vol. XVII no. 3

				Page 4 Page 1 2 3 4 5 NO BOUNDARIES Art Kirchoffer, '01 MBA Executive Director of Risk Management, BellSouth "The role of a risk manager doesn't have to have a firm boundary. It is what we make it to be. Our influence and reach is as far as we want to take it." That's the message Art Kirchoffer, executive director of risk management at BellSouth, takes to students at the Robinson College of Business, where he serves as mentor and trustee of Educational Foundation, Inc., the fund-raising arm of the Department of Risk Management and Insurance. "The job can be as big as you want it to be," Kirchoffer says. "It collectively brings together input from organizations such as marketing, sales, network human resources and management to understand how they fit together. It requires an ability to think about potential risks at all levels throughout the corporation." Kirchoffer's responsibility at BellSouth extends primarily to property and casualty insurance, but he is keenly interested in the risk management that takes place in internal audit, management controls, corporate governance, security and compliance. Kirchoffer sees his role as one of reaching out to others at BellSouth to partner with them, to share what he and his team know about risk and to have a positive influence on decisions. With the six professionals who support property and casualty risk management and claims and litigation activity, he helps eliminate hurdles and roadblocks for his team. "I try to keep out of their way," he says. "Some have degrees in risk management, and there is a good mix of talent in the group." As with the other areas he manages, rather than dictate risk policy, Kirchoffer encourages a more holistic understanding of risk. Insurance has become "a tool of last resort," according to Kirchoffer. "There are more efficient and economical ways to manage risk." In fact, he sees a trend in many large companies to retain and manage more of their own risk. For example, BellSouth created a captive insurance subsidiary to manage its retained risk, and the company limits the use of commercial insurance to catastrophic coverage only. In the risk management quiver are strong human resources policies, an active loss control program, a fleet safety program for BellSouth's 25,000 company vehicles, and attention to facility maintenance and security. While many of the risks Kirchoffer's group manages have negative consequences (property and vehicle loss, employee injuries, etc.), he finds a positive side to risk management, particularly in the area of strategic risks. "There is both opportunity and risk in how we package products and services and how we respond to pressure from competitors," he says. BellSouth must be doing something right. A Fortune 100 communications services company serving more than 20 million customers in the United States, it owns 40 percent of Cingular, which recently purchased AT&T to become the nation's largest wireless company. "Telecom is a critical infrastructure," says Kirchoffer, "and our customers depend on our network and facilities. We take our responsibility seriously. It is a part of our culture at BellSouth." Kirchoffer got into the risk management field through an accounting backdoor. He was providing accounting support to the property insurance claims that resulted from Hurricane Andrew, and soon after, when the property risk manager decided to leave the company, Kirchoffer, a company veteran, volunteered to take the job. From property, he moved into overall risk management in 1997. He takes his on-the-job experience back into classrooms at the Robinson College of Business, where he earned an MBA in the Executive Master's program in 2001. His service as a trustee on Educational Foundation, Inc., which helps raise money and support for the Department of Risk Management and Insurance, also translates into sharing his enthusiasm for the field with students. "This is a rewarding career," he says. "There is never a dull moment. I continue to grow with the job." And in Kirchoffer's world, the boundaries are sure to keep expanding. Previous Page | Top | Next Page

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