Challenges and Solutions for a Global Property Loss Prevention Program (GRM014)
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1 Challenges and Solutions for a Global Property Loss Prevention Program (GRM014) Speakers: Emily Simon, Global Property Risk Manager, Corning Incorporated John Durante, P.E., ARM, President, Risk Logic Inc.
2 Introduction Emily Simon Emily Simon is the Global Property Risk Manager at Corning Incorporated Corning is one of the world s leading innovators in materials science Corning succeeds through sustained investment in R&D, a unique combination of material and process innovation, and close collaboration with customers to solve tough technology challenges
3 Introduction John Durante John Durante is the Principal of Risk Logic, Inc. which was started in 1997 and has grown into a leading provider of property loss prevention services on a global basis Risk Logic is independently owned We provide engineering consulting services for brokers, insureds & insurance carriers Engineers are P.E. s (~25 years experience)
4 Corning Innovation Timeline 2016 Corning Incorporated
5 The Corning Values 2016 Corning Incorporated
6 Summary Remarks about Corning We ve succeeded for 160 years few other U.S. companies have How have we done it? Successive waves of innovation Deep understanding of glass and ceramic materials Strong process and manufacturing capabilities Collaboration with customers and partners An exceptionally talented and dedicated workforce A conservative financial structure and patient capital 2016 Corning Incorporated
7 Risk Management & Engineering Perspective What helps: Experience Quality product Knowledge and expertise of NFPA and FM Global standards Quick turnaround for plan reviews and reports A consistent global HPR (Highly Protected Risk) standard from risk management (NFPA, FM, Local Code) Senior management support
8 Risk Management & Engineering Perspective Some Additional Considerations: Consistency with regard to material purchasing (Procurement) Property Loss Prevention review during acquisitions (M&A) Prevention data accepted by insurance stakeholders Ad hoc service and technical support Development of RMS primary and secondary factors for windstorm and earthquake perils
9 Engineering Service Provider Perspective Reports accepted by all insurance markets Global staff What is added cost to meet the HPR standard Analyze country infrastructure Provide resources to install FM Global approved equipment and utilize contractors that can install fire protection systems to meet the risk management standard (NFPA or FM)
10 Engineering Service Provider Perspective Utilize a service provider (carrier or unbundled fee company) that has a network of local engineers that can communicate effectively and are well versed in NFPA / FM as well as local codes Utilize a cost benefit analysis for other options to automatic sprinkler protection
11 Local Codes and Impact on the Company s ability to meet the Loss Prevention Standard At times local codes can have a significant impact Risk avoidance Risk mitigation The best approach would be to come up with the next best protection options Examples: Separation of warehousing and manufacturing operations Spare parts on critical equipment Manufacturing redundancy
12 Contact Information Emily Simon Global Property Risk Manager Corning Incorporated 1 Riverfront Plaza Corning, NY (607) simonec@corning.com John Durante, P.E., ARM President Risk Logic Inc. 48 Dimmig Road Upper Saddle River, NJ (201) jdurante@risklogic.com
13 Learning Objectives Learning Objective 1 It takes time and effort to overcome the challenges with implementing a global loss prevention program; support from the top is key Learning Objective 2 Work in partnership with the sites; loss prevention should not feel like taxation Learning Objective 3 Flexibility is key when implementing the most practical solution
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