1. Risk Management Outsourcing Opportunities: Enhance Your Job or Risk Losing It Session Code: RMG213 Date: Tuesday, April 17, 2012 Time: 2:15 PM - 3:30 PM

2. Session Agenda Introductions Risk Management & The Economy Importance of Workforce Planning Questions & Issues Overcoming the Fear of Outsourcing Key Takeaways & Summary

3. Introductions

4. Diane Askwyth, CPCU Vice President, Risk & Insurance Caesars Entertainment, Inc. – 25+ years experience in Property/Casualty insurance, including brokerage and corporate risk management positions – 12 years as senior risk management officer – Experience designing and implementing Enterprise Risk Management initiatives – Extensive claims and litigation management experience – MBA and CPCU Designation

5. Sharon Emek, Ph.D., CIC President & CEO Work At Home Vintage Employees, LLC – 30+ years experience in insurance, consulting and management – Formed The Emek Group in 1988 which grew to be one of the largest women owned insurance agencies in the U.S. – Experience managing 38 agencies on an outsourced basis, utilizing technology to create the “Virtual Insurance Agency” model – Insurance Entrepreneurial Award (Wahve, 2010) – First woman to receive the Sidney O. Smith Government Affairs Award from the Independent Insurance Agents & Brokers of America (2007) – Former Board Chair, Independent Insurance Agents & Brokers of New York

6. Kristina Narvaez, MBA President & CEO ERM Strategies, LLC – 18+ years in risk management, insurance and consulting spanning multiple industries including transportation and financial services – Two time Spencer Education Foundation Graduate Scholar from RIMS – Anita Benedetti Scholarship and Edith F. Lichota Award from RIMS – Experience as a commercial insurance agent including workers compensation, business commercial package policies and health benefits – Expertise in identifying and evaluating risk exposures and the development and implementation of risk assessment information systems and ERM programs

7. Nancy Kelly, SPHR Practice Leader – Human Capital Hanover Stone Partners, LLC – 25+ years experience in human resources and insurance on a global scale – Experience and expertise in strategy & delivery, compensations & benefits, employee relations, compliance, training & development, mergers & acquisitions, organizational design & development, performance management, leadership development & succession planning, and executive coaching – MA, Senior Professional in Human Resources (SPHR) and member of the Society for Human Resource Management & the Association of Professional Insurance Women

8. Declining Margins Reduced Budgets Reduced Headcount Reduced Travel Increasing staff costs Involvement of Corporate Procurement Job Efficiency Risk Management & The Economy Evolving workforce Global Competition for Talent Brain drain of experienced, educated and well-connected employees Lower level process work completed by highly paid staff Employers competing for same labor pool & lack of talent

9. Aging of the population with 50% of the insurance industry retiring over next 10 years Generational differences (Gen X, Y and Millennial) Multi-cultural differences Baby Boomers redefining retirement (“phased”) Rapid advancement of technology and social networks Rules & regulations with new legislation often competing and colliding with existing legislation Importance of Workforce Planning

10. Questions & Issues

11. 1)What activities are critical for Risk Management to perform to protect the enterprise? Are Risk Management’s objectives aligned with corporate objectives?

12. 2)Given your departments scope of work, are the right skills available to perform efficiently and effectively? Is the workforce engaged and equipped for the challenge?

13. 3)What is your backup plan if you’re unable to get the resources you need to perform critical work? What’s the impact of assigning senior level professionals to low level work?

14. 4)How can an already stretched department perform an operational review to differentiate high value, critical work from non-critical work?

15. 5)Is there an agreement with management as to the objectives and deliverables of the RM department?

16. 6)Are there accepted criteria for evaluating vendors? If yes, how can you use this information to make the case to outsource some of the non-critical work freeing up staff for more challenging assignments?

17. 7)Where do the opportunities exist for job enhancement and how can employees position themselves to take advantage of these opportunities?

18. Overcoming the Fear of Outsourcing

19. Drivers Broader access to talent Reduced cost Increased flexibility Moves account managers to front line Shared risk Increase resource availability Greater efficiency/higher quality Keeps business operating when disruptions Maximum use of available technology Inhibitors Security & confidential Information Communication concerns Fear of loss of control Trust Employee backlash Loss of knowledge capital Ability to physically supervise Adapted from Gartner, IT Director’s Community of Practice, August 14, 2007

20. Key Takeaways & Summary

21. Nancy L. Kelly, SPHR New York Office 260 Madison Avenue, 8 th Floor New York, NY 10016 (o) 646-216-2181 (c) 646-455-7543 New Jersey Office Harborside Financial Center 2500 Plaza 5, 25 th Floor Jersey City, NJ 07311 (o) 201-309-4830 Nancy.Kelly@hanoverstonepartners.com www.HanoverStonePartners.com Practice Leader – Human Capital