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Guest: Trey Mauck, founder and CEO of Integrated Insurance Solutions, one of the top one hundred insurance agencies in the United States.
Overview: The BIGGEST danger to a company’s enterprise value isn’t bad strategy. It’s unmanaged risk hiding in plain sight. CEOs who view insurance as a “Nice to Have” need to look beyond the line item and start integrating risk management into their long-term growth plans.
On today’s show, Trey Mauck discusses how strategic risk management protects valuation, reduces disruption, and can become a competitive advantage on the way to Making BIG Happen.
Trey Mauck on protecting your company’s valuation:
“When you’re going through due diligence on possibly the sale of a company or some type of M&A transaction, that due diligence includes looking at prior risk management responsibilities and claims activities. For example, if the history of your workers’ compensation is above normal, it’s a red flag to someone who’s buying the company. Or just a lot of claims in general, that will show that possibly a company has not had proper risk management and maybe not strong leadership. The whole purpose of us being that trusted advisor and helping protect that valuation is to make sure those right insurance plans are in place. Especially in today’s world, with inflation and the way claims are skyrocketing and insurance premiums are jumping up substantially, you really have to protect that history. It’s almost like trying to avoid a speeding ticket or a reckless driving ticket that you might get on your car insurance. Because it sticks there five years. It just doesn’t go away.”
Trey Mauck on the escalating threat of cyber attacks:
“When you get into AI now having an impact on cyber claims, it’s making it even more difficult to stop the phishing emails and the ability for these firms to breach businesses. Land Rover had to shut down its plant for ten days because they had a cyber attack where they could not get their production lines back online. And that caused a backlog of supply chain issues. You had all this inventory coming in. The cars are not coming off the lot. You had promises to dealers to have the cars delivered in a timely fashion. $650 million loss. There’s still uncertainty on what your exposure is in the cloud. Loss of data is a very major deal. I recently had a home builder that lost all his drawings, his accounts receivables. The ransom that was demanded: $40 million.
“When you have a cyber breach, it’s, did they get through the first wall? Did they get through the second wall? Did they get through the third wall? Did they get to the core? Because every company’s been breached, every company has had some type of attack and some data lost, or some email phishing attempt that’s gotten through and captured your content, your contacts. When you’re going through an M&A activity, larger tech companies look for how far have potential foreign adversaries or competitors breached into your data? Have they got to the middle of the cake? Or are they still on the outside, messing with the icing?”
Trey Mauck on using “debriefing” to improve risk management:
“When you look at how a claim occurred, what can we do to learn from that and make sure that event doesn’t take place? I constantly will see companies have the same repetitive claim over and over and over, and they may take short-term action on it, but they don’t take a long-term strategy towards avoiding that claim. We’re going to point out if there’s a hole in the ship and ask companies to take corrective action even before we might place our own coverage. So as we go through that audit and we discover things, we don’t wait until the end to point out that you’re missing certain lines of coverage.”
Links:
Don’t Get Crypto-Locked: How CEOs Can Protect Their Business Against Cybercrime – One cyberattack could be enough to squander years of trust you’ve built up with your customers and employees.
Why All CEOs Need an Asset Protection Plan – Without proper asset protection planning, a single slip up or frivolous lawsuit could jeopardize everything you’ve earned, everything you’ve built, and everything you’re hoping to preserve as part of your legacy.
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