MAKING CONNECTIONS: GOVERNMENTAL AFFAIRS & THE RISK MANAGEMENT. St. Louis RIMS Chapter Meeting Greg McKenna January 9, 2019

Transcription

1 MAKING CONNECTIONS: GOVERNMENTAL AFFAIRS & THE RISK MANAGEMENT St. Louis RIMS Chapter Meeting Greg McKenna January 9, 2019

2 #ONEWORD2019

3 CHOOSING A WORD 3

4 MY WORD 4

5 MAKING CONNECTIONS 1.Governmental Affairs 2.Mid-Term Elections 3.Brexit 4.NFIP 5.Farm Bill 6.Cyber Security 7.RIMS 8.Staying Connected 5

6 GOVERNMENTAL, REGULATORY & LEGISLATIVE CHANGE: TOP RISKS 6

7 YES, BUT WHAT S THE COST OF NON-COMPLIANCE? Compliance and risk practitioners from nearly 800 financial services firms across the world, including banks, brokers, asset managers and insurers, have taken part in the ninth annual Cost of Compliance survey. 66% of firms expect the cost of senior compliance staff to increase, up from 60% in Nearly two thirds (61%) of firms expect the total compliance budget to be slightly or significantly more over the next 12 months, another increase from last year (53%). 7

8 WHAT IS THE CONNECTION BETWEEN 2016 AND 2018 ELECTIONS?

9 PERCEPTION: GEORGE WASHINGTON'S ARMCHAIR Rising Sun Armchair George Washington used a specific arm chair for nearly three months of the Federal Convention's continuous sessions. James Madison reported Benjamin Franklin saying, "I have often looked at that behind the president without being able to tell whether it was rising or setting. But now I... know that it is a rising...sun."

10 NOVEMBER TURNOUT 10

11 AN ELECTION OF FIRSTS Rep. Rashida Tlaib (D-Mich.) and Rep. Ilhan Omar (D-Minn.) will be the first Muslim women to serve in Congress. Reps. Sharice Davids (D-Kan.) and Deb Haaland (D-N.M.) will be the first Native American women in Congress. Rep. Debbie Mucarsel-Powell (D- Fla.) will be the first Ecuadorian-American and first immigrant born in South America to be sworn into Congress. New Hampshire will send its first openly gay member of Congress, Chris Pappas. A woman will represent both Arizona (Democrat Kyrsten Sinema) and Tennessee (Republican Marsha Blackburn) in the Senate for the first time. 29-year-old Alexandria Ocasio-Cortez (D-N.Y.) will become the youngest woman to serve in congressional history. 11

12 RURAL V. URBAN 12

13 2018 PROGNOSIS The House of Representatives controls Articles of Impeachment and Appropriations Bills 13

14 HOUSE 14

15 SENATE 15

16 HOW IS BREXIT CONNECTED TO OUR CURRENT GOVERNMENT SHUTDOWN? 16

17 BREXIT June 23, 2016 vote: 51.9% to 48.1% U.K. v. 28 European Countries (Single Market) March 29, 2017 Triggered 2 Year Exit Immigration, Tariffs, Citizenry 17

18 BREXIT RISKS 18

19 BREXIT AND NATIONALISM 19

20 NATIONALISM AND THE BUDGET 20

21 THE BUDGET AND NFIP the Federal Emergency Management Agency (FEMA) rescinds initial guidance issued on December 26, 2018, to industry partners to suspend sales operations as a result of the current lapse in annual appropriations. NFIP insurers have been directed to resume normal operations immediately and advised that the program will be considered operational since December 21, 2018 without interruption. On Friday, December 21, 2018, Congress reauthorized the National Flood Insurance Program (NFIP) until May 31,

22 WHAT IS THE CONNECTION BETWEEN FARM BILL AND WC COSTS? 22

23 HEMP Changes In Hemp Regulations Hemp can now be cultivated, processed, and sold as an agricultural product. Hemp seed doesn t naturally contain THC (tetrahydrocannabinol, the main psychoactive agent in cannabis). As part of the Farm Bill 2018, industrial hemp cannot contain any more than trace amounts of THC 0.3% being the upper limit for THC content. Hemp, as the non-psychoactive cousin of Marijuana, has been essentially legalized through this Bill, a move that activists have been demanding for years now. Senator Mitch McConnell played a considerable role in the landmark decision to legalize hemp production, having championed the cause since 2014.

24 MISSOURI Missouri Legal Information In 2014, Missouri passed HB 2238, which creates a legal right for certain patients to obtain, possess, and use hemp extracts in limited circumstances. The law defines a hemp extract as a preparation of cannabis that contains at least 5% CBD and no more than 0.3% THC. Only patients with a seizure disorder and a recommendation from a neurologist are eligible to obtain a hemp registration card, which entitles them to access and legal protections. Patients are allowed to purchase hemp extracts from two state-regulated Cannabidiol oil care centers. 24

25 COMMON APPLICATIONS OF MEDICAL MARIJUANA Debilitating Conditions Qualifying patients must be diagnosed with a debilitating condition, as defined in the Compassionate Use of Medical Cannabis Pilot Program Act, to be eligible for a medical cannabis registry identification card in Illinois. 25

26 MODES OF INGESTION 26

27 FAVORABILITY 27

28 RED STATES? BLUE STATE? GREEN STATES. Marijuana Legalization by State CBD Only 1. Alabama 2. Georgia 3. Indiana 4. Iowa 5. Kentucky 6. Louisiana 7. Mississippi 8. Missouri 9. North Carolina 10. Oklahoma 11. South Carolina 12. Tennessee 13. Texas 14. Utah 15. Virginia 16. Wisconsin 17. Wyoming 28

29 INCREASING FREQUENCY OF CBD IN WC 29

30 WHAT S THE CONNECTION BETWEEN THE EU AND U.S. CONSUMER PRIVACY? 30

31 GDPR Harmonize data privacy laws across Europe, Protect and empower all EU citizens data privacy Reshape the way organizations across the region approach data privacy. 31

32 ELEMENTS OF GDPR COMPLIANCE 32

33 PRIVACY STATEMENT When downloading the report on the cost of compliance the first steps include 33

34 CCP

35 WHAT DOES THE CCP DO? 35

36 SHOW US THE NUMBERS 1,946,181,599 Total number of records 60.5% Percentage of Directors Top-of-Mind $95 billion The Worldwide Market for Cybersecurity 191 days Time to Identify a Data Breach 36

37 ALABAMA SOUTH DAKOTA: 50 STATE PATCHWORK OF BREACH NOTIFICATION IS COMPLETE 1. Expanded definition of personal information Alabama, Alaska, California, Connecticut, Delaware, Florida, Georgia, Illinois, Iowa, Kansas, Maine, Maryland, Massachusetts, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oregon, Rhode Island, South Carolina, South Dakota, Texas, Vermont, Virginia, Wisconsin, Wyoming, District of Columbia, and Puerto Rico. 2. Content requirements for notifications Alabama, California, Florida, Hawaii, Illinois, Iowa, Maryland, Massachusetts, Michigan, Missouri, Montana, New Hampshire, New Mexico, New York, North Carolina, Oregon, Rhode Island, South Carolina, Vermont, Virginia, Washington, West Virginia, Wyoming, and Puerto Rico. 3. Notification to state agency required (requirements in some states may depend on minimum number of residents affected by the breach) Alabama, Alaska, California, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Iowa, Louisiana, Maine, Maryland, Massachusetts, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oregon, Rhode Island, South Carolina, South Dakota, Texas, Vermont, Virginia, Washington, Wisconsin, and Puerto Rico. 4. Credit monitoring required California, Connecticut, and Delaware. 5. Risk of harm Alabama, Alaska, Arizona, Arkansas, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming. 37

38 MAKING THE CONNECTIONS 38

39 WHAT S THE CONNECTION WITH RIMS AND GOVERNMENTAL AFFAIRS? 39

40 A SPECTRUM OF ACTIVITY Survey - White Papers - On-Line Advocacy - Organization Letters Fly-In - Testimony

41 A SEAT AT THE TABLE Contributions are a separate and distinct piece of an overall legislation strategy In fact, advocacy on the Hill cannot involve any discussion of races, campaigns or contribution Nonetheless, political action, outside of Congressional business is an important avenue to obtain access to key lawmakers

42 RISK PAC The RIMS Political Action Committee is the only national political action committee representing risk managers nationwide before Congress. We are your voice, your strength, and your access to Members of Congress. When RISK PAC makes a contribution, it sends a strong, collective and clear message from risk managers to the beneficiary. As the PAC grows, that message resonates louder!

43 BACKGROUND AND GROWTH OF THE PAC Established in 2011 Comprised of 12 Members Discuss Contributions Target Congressional Members who have influence over Committees of Jurisdiction RIMS Contributors

44 STAYING CONNECTED #GBTheWay Gregory McKenna SVP, Director of Communication Gallagher Bassett 2850 Golf Road Rolling Meadows, IL D: M: E: Alternate Point of Contact:

45 THANK YOU! 45