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Navigating the complexities of risk management in the chemical industry is no small feat, and this episode of The Chemical Show brings experts from Marsh to share insights on how companies can thrive amid emerging challenges. Victoria Meyer is joined by industry leaders like Steve Horstkamp, Susan Gonzales, Mike Kolodner, and Randal Waters to explore the unique risks chemical companies face, from cybersecurity threats to supply chain disruptions. With an in-depth look at risk assessment and digital transformation, they discuss how companies can strategically adapt, harnessing the power of analytics and collaboration to mitigate potential threats to their operations.
The discussion broadens to encompass the global context of energy transition and the tangible impacts of climate change, as Amy Barnes and Milan Taylor weigh in on sustainability and the workforce of the future. Encouraging proactive planning and identifying areas of improvement, the conversation provides valuable advice for chemical leaders. Emphasizing the need for transparency, efficient resource allocation, and innovative risk management approaches, the episode offers a well-rounded perspective on keeping pace with industry evolution while maintaining resilience in an uncertain world.
Be sure to check out the full episode to learn more about:
- Navigating Chemical Risks
- The Evolving Energy Landscape
- Insights on Talent Management
- The Reality of the Energy Transition
- Adapting to Climate Challenges
- Emerging Risks in Supply Chain
Killer Quote: “And where we do the best as Marsh, engaging with our clients is where they allow us to have influence over the multiple departments that you may need to collaborate together to come up with solutions.” –Susan Gonzales
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Critical Business Risks in 2025 and How to Mitigate – Insights from Marsh
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Understanding and Mitigating Risks in the Chemical Sector as We Approach 2025
In the ever-evolving landscape of the chemical industry, risk management is a cornerstone for sustaining growth and ensuring resilience. Whether dealing with environmental hazards, supply chain complexities, or the necessity for digital transformation, chemical companies must stay ahead of potential challenges to thrive. The recent episode of “The Chemical Show,” featuring insights from experts at Marsh and Mercer, delves into the current and emerging risks facing the chemical industry and provides guidance on how leaders can navigate these turbulent waters as 2025 approaches.
Understanding Chemical Industry-Specific Risks
The chemical industry encounters a unique set of challenges that require specialized attention. According to Steve Horstkamp, Marsh’s US chemical practice leader, chemical risks are distinct, encompassing financial, operational, legal, and reputational aspects. As companies reassess their strategies, it is imperative for industry leaders to understand these risks comprehensively and to implement measures that mitigate their impacts. Steve highlights macroeconomic factors, digital transformation, cyber threats, talent acquisition, and the ever-pressing issue of supply chain disruption as critical areas of focus.
Rising to Supply Chain Challenges
Supply chain management has become an increasingly prominent concern for chemical companies. As Victoria noted, supply chain issues mark this decade, with recent events such as potential port strikes catalyzing industry-wide adjustments. Marsh is at the forefront, aiding businesses in preparing for these disruptions by analyzing changes in liability and strategizing to minimize the impacts of potential logistical obstacles. Companies must remain vigilant and proactive, developing robust plans to insulate operations from external supply chain shocks.
The Talent Conundrum
Another vital aspect of risk management is talent acquisition and retention. Milan Taylor of Mercer accentuates the importance of an enticing employee value proposition. With 2025 on the horizon, aligning organizational promises with actual practices is essential to prevent turnover, especially among younger employees who seek authenticity and transparency. This calls for streamlining hiring processes and embracing innovations such as AI to enhance recruitment efficiency — a significant step in safeguarding human resources competitiveness.
Prioritizing Climate Adaptation
Climate adaptation is not just an environmental concern but a strategic necessity for chemical industries. Amy Barnes, Marsh’s head of climate and sustainability, emphasizes the importance of adapting to weather extremities such as droughts and floods that can severely impact operations and supply chains. Addressing these vulnerabilities involves understanding and securing physical assets, ensuring adequate emergency response plans, and considering the broader infrastructure dependencies, such as water and power availability. The focus must extend beyond asset protection to include employee safety and the integration of low-cost interventions to mitigate risks associated with climate change.
Emerging Risks and Forward-Thinking Strategies
Emerging risks are an ever-present challenge, requiring businesses to anticipate issues and implement strategic foresight. Whether addressing new risks brought on by technological advancements like AI or adapting to the dynamic nature of existing risks like geopolitical shifts, it’s crucial for chemical companies to refine their forecasting models and response strategies. As Randal Waters from Marsh underscores, successful risk management involves eliminating surprises by planning ahead and ensuring that decisions are backed by comprehensive risk assessments.
Conclusion
The discussions in “The Chemical Show” episode with Marsh and Mercer professionals outline a pivotal approach for chemical industry leaders: looking beyond immediate pressures and paving the way for resilient futures. By focusing on emerging risks, climate adaptation, supply chain resiliency, and talent management, businesses can better position themselves to handle the unforeseen and seize opportunities that lie ahead. As we edge closer to 2025, the necessity for strategic foresight and integrated risk management has never been more critical. Embracing these principles will allow chemical companies to not only endure but flourish amidst the complexities of tomorrow’s challenges.
About The Guests:
Susan Gonzales
Susan Gonzales is the Houston Energy Hub and Office Leader for Marsh, the world’s leading insurance broker and risk advisor and a business of Marsh McLennan. In this dual role, Susan leads a team of over 70 specialists in Houston focused on providing Marsh’s energy clients with risk identification and industry-leading insurance solutions. As Office Head, she also works to expand Marsh’s capabilities in Houston, ensuring clients across all industries benefit from the combined expertise of Marsh McLennan’s businesses.
Susan brings extensive industry experience to Marsh. She joins the firm from AIG, where she served as US Head of Energy Casualty, responsible for strategy execution, guideline development, production, and talent development. Prior to AIG, Susan spent eight years as an account executive with Lockton.
Steve Horstkamp
Steve Horstkamp is the US Chemical Practice Leader at Marsh, the world’s leading insurance broker and risk advisor. He leads a team of over 100 specialists dedicated to providing top-tier risk solutions to chemical companies throughout the United States.
Steve Horstkamp brings 25 years of experience in the chemical sector to this role. His background includes serving as a process safety and operations engineer for a major chemical manufacturer, as well as working as a chemical insurance underwriter.
Steve joined Marsh’s Chemical Practice in 2019 as a Vice President. His deep understanding of the industry allows him to effectively address the evolving risk landscape faced by chemical companies, from regulatory pressures and geopolitical uncertainty to supply chain disruptions.
Milan Taylor
Milan Taylor is a Partner at Mercer and leads their Global Energy & Natural Resources practice.
With 17 years at Mercer, Milan specializes in advising energy and natural resources clients on managing people risks during periods of transformation and growth.
Based in London, Milan brings deep industry expertise and has founded several highly regarded industry forums, including the Asia Energy Forum, Middle East Energy Forum, European Renewables Forum, and European Energy HR Strategy Leaders Network. These platforms facilitate knowledge sharing and best practice exchange among industry leaders.
Milan also hosts an energy-focused podcast, contributes thought leadership articles, and is a frequent speaker at industry events, including the recent Energy Industry Conference in Houston. Milan is passionate about helping organizations navigate the evolving landscape of talent management and people risk.
Michael Kolodner
Michael Kolodner is the Global Renewable Energy Leader for Marsh Specialty, the world’s leading insurance broker and risk advisor. Based in Boston, he leads a team of over 250 renewable energy specialists globally, while also maintaining his responsibilities as US Power and Renewable Energy Leader, a position he has held since rejoining Marsh in 2020.
With over 20 years of experience in clean energy risk and insurance management, Kolodner brings a diverse background to his role, encompassing operational, brokerage, advisory, and underwriting expertise. His career includes service as a US Naval Nuclear Submarine Officer, Risk Manager for Exelon Corporation, Leader of Marsh’s US Nuclear Energy Practice, and Vice President of Underwriting for Nuclear Electric Insurance Ltd.
Michael leads a team that supports over 2,000 clients operating more than 640 gigawatts of renewable energy production across various technologies, including wind, solar, hydro, energy storage, and biomass. Michael is committed to helping clients navigate the complex risk landscape of the evolving energy industry and accelerate the transition to cleaner energy sources.
Amy Barnes
Amy Barnes is a leading expert in insurance and risk advisory, specializing in the energy and power sector. Amy is Head of Sustainability and Climate Change Strategy at Marsh and leads Marsh’s global strategy for developing climate and sustainability initiatives for clients, focusing on the impact of physical risk, improving access to capital for green initiatives, and understanding climate-related project risk. She also contributes to Marsh & McLennan’s (MMC) broader sustainability and climate change program.
Amy brings over 20 years of experience to this position, having joined Marsh in 2001 as an environmental consultant. She has held various senior international insurance and risk advisory roles in both the UK and US.
Most recently, Amy served as US and Canada Energy & Power Leader within Marsh JLT Specialty, assisting clients with risk and insurance issues related to the transition from fossil fuels to renewables.
Randal Waters
Randal is a Senior Vice President in the Emerging Risks Group of Marsh Risk Consulting where he helps clients understand their strategic risks with a focus on climate, cyber, and supply chain risk quantification as well as developing roadmaps to build resilience.
Randal joined Marsh in 2021. Prior to Marsh, Randal worked in Strategy & Operations at Deloitte Consulting. His consulting experience spans strategy, M&A, business model transformation, supply chain, and manufacturing operations. He has experience with clients spanning industrial manufacturing, aerospace and defense, transportation, life sciences, consumer products, and retail. Randal specialized in helping clients assess their supply chain and manufacturing operations, define their strategy for improvement or transformation, and developing the ecosystem of partners to implement the strategy. He was instrumental in building the Digital Supply Networks practice and helping clients navigate digital transformation. He worked with many global member firms and alliance partners to deliver excellent client service.
Prior to Deloitte, Randal was an Army officer with operational experience in Afghanistan, Iraq, and South Korea. He also served as an instructor at the Army’s premier leadership school, managing a high-risk training environment.
Randal holds a Bachelor of Science degree from the United States Military Academy at West Point and a Master of Business Administration from the University of North Carolina Kenan-Flagler Business School.