Insights

Training risk managers to be conflict managers

  

Copyright Maryland GovPicsBy Wade Bond, Assistant Director of Risk Management, Office of Risk Management, The University of Alabama

I recently hired a new risk manager here at the University of Alabama. When I was writing the job description for the position, I wanted to give it a title that accurately described what my new risk manager would be doing. I settled on "Risk Control and Claims Manager," but it might have been just as accurate to name it "Conflict Manager." After all, much of what we risk managers do on a daily basis is deal with conflict. When we are not dealing with a current conflict, we are usually in some way preparing for potential future conflicts. As I train my new hire, I hope to help him master what I consider to be the most essential conflict management technique: a stoic persona. 

Not all claims turn into conflicts. Often, both parties agree on liability and the valuation of damages. As risk managers, we try to resolve claims as efficiently and fairly as possible.  But inevitably, conflicts do arise.  We are all familiar with the usual red flags. One example of such a claim: soft tissue injuries that allegedly resulted from low speed auto collisions and slip and falls that appear staged when the video evidence is reviewed. Such claims must be investigated and denied when not supported by the evidence. But, of course, conflict can also arise when everyone agrees on the facts of the case and do not agree on the valuation of damages. When these and other conflicts occur, we are wise to tap into the stoic within us. 

To master stoicism, we need to understand its historical roots. Our English word "stoic" comes from the Stoic philosophers of ancient Athens. Their ability to control and suppress their emotions is legendary and made them the political and military leaders of their great city. The Stanford Encyclopedia of Philosophy explains, "But the roots of Stoicism can be traced back even further to a philosopher named Heraclitus who insisted that being "even-minded" was the greatest virtue." And from Brooks Haxton in Heraclitus: Fragments, "In the midst of a conflict when the stakes are high and the emotions are higher, there is nothing more important than remaining even-minded." This is as true today as it was then and applies to a wide variety of professions from military leaders, to police officers to risk managers. Staying calm, cool and collected in the midst of conflict is easy to say and hard to do. The best way to accomplish it is to do what the ancient Stoics did: focus on your role. 

As I train my new risk managers to master the art of conflict management, I suggest to them that they imagine that they are actors in a theatrical performance. If you were playing Romeo, your emotions would not overcome you during the banter and swordplay. It's just a play, and you are just playing your role. Similarly, if you had the lead role in the musical "Annie," you would not be bothered by Miss Hannigan's criticisms and insults. This is the sort of internal attitude we should maintain in the heat of conflicts. We must constantly tell ourselves, "I have a role to play, and my only job is to play it well."

No matter how well I play my role and remain even-minded, it is very likely that other people involved in the conflict will let themselves be driven by their emotions. We all must expect this from people in our own organization and from people on the other side. Remind them of the facts and try to focus their attention on the resolution process. Their emotions may distract them from their role, but don't let it distract you from yours. Let bad attitudes roll off you like water off a duck's back. 

Star Wars fans will remember the advice Obi Wan Kenobi gave Luke Skywalker in preparation for his encounter with Darth Vader: "Bury your feelings deep down, Luke. They do you credit, but they could be made to serve the Emperor." The people you are facing off against may very well be good, honest people, but Obi Wan's advice still applies. Bury your feelings deep down. Grow a thick skin. It's essential for a successful resolution. 

A few years ago, I had a case that required a healthy dose of stoicism. A professor was visiting our campus from another university. She was parked in one of our parking decks, and when it came time for her to leave, she backed out of her space and into one of our university police SUVs. Our officer was on his routine patrol and was driving at an appropriate speed in a traffic lane, and the visiting professor backed into his vehicle. Liability was clear. Our police officer had the right-of-way in the traffic lane. The professor had a duty to maintain a proper lookout while backing. She failed to perform that duty and caused the collision. Unfortunately, she did not see it that way. 

For the sake of confidentiality, I will call her Dr. Carter. When I called her, she was surprised to get my call and immediately became combative and defensive. Right off the bat, she accused me of "having an attitude." I told her, "No, ma'am. I don't have an attitude. I am just doing my job and trying to find out what happened. Would you please tell me what happened from your perspective?" She did, and her account agreed with my driver's story and the facts that were documented on the police report. (A second officer had responded to the scene and filed a report.) No facts were in dispute, and she was clearly liable for our damages. I explained this to her, and she was absolutely appalled! "Why wasn't your driver equally at fault?" she nearly shouted. "Because he had the right-of-way, and because you failed to maintain a proper look-out while backing. That's the law. It's very clear in this situation," I said calmly. 

If you have handled claims for any length of time, you probably already know what comes next. At this point, Dr. Carter decided to change her story. In her new version, she was creeping out of her spot at a snail's pace, while our police officer was racing through the parking deck at light speed. She was keeping a proper look-out, she insisted, but our officer was driving recklessly. 

Knowing that my chances of convincing her were slim to none, I pivoted. "I understand how you feel, Dr. Carter, but I need to continue with the resolution process. The next step is for me to contact your insurance company. They will contact you and get your side of the story. There are several insurance companies with names that are similar to the one shown on the police report for you, and I don't know which carrier is yours. Would you mind giving me your agent's name and phone number?" Not surprisingly, she did mind. She renewed her objection to my "bad attitude," and she continued to tell me why she was not responsible for our damages.

It was a frustrating situation, but sticking with my stoic persona got me through it. I imagined myself as an actor in a TV drama (or perhaps a sitcom). With that in mind, there was nothing she could say or do that would make me lose my cool, and that was a very good thing. My reputation as a professional and even-tempered university risk manager could have been damaged if I had let myself be drawn into a shouting match with a visiting professor. "Focus on your role," I told myself, and I ended the call politely and professionally. I contacted the potential carriers until I found the right one, filed a clam and received a full recovery for our damages. 

When in a conflict, it's natural to think that the goal is to win, and in situations like the one I had with Dr. Carter, there are clear winners and losers. But for risk managers, most of the time a better goal is a fair resolution for everyone. The longer a conflict drags on, the costlier it is in time, energy and resources. We need to train our new risk managers to be good listeners and to seriously consider new information and new evidence. They should let the opposition know that they are committed to a fair outcome for everyone and try to persuade them to make it their goal, as well. 

Stoicism is one technique among many that every risk manager should keep in mind when managing conflict, but it is foundational. People new to risk management need to master it, and seasoned risk managers need to remember to practice it. It helps us gather evidence and reach fair resolutions. It also takes some of the stress out of stressful situations. 

Wade Bond is the assistant director of risk management at the University of Alabama. He has 21 years of insurance and risk management experience and has worked in the financial sector, the mining industry, the trucking industry and higher education. 

 

Previous Article | Insights Home | Next Article
0 comments
201 views