Chad C. Jackson exports FedEx loss prevention efforts to global operations
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As FedEx Corp. takes significant retentions on its worldwide properties, Chad C. Jackson, staff director of risk management, works with its primary property insurer to standardize its approach to risks and reduce costs.
From a corporate risk management perspective, FedEx uses FM Global, one if its primary property insurers for over three decades, for risk engineering services that provide a global view and standardization of risk controls.
With more than 100 engineering visits to FedEx facilities a year, FM Global works with FedEx to quantify loss expectancy reductions.
Since 2011, FedEx has worked with FM Global and has allocated $5.45 million in capital expenses to address 325 property loss control recommendations, reducing loss expectancies by some $6 billion.
“Chad is very savvy when it comes to business resilience. He embraces this preventable vs. inevitable philosophy of our organization,” said William M. Lonchar, vice president and operations manager in Atlanta for FM Global. “It really allows you to then, from an innovation point of view, drive down into detail to understand the risk to that business.”
Such commitment to loss prevention resulted in a highly protected risk property in China. FedEx in 2009 completed construction on its Guangzhou hub, the largest FedEx hub outside the United States and its gateway to the Asia/Pacific region.
FM Global educated Chinese authorities on what a highly protected risk is and why FedEx wanted the facility built to certain engineering standards.
The equipment within the facility is manufactured in China to the FedEx standards that apply to any facility in the world.
“If you look at (the Guangzhou hub), they really bring this whole preventable mindset to build it right, to set it right, to protect that brand,” Mr. Lonchar said. “From the standpoint of highly protected, with the level of consistency that they brought into that facility, it is unique.”
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