Beginning today, I will be writing to you regularly from aunique perspective regarding risk management, managing claims, andunderwriting risks. This perspective comes from 36 years as amulti-line insurance claims professional and insurance riskmanager—with a few small twists.

I have a background that includes corporate high-riskmanagement, anti-terror and security consultation, andinvestigation, which is tied into a variety of life experiencesincluding an appointment as a former adjunct instructor at theAerospace Department at the State University of New York, where Itaught risk management, weather, cockpit systems, and navigation. Ialso completed stints as a corporate pilot and flight instructorand a two-year term as a Human Rights Commissioner.

New, obscure global risks pose a unique challenge to riskmanagers, claims professionals, and underwriters. As unlikely asthese risks may seem, we will be faced with managing them anddealing with the resulting devastating losses.

These events, experts have found, are occurring withhistorically high frequency and severity. I will be highlightingone of these risks today and will be detailing others in comingarticles, including how to minimize the risk of an occurrence orminimize their loss impact.

The disturbing events in Oslo and Utoya Island—the scenes of amassive bombing, death, and property destruction at the seat of theNorwegian government, and the unforgivable massacring of scores ofchildren and wounding of 90 or so more at the ruling Labor PartyYouth Camp—highlight a disturbing worldwide trend: mass murder andproperty damage by political and religious militants on a scalethat is reminiscent of a world war.

This event, as confessed by the suspect, Anders Behring Breivik,is a backlash, against Muslim extremists. His 1,500 page“Manifesto” offers detailed planning and logistics, and is ablueprint for others to carry on a global socio-political “bloodfeud” where there is no end game.

My European and American law enforcement sources are quiteworried that this right-wing extremist reaction will trend into thefuture with greater frequency and intensity; so am I.

Who will his blueprint for large-scale armed attacks appeal to,what are the consequences, and how do we assess home-grown andforeign terrorism risk from an underwriting, risk management, andclaims perspective?

Radicalized right-wing gangs such as Skinhead white supremacistsand worldwide neo-Nazi groups will find this blueprint for terrorengaging. It highlights in remarkable detail the tactics andlogistics for covert strategy, planning, and execution, includingthe procurement of weapons and bomb-making material. His method tomarket and promote this blueprint for terror is projected to be farmore effective than Timothy McVeigh's Oklahoma City attack in 1995.It also provides insight into the minds and culture of Westernsociety for radical jihadists.

How will the risk be underwritten and managed in the future?Sources report that the European Union is now attempting to hastilyorganize a joint anti-terror program. But this does not alwayseffectively deal with the real and present danger faced by yourinsured every day.

The following are some considerations regarding assessing therisk faced by a particular insured; suggestions for risk managersin handling the risks; and elements to be investigated by theclaims department should the risk become an event.

In formulating a protection strategy for business centers,hotels, resorts, transportation, and their employees andexecutives, we should evaluate the nature of all terrorists. Theyadapt to changing defensive strategies. They conduct surveillanceof potential targets and identify their weaknesses. They thrive ontargets that suffer terminal routine. They move against businessesthat are administratively and logistically unprepared to detect,deter, and prevent an attack.

The peculiar difficulties posed in detection and deterrence alsoare compounded by the risk that an attack may be launched fromwithin the ranks of the insured's employed staff or by guests andlegitimate visitors or seemingly random intruders.

Assessing and protecting against these risks includes formingfundamental principles that result in layered, evolving defensesthat consider: administrative policies, procedures, and protocols;the administrative integration of risk management and securitydepartments; and the prolific use of IT and securitytechnology.

Some special areas of consideration are:

• Training in anti-terror principles & prevention.
• Risk management and security anti-terror protocols.
• IT department security compliance.
• Software management of critical risk and security data flow(quantitative and qualitative).
• Current-generation security cameras with analyticssoftware.
• Employee, visitor, and guest screening management and duediligence.
• Special-attention areas and items—outdoor perimeter; lobby;parking facilities; non-public access and obscure locales; boilerand machinery; storage area for flammables; and anywhere largegroups congregate.
• Prolific security patrols by a professionally trainedstaff.

This short but comprehensive list is meant to provoke thought,discussion, and action regarding the reassessment of this terriblebut intensifying risk faced by all of us. We can make thedifference and, in most instances, it begins and ends withinsurance professionals. We can drive a reluctant insured to createa standard of training, assessment, and protection that creates anacceptable risk and is also in their best interest.