First in Line: LineSlip Talks to Mike Lubben About his View of Risk

Have you ever wondered what’s on the minds of some of the top thought leaders in the world of Risk Management?

First in Line is a blog series featuring LineSlip clients who are regarded as some of the most forward-thinking leaders in the world of risk. Get to know these leaders, their organizations, and their thoughts on the ever-evolving world of risk.

This month’s featured First in Line is Mike Lubben, CRM, AIC, CPCU.

Mike Lubben is the Director, Global Risk Management for the Henry Crown Company – a large multi-national conglomerate of real estate and manufacturing. For 35 years Mike has led Risk Management Departments for Fortune 1000 or large privately held firms. Mike has an MBA from St. Ambrose University with an Economics degree from The University of Iowa.  He holds industry designations of Chartered Property Casualty Underwriter (CPCU), Certified Risk Manager (CRM) and Associate in Claims (AIC).  He is a regular “visiting professor” for RIMS’ “Risk Manager in Residence” Program.

LS: How has your thought process around risk management evolved as a result of COVID?

ML: COVID tested multiple risk mitigation and prevention processes all at the same time.  Not only the protection of employees from getting sick due to the pandemic, but also managing supply chain disruption, labor shortages, reputational-related risks, and others.  All these risks became hazards in a live, dynamic environment that became even more complicated by federal, state and local authorities implementing their own, sometimes unique, workplace rules – which makes life difficult for any large manufacturer with operations in multiple states and countries.   COVID punctuated the importance of having practical, well-thought-out risk prevention and mitigation processes in place to protect the company against all those hazards.  Also, frequent, and regular meetings with decision makers to openly discuss problems and potential solutions along with written communications on complex issues, to include regulatory compliance, is essential.

LS: What trends have you observed over the past year, and do you believe that they will have a lasting impact on how you and your peers manage risk?

ML: Because of the COVID crisis, operational leaders are placing a higher value on risk management.  From my perspective, it is an opportune time to further evangelize the benefits of enterprise risk management and implement needed programs at our operations across the globe.  I’m hopeful we’ll see the continued buy-in.  However, if the buy-in wanes, now is the best time to create and implement processes to improve our risk profile while we can.

LS: What role does technology play in your department today, and where do you see the opportunity for technology in the future?

ML: We do significant data mining to understand our near misses and losses to develop specific solutions at an operation company’s facility and/or present broad global solutions to prevent or mitigate injuries.  Where we fall short is using data to understand how best to retain and transfer risk, not just at the insurance policy level but across all exposures – insured and uninsured.  In fact, we need to get away from looking at risks in silos – like insurance policies – and look at the cost of risk overall in a given time frame to be able to measure our likely exposure and make meaningful transfer and retention decisions.   Also, most of us risk managers spend a lot of time and effort to inform underwriters about our company and our risk management processes.  However, we could do a better job through data analytics to think more like underwriters so we can better understand their concerns and premium values they’re placing on certain risks.  By doing so, we may be able to negotiate terms and buy insurance in a much more cost-effective manner.

LS: What will the world of risk look like ten years from now?

ML:  If you look back on what risk looked like 10 or 20 years ago and how it’s evolved, I think and hope it will continue the same trajectory.  The world of corporate risk management is getting broader in scope and gaining importance within organizations – it’s gone from just buying insurance to running Enterprise Risk Management programs and captives and playing a significant role in changing the overall company for the better through facilitating and/or leading business continuity planning, supply chain management and/or cyber security programs for example. This has to be done through increased sophistication of the people we hire and data we collect, review and act upon. 

LS: What advice would you give to young professionals just entering your profession?

ML: I’m in corporate risk management.  So, if coming into a Risk Department, I’d recommend:  First, understand the business you’re working for – in my case, it’s a diverse, conglomerate of businesses, but understand the products and/or services your company makes and/or offers before doing anything else.  If you don’t understand the risk, you can’t manage it.  Second, every day, think – how can I add value to the organization?  Your boss would rather have someone that brings continuous improvement ideas to the table as opposed to sitting and waiting to be told what to do.  Lastly, have good relationships with those you work with.  It will help you get things done if people trust you and enjoy working with you.  Also, it’s just the right thing to do. 

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