Looking at the numbers Over a short span of time McCormick developed a new resolve to build resiliency into its business model They had learned the lessons that new growth posed fortunately without any real setbacks and were intent on strengthening their risk profile You could see it become a greater part of the culture says Radin and what really got it going was the use of analytics our metrics McCormick began employing the MyRisk console including RiskMark scores and HPR highly protected risk des ignations as tools I will tell you I have never worked with a client who has been more seriously tracking and using those ana lytics to show improvement on an ongoing basis says Plesce They are very driven to get all of their mission critical locations to a highly protected risk level During his tenure Bob Utz was the primary driver of risk by the numbers at McCormick Certainly with the metrics that are available to us from FM Global the RiskMark HPR numbers and loss expec tancy dollar amounts we ve been able to show a significant increase in the mitigation efforts of risk and reduce the potential for a major business interruption Fortunately for the supply chain execu tives top brass at McCormick also take an interest in those metrics And they are will ing to green light the funding that makes those numbers look even better With these numbers says Utz we could go to our man agement committee and to our board of directors on a regular basis and show them the progress that we re making Bob Conrad CFO at McCormick has been a part of those meetings In the last four or five years we ve invested more than US 15 million globally in enhancing pro tection at our facilities he says In the last three years we ve taken a strategic approach to managing risk that we first applied domes tically obtaining HPR status for many of our facilities in the United States We are now exporting that strategy globally We refer to the FM Global program as the benchmark risk management pro gram says Radin In fact when we look at other areas of responsibility McCor mick takes an FM Global type approach We apply rigor and metrics to ensure we have the right priorities and we re making the right investments in the right locations around the world Both partners as well as our broker Marsh take a lot of pride in these types of success adds Conrad Our total insured value has grown 70 percent in the last six years while our average policy rate has only gone up three basis points which equates to a savings of roughly US 1 million in pre mium reduction Yet while tangible benefits are important McCormick s primary objec tive is to minimize the potential for a loss that could disrupt production and impact the supply of product to customers With the METRICS THAT ARE AVAILABLE TO US FROM FM GLOBAL we ve been able to show a significant increase in the mitigation efforts of risk and reduce the potential for a major business interruption BOB UTZ continue on page 36 ISSUE 2 2015 REASON 33

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