research center at Deloitte, called the Center for the Edge.

[5:20] Atari provided an opportunity for young people to get into digital technology.

[6:09] John talks about the risks in technology over the years. Digital technology is improving exponentially over time. What's competitive today becomes obsolete a couple of days from now or years from now.

[6:27] John has done a lot of work around what he calls the big shift, or the long-term forces that are redefining the global economy and society. On one side, the big shift creates mounting performance pressure, the competition intensifies and the pace of change accelerates.

[6:46] A small event in a faraway place quickly becomes a globally disruptive event. There's a lot of risk from the mounting performance pressure. One of the consequences of all this is that it increases the risk of the status quo. Doing what you've done before becomes more risky.

[7:24] At the same time, the big shift is creating exponentially expanding opportunity, with far more value at far less resource, far more quickly. It decreases the risk of creating exponential value.

[8:14] John believes the most disruptive trend over the past years has been customers becoming more powerful with access to more information. They use that information to find someone much more effective at addressing their needs. They're becoming less trusting.

[8:44] John sees trust eroding in large institutions around the world. That's disruptive, as large institutions want and need trust but they're losing it. This is business-to-business trust. It is being lost because of the spreading emotion of fear.

[10:35] In Silicon Valley, John had the opportunity to work with some of the most successful technology companies. He found that they have a different approach to strategy than most traditional organizations. John is a strong proponent of the value of this approach.

[10:56] This different approach is called Zoom Out-Zoom In. Zoom out 10 to 20 years; what's the really big opportunity we could be pursuing? Zoom in; what can we do in the next six to 12 months to help us accelerate our movement toward that opportunity?

[11:25] Companies that pursue the Zoom In-Zoom-Out strategy focus on the risk of not acting. They move forward but don't try to do massive 10-year projects. They do something in the next six months that can help them learn faster what's required to achieve the opportunity at low risk.

[12:16] Plug Time! RIMS Webinars! On October 10th, Zurich returns to present Long-Term Property Strategies for a Resilient Future. On October 17th, Resolver will discuss The Future of Risk & Compliance: 5 Key Insights for the Modern Leader.

[12:36] On October 24th, Hub International returns for the fourth installment of their Ready for Tomorrow series, From AI to the SEC: The Future of D&O Litigation and Regulatory Exposures.

[12:50] On October 31st, TÜV SÜD GRC discusses Mastering Property Renewals: Strategies for Success in 2025 with Risk Engineering. On November 4th, I will be hosting a special RIMS Webinar presentation, Lessons from Veterans on Strategic Risk Leadership.

[13:20] On November 14th, Marsh will present Risk Perception and Management: Insights for a Changing Landscape. More webinars will be announced soon and added to the RIMS.org/webinars page. Go there to register. Registration is complimentary for RIMS members.

[13:38] There is another webinar you should know about. On October 22, 2024 at 1:00 p.m.ET. I will be moderating for my friends at ex judicata If I Leave the Law — A Webcast Series: Landing a Nonlegal Job in Insurance Industry: Risk Management, Brokerage, Claims, & Advisory.

[14:04] Other panelists include leaders from Lockton, Berkshire Hathaway Specialty Insurance, and our friend from the RIMS Public Policy Committee and the RIMS Detroit Chapter, Lynn Haley Pilarski, who works at GM. [14:24] This is a complimentary webinar and it is a chance for you to invite your friends who are in the legal profession, looking to transition to another role, to check out risk management and see what it's all about. The link is on this page.

[14:43] The Spencer Educational Foundation's goal is to help build a talent pipeline of risk management and insurance professionals. That is achieved, in part, by a collaboration with risk management and insurance educators across the U.S. and Canada.

[13:57] Whether you want to apply for a grant, participate in the Risk Manager on Campus program, or just learn more about Spencer, visit SpencerEd.org.

[15:08] On that note, applications are being accepted for internship grants. Since 1999, Spencer has awarded over $2.7 million in internship grants to over 540 recipients. To be eligible, risk managers must be based in the United States, Canada, or Bermuda.

[15:26] The application deadline is October 15th, 2024. Awardees are typically notified at the beginning of December. A link to the Internship Grants page is in this episode's show notes.

[15:40] Back to My Interview with RIMS ERM Conference 2024 Keynote Speaker, John Hagel! John loves Boston. He loves the combination of incredible history and all the universities there. It's got a youthful culture; the combination of age and youth makes it interesting.

[16:38] For six years, John lived in Boston. For four of those years, he was in a graduate program for both an MBA and a JD from Harvard. He was recruited by Boston Consulting Group to be a consultant and spent two years there. He just didn't like the cold winters and hot summers.

[17:30] Justin describes the emergence of the RIMS Risk Maturity Model. It serves as a template or guide for how effective ERM can be run. A link to it is on this page. John took the model. It was challenging for him as a solo practitioner; it was hard to apply five pillars to an individual.

[18:15] John found the five pillars and the different levels of maturity enlightening. The model shows the complexity of ERM. It's not just one pillar and one stage. In terms of maturity, it's a set of stages. John particularly likes the emphasis on continuous cycles of improvement.

[19:05] John also liked that at the highest level, the focus was future-oriented decision-making, encouraging and helping people to look ahead to future opportunities and risks. The model helps leaders to see that ERM is a continuously improving cycle.

[19:48] No matter how good an ERM program is at any time, there is more to come. John likes the focus on the future and the emphasis on continuous learning. We must learn constantly and never assume we're experts with all the answers. There are more questions that need answers.

[20:15] The five pillars John mentioned are Strategy Alignment, Culture & Accountability, Risk Management Capabilities, Risk Governance, and Analytics.

[20:44] John's opening keynote address will cover his research on how the world is changing and the implications for risk management, the big shift with mounting performance pressures as a key factor. He will discuss the new approach to strategy as old approaches are challenged.

[21:24] We need to step back and reflect on what strategy is going to help us manage risk more effectively. We're in a time when fundamental transformation is essential. He will talk about the role of AI in ERM as a catalyst for change.

[22:08] John will focus on three pillars of the RIMS Risk Maturity Model: Strategy Alignment, Culture & Accountability, and Risk Management Capabilities and how to address them in the rapidly changing world. John will have no visuals. He encourages audience interaction.

[23:14] Justin emphasizes there will be some Q&A time at the end of the session, and that people should take notes during the address. Please come prepared with questions that can enhance the audience's knowledge.

[24:09] John warns against underestimating the risk of continuing as you are and focusing just on the present. Look into the future to see how risks may be changing over time. In addition to internal risks, look for ways to reduce the risks to your stakeholders, customers, and suppliers.

[25:00] John sees a positive trend of understanding that as the world is changing, more opportunity is emerging. Explore the opportunity. Understanding how technological innovation transforms our opportunities and risks becomes critical.

[25:26] John, we look forward to seeing you on the morning of November 18th in Boston, kicking off our RIMS ERM Conference 2024. You're going to explain how to embrace change through innovation and the psychology of change. Anyone in risk management will take away a lot!

[26:00] We thank you in advance for being a fantastic keynote!

[26:07] Special thanks to John Hagel for joining us! He will be the opening keynote speaker on November 18th at the RIMS ERM Conference 2024. A link to his website is on this page.

[26:23] Register now for the RIMS ERM Conference 2024, to be held November 18th and 19th in Boston, Massachusetts! Visit RIMS.org/ERM2024 to register.

[26:36] It's RIMS Plug Time! The RIMS App is available to RIMS members exclusively. Go to the App Store and download the RIMS App with all sorts of RIMS resources and coverage. It's different from the RIMS Events App. Everyone loves the RIMS App!

[27:11] You can sponsor a RIMScast episode for this, our weekly show, or a dedicated episode. Links to sponsored episodes are in our show notes. RIMScast has a global audience of risk and insurance professionals, legal professionals, students, business leaders, C-Suite executives, and more. Let's collaborate and help you reach them! Contact pd@rims.org for more information.

[27:56] Become a RIMS member and get access to the tools, thought leadership, and network you need to succeed. Visit RIMS.org/membership or email membershipdept@RIMS.org for more information.

[28:14] Risk Knowledge is the RIMS searchable content library that provides relevant information for today's risk professionals. Materials include RIMS executive reports, survey findings, contributed articles, industry research, benchmarking data, and more.

[28:30] For the best reporting on the profession of risk management, read Risk Management Magazine at RMMagazine.com. It is written and published by the best minds in risk management.

[28:45] Justin Smulison is the Business Content Manager at RIMS. You can email Justin at Content@RIMS.org.

[28:52] Thank you for your continued support and engagement on social media channels! We appreciate all your kind words. Listen every week! Stay safe!

Mentioned in this Episode:

RIMS ERM Conference 2024 will be in Boston, MA Nov. 18‒19 | Register Now

RIMS DEI Council

RIMS-Certified Risk Management Professional (RIMS-CRMP)

RIMS Strategic & Enterprise Risk Center

NEW FOR MEMBERS! RIMS Mobile App

Spencer Internship Grants — Deadline Oct. 15

The Strategic and Enterprise Risk Center

RIMS-CRMP Stories — New interviews featuring DFW RIMS President Emily Casso Ford!

JohnHagel.com

RIMS Webinars:

Long-Term Property Strategies for a Resilient Future | Sponsored by Zurich | Oct. 10, 2024

The Future of Risk & Compliance: 5 Key Insights for the Modern Leader | Sponsored by Resolver | Oct. 17, 2024

If I Leave the Law — A Webcast Series: Landing a Nonlegal Job in Insurance Industry: Risk Management, Brokerage, Claims, & Advisory | Presented by ex judicata | Oct. 22, 2024

From AI to the SEC: The Future of D&O Litigation and Regulatory Exposures | Sponsored by Hub International | Oct. 24, 2024 Mastering Property Renewals: Strategies for Success in 2025 with Risk Engineering | Sponsored by Global Risk Consultants, a TÜV SÜD Company | Oct. 31, 2024

Lessons from Veterans on Strategic Risk Leadership | Presented by RIMS | Nov. 4, 2024

Risk Perception and Management: Insights for a Changing Landscape | Sponsored by Marsh | Nov. 14, 2024 RIMS.org/Webinars

Upcoming Virtual Workshops:

Fundamentals of Insurance | Oct 9‒10, 2024

Applying and Integrating ERM | Dec 4‒5

See the full calendar of RIMS Virtual Workshops

RIMS-CRMP Prep Workshops

Related RIMScast Episodes:

"Applying ERM Theory with Elise Farnham"

"Maintaining an Award-Winning ERM Program with Michael Zuraw"

"Bigger Risks with the Texas State Office of Risk Management" | Sponsored By Hillwood