WEBVTT NOTE This file was generated by Descript 00:00:01.170 --> 00:00:05.560 Welcome to The Chemical Show, the podcast where chemical means business. 00:00:05.930 --> 00:00:09.710 I'm your host, Victoria Meyer, bringing you stories and insights 00:00:09.710 --> 00:00:13.620 from leaders, driving innovation and growth across the chemical industry. 00:00:14.529 --> 00:00:18.830 Each week, we explore key trends, real world challenges, and the 00:00:18.830 --> 00:00:20.580 strategies that make an impact. 00:00:20.879 --> 00:00:21.959 Let's get started. 00:00:23.490 --> 00:00:25.140 VictoriaM: Hi, welcome back to the chemical show. 00:00:25.510 --> 00:00:31.150 So today's episode is a compilation of interviews that I had with 00:00:31.170 --> 00:00:33.490 the risk professionals at Marsh. 00:00:33.650 --> 00:00:38.850 So I was recently at Marsh's North American Energy and Power Symposium 00:00:39.110 --> 00:00:43.320 and had the opportunity to interview a number of great leaders and executives 00:00:43.320 --> 00:00:48.610 from Marsh and Mercer, both part of the same parent company, talking about 00:00:49.150 --> 00:00:54.510 risk and risk management and what they see on the horizon for 2025 and 00:00:54.540 --> 00:01:01.730 beyond and what's critical to industry leaders to So we will be covering 00:01:01.740 --> 00:01:07.240 things regarding talent, environmental risk, supply chain risk, and more. 00:01:07.770 --> 00:01:09.580 Stay tuned and enjoy this episode. 00:01:09.750 --> 00:01:13.910 hi, I am here with Steve Horstkamp, who is Marsh's U. 00:01:13.910 --> 00:01:14.090 S. 00:01:14.120 --> 00:01:15.200 chemical practice leader. 00:01:15.200 --> 00:01:18.870 And so first of all, Steve, thank you for making arrangements to get 00:01:18.880 --> 00:01:20.920 me to be part of your symposium. 00:01:20.920 --> 00:01:22.540 This has been really a great experience. 00:01:22.660 --> 00:01:22.750 Oh, 00:01:22.849 --> 00:01:23.856 Steve Horstkamp: Victoria, for coming. 00:01:23.856 --> 00:01:29.553 We're excited that you're here and able to witness what our clients get out of 00:01:29.553 --> 00:01:34.143 this because there's so much collaboration and interest and ideas shared. 00:01:34.590 --> 00:01:36.240 VictoriaM: Hi, welcome back to the chemical show. 00:01:36.610 --> 00:01:42.250 So today's episode is a compilation of interviews that I had with 00:01:42.270 --> 00:01:44.590 the risk professionals at Marsh. 00:01:44.750 --> 00:01:49.950 So I was recently at Marsh's North American Energy and Power Symposium 00:01:50.210 --> 00:01:54.420 and had the opportunity to interview a number of great leaders and executives 00:01:54.420 --> 00:01:59.710 from Marsh and Mercer, both part of the same parent company, talking about 00:02:00.250 --> 00:02:05.610 risk and risk management and what they see on the horizon for 2025 and 00:02:05.640 --> 00:02:12.830 beyond and what's critical to industry leaders to So we will be covering 00:02:12.840 --> 00:02:18.340 things regarding talent, environmental risk, supply chain risk, and more. 00:02:18.870 --> 00:02:20.680 Stay tuned and enjoy this episode. 00:02:20.815 --> 00:02:23.285 I think it's really come through because really part of the value 00:02:23.285 --> 00:02:26.675 is in being together, in having these conversations and in learning. 00:02:27.250 --> 00:02:29.780 Steve Horstkamp: The value is getting people to connect. 00:02:29.780 --> 00:02:33.620 After the ideas are shared on the stage, getting people to talk about them, 00:02:33.950 --> 00:02:37.850 explore their thoughts with their peers and with their clients, for 00:02:37.850 --> 00:02:39.690 example, or their peers, their, their 00:02:40.245 --> 00:02:40.905 VictoriaM: partners. 00:02:41.190 --> 00:02:41.860 Steve Horstkamp: their brokers. 00:02:42.160 --> 00:02:43.370 VictoriaM: important, so it's really cool. 00:02:43.620 --> 00:02:48.020 So Steve, let's talk a little bit about you and your role at Marsh. 00:02:48.100 --> 00:02:50.190 What do you do within Marsh and the chemical 00:02:50.236 --> 00:02:50.870 Steve Horstkamp: chemical practice? 00:02:50.870 --> 00:02:53.140 So, I lead the chemical practice, as you said. 00:02:53.520 --> 00:02:55.980 chemical risks are unique and they're different from others. 00:02:55.980 --> 00:03:00.860 And so our industry organization makes sure that we have specialists that 00:03:01.010 --> 00:03:07.030 can help companies assess either their financial risks, their operational risks, 00:03:07.320 --> 00:03:11.660 their legal risks and their reputational risks and help to lay those out to make 00:03:11.660 --> 00:03:15.850 sure that, leaders and boards of directors are aware of what they're facing and 00:03:15.850 --> 00:03:17.270 steps that they can do to mitigate. 00:03:17.535 --> 00:03:18.475 Those kinds of risks. 00:03:18.507 --> 00:03:21.597 VictoriaM: What are the key trends and drivers that chemical 00:03:21.597 --> 00:03:23.247 companies are facing today? 00:03:23.342 --> 00:03:26.097 Steve Horstkamp: Some of the key trends, we, we can't include all of them here, 00:03:26.097 --> 00:03:31.217 but certainly the macroeconomic conditions that are causing companies to reevaluate 00:03:31.217 --> 00:03:33.377 their portfolios in a strategic way. 00:03:33.987 --> 00:03:38.127 Digital transformation, cyber risks that are, that are starting to crop up. 00:03:38.227 --> 00:03:39.457 and becoming evident. 00:03:40.047 --> 00:03:41.757 There's talent, right? 00:03:41.827 --> 00:03:46.627 Talent is always top of mind for chemical industry and, uh, you 00:03:46.627 --> 00:03:48.087 know, rail is another big issue. 00:03:48.087 --> 00:03:51.037 Shipping, supply chain, as, as you've said, right? 00:03:51.347 --> 00:03:51.977 The decade of 00:03:52.422 --> 00:03:54.302 VictoriaM: is the decade of supply chain, absolutely. 00:03:54.567 --> 00:03:57.717 Steve Horstkamp: That's also a big risk and, and we're seeing it from, the port 00:03:57.717 --> 00:04:03.607 strike that was just averted, seemingly averted today, to, um, shipments by 00:04:03.617 --> 00:04:07.917 rail of clients that, Really are being asked to carry a lot more liability 00:04:07.917 --> 00:04:09.147 than they have been in the past. 00:04:09.672 --> 00:04:10.032 VictoriaM: Yeah. 00:04:10.212 --> 00:04:11.772 Companies are facing a lot of different things. 00:04:12.022 --> 00:04:16.332 I am speaking with Susan Gonzalez, who is the managing director for 00:04:16.332 --> 00:04:21.822 Marsh based here in Houston and one of the leaders of the North American 00:04:21.832 --> 00:04:23.282 summit that we're here at today. 00:04:23.302 --> 00:04:25.412 So super great 00:04:25.792 --> 00:04:27.192 Susan: conversations that have been taking 00:04:27.202 --> 00:04:27.882 VictoriaM: place already 00:04:27.892 --> 00:04:28.062 Susan: this 00:04:28.282 --> 00:04:29.062 VictoriaM: past day. 00:04:29.072 --> 00:04:34.402 And Susan brings a lot of energy and leadership to the energy practice. 00:04:35.347 --> 00:04:37.167 So, Susan, really excited to speak with 00:04:37.172 --> 00:04:37.342 Susan: with you. 00:04:37.672 --> 00:04:38.301 for having 00:04:38.357 --> 00:04:38.947 VictoriaM: Absolutely. 00:04:39.107 --> 00:04:41.227 So, let's just start with a little bit about you. 00:04:41.227 --> 00:04:43.527 Can you just tell us a little bit about you and what you do at Marsh? 00:04:43.997 --> 00:04:44.377 Sure. 00:04:44.762 --> 00:04:46.132 Susan: So the easy part 00:04:46.147 --> 00:04:47.025 VictoriaM: is I'm a 00:04:47.062 --> 00:04:50.572 Susan: the Houston office and I'm also the leader for the energy 00:04:50.572 --> 00:04:52.872 practice leading the property and 00:04:52.937 --> 00:04:53.027 VictoriaM: casualty 00:04:53.027 --> 00:04:54.064 brokers as as 00:04:54.202 --> 00:04:55.482 Susan: as well as the service team. 00:04:55.642 --> 00:04:59.097 VictoriaM: tell us maybe a little bit more about what Marsh does. 00:04:59.152 --> 00:05:00.032 in this space, because, 00:05:00.156 --> 00:05:03.166 we haven't really talked yet about, you know, who is Marsh and what is your 00:05:03.166 --> 00:05:06.396 role with energy and power companies? 00:05:06.396 --> 00:05:13.819 So, Marsh really works as an insurance and risk space, as an advisor to companies. 00:05:13.819 --> 00:05:14.376 And, you know, 00:05:14.376 --> 00:05:16.406 Susan: the nuts and bolts of it really comes in the transactional 00:05:16.416 --> 00:05:17.446 piece of it, where we're 00:05:17.683 --> 00:05:18.066 VictoriaM: it, 00:05:18.356 --> 00:05:22.236 Susan: their insurance, that they need for, whether it's property, casualty, 00:05:22.356 --> 00:05:25.276 financial lines, environmental, all the different things, that's 00:05:25.276 --> 00:05:26.366 really the nuts and bolts of it. 00:05:26.466 --> 00:05:27.786 Cause you have to have a policy. 00:05:27.786 --> 00:05:30.956 You have to have your contracts, you know, things like that. 00:05:30.956 --> 00:05:34.846 But also we want to be a consultant to our clients to make sure that they 00:05:34.846 --> 00:05:36.686 understand like what's on the forefront. 00:05:36.936 --> 00:05:40.126 We want to understand their business really well to see like how they want 00:05:40.126 --> 00:05:43.296 their business to evolve and that we're preparing for their risks that could 00:05:43.306 --> 00:05:47.406 be associated with that so that they're not getting to that final transaction. 00:05:47.566 --> 00:05:50.346 If they're making an acquisition, for example, and then saying, 00:05:50.406 --> 00:05:53.336 Oh my goodness, we need this kind of things to be compliant. 00:05:53.646 --> 00:05:57.021 VictoriaM: and I think one of the challenges, of course, as a business 00:05:57.021 --> 00:06:01.841 leader is figuring out where to apply limited resources because every 00:06:01.841 --> 00:06:05.541 company and every leader ultimately has limited resources to figure 00:06:05.541 --> 00:06:07.281 out what those priority areas are. 00:06:07.616 --> 00:06:11.426 And you guys have hit on a lot of priority areas, right? 00:06:11.426 --> 00:06:14.506 And so I think that's also maybe just the opportunity and the challenge. 00:06:15.176 --> 00:06:20.321 Is that an area that Your team helps with as well in terms of prioritizing 00:06:20.331 --> 00:06:24.291 where maybe some bigger or lesser risks are and how to What approaches need to 00:06:24.291 --> 00:06:26.901 be taken today versus a year from now? 00:06:26.914 --> 00:06:30.384 Susan: Yes, and I'd say that, like, some of the life lessons that were 00:06:30.384 --> 00:06:34.074 learned from the conference this week is, there's a lot to be learned from 00:06:34.184 --> 00:06:34.704 VictoriaM: collaboration. 00:06:35.374 --> 00:06:37.134 Susan: And where we do the best 00:06:37.444 --> 00:06:37.884 VictoriaM: Marsh, 00:06:38.064 --> 00:06:41.504 Susan: engaging with our clients is where they allow us to have influence 00:06:41.534 --> 00:06:45.434 over the multiple departments that you may need to to collaborate 00:06:45.434 --> 00:06:46.884 together to come up with solutions. 00:06:46.914 --> 00:06:50.784 for example Rob Lee mentioned that you can't just have your IT Department, 00:06:50.794 --> 00:06:53.884 he's really working on systems, maybe Administrative things versus your, the 00:06:53.884 --> 00:06:55.764 operational side of the technology. 00:06:56.194 --> 00:06:58.934 Those divisions have to talk to each other, We can get. 00:06:59.234 --> 00:07:02.654 The finance groups and the legal groups to integrate and talk to 00:07:02.654 --> 00:07:06.354 each other when, you know, that risk manager or that organization really 00:07:06.354 --> 00:07:09.294 allows us to help speak each other's language and connect the dots. 00:07:10.101 --> 00:07:12.051 VictoriaM: Hi, I am with Milan Taylor, 00:07:12.071 --> 00:07:12.531 who is 00:07:12.531 --> 00:07:13.881 the global head of energy and 00:07:13.881 --> 00:07:14.981 Chemicals from Mercer. 00:07:15.381 --> 00:07:17.451 Milan led a really great 00:07:17.451 --> 00:07:17.981 Panel. 00:07:18.031 --> 00:07:23.731 earlier today, talking about talent and more across the energy and chemical 00:07:23.731 --> 00:07:24.171 industries. 00:07:24.511 --> 00:07:25.886 Milan, thanks for joining me today. 00:07:26.216 --> 00:07:28.096 Milan: Thank you for taking the time to invite me onto your 00:07:28.096 --> 00:07:28.406 show. 00:07:28.686 --> 00:07:34.786 VictoriaM: So tell us a little bit about yourself and Mercer. 00:07:35.079 --> 00:07:38.339 Milan: So Mercer is, a very large, uh, people risk 00:07:38.389 --> 00:07:39.909 Consulting uh, firm. 00:07:39.949 --> 00:07:40.419 and 00:07:40.839 --> 00:07:42.719 My role as the global energy and chemicals 00:07:42.719 --> 00:07:47.099 Leader is to work with our colleagues and our clients to resolve for some of the 00:07:47.099 --> 00:07:49.239 most complex issues as businesses transform. 00:07:49.594 --> 00:07:50.534 Yeah, Awesome. 00:07:50.704 --> 00:07:53.444 And I know that you've recently done a survey 00:07:53.694 --> 00:07:56.774 of global HR leaders, talking about what the 00:07:57.094 --> 00:07:59.284 enterprise challenges are for 2025. 00:07:59.304 --> 00:08:00.164 Can you talk about that? 00:08:00.164 --> 00:08:00.629 Yeah. 00:08:00.629 --> 00:08:01.264 we spoke 00:08:01.264 --> 00:08:05.824 to 25 senior HR leaders across the energy and chemical industry and 00:08:05.824 --> 00:08:07.844 said as a look to 2025, what are 00:08:07.844 --> 00:08:09.174 those key enterprise challenges? 00:08:09.514 --> 00:08:10.374 number one, 00:08:10.804 --> 00:08:11.424 it's all about 00:08:11.424 --> 00:08:12.144 cost management. 00:08:12.154 --> 00:08:15.034 So, not a surprise, I think, from the chemical industry perspective. 00:08:15.034 --> 00:08:16.524 So it's about optimization. 00:08:16.754 --> 00:08:18.634 it's about ensuring that the dollars are spent well. 00:08:18.974 --> 00:08:20.414 So, key focus, , there. 00:08:20.434 --> 00:08:23.004 at The same breath, it was and we need to grow as 00:08:23.004 --> 00:08:23.204 well. 00:08:23.204 --> 00:08:23.444 right? 00:08:23.444 --> 00:08:23.724 So, 00:08:23.924 --> 00:08:24.438 VictoriaM: So, so 00:08:24.544 --> 00:08:25.904 Milan: side of the same coin, so 00:08:26.204 --> 00:08:28.244 focus on cost management, focus on growth. 00:08:28.794 --> 00:08:30.754 And then the third key priority for the year is all 00:08:30.754 --> 00:08:31.814 about simplification. 00:08:32.014 --> 00:08:33.724 So I think that's a tacit recognition. 00:08:34.034 --> 00:08:37.204 the processes are over engineered, over complicated. 00:08:37.204 --> 00:08:40.174 And so it's about going back to your roots, of keeping it simple, 00:08:40.174 --> 00:08:41.354 but delivering safely. 00:08:41.394 --> 00:08:43.994 so a pretty big enterprise agenda for the year. 00:08:44.104 --> 00:08:46.634 VictoriaM: So Milan, those seem like three priorities that 00:08:46.634 --> 00:08:48.274 maybe work against each other. 00:08:48.574 --> 00:08:49.124 Is that true? 00:08:49.264 --> 00:08:49.774 Or how do you. 00:08:49.774 --> 00:08:51.564 see those working together? 00:08:51.854 --> 00:08:53.474 Milan: look, I think that the chemical industry 00:08:53.494 --> 00:08:56.914 is, it's all about, you know, coming out of its down cycle. 00:08:56.934 --> 00:09:00.004 it's all about ensuring that current shareholders and stakeholders 00:09:00.044 --> 00:09:04.894 are rewarded, and it's about ensuring that the businesses 00:09:04.894 --> 00:09:06.084 as they transform themselves. 00:09:06.389 --> 00:09:08.649 Have that sustainability to deliver. 00:09:08.649 --> 00:09:11.609 So I guess that the cost management is about delivering today. 00:09:11.789 --> 00:09:13.159 The Growth is about delivery today. 00:09:13.319 --> 00:09:16.329 And Simplification is making sure that they can deliver 00:09:16.359 --> 00:09:17.329 in the coming years as well. 00:09:17.329 --> 00:09:20.019 So I see them as pretty complementary themes. 00:09:20.019 --> 00:09:21.549 VictoriaM: and how do you see people tackling that? 00:09:21.559 --> 00:09:24.979 Like if you think about recommendations that you and Mercer are bringing to the 00:09:24.979 --> 00:09:26.079 table with your clients. 00:09:26.599 --> 00:09:29.169 What does simplification mean in this environment? 00:09:29.228 --> 00:09:32.714 Milan: you look through the lens of people, this expresses 00:09:32.724 --> 00:09:32.974 itself 00:09:32.974 --> 00:09:33.734 through talent. 00:09:34.124 --> 00:09:35.994 And I think the simplification side is 00:09:36.274 --> 00:09:38.254 Let's look at, our, the way we hire people, right? 00:09:38.254 --> 00:09:39.084 Are there ways that we 00:09:39.084 --> 00:09:40.384 can cut out duplicative? 00:09:40.549 --> 00:09:41.389 Processes of their 00:09:41.389 --> 00:09:44.319 ways we can ensure that we have more quickly, so we can deliver 00:09:44.529 --> 00:09:46.299 more effective into organizations. 00:09:46.819 --> 00:09:50.329 It's looking at taking on a I can we actually adopt a I and 00:09:50.329 --> 00:09:53.359 can that augment what we're trying to do is an organization. 00:09:53.709 --> 00:09:57.409 So there's a whole, scale review of how businesses operate 00:09:57.419 --> 00:09:58.819 through the lens of people risk. 00:09:59.029 --> 00:10:02.759 So, those are just some of the things that organizations are thinking about in 25. 00:10:02.873 --> 00:10:05.793 VictoriaM: Hi, I am here with Amy Barnes, who is the Head of Climate 00:10:05.793 --> 00:10:09.993 and Sustainability for MARSH Globally, and she's leading some really engaging 00:10:09.993 --> 00:10:14.963 discussions here at the symposium on climate and climate adaptation and 00:10:15.183 --> 00:10:17.713 probably a few other things, so we're going to be talking about that today. 00:10:18.013 --> 00:10:19.093 Amy, thanks for joining me. 00:10:19.317 --> 00:10:20.038 Amy: Delighted to be here. 00:10:20.038 --> 00:10:23.075 VictoriaM: So let's talk a little bit about Adaptation. 00:10:23.085 --> 00:10:25.925 Because I know that's a big topic of conversation this week. 00:10:26.435 --> 00:10:29.085 What does that mean, exactly? 00:10:29.085 --> 00:10:30.335 And what are you guys doing about it? 00:10:30.450 --> 00:10:31.100 Amy: Okay, well, 00:10:31.725 --> 00:10:32.155 VictoriaM: to say to 00:10:32.160 --> 00:10:35.140 Amy: everybody that this week we're in the middle of the Palisade Fire in 00:10:35.465 --> 00:10:35.875 VictoriaM: in California. 00:10:36.700 --> 00:10:37.180 Amy: Absolutely. 00:10:37.260 --> 00:10:38.280 Devastating event. 00:10:38.280 --> 00:10:40.290 Devastating for so many people personally. 00:10:40.290 --> 00:10:43.450 And if you listen to any of the newscasters or the politicians who 00:10:43.450 --> 00:10:46.670 are speaking, they are saying that this is an unprecedented event. 00:10:47.140 --> 00:10:50.520 And that is what we're thinking about when we think about climate adaptation. 00:10:50.790 --> 00:10:53.480 We are thinking about changes in extreme weather. 00:10:53.865 --> 00:10:54.535 It can be 00:10:54.703 --> 00:10:55.273 VictoriaM: Torrential 00:10:55.588 --> 00:10:58.018 Amy: that gives rise to more extreme flooding than we've seen 00:10:58.083 --> 00:10:58.923 VictoriaM: than we've seen before. 00:10:58.928 --> 00:10:59.148 Amy: before. 00:10:59.178 --> 00:11:00.008 It can be the droughts. 00:11:00.008 --> 00:11:03.238 If we think back to 2021, we saw the droughts in the Mississippi River 00:11:03.238 --> 00:11:04.918 and cargo not able to leave the U. 00:11:04.918 --> 00:11:05.188 S. 00:11:05.848 --> 00:11:07.078 because of a lack of water. 00:11:07.498 --> 00:11:11.312 It can be Milton Helene coming further inland than we've ever seen before 00:11:11.332 --> 00:11:14.992 and areas who haven't been exposed to hurricane force winds before. 00:11:15.302 --> 00:11:19.702 So, how are organizations adapting to changes in extreme weather? 00:11:20.377 --> 00:11:20.537 VictoriaM: and 00:11:20.607 --> 00:11:23.237 Amy: and making sure that their organizations are resilient and 00:11:23.237 --> 00:11:24.727 can thrive in those environments. 00:11:24.787 --> 00:11:25.147 VictoriaM: Yeah. 00:11:25.387 --> 00:11:28.147 And how does Marsh play into this then? 00:11:28.236 --> 00:11:31.516 Amy: the most obvious place that we start is thinking about physical assets. 00:11:31.516 --> 00:11:32.306 We're probably known 00:11:32.346 --> 00:11:34.476 VictoriaM: best for inuring people's property. 00:11:34.476 --> 00:11:35.196 So that physical 00:11:35.206 --> 00:11:35.766 Amy: asset damage. 00:11:35.856 --> 00:11:36.186 VictoriaM: And that's 00:11:36.206 --> 00:11:38.526 Amy: what a lot of people do when they think about climate change. 00:11:38.526 --> 00:11:40.476 They think about how is my asset going 00:11:40.476 --> 00:11:41.886 VictoriaM: to be impacted? 00:11:42.036 --> 00:11:43.356 Am I gonna be more susceptible to 00:11:43.646 --> 00:11:45.006 Amy: Do I need to worry about wind? 00:11:45.906 --> 00:11:47.046 VictoriaM: But we're expanding that 00:11:47.046 --> 00:11:47.636 Amy: conversation. 00:11:47.636 --> 00:11:50.466 We say we even within your site, there's more that you need to think about. 00:11:50.466 --> 00:11:52.676 You need to think about your asset and how you protect that. 00:11:52.886 --> 00:11:55.656 You really need to think about your people because people 00:11:55.656 --> 00:11:56.796 are exposed to climate change. 00:11:56.806 --> 00:11:57.906 Now there's more risk. 00:11:58.336 --> 00:12:00.066 There's risk on site and there's risk at home. 00:12:00.086 --> 00:12:04.256 So if I give credit to one of the US construction companies, Turner 00:12:04.256 --> 00:12:07.266 Construction, they did a really interesting piece of research last 00:12:07.266 --> 00:12:10.446 year, looking at their employees during a heat stress event. 00:12:10.886 --> 00:12:13.166 And they found that their employees were consistently 00:12:13.166 --> 00:12:14.666 turning up to work dehydrated. 00:12:14.936 --> 00:12:15.306 Now when you're 00:12:15.321 --> 00:12:16.041 VictoriaM: dehydrated, 00:12:16.396 --> 00:12:19.086 Amy: Your judgement is in pairs and you start to make mistakes. 00:12:19.161 --> 00:12:19.341 VictoriaM: Yeah. 00:12:19.671 --> 00:12:23.361 And starting the day that way, starting outweighing on a back foot is can't free. 00:12:23.361 --> 00:12:23.691 Good. 00:12:23.836 --> 00:12:25.446 Amy: more, more forklift trucks crash. 00:12:25.576 --> 00:12:25.736 You 00:12:25.761 --> 00:12:26.001 VictoriaM: have 00:12:26.276 --> 00:12:27.796 Amy: incidents and accidents because of that. 00:12:27.796 --> 00:12:30.876 So they can have small interventions like putting up hydration stations 00:12:30.906 --> 00:12:33.956 as soon as people get into the office and say, it's hot out there, 00:12:33.966 --> 00:12:35.266 have a drink before you start work. 00:12:35.316 --> 00:12:37.086 Really small, low cost interventions. 00:12:37.096 --> 00:12:39.106 So thinking about the people within your footprint as 00:12:39.301 --> 00:12:39.771 VictoriaM: Yeah. 00:12:40.081 --> 00:12:40.671 But we also need to 00:12:40.706 --> 00:12:42.006 Amy: think about emergency response. 00:12:42.701 --> 00:12:46.781 does happen in extreme weather, can you do the things that you thought you could do? 00:12:46.781 --> 00:12:47.041 VictoriaM: do? 00:12:47.421 --> 00:12:50.861 Amy: I referred to the Palisades fire earlier and we're already seeing they 00:12:50.881 --> 00:12:52.551 don't have water where they need it. 00:12:52.678 --> 00:12:52.848 VictoriaM: And 00:12:52.848 --> 00:12:55.048 Amy: so can we still respond to an event? 00:12:55.428 --> 00:12:58.898 You could have a fire, doesn't need to be a fire caused by a wildfire. 00:12:58.898 --> 00:13:02.478 You could have an ordinary explosion at a site, but in a drought scenario, 00:13:02.478 --> 00:13:03.808 will you still have access to water 00:13:03.848 --> 00:13:05.078 VictoriaM: Yeah, yeah. 00:13:05.188 --> 00:13:07.718 Amy: so we help clients think about all those things within their footprint, but. 00:13:07.948 --> 00:13:09.048 VictoriaM: But, more. 00:13:09.178 --> 00:13:09.428 Yeah. 00:13:09.778 --> 00:13:13.478 Amy: Assets don't operate in isolation, they operate within a wider system. 00:13:14.168 --> 00:13:18.628 So, how are companies thinking about their vulnerabilities to exposures in the supply 00:13:18.658 --> 00:13:18.808 VictoriaM: chain? 00:13:19.231 --> 00:13:22.761 Amy: So in the supply chain, the food and beverage industry are really thinking 00:13:22.761 --> 00:13:26.911 very deeply about this already because anyone in agriculture is very weather 00:13:26.911 --> 00:13:31.261 exposed and people who particularly like chocolate who podcast, last 00:13:31.261 --> 00:13:32.831 year was a really bad year for cocoa 00:13:32.951 --> 00:13:33.891 VictoriaM: I've heard that. 00:13:34.381 --> 00:13:37.501 And so recently, like recently, I'm like, what the heck? 00:13:37.501 --> 00:13:38.251 I need my chocolate. 00:13:38.381 --> 00:13:38.751 Exactly. 00:13:38.751 --> 00:13:39.968 And it's harder 00:13:40.091 --> 00:13:42.571 Amy: find, and it's certainly the prices are going up. 00:13:42.741 --> 00:13:43.961 Chocolate isn't hard to find, relax. 00:13:44.181 --> 00:13:44.761 VictoriaM: but, and so 00:13:44.761 --> 00:13:46.401 Amy: how are you thinking about those climate vulnerabilities? 00:13:46.401 --> 00:13:48.901 And some of the works that we've done with, uh, with clients in that 00:13:48.931 --> 00:13:52.511 industry are saying, will we still be able to say made with a hundred 00:13:52.511 --> 00:13:55.051 percent Italian Durham wheat or made with a hundred percent Italian 00:13:55.051 --> 00:13:57.061 tomatoes because the changing climate. 00:13:57.421 --> 00:13:59.831 And there was a client in Florida. 00:14:00.216 --> 00:14:03.696 Don't ask me for a date some years ago and part of their USP is it 00:14:03.696 --> 00:14:05.166 made from 100 percent Florida orange 00:14:05.166 --> 00:14:05.416 VictoriaM: juice. 00:14:06.106 --> 00:14:07.676 Amy: That year there weren't Florida oranges. 00:14:07.676 --> 00:14:08.826 They had to go to Mexico. 00:14:09.046 --> 00:14:10.476 The whole branding strategy has changed. 00:14:10.476 --> 00:14:12.266 So supply chain is one thing. 00:14:12.276 --> 00:14:14.696 If we think about infrastructure in the intro, I talked 00:14:14.706 --> 00:14:16.183 about the Mississippi River. 00:14:16.253 --> 00:14:16.593 VictoriaM: Yeah. 00:14:16.988 --> 00:14:21.958 Um, Panama Canal was a big issue last year with a lack of water and lack of rain. 00:14:22.108 --> 00:14:22.288 Hang on, 00:14:22.338 --> 00:14:24.398 Amy: Hang on, you're not a climate expert and you're telling 00:14:24.398 --> 00:14:25.318 me about all these climate 00:14:25.398 --> 00:14:27.112 VictoriaM: do know chemicals and shipping, but yeah. 00:14:27.112 --> 00:14:29.131 No, but that's my point. 00:14:29.131 --> 00:14:30.747 It's affecting everyone everywhere. 00:14:30.748 --> 00:14:30.908 But 00:14:31.158 --> 00:14:33.398 Amy: How are your, what dependencies do you have on infrastructure? 00:14:33.598 --> 00:14:36.558 So we've got the shipping industries and the connectivity. 00:14:37.088 --> 00:14:38.218 We've also got power. 00:14:38.478 --> 00:14:39.148 Could your power 00:14:39.168 --> 00:14:39.338 VictoriaM: supply be 00:14:39.508 --> 00:14:41.138 Amy: be disrupted because of climate change? 00:14:41.263 --> 00:14:41.715 VictoriaM: And 00:14:41.828 --> 00:14:42.848 Amy: And then there's water. 00:14:43.448 --> 00:14:46.068 Every industry on the planet uses water for manufacturing and 00:14:46.068 --> 00:14:47.328 especially chemical industries. 00:14:47.868 --> 00:14:50.088 So one of the things when we think about water scarcity, we 00:14:50.088 --> 00:14:51.328 often think about the farmers. 00:14:51.516 --> 00:14:51.776 VictoriaM: But, 00:14:51.891 --> 00:14:55.651 Amy: did you know that in Taiwan, for the past three years, the government have been 00:14:55.651 --> 00:14:59.231 paying farmers not to plant rice so they have enough water to make semiconductors? 00:14:59.591 --> 00:15:02.721 Now, I don't think many people are realizing that our high tech 00:15:02.721 --> 00:15:07.731 industries have got these extreme water dependencies that we're not factoring in. 00:15:07.991 --> 00:15:10.341 So we're helping clients to understand, and there are more 00:15:10.341 --> 00:15:11.771 factors in the ecosystem as well. 00:15:11.811 --> 00:15:14.591 So the work that we're doing, and I work with loads of really 00:15:14.591 --> 00:15:15.481 good colleagues in the U. 00:15:15.481 --> 00:15:15.781 S., 00:15:16.061 --> 00:15:19.671 who help our clients to understand, first of all, their risk, because 00:15:19.671 --> 00:15:20.951 insurance is just one risk treatment. 00:15:20.961 --> 00:15:24.221 The first thing we need to do is understand the risks so we can measure it. 00:15:24.461 --> 00:15:26.761 We can make interventions, we can reduce our risk, 00:15:26.991 --> 00:15:27.591 VictoriaM: and then insurance 00:15:27.631 --> 00:15:29.311 Amy: becomes the next form of intervention. 00:15:29.531 --> 00:15:29.761 VictoriaM: Yeah. 00:15:30.101 --> 00:15:30.571 Makes sense. 00:15:30.951 --> 00:15:35.701 Alright, so I am here with Randall who is the SVP of the Emerging Risk 00:15:35.701 --> 00:15:38.791 Groups in Charlotte and, Randall and I have having really great 00:15:38.896 --> 00:15:40.326 B: conversation about some 00:15:40.401 --> 00:15:43.441 A: the emerging risks and how, frankly, the 00:15:43.446 --> 00:15:45.686 B: unexpected things that become risks, right? 00:15:45.686 --> 00:15:47.236 Which I guess is the whole point of it being emerging. 00:15:47.316 --> 00:15:49.586 A: to be talking a little bit about that 00:15:49.606 --> 00:15:49.906 B: and more. 00:15:49.906 --> 00:15:51.333 So, Randall, thanks for joining me. 00:15:51.333 --> 00:15:53.939 VictoriaM: So we're going focus in a little bit on supply chain, 00:15:53.949 --> 00:15:56.819 but before we do, emerging risk. 00:15:57.024 --> 00:15:58.784 That be a bit of everything. 00:15:58.804 --> 00:15:59.394 So what is that? 00:15:59.654 --> 00:16:00.934 falls into that category? 00:16:00.934 --> 00:16:03.114 Yeah, I think about emerging risks. 00:16:03.114 --> 00:16:05.472 There's maybe two categories two ways of 00:16:05.472 --> 00:16:06.276 A: thinking about it. 00:16:06.392 --> 00:16:09.742 Randall: One, we think about things that are really net new.? 00:16:10.334 --> 00:16:10.994 That AI 00:16:11.114 --> 00:16:11.414 starting 00:16:11.482 --> 00:16:12.595 A: AI is starting 00:16:12.614 --> 00:16:13.184 B: ai. 00:16:13.337 --> 00:16:13.708 A: this. 00:16:13.708 --> 00:16:14.079 Yeah. 00:16:14.174 --> 00:16:15.974 B: an emerging risk for everyone. 00:16:16.184 --> 00:16:16.514 Then there are 00:16:16.554 --> 00:16:18.664 A: other things, climate change, cyclone risk, 00:16:18.734 --> 00:16:23.114 B: geopolitical risk, that are maybe not necessarily net new, but are emerging 00:16:23.114 --> 00:16:26.804 in the sense that they're dynamic in the way that are impacting organizations, 00:16:27.174 --> 00:16:28.704 is evolving rapidly, right? 00:16:28.704 --> 00:16:31.794 And so we think of them in that category of emerging risk and needing 00:16:31.794 --> 00:16:35.274 different treatment than maybe more traditional risks like, you know, 00:16:35.274 --> 00:16:39.019 pure, like natural catastrophe issues that are kind of known and understood. 00:16:39.529 --> 00:16:39.909 VictoriaM: makes sense. 00:16:39.909 --> 00:16:40.559 That's interesting. 00:16:40.709 --> 00:16:42.509 So, Steve, I've been asking your colleagues, and I'm going 00:16:42.509 --> 00:16:43.819 to ask you the same question. 00:16:44.089 --> 00:16:47.999 You know, if there was one place, one action that chemical leaders should 00:16:47.999 --> 00:16:51.059 take as we start 2025, what would that 00:16:51.079 --> 00:16:51.259 Steve Horstkamp: be? 00:16:51.402 --> 00:16:52.212 There's so many. 00:16:52.312 --> 00:16:55.692 And I think to summarize what I'm thinking about the chemical leaders 00:16:55.692 --> 00:16:59.882 should do is don't let 2025 stand in the way of your next five years. 00:16:59.902 --> 00:17:00.392 Because the 00:17:00.442 --> 00:17:01.382 VictoriaM: planning that has to be 00:17:01.382 --> 00:17:06.262 Steve Horstkamp: done now to continue to evolve and continue to respond 00:17:06.262 --> 00:17:09.292 to the different conditions that are there is going to be hard. 00:17:09.665 --> 00:17:13.115 2025, of course, there, there's going to be pressure to perform 00:17:13.115 --> 00:17:14.475 as always and every year. 00:17:14.765 --> 00:17:17.615 But don't let that stop you from looking to the future. 00:17:17.616 --> 00:17:20.699 VictoriaM: And so, you know, if you were, meeting with a chemical 00:17:20.699 --> 00:17:24.869 industry leader tomorrow, which maybe you will be, what's the advice? 00:17:24.969 --> 00:17:28.909 that you would give them as they sit here at the beginning of 2025 when 00:17:28.909 --> 00:17:33.256 they're thinking about their business and their risks and their risk portfolio? 00:17:33.336 --> 00:17:33.476 I 00:17:33.476 --> 00:17:38.396 Susan: think every CEO, CFO has on their mind - How are we going to grow? 00:17:39.516 --> 00:17:39.996 Everybody. 00:17:40.382 --> 00:17:41.022 including me. 00:17:42.052 --> 00:17:44.847 How are we going to find talent and take care of the talent that we have. 00:17:44.929 --> 00:17:47.299 And, What's on the horizon. 00:17:47.649 --> 00:17:51.999 So, I would say, if I was sitting with one right now, it's like, what's keeping you 00:17:51.999 --> 00:17:56.929 up at night in those three categories, and there's different ways that MMC, not just 00:17:56.929 --> 00:18:00.929 Marsh, but Marsh is within the umbrella of MMC, there's different ways that we can 00:18:00.929 --> 00:18:04.659 approach that and help them analyze it, help them figure out what the solutions 00:18:04.659 --> 00:18:08.969 are, the pros and cons to those different solutions, and prepare them, not just for 00:18:08.969 --> 00:18:11.306 the moment, but again, for the future. 00:18:11.306 --> 00:18:15.767 VictoriaM: If you were going to advise a business leader to do one 00:18:15.787 --> 00:18:20.327 thing related to their people in 2025, what would it 00:18:20.327 --> 00:18:20.537 be? 00:18:21.192 --> 00:18:23.612 Milan: So organizations need to have a really effective 00:18:23.632 --> 00:18:25.122 employee value proposition. 00:18:25.412 --> 00:18:27.022 Why work for the organization? 00:18:27.372 --> 00:18:28.412 For that C suite, 00:18:28.652 --> 00:18:34.052 I would say ensure that the say and the do, are aligned because Younger employees 00:18:34.052 --> 00:18:38.072 walking in, being sold on a promise that isn't delivered, will be walking right out 00:18:38.072 --> 00:18:38.512 your door. 00:18:38.617 --> 00:18:42.877 VictoriaM: If you were advising a chemical executive on, you know, sitting here 00:18:42.877 --> 00:18:47.337 today or tomorrow when you go back to your day job, What's one thing they can 00:18:47.337 --> 00:18:52.927 be doing and should be doing or thinking about here in 2025 as it relates to 00:18:52.967 --> 00:18:55.537 energy, energy transition risk, etc. 00:18:55.537 --> 00:18:56.847 Yeah, I think, 00:18:56.947 --> 00:18:56.948 Mike C.: 00:18:56.947 --> 00:19:00.097 one, I always say, it always depends on who we're talking 00:19:00.097 --> 00:19:01.217 to and what their issues are. 00:19:01.267 --> 00:19:03.687 Every single one of our clients presents different issues. 00:19:03.687 --> 00:19:07.387 But at a high level, you know, for the chemical industry, I would say 00:19:07.417 --> 00:19:09.717 probably one of the most important things that they could be doing, 00:19:09.787 --> 00:19:13.007 particularly executives, is exactly what Peter Huntsman did yesterday. 00:19:13.467 --> 00:19:13.997 We have to. 00:19:14.172 --> 00:19:18.562 to be communicating across multi, multi, in a multi dimensional fashion. 00:19:18.572 --> 00:19:21.952 It is not enough to stay in the chemical industry bubble and 00:19:21.952 --> 00:19:23.262 just talk about these things. 00:19:23.662 --> 00:19:28.642 What Huntsman did yesterday was tell a bunch of traditional energy, including 00:19:28.742 --> 00:19:32.022 companies that are making their living building solar and wind and creating 00:19:32.022 --> 00:19:35.702 problems ultimately for him, He said what he said, and he got that word out. 00:19:35.702 --> 00:19:39.542 And I think the more, the more that executives, um, in what I'll say is 00:19:39.572 --> 00:19:42.602 energy adjacent industries, appreciate the complexity of the situation, 00:19:43.157 --> 00:19:43.337 VictoriaM: the 00:19:43.632 --> 00:19:43.633 Mike C.: 00:19:43.632 --> 00:19:47.362 informed we'll be when we tell policy makers what it is we're looking for, 00:19:47.602 --> 00:19:50.082 VictoriaM: So if there was one thing, and there's a lot of things that you 00:19:50.082 --> 00:19:53.502 covered here, um, if there was one thing that you recommend to business leaders 00:19:53.502 --> 00:19:58.992 that you work with to do as it relates to climate in 2025, what would it be? 00:19:59.062 --> 00:19:59.692 Where would they start? 00:20:00.417 --> 00:20:04.397 Amy: So if I think about what good looks like for me personally in my career, 00:20:04.697 --> 00:20:08.327 good for me personally, my career means making sure my boss never has a surprise. 00:20:09.547 --> 00:20:12.347 And so I think, make sure you don't have surprises. 00:20:12.377 --> 00:20:14.467 Do the work now to anticipate. 00:20:14.672 --> 00:20:18.242 The changes that can come, so you can start to plan for them. 00:20:18.602 --> 00:20:22.082 No business has the capex to respond to all these issues straight away. 00:20:22.082 --> 00:20:23.612 We can't make those changes straight away. 00:20:23.902 --> 00:20:26.802 But at least have in your drawer a plan that says, these are the 00:20:26.802 --> 00:20:28.012 changes that could affect us. 00:20:28.012 --> 00:20:31.312 So when you're making capex decisions, you're making capex decisions with 00:20:31.312 --> 00:20:33.982 that knowledge in the background, so you're starting to do things smartly. 00:20:33.992 --> 00:20:36.646 So I would say, get prepared, so you're in the best position. 00:20:36.647 --> 00:20:38.637 Possible position to avoid surprises. 00:20:38.793 --> 00:20:41.423 A: so Randall, for the chemical leaders listening to this, there was 00:20:41.443 --> 00:20:45.783 one thing they could do in this space of either emerging risk or supply 00:20:45.793 --> 00:20:46.913 B: chain, what would 00:20:47.113 --> 00:20:48.493 A: would they start in 2025? 00:20:48.557 --> 00:20:49.093 B: start? 00:20:49.873 --> 00:20:50.663 Again, great question. 00:20:50.663 --> 00:20:54.033 I think they've probably done a lot of horizon scanning and have a sense 00:20:54.043 --> 00:20:57.053 for what risks are out there, but it's really putting a finer point on that. 00:20:57.133 --> 00:21:01.193 And I'd say identifying those top scenarios and really pressure testing, 00:21:01.193 --> 00:21:05.323 how that could impact their business plans and using that to start to refine, 00:21:05.583 --> 00:21:09.563 the way they build their forecast and go to market and organize their, uh, 00:21:09.577 --> 00:21:11.369 A: uh, maybe build 00:21:11.739 --> 00:21:12.879 VictoriaM: Thanks for joining us today. 00:21:12.879 --> 00:21:14.589 I hope you enjoyed that episode. 00:21:15.049 --> 00:21:17.319 If this is something that really stood out for you. 00:21:17.319 --> 00:21:17.879 Two things. 00:21:17.929 --> 00:21:21.289 Number one, leave a comment, a review would really appreciate that. 00:21:21.289 --> 00:21:25.859 And secondly, share it with a colleague or friend who really needs to know more about 00:21:25.859 --> 00:21:28.249 the topics we cover on the chemical show. 00:21:28.489 --> 00:21:32.629 And as today's topic is about risk and risk management and the things 00:21:32.639 --> 00:21:34.269 that they can do in their businesses. 00:21:34.269 --> 00:21:36.239 So thank you for joining us today. 00:21:36.239 --> 00:21:39.069 Keep listening, keep following, keep sharing, and we will 00:21:39.069 --> 00:21:40.619 talk with you again soon. 00:21:42.324 --> 00:21:44.484 Thanks for joining us today on The Chemical Show. 00:21:44.824 --> 00:21:49.284 If you enjoyed this episode, be sure to subscribe, leave a review, 00:21:49.554 --> 00:21:53.114 and most importantly, share it with your friends and colleagues. 00:21:53.944 --> 00:21:56.834 For more insights, visit TheChemicalShow. 00:21:56.844 --> 00:21:59.364 com and connect with us on LinkedIn. 00:22:00.014 --> 00:22:03.964 You can find me at Victoria King Meyer on LinkedIn, and you can also 00:22:03.964 --> 00:22:05.914 find us at The Chemical Show Podcast. 00:22:06.324 --> 00:22:09.554 Join us next time for more conversations and strategies 00:22:09.814 --> 00:22:11.604 shaping the future of the industry. 00:22:11.974 --> 00:22:12.684 We'll see you soon.