Career moves: A risk pro's story

Lance Ewing is hardly an unknown individual in the world of risk management. In addition to a high-profile position as vp of risk management at Harrah's Entertainment Inc., Mr. Ewing was the president of the Risk & Insurance Management Society Inc. during 2003-2004. He traveled domestically and internationally as a representative of the society. He also has been an active advocate of risk management education, serving as an instructor for the Austin, Texas-based National Alliance for Insurance Education & Research.

I knew Mr. Ewing when we worked together at RIMS. He was always a role model for the successful risk manager. Even more important, his story shows how an individual can grow from a small to a prominent role in an organization by mastering the skills of modern risk management. With his cooperation, l would like to tell his story.

Education is close to the heart of Lance Ewing. Suffice it to say, he is likely to be a perpetual student. He has two master's degrees-one in law and justice and another in occupational safety engineering. Who needs two master's degrees, much less also an Associate in Risk Management designation, an International Certified Risk Manager designation and currently pursuing the Chartered Property Casualty Underwriter and Enterprise Risk Management Professional designations? He always said, "The world is changing. We have to keep up with it." He does exactly that by staying on top of risk management developments.

If education provides the tools to be a risk manager, experience gives you the knowledge of how to apply those tools. Mr. Ewing started, as do many risk managers, working in insurance companies. It is difficult to picture Mr. Ewing-a flamboyant personality by any measure-in a traditional insurance environment. Once, I was asked to pay tribute to Mr. Ewing in a ceremony honoring him. I told the audience that "not everyone is annoyed by Lance Ewing. Some people do not mind him at all." The audience recognized the banter as praise for an individual who accompanies his skills with the enthusiastic personality of a motivational speaker.

The early days in the insurance companies shaped Mr. Ewing's thinking about his career. He helped assess risks in high-hazard industries such as sawmills, logging companies, hospitals, trucking companies and mobile home manufacturers. As he says, "My experience with the carriers forced me to stay away from the insurance technical jargon that merely baffled the business owner or corporate CFO. They really were interested in activity, not words." He quickly learned the risk management side. His customers did not want insurance. Their goal was to bring down the losses and consequential costs. "In the case of sawmills," he once noted, "it is not a question of if it will burn but when it will burn." He found himself working as an engineer dealing with highly protected risks. Prevention and loss are part of his DNA.

Mr. Ewing must have done all right in insurance-he worked at three companies for a total of five years. His next move was to the Philadelphia School District where, over six years, he dramatically reduced myriad exposures, resulting in significant financial savings for the government agency.

In Philadelphia, he applied the loss control aspect of risk management. The system had 300 schools and facilities, many never fully inspected. He initiated a rooftop-to-boiler room inspection of every building. His team documented conditions and made recommendations and corrections. They discovered unknown assets, such as fine arts, that needed to be secured. They identified previously unknown exposures, such as storage tanks without overflow shutoff valves. The strategy paid off. By correcting deficiencies, the system reduced losses. By providing accurate data to insurers, the system reduced premiums.

In the late '90s, he got restless. Those who know him wouldn't be surprised. He sought to broaden his exposure to risk and use knowledge from his graduate courses. GES Exposition Services (a VIAD Co.) opened that door. He did it all as senior director of risk management for a company that provides logistical support to hundreds of major exhibitions annually. Here was risk: Forklifts racing around convention centers, unloading hundreds of trucks in hours and reloading them a few days later.

The real story at GES was that Mr. Ewing recognized insurance was a piece of the pie but risk management was more than just loss control on insurable risk. He built an internal consulting team, which advised managers on everything from environmental hazards to contract reviews and even compliance issues. The team conducted training for managers and union workers. The goal was to find ways to say "yes" when risk conditions seemed to say "no."

It all paid off many times, and particularly in 1999, when a tornado struck the convention center in Salt Lake City during a GES exhibition. Damage was extensive but was mitigated by the strong relationships between the risk management department and managers, workers, insurers and brokers. Losses could easily have been much higher.

Then he faced his own risk when GES downsized and reorganized functions. He landed at Park Place Entertainment (later Caesar's Entertainment) after an interesting negotiation. Offered the job of director of risk management, he pressed for the title of executive director. He argued for an expanded role for risk management and pledged to bring bottom-line results to the gaming company. He got the title and the job in November 2002 and worked to prove himself. He quickly realized the need to build a strong risk management department to identify opportunities to reduce liability claims. Operating units worked with the new team to implement changes. Results were immediate, saving millions of dollars in months. Do companies recognize performance? Park Place did. In July 2003, eight months after starting, Lance Ewing was promoted to vp of risk management.

John J. Hampton is the KPMG Professor of Business and Director of Graduate Business Programs at St. Peter's College in Jersey City, N.J. He is a former executive director of the Risk & Insurance Management Society Inc. His columns and interviews can be found at www.businessinsurance.com/EmergingRiskStrategies.