Mitigating the Risks of Catastrophes with Mrunal Pandit of Tata Consumer Products

RIMScast

Welcome to RIMScast. Your host is Justin Smulison, Business Content Manager at RIMS, the Risk and Insurance Management Society.

Justin Smulison interviews Mrunal Pandit of Tata Consumer Products about being the RIMS Risk Management Honor Roll Inductee 2024, having math in her DNA and how that relates to risk management and insurance, her role at Tata Consumer Products. They discuss how “once-in-a-lifetime” catastrophic flood events seem to be happening regularly, and how to proactively and prudently prepare for them. Mrunal tells how she developed Tata’s risk framework playbook for natural catastrophes and how risk management is supported by Tata’s philosophy of social responsibility.

Listen in to for experienced advice on proactively preparing your business to mitigate the risks of climate change.

Key Takeaways:

[:01] About RIMS and RIMScast.

[:15] About this episode of RIMScast, coming to you from RIMS Headquarters in New York. I am excited to be joined by RIMS Risk Management Honor Roll Inductee for 2024 Mrunal Pandit of Tata Consumer Products.

[:40] First, let’s talk about RIMS Virtual Workshops. The full calendar of virtual workshops is at RIMS.org/VirtualWorkshops. On July 9th and 10th, our good friend Chris Hansen will lead the two-day session Managing Workers’ Compensation, Employer's Liability and Employment Practices in the U.S.

[58] On July 23rd and 24th, we have Claims Management. Other dates for the Fall and Winter are available on the Virtual Workshops full calendar at RIMS.org/VirtualWorkshops.

[1:11] Let’s talk about prep courses for the RIMS-CRMP. RIMS will co-host the next two-day RIMS-CRMP Exam Prep session with Parima on July 18th and 19th. RIMS will host its own RIMS-CRMP Exam Prep on July 30th and 31st and a RIMS-CRMP Exam Prep with Utah Valley University on August 7th and 8th.

[1:32] The next RIMS-CRMP-FED Exam Prep course will be hosted along with George Mason University on December 3rd through 5th, 2024. Links to these courses can be found on the Certifications Page of RIMS.org and in this episode’s show notes.

[1:47] Registration is open for the 48th Annual Florida RIMS Educational Conference. It will be held from July 30th through August 3rd, 2024 in Naples, Florida. The link is in this episode’s show notes. All RIMS Regional Conferences information can be found on the events page of RIMS.org.

[2:08] Did you know that the RIMS Risk Management magazine Q2 2024 issue is available online? A link to the digital issue is in this episode’s show notes. The new issue covers the impact of AI on insurance underwriting, geopolitical risks, ERM program tips, social media copyright claims, developments in parametric insurance, and more!

[2:38] You can also head over to RMmagazine.com.

[2:41] In next week’s episode, we will have our mid-year update with RIMS Publications Director Morgan O’Rourke and Risk Management magazine Senior Editor, Hilary Tuttle.

[2:56] My guest today is Mrunal Pandit. She is the Global Head of Insurance at Tata Consumer Products in India. She is the first person to hold that position at Tata. She has made some outstanding achievements in her role and that is why she was named the RIMS Risk Management Honor Roll Inductee for 2024. There is so much to discuss about her impact!

[3:29] Her profile in RIMS Risk Management magazine’s Awards Edition was a great read and we wanted to extend that, here on RIMScast. The link to the article is in this episode’s show notes.

[3:40] RIMS Risk Management Honor Roll Inductee for 2024, Mrunal Pandit, welcome to RIMScast!

[4:07] It was a very happy moment for Mrunal and her family when she was awarded as the Risk Management Honor Roll Inductee for 2024. It represents a significant milestone in her professional career as an insurance and risk management professional and recognition for the work she has done so far. What better validation could she ask for than from RIMS?

[5:25] Mrunal is a numbers person. She addresses the significant role of math in the risk profession, such as in decisions about retaining a risk or transferring it to insurance, based on a quoted premium. It’s all numbers to Mrunal and factoring in the data is intriguing and exciting. She says she “speaks in numbers.”

[6:31] The article, written by Russ Banham, is available in the Awards Edition of Risk Management magazine. A link is in this episode’s show notes.

[6:57] Mrunal calls risk management interesting and dynamic. The world’s risk landscape is constantly changing, with global supply chain risks, geopolitical scenarios, and emerging risks like cyber. Challenges keep changing year after year, which keeps Mrunal on her toes and leads her to many learning opportunities.

[7:28] Mrunal refers to Tata Consumer Products. When she started, it was a plantations company, then a beverage company, and now a fast-moving consumer goods (FMCG) company. This has added to the complexities of the risks, allowing Mrunal to implement the risk management framework prudently. She has found that to be gratifying.

[8:03] The organization grew; with that, the risk complexity grew and Mrunal’s knowledge as a risk manager grew.

[8:36] Mrunal drinks Tetley Tea and a lot of the Indian-made Tata Tea, two of Tata’s products. Tata Tea is a different blend from tea sold in the United States. The teas are blended for the geographic market. Mrunal recommends Justin try Masala chai or Mumbai chai teas.

[9:30] Are these once-in-a-lifetime weather events that now happen frequently in India attributable to climate change? Mrunal says climate change has evolved from one of the ten most important risks to the first or second most important risk in India. It plays a significant role in Mrunal’s risk management strategy today.

[10:21] Climate change creates risks to manufacturing, storage, business operations, the supply chain, and business. It is prudent to take the necessary proactive steps to ensure that the overall losses due to climate change are reduced or mitigated. Climate change is becoming an integral part of every business risk. Every risk manager should view it very prudently.

[11:38] Mrunal joined Tata Beverages, as it was called, in December 2017. They were proud of having few claims in most locations. A devastating flood in 2018 with many human casualties and much asset damage led Mrunal to build a disaster playbook for settling calamitous claims.

[13:05] Tata now has a framework and playbook for what needs to be done before any natural catastrophe, including earthquake, floods, and cloudbursts, and what steps need to be taken before the catastrophe happens. Technology gives some warning time before most natural catastrophes. Tata sends notifications to the affected teams about what they need to do.

[13:44] The playbook also covers what needs to be done at the time of the event, and post-catastrophe, if there are losses, the necessary steps for mitigating the risk and recovering prudently, step by step.

[14:12] Mrunal talks about monsoon seasons. Before the monsoon season, Tata sends a detailed note to the affected geographic areas about monsoon preparedness and the “dos and don’ts.” Every year there are cloudbursts, which happen any time of year. Those are also captured in the disaster playbook.

[15:32] Mrunal uses the RIMS Risk Maturity Model as an important tool in Tata’s risk management. It helped her to understand what risks Tata needed to self-insure and what risks it needed to transfer to insurance.

[16:58] Justin mentions an upcoming audio and possibly video series about the Five Pillars of the Risk Maturity Model.

[17:30] Risk mitigation and disaster management are huge, going forward. Mrunal believes there are no geographic areas that will be spared the effects of climate change. We may see nothing is happening today, but tomorrow we don’t know what will happen. With data analytics, AI is going to play a very significant role, telling us the data patterns, going forward.

[18:02] It is prudent for us, as risk managers, to understand that we are going to have our businesses and operations, maybe not tomorrow but three or five years down the line, affected by flooding or another natural catastrophe that would hamper the business.

[18:19] So it is prudent to inform our business that this is the trend, going forward. Necessary steps need to be taken from the business continuity perspective. It’s a process to prepare for catastrophe in your geographies where you have a lot of operations. Come up with a business continuity plan.

[19:06] It’s RIMS plug time! Webinars! Servpro will make their RIMS Webinar debut on August 8th with more details to be announced shortly. Register at RIMS.org/Webinars. Webinars are complimentary for RIMS members!

[19:28] The RIMS ERM Conference 2024 will be held on November 18th and 19th in Boston, Massachusetts. The agenda will be announced soon, as will a call for submissions for the ERM Award of Distinction. I’ll have that link up soon on an upcoming episode.

[19:47] Review your organization’s ERM program, and if you feel it was successful and you have the numbers and the data to back it up, compile that information and get ready to submit your ERM program for the ERM Award of Distinction.

[20:02] The Spencer Educational Foundation’s goal to help build a talent pipeline of risk management and insurance professionals is achieved, in part, through a collaboration with risk management and insurance educators across the United States and Canada. This also applies to not-for-profit entities.

[20:21] If this description applies to you, you should apply for a Spencer General Grant. The application deadline is July 30th, 2024. General Grant awardees are typically notified at the end of October.

[20:39] Another great Spencer program is the Risk Manager on Campus Program, which brings a practicing risk manager to a university to present and engage with students about the risk profession and the insurance industry for about one to three days. There is a grant program with an application deadline of June 30th. The link is in this episode’s show notes.

[21:01] Check out the sample application at that link. Risk Manager on Campus Grant Awardees are typically notified at the end of September. Apply by June 30th, 2024. On September 12th, 2024 we look forward to seeing you at the Spencer Funding Their Future Gala at The Cipriani 42nd Street in New York City.

[21:26] Our recent guest from Episode 293, Lilian Vanvieldt-Gray, will be the honoree. Lilian is the Executive Vice President and Chief Diversity, Equity, and Inclusion Officer at Alliant Insurance Services. She will be honored for her valuable contributions to supporting the future of risk management and insurance.

[21:50] That was a great episode, so after you listen to this episode, go back and listen to Episode 293!

[21:55] Back to my interview with RIMS RiIsk Management Honor Roll Inductee 2024, Mrunal Pandit!

[23:09] Tata has always given preference to its employees in taking care of them, concerning the death claims from catastrophic events, irrespective of the fact that they were insured or not, Tata ensured that the families were taken care of. The head of HR is quite involved in this assistance. Tata supports employees, even advising them on pension plans to sustain families.

[24:38] Mrunal talks about ensuring that death claims are handled with care and respect. These are the people who have given a lot to the company. Tata takes care of the families when they need it the most. They push the insurers to pay the claim to the next of kin within 10 to 12 working days after the documents are given.

[25:52] For a catastrophic event, Mrunal separates it into baskets: the claims for physical assets, covered by the property policy; human capital, covered by a policy and by trusts; students who were studying there were originally not covered, and the flood in 2018 happened before they were covered by insurance. Mrunal had told senior management there was a coverage gap.

[27:14] Senior management paid attention and was receptive to Mrunal’s points about a coverage gap. In risk management, the risk manager has to proactively understand the risks for the business and provide solutions ahead of the events. You also have to have empathy for the employees working for you. Tata values its employees as an integral part of the organization.

[28:28] The empathy and philosophy of the organization require spending money to take care of employees.

[28:57] Mrunal tells how she supported her proactive strategy and theory with numbers about the human capital and how death and disability trends in their industry and their organization could affect their business. This led to decisions by senior management about what to insure.

[29:58] Mrunal has been in the insurance and risk management profession for almost two decades. She has no plans to retire as she still finds this field quite interesting.

[30:34] Mrunal’s last words to early risk management professionals: “Some of the professionals in my organization have told me, ‘Mrunal, insurance is an evergreen field. People, even after they retire, continue to keep on working, so there must be something interesting in this field.’ I said, yes, absolutely!”

[30:53] “Risk management today is much more complex. For the young professionals who love to look at data and who love numbers, these are exciting times! For those who want to learn how to tackle complex multi-phasic challenges, this is a great time. For those who look at risk management as a career and not just another job, there is no better period than now.”

[31:28] “I alluded to cyberrisk, climate change, the changes in regulations worldwide, and conflicts between geographies. Each brings with it its own set of opportunities. For example, technology has made a significant impact on asset mapping, tracking, valuations, weather modeling and forecasting, and setting up early warning systems, which we also use.”

[32:01] “These are the hard skills but there’s also a softer side to it. In order to have a fulfilling career, we need to bear in mind that the work we do involves people and impacts people's lives as well. Focusing on the personal touch will help these early career professionals as they follow their respective journeys in the risk management field.”

[32:30] Justin tells Mrunal, It has been such a pleasure to meet you and I’m so happy for all your success. Congratulations again on this wonderful achievement. I hope we have a chance to meet in person. Maybe you’ll come to RISKWORLD 2025 in Chicago. Mrunal says Yes, and Chicago happens to be her husband’s favorite place. He studied at the University of Illinois.

[33:06] Special thanks, again, to RIMS Risk Management Honor Roll Inductee 2024, Mrunal Pandit. You can read her profile in the special Awards Edition of RIMS Risk Management magazine and learn more about her experience with the RIMS-CRMP through the RIMS-CRMP Stories feature available through RIMS.org. Links to both are in this episode’s show notes.

[33:30] It’s Plug Time! The RIMS App is available to RIMS members exclusively. Go to the App Store and download the RIMS App with all sorts of RIMS resources and coverage. It’s different from the RIMS Events App. Everyone loves the RIMS App!

[34:05] You can sponsor a RIMScast episode for this, our weekly show, or a dedicated episode. Links to sponsored episodes are in our show notes. RIMScast has a global audience of risk and insurance professionals, legal professionals, students, business leaders, C-Suite executives, and more. Let’s collaborate! Contact [e-mail] for more information.

[33:50] Become a RIMS member and get access to the tools, thought leadership, and network you need to succeed. Visit RIMS.org/membership or email [e-mail] for more information.

[35:08] Risk Knowledge is the RIMS searchable content library that provides relevant information for today’s risk professionals. Materials include RIMS executive reports, survey findings, contributed articles, industry research, benchmarking data, and more.

[35:25] For the best reporting on the profession of risk management, read Risk Management Magazine at RMMagazine.com. It is written and published by the best minds in risk management. Justin Smulison is the Business Content Manager at RIMS. You can email Justin at [e-mail].

[35:47] Thank you for your continued support and engagement on social media channels! We appreciate all your kind words. Listen every week! Stay safe!

Mentioned in this Episode:

RIMS-CRMP Stories — “Mrunal Pandit: RIMS 2024 Risk Management Honor Roll Inductee”Spencer Educational Foundation — Funding Their Future Gala 2024

RISKWORLD 2025 will be in Chicago! May 4‒7

RIMS DEI Council

Spencer Educational Foundation — Grants Page — Apply Through July 30.

Spencer Educational Foundation — Risk Manager on Campus Grant — Apply Through June 30

RIMS-Certified Risk Management Professional (RIMS-CRMP)

RIMS-CRMP Virtual Workshops — Next Workshop with PARIMA July 18-19, 2024!

RIMS Strategic & Enterprise Risk Center

NEW FOR MEMBERS! RIMS Mobile App

Florida RIMS Annual Conference — July 30‒Aug. 3, 2024!

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About our guest:

Mrunal Pandit of Tata Consumer Products

Tweetables (Edited For Social Media Use):

This award represents a significant milestone in my career as an insurance and risk management professional. It’s a recognition, I feel, by the global leaders and professionals in this field for the work I have done so far. — Mrunal Pandit

The organization grew; with that, the risk complexity grew and my knowledge as a risk manager grew. — Mrunal Pandit

It is prudent to take the necessary steps, proactively, to ensure that the overall losses due to climate change are reduced or mitigated. — Mrunal Pandit

The way the climate patterns are evolving worldwide, I would not say there is any geography that is spared; each and every location. Today we may see that there is nothing that’s happening, but tomorrow we don’t know what’s going to happen. — Mrunal Pandit

We need to bear in mind that the work we do involves people and impacts people’s lives as well. Focusing on the personal touch will help these early career professionals as they follow their respective journeys in the risk management field.. — Mrunal Pandit