# Keynote Case Study: FM Global — Industrial Risk in a World of Connected Infrastructure
By 

## Article Content
At FM Global's regional manager meeting in Providence in September 2016, Jim Carroll addressed professionals whose business depended on understanding physical risk. Commercial buildings, industrial machinery, energy systems and infrastructure could represent substantial concentrations of value. Carroll challenged the audience to consider a future in which those assets were being transformed through emerging technology faster than conventional models could fully reflect. Historical loss experience remained important, but the next risk might arise from a system that had only recently become possible. His keynote, Assessing Risk in the Era of Acceleration, connected the transformation of industrial property with larger trends in scientific discovery and business. Faster materials research, automation and digital systems could create unfamiliar asset characteristics. A building or facility might appear similar to an older one while operating through very different control systems and dependencies. The risk-management challenge was to recognize how these changes might affect maintenance, reliability and failure modes. Energy infrastructure offered a concrete illustration. Carroll examined solar generation, wind energy and emerging storage technology, along with changing patterns of power production and use. New energy systems could create opportunities for efficiency and resilience while introducing unfamiliar technical components or operating environments. Insurers and engineering teams needed to understand the equipment and its integration rather than assume that old categories captured every exposure. The presentation also explored intelligent buildings. Connected thermostats, sensors and software-controlled equipment could increase visibility into performance and support better management. But the same digital connections created dependence on data, networks and the correct operation of increasingly complex systems. Property-risk assessment would need to consider how physical and digital infrastructure were converging, including where automation improved operations and where it created new vulnerabilities. Autonomous transportation and connected roads extended the argument. Infrastructure was becoming capable of collecting information and in some cases making automated responses. As more physical assets incorporated software, the boundaries between engineering, data and operations became less clear. Professionals required new technical knowledge to understand both the benefits and risks of such systems. Carroll challenged the organization to keep learning as the nature of insured property changed. The closing message emphasized disciplined anticipation. Risk managers could not rely solely on yesterday's assumptions, yet neither should they accept every technological claim at face value. Strong practice required engineering rigour, awareness of emerging science and enough organizational agility to update questions as technology evolved. FM Global's case stands out as a sector-specific explanation of why emerging technology should be examined as a future risk issue, not merely a productivity story. The Challenge: How could engineering-based property risk management keep pace with new energy systems, connected buildings, intelligent infrastructure and changing professional knowledge requirements? The Keynote: Assessing Risk in the Era of Acceleration. The Message: The risk of a future asset cannot always be understood by examining only the past versions of that asset; innovation in physical infrastructure requires innovation in risk assessment. Six Trends Shaping Property Risk: New Energy Assets: Renewable generation and storage create unfamiliar technical and operational considerations. Intelligent Buildings: Connected controls alter the way commercial properties operate. Advanced Materials: Scientific change introduces new construction and equipment characteristics. Autonomous Infrastructure: Transportation and automated systems raise emerging engineering questions. Converging Digital and Physical Risk: Software dependency becomes part of understanding property exposures. Skills Acceleration: Risk professionals need continuous education to evaluate changing technology. YOU CANNOT ASSESS TOMORROW'S RISKS USING ONLY YESTERDAY'S ASSUMPTIONS ABOUT HOW THE WORLD WORKS.

---
Source: https://jimcarroll.com/2016/09/keynote-case-study-fm-global-industrial-risk-in-a-world-of-connected-infrastructure/