C Level

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CLEVER_COVER Revisado.indd 1CLEVER_COVER Revisado.indd 1 5/20/09 10:25:01 AM5/20/09 10:25:01 AM

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CLEVEL_1-11 1CLEVEL_1-11 1 5/15/09 7:01:14 PM5/15/09 7:01:14 PM

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C F R O M T H E P U B L I S H E R

C-Level has been a long time in the making, and not just since we decided to publish it. In a way, I suppose fi guratively speaking, the magazine has been in the works since we got into the business of managing risk and began to notice certain things.

Like how technical and uninviting (many people would say boring) insurance and HR information tends to be. And how uninviting and stereotyped the entire insurance industry in particular had become, as important an element of risk management as it is.

It’s not that we mean to save the industry’s image with a magazine (although deep inside we must admit to dreaming of the prospect). What we aim to do is share a vision that we and most practitioners believe to be the real truth on the ground: an industry full of passion and professionalism.

On the surface, it would appear that insurance is about managing risk and protecting against loss, while HR benefi ts is about providing employees a package of perks to keep them motivated and retained. But below the surface, the reality is far less dry and calculated.

Insurance and HR are all about real people in real life situations—a guide to help make businesses successful and to enhance the relationship between, and the experience of, management and employees.

Communicating this vision and showcasing the many companies in Puerto Rico that are living it is the purpose of C-Level. And not just companies. Every day, in ways small and large, individuals manage a myriad of personal risks. Indeed, success itself, business and personal, is not possible unless you assess, control and manage risks successfully. Protecting our businesses, belongings and families against accident and loss yields great benefi ts. It provides freedom of movement, the fl exibility to launch a venture or go on a trip, the peace of mind that comes from knowing you’re covered.

That’s what C-Level is all about: the human and tangible side of our business. We hope you enjoy reading it as much as we enjoyed making it. And by all means, feel free to send me a note ([email protected]) with your opinion and suggestions. We’ll be sure to take them to heart.

Welcome

Ramón A. (Tony) PérezChairman of the BoardFulcro Insurance, Inc.



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9C E D I T O R ’ S M E M O

Like Tony said in his welcome letter, there is more to risk and relation-ships than meets the eye. Many C-Level executives—we would say a growing number—have learned this vital lesson. But so many (dare we say still most?) have not.

For a business to be successful in the 21st century, these two essential as-pects of doing business can no longer be managed in as calculating a manner as became all too common during the last century. And so this magazine is an invitation to rethink.

Rethink risk. Rethink relationships.

Tony addressed the nuance of risk—not something you manage just to play it safe; rather, something you manage to play it smart, improve results and enjoy peace of mind. Relationships are similar.

As a C-Level executive, your eye is constantly focused on nurturing client and customer relationships, since that’s where the money comes from. But study after study has shown that each customer’s relationship is created by each employee at every touchpoint in your company. And employees serve best when they themselves are served stellarly by their employers.

In other words, the relationships your employees build with customers de-pend entirely on the relationship you as a company build with each and every one of your employees. Therein lies the human side of what we do in busi-ness, the tangible side of all those numbers and spreadsheets we use to tell us how we’re doing. We must take care of people. That’s the bottom line.

Puerto Rico needed a magazine that speaks to that, for a change. There are plenty of sources out there, mainly on the Internet, that give you the tradi-tional side, and we’ll give you some of that here as well. But we’re rethinkers.

Take this fi rst edition, for example. We bring you the inspiring story of David Bogaty, the thought-provoking risk-taking of Joaquín Rodríguez, and the eye-opening reality of cyber risk. Learn how wellness, by improving the employee’s experience, can strengthen your results; how you can emerge from a crisis stronger than ever; and the lessons El Amal’s dramatic reinven-tion has for all of us. Finally, on the more personal side, learn how to protect, preserve and restore your works of art, and how Luis Berríos goes from the speedway of the boardroom to the real thing. Enjoy!

Rethink

PublisherFulcro InsuranceEditor Alex Díaz787.923.0743Sales Janyra Pérez [email protected]

Design & ProductionCasiano CommunicationsCustom Publishing DivisionEnid Rivera 787.728.3000 [email protected]

204 San Francisco St. Old San Juan • 787.725.5880 • www.fulcroinsurance.com

Copyright© 2009 Fulcro Insurance

No part of this publication may be reproduced, stored in any retrieval system or transmitted in any

form or by any means electronic, mechanical, photocopying, recording or otherwise, with out

prior written permission of the Publisher, Fulcro Insurance ALL RIGHTS RESERVED.



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FROM THE PUBLISHERWelcomeOur fi rst edition

MEMORethink RiskRethink Relationships

DARING LEADERSDavid Bogatyvs. Goliath

Joaquín RodríguezVisceral risk-taker

C-STORYCyber RiskWorse than you think

A LEVEL ABOVEWellnessA great investment

THE PLAN

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CRISIS TO APEXThe Palo Seco FireFrom ashes to history

THE NEXT LEVELEl AmalFrom pharmacy to global model

FINE LIVINGThe Rights of ArtDon’t be fooled

Preserve Your ArtMake it last

Restore Your ArtAh, it’s back!La alit in ute tis at el dolor FUN LIVINGLuis BerríosRacing through life



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D A R I N G L E A D E R S

How one man, driven by faith in the law and the passion to create a different kind of business, risked it all in a � ght no one thought he could win. No one, that is, except him.

David (literally)

GoliathVS.

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C“It’s amazing the battles you can take on when you’re driven by something bigger. Today, we’re proving that business can thrive and make money built on values and based on a new vision.”

-David Bogaty, Founder & President, WorldNet

For David Bogaty, 1996 was a defi ning year, the second of three defi ning moments since leaving the prestigious Wharton School of Finance in 1991 and landing a plum job on

Wall Street.

His business partners had given up on Puerto Rico, but he decided to stay and give fl edgling telecom company WorldNet a chance. A typical bottom-line analysis called for bailing out. “There were certainly easier ways to make money,” he recalls.

But Bogaty’s motives were anything but typical. He wanted to build something special: a business that would serve as a model to others on how to balance high earnings with high ideals.

“I asked myself if this is all just about money. Is that all there is to it, making lots of money and living the good life? I felt the calling to choose another path. I wanted to build a business that would make lots of money, but that would also make the world a better place; a company that would provide employees with a unique experience, contribute to the community and operate based on a strong set of values: integrity, teamwork, caring.”

The vision shift began in his fi rst big defi ning moment. Living through Wharton’s “success-at-all-costs culture,” as Bogaty describes it, he became restless. Later, as a Chase fi nancial analyst, he decided he couldn’t take it any longer and made his fateful move, leaving Chase and joining some partners to found a long-distance telecom company in Boston.

It was a great time to get into telecommunica-tions. Federal regulations had opened the business to competition. Baby bells had been broken up. More companies were able to penetrate the long-distance-call business. State monopolies, like the Puerto Rico Telephone Company (PRTC), had to make room for competition in local calls.

“Wall Street (banks and investors) were pouring money into the industry,” recalls Bogaty.

The young company came to Puerto Rico to offer long distance services, but ran into bureaucratic obsta-cles and long delays imposed by PRTC to limit competi-tion. His partners gone, Bogaty managed to grow the business as a PRTC reseller, not a direct competitor.

In 1999, came his third defi ning moment and boldest risk. He would face down PRTC in a huge legal battle with more than WorldNet at stake. Other companies would also benefi t if WorldNet prevailed in leasing the PRTC network, not merely reselling, to offer local phone and telephony solutions as a direct competitor.

“This was David vs. Goliath. No one gave us a chance. But I knew the law was on our side and that PRTC would eventually have to go along, so we didn’t shy away.”

The landmark decision came in 2001. WorldNet had won. “It’s amazing the battles you can take on when you’re driven by something bigger. Today, we’re prov-ing that business can thrive and make money built on values and based on a new vision.”

Bogaty’s vision is to build a company where it is fun and meaningful to work. Pictured are four senior executives and long timers: (left-to-right) Gloria Mulett, María Virella, Francisco Muñoz y Mariely Rolón.

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That’s the message from Puerto Rico’s leading hospital-chain executive, who reveals the secret behind HIMA-San Pablo’s impressive growth. If you intend to follow the prescription, be forewarned: it takes quite a pulse.

‘Risk taking is visceral’


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The meteoric rise of HIMA-San Pablo is, by now, well known in Puerto Rico. Since its founding a short 21 years ago, the company has grown from the initial 300-bed HIMA Hospital in Caguas to

more than 1,115 beds among four leading hospitals today, easily the largest privately owned hospital and health system in Puerto Rico.

No business grows this fast and reaches a dominant position in an industry—profi tably, in HIMA’s case—without taking signifi cant risks along the way.

For co-founder, chairman, chief executive & chief risk-taker Joaquín Rodríguez, the fi rst risk was the decision to launch the business in the mid-1980s. He was an administrator at San Rafael Hospital in Caguas and faced the shut-down of the facility.

Rodríguez joined partner Carlos M. Piñeiro, each invested $500 in cash, obtained the fi nancing and built what at the time was a $68 million hospital, HIMA Caguas, staffed mostly with San Rafael doctors, nurses and employees.

“Once we recovered the $1,000, we had nothing to lose, so we fi gured we would

continue taking major risks to grow the business,” said Rodríguez.

The chief motivator all along, he says, has been a relentless passion to become the best hospital and health system in the Caribbean, and one of the best in the United States.

“When you want to be the very best, you have to take some big risks and offer treatments other hospitals do not provide,” he told C-Level during an exclusive inter-view at his rather modest offi ce in Caguas.

HIMA’s numerous acquisitions and expansion deci-sions are obvious examples, particularly the decision to acquire chief rival San Pablo in 2005.

“We originally aspired to be as good as San Pablo,” he confi ded. “And now here we are.”

The big risks today are major pieces of equipment—the latest high-tech treatment machines available nowhere else on the island and in only a handful of hospitals in the U.S.—each costing millions of dollars and facing what to many is uncertain demand.

But not to Rodríguez, who deploys a unique process to arrive at these business decisions.

“It’s visceral,” he assures, pointing to his gut. “With each of these machines, if people need it and no one else has it, I fi gure people will have to come here for the

treatment, so we buy it.”

No fancy market research or analy-sis. No sales projection or number crunching. Just pure gut instinct.

“That’s how we take these risks,” he added. “Thankfully, our senior management team sees it the same way,” even though he admits to provoking lost sleep in his fi nancial team, which must justify major in-vestments to bankers left scratching their heads. That’s more so consider-ing that medical-plan companies in

Puerto Rico do not cover those treatments, leaving cash patients as the primary market.

To be sure, while instinct-driven, a viability analysis is done. “We know roughly the size of the market for each of these conditions in Puerto Rico, around the region and in the U.S., and we charge less than any hospital in the states, so we’re marketing aggressively to draw patients from there.”

The winning card: medical plans in the U.S. do cover the treatments.

“The risk-taking may be visceral,” he says, “but it’s not dumb.”

C“With each of these machines, if people need it and no one else has it, I � gure people will have to come here for the treatment, so we buy it.”

-Joaquín Rodríguez, Chairman & CEO HIMA-San Pablo

The cyberknife, a robotic surgery machine for cancer treatment.




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Who would have imag-ined that technology would become the double-edged sword

of the 21st Century.

The Internet and those very same high-tech systems that have allowed businesses the ability to store, use, share and organize mas-sive amounts of information have opened a Pandora’s Box of orga-nizational vulnerabilities and risks that give a whole new meaning to the term catastrophic loss.

Back in the 1990s, when the term “cyber risk” was fi rst coined, it applied mainly to e-commerce and Internet-related companies, but that’s not the case anymore. It’s offi cially gone mainstream.

The reality is that computer net-work security and risk management

issues are no longer the exclusive domain of companies doing busi-ness on the Web. Today, few orga-nizations are immune from cyber threats. Simply storing employee information electronically, having a basic website or communicating via email, opens the door to a slew of new and unforeseen risks.

Even the federal government is in a state of shock over its vulner-ability to new threats. Accord-ing to a recent report ordered by President Barack Obama, the government remains far too reliant on outdated and easily hacked user names and passwords. The report recommends a transition to new technologies that feature token-based authentication (smart cards or code-generating mechanisms that constantly change your pass-word), biometrics and other related tools.

Our growing dependence on the Internet has left us vulnerable to liabilities related to privacy, intellectual property and digital content disputes. And just a few of the many threats that can be devastating to a company’s bottom line include major network security breaches, denial of service (DoS) attacks (deliberate attempts by hackers to prevent legitimate use of a service), as well as new regula-tions that require the notifi cation of individuals whose personal information is compromised. And the list goes on.

Not that private anymore“Hacking is pervasive,” says

Steven Haase, Risk Management specialist & CEO of Insuretrust, during an exclusive interview with C-Level.

Connect you must, but

carefullyIf you have a network or connect to the Internet, you’re exposed to cyber risk. And what a risk it is! Loss of priceless data. Damage to your brand and reputation. Loss of consumer trust. Business interruption. Business ruin. Here’s what’s at stake and what you can do.

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“At least 20% of companies have been victimized by hackers or intruders, and some of them on many occasions. Often these incidents result in the dissemi-nation of personal information, which is why we are hearing so much about organizations that are paying a high price for network security and privacy breaches. “

Phishing scams have also be-come highly prevalent. Phishers are people who send fraudulent email messages or create fake websites designed to get people to reveal sensitive information.

Regulations in 44 states and Puerto Rico require organizations to notify individuals in a timely manner when they believe there

has been a data information se-curity breach in which personal in-formation may have been illegally accessed, lost or stolen.

Underlining the prevalence of security breaches, Haase said that since the law went into effect, as many as 50% of all citizens have been notifi ed in writing that their personal information may have been exposed. He pointed to a recent study by the Poneman Institute, a privacy & information management research fi rm, which indicated that the costs associated with information breaches can be staggering and are on the rise.

According to the study, each data breach incident cost

companies an average of $202 per compromised customer in 2008, up from $197 in the previous year. This amount does not include law-suits by those whose information was leaked, but only the costs for legal, investigative and adminis-trative expenses, as well as those associated with customer support such as information hotlines and credit monitoring subscriptions.

No industry, nor the most seemingly powerful and protected organizations and institutions, are immune from breaches or are safe from determined hackers.

In a recent highly publicized case, it was revealed that the World Bank Group’s computer network

Which of these cyber risks are you exposed to?Risk-assessment guide you may use to evaluate your vulnerability

COVERAGE CATEGORY

GENERAL EXPOSURE TO LOSS

Security Coverage Maintains sensitive information on the networkRogue employee could cause breach of security or send out a virus that harms 3rd partiesCould be subject to regulatory civil actions if a breach of network security occursUtilizes a hosting company for some/all of the company’s data

Privacy Coverage Maintains paper fi les with sensitive informationStores sensitive information (paper fi les) offsite at non-owned/non-controlled locationsS taff carries sensitive information on their laptops and/or maintains computer data away from the offi ce

Uses a privacy statement on the company’s websites

Content, Advertising & Intellectual Prop. Coverage

Publishes signifi cant digital content\advertising on the company’s website Publishes signifi cant non-digital content\advertisingMaintains 3rd party intellectual property on the networksOwns numerous domain names

First Party Coverage G enerates signifi cant revenue over the web, or would suffer a signifi cant loss of revenue if network operations are impaired

Could suffer a severe permanent loss of dataCould be subject to notifi cation costs if a breach of network security occursIn the event of a breach, the company may incur signifi cant crisis management & PR expensesCould be vulnerable to cyber extortion

Emerging Risks Maintains blogs, chat rooms, or other social networking capabilitiesCyber stalkingIs exposed to an aggregation loss potential

Errors & Omissions Coverage

Provides information technology products or servicesOwns the rights to copyrighted software codeProvides non-information technology products or services

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Wakeup!That’s the urgent cry from four local experts, who suggest measures all businesses can take immediately to minimize their cyber risks

Every business person has gotten the message that technology changes all the time. Hardware, software,

networks and systems have become moving targets you must follow and invest in continually, every year throughout the year, in order to remain competitive.

But few business people seem to realize that the same principle applies to the cyber risks posed by that very same technology.

“This is never static,” said Emilio Fuentes, CEO of Knowlity, a local IT consulting fi rm. “The threats faced by a business are dynamic. There is always a risk that must be man-aged, including threats we’re not even aware of right now. Since we can’t control when risks arise, their degree of complexity, and much less eliminate every incidence, we must manage the risk.”

“As soon as you connect a cable for network and Internet

connectivity, you’re at risk,” warned Luis Valencia, president of STTC, another local consultancy.

Fuentes and Valencia are two of four leading Puerto Rico experts who participated in a recent roundtable held at Fulcro Insurance in Old San Juan to recommend steps businesses can take to mitigate and manage the many forms of cyber risk. They were joined by Eddie Molina, director of risk & advisory services at auditing & accounting fi rm Torres Llompart Sánchez Ruiz, and Ramón Pérez Blanco, partner in charge of com-mercial risks, claims and information technology at Fulcro.

What can you do about cyber risk?1. Education and Vision“Businesses in Puerto Rico have been very slow to catch on and make the changes necessary,” Molina said. “The place to begin, therefore, is education. Executives must learn what’s at stake and what they have to do. A big mistake would be to as-sume you know. Get help instead.”

Education and coaching begin with a vision. “How do you view cyber risks?” asks Pérez. “For most business people, cyber risk is a cost. Technology is an investment, but protecting against its risks is seen as a cost. The question they ask is, ‘What equipment and insurance coverage do I need to buy to be protected?’ But this cannot be seen as a cost, as something you can simply install or a policy you can just buy and you’re done.”

“Cyber and network security,” added Fuentes, “has become com-moditized. People buy protection off the shelf, like anti-virus programs, thinking that will get it done.”

2. Integrated team approachInstead, all experts agree that a business must take an integrated approach to cyber risk, a seamless combination of people, process and technology.

“It has to be a team approach,” said Molina.


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“It’s all right for the IT manager and department to take the lead, but the CEO has to be on board to create the culture and sense of priority,” explained Fuentes. “The Human Resources Department must be integrated to ensure proper training of everyone involved and create the awareness among all employees. The COO must also work hand-in-hand with IT to implement the right processes and make sure the company is aligned in every possible way.”

In other words: technology, people and process working in sync and con-stantly updating.

3. Beyond regulationFederal and local regulations provide a starting point, forcing companies to implement a minimum standard of cyber risk protection, mainly to protect consumers against privacy breaches.

But cyber risks have become so complex and varied per industry that lawmakers and regulators have been unable to keep up.

“If you’re just complying with regu-lations, you’re exposed to signifi cant additional risks,” said Valencia, who recommends that all companies go be-yond regulatory requirements and set up the protection they actually need.

4. Wise use of money“Given unlimited time and money, a business would be able to buy lots of protection. But no one has unlimited time and money, and that requires that you be more practical,” said Fuentes.

His suggestion: have your cyber risk team engage in a constant evaluation of your risk position and needs, invest in the technology and insurance protection you can afford, start with the low-hanging fruits that are easier

and less expensive to implement, and plan to increase your protection over time.

“Make peace with the fact that you’re always going to be exposed to some extent, given the nature of cyber risk,” he added. “The important thing is to have the most protection possible at the price you can afford at any given time.”

5. Vendors and applications“Every vendor you subcontract and software application you buy for your business comes with a potential cyber risk,” said Valencia.

The answer: design a cyber risk review for each one. “Your suppliers should answer a set of questions about their risk position and exposure, particularly if they are exposed to your data or connected to your network.”

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“We need to be con� dent that the client is taking cyber risk seriously and is doing what needs to be done; that the company is not negligent. Then we design an insurance policy that � lls the gaps that arise inevitably from a company’s risk avoidance measures, since we know they are unable to prevent all risks and potential damages.”

- Ramón Pérez, partner in charge of commercial risks, claims & information technology, Fulcro Insurance

“As soon as you connect a cable for network and Internet connectivity, you’re at risk.”

- Luis Valencia, president of STTC


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“This is never static. The threats faced by a business are dynamic. There is always a risk that must be managed, including threats we’re not even aware of right now. Since we can’t control when risks arise, their degree of complexity, and much less eliminate every incidence, we must manage the risk.”

- Emilio Fuentes, CEO of Knowlity

“Businesses in Puerto Rico have been very slow to catch on and make the changes necessary. The place to begin, therefore, is education. Executives must learn what’s at stake and what they have to do. A big mistake would be to assume you know. Get help instead.”

- Eddie Molina, director of risk & advisory services, Torres Llompart Sánchez Ruiz

6. Insurance coverageCyber risk has become an emerging fi eld in the insurance industry. A well-designed policy can cover a business for damages and liability that technology fails to prevent, such as loss of data, lawsuits for privacy breaches, network break-downs, business interruption, and more.

But before writing a policy, insur-ance companies want to be sure that the business is taking every step possible to minimize the risk by taking other steps.

“We need to be confi dent that the client is taking cyber risk seriously and is doing what needs to be done; that the company is not negligent in how it handles this matter,” said Pérez. “Then we design a policy that fi lls the gaps that arise inevitably from a company’s risk avoidance

measures, since we know they are unable to prevent all risks and po-tential damages.”

Insurance coverage also contem-plates a rapid response in case of a hit. “In cyber risk, the insured’s reaction time has to be immediate,” he added. “This isn’t like a hurricane that we can see coming. It’s more like a fi re that happens with no warning and creates damages that have to be recovered immediately.”

Gradual, or forced by a crisis

Given how far behind local businesses fi nd themselves in their cyber risk management and protection, the four roundtable members anticipate the problem will be solved one of two ways.

“Either people will gain the awareness gradually over time and

a moment will come when most companies will be OK, or we will face a major crisis, perhaps in one or two high-profi le companies, and people will learn the hard way,” said Valencia.

Today, he added, every com-pany has certain kinds of insurance policies and protection against such things as workplace accidents and product liability because we’ve gained awareness over time and have learned from the tragic experi-ences of others.

“Let’s just hope,” he concluded, “that it doesn’t take a tragedy to create awareness and spark action on cyber risk.”


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was compromised. One of the largest repositories of sensitive data about the economies of every nation had been raided repeatedly by as many as six outsid-ers over the course of a year, and it still remains a mystery how much information was gleaned after the highly restricted treasury unit’s network was deeply penetrated by spyware.

Internal threatsThe fi nancial sector, including banks, securities

fi rms and insurance companies, have long been a hotspot for security attacks and breaches.

A survey conducted by consulting fi rm Deloitte & Touche found that 83% of fi nancial services fi rms have acknowledged that their information technol-ogy (IT) systems had been compromised by attacks from the outside in the year prior.

Security threats, such as viruses, malicious code, sabotage and identity theft, have historically caused signifi cant fi nancial losses at these institutions.

Retailers, even those whose systems were up to date with the latest standards for data security, are another industry group hard hit by security breaches. One example is a massive network breach suffered by Hannaford Bros. Co, when up to 4.2 million credit and debit card numbers were stolen during the card approval process at its grocery stores in the North-east and Florida.

But even that data breach paled in comparison to the one suffered by the parent company of the TJ Maxx and Marshalls chains, in which up to 100 million credit cards were exposed in the U.S. and Puerto Rico.

But not all malicious attacks are from outside hackers. Even those companies that are most dili-gent about perimeter security of their networks and

information are exposed to the dangers posedby malicious insiders and, in some cases, employees with poor judgment.

One example is a case in which an employee at Progressive Casualty Insurance Co. wrongfully accessed information on foreclosure properties she was interested in buying. Following a complaint by a woman who said she was contacted by the employee about buying her house under foreclosure, Progressive was forced to notify its policyholders that their confi dential information may have been wrongfully accessed by an employee who was fi red.

Cyber risks, such as these, can cause deep and per-haps catastrophic fi nancial and reputational damage. Business is interrupted, priceless data lost and brand equity—the trust of customers—undermined.

High price of remediationThere is also a penalty for not complying swiftly

with notifi cation laws. In New York, the attorney general’s offi ce penalized a multinational corpora-tion for waiting until June to notify authorities of a possible loss of computer data that was uncovered in early May.

The company’s losses were compounded when they were also forced to pay all costs of the inves-tigation as a result of not notifying the more than half-million potentially affected people prior to July.

But catastrophic losses in data breach cases can’t necessarily be measured in dollars and cents. Many of those individuals whose information is compro-mised or who receive data breach notifi cations, lose faith and respect in the entities they believe were responsible for protecting their personal information.

They tend to blame the organization for not

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having suffi cient controls or safeguards in place to protect their data, and even if they don’t suf-fer any negative consequences from the breach, they are likely to lose trust and confi dence in the organization.

This image-impairing incident can turn out to be a public relations nightmare for some companies and in the long run, prove even costlier than the notifi ca-tion and remediation, or the steps taken to avoid the damage. (See related story.)

Loss of revenue is not the worst consequence an or-ganization can face following a security breach. It can also fi nd itself an unwitting accomplice to a crime.

Stalking is more prevalent than one might imagine, and company databases and the Internet

have become a prime fertile ground for stalkers to access information. If personal information about an individual being stalked is negligently passed on to a perpetrator, and as a result that person is harmed, the source of the information that was negligent in protecting the information could be held liable for injuries suffered by the victim.

Emerging RisksIf network security and privacy breaches aren’t

enough for organizations to contend with, there’s certainly no shortage of emerging cyber-related risks.

Mobile computing and laptops that store sensi-tive information, and the use of cell phones to store and transfer data, open up new opportunities for information to fall into the wrong hands and result in devastating losses for companies.

The Internet has revolutionized the way many companies operate. For some, it has become the only way they do business. For web-based companies,

whether it is online giant eBay or a mom-and-pop site that sells home-made jelly, an interruption of service caused by a down website could result in signifi cant loss of revenue.

Blogs, which are becoming increasingly popular in business, bring with them new liabilities. Organiza-tions lose their ability to maintain tight controls that protect them from legal action. That makes them responsible for the actions and comments of individuals outside their organization, as well as to lawsuits related to defamation, invasion of privacy, infl iction of emotional distress and copyright trade-mark infringement.

Also, more and more lawsuits are cropping up for un-anticipated legal infractions, such as websites not being compliant with the Americans with Disabilities Act.

Retail giant Target recently settled a class-action lawsuit with the National Federation of the Blind for not making its website compatible with screen-reading software which vocalizes visual information on a computer screen.

Not making its site accessible to the blind cost the retail giant $6 million in awards to claimants and in changes to make the site accessible to the blind.

The increase in outsourcing of customer service is also another new trend driving up the possibility of security and privacy breaches.

The Poneman study found that breaches by third-party organizations such as outsourcers, contractors, consultants and business partners were reported by 40% of respondents, up from 29% the previous year, which indicates that the sharing of information and data exposes new and increased risks.

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C A L E V E L A B O V E

Doing well

Keeping your employees healthy, it turns out, is not just good for them. It’s also good for your bottom line, particularly when it becomes cultural. The key to managing the risk of illness and workplace injury: wellness.

CLEVEL_22_31 22CLEVEL_22_31 22 5/15/09 6:01:56 PM5/15/09 6:01:56 PM

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CA L E V E L A B O V E

If your business development team brings you a product or expansion that yields $3 for every $1 invested, you would probably reward them with a hefty bonus and an incentive trip to Las Vegas.

That leaves HR professionals and management gurus scratching their heads at the hesitation of CEOs when faced with an investment in a cutting-edge wellness program.

Various national and global studies have confi rmed that every $1 invested in a comprehensive wellness program yields roughly $3 in bottom-line results.

Dig into the issue and it’s easy to see why. Pure logic says that if an employee stops smoking, eats better, loses weight and exercises often—and spreads these healthy habits among the entire family at home, as well as among colleagues at work—illnesses, inju-ries and doctors’ visits will drop signifi cantly.

That means far less absenteeism and utilization of the medical plan, which in turn translates into lower health care costs for your company.

It also means far less presentism—workers who are present, but unable to concentrate and focus fully, or to perform with the vitality and enthusiasm that yields greater productivity. Health problems, you see, have this nasty tendency to divert a person’s attention from the work at hand.

Logic also says that if employees achieve improved quality of life at work and at home and owe it primar-ily to their company’s wellness efforts—if they have you to thank for it—they will feel far more committed,

loyal and more inclined to stay with you for the long haul.

And that means less turnover and greater reten-tion, and you don’t need us to tell you how much that would mean to your bottom line. A lot!

As the word spreads outside your company, you at-tract better talent, often at lower salaries or compen-sation packages than you would otherwise have to pay, since people are drawn to companies that offer better working conditions.

But it’s not just logic yelling at you. It’s also numbers: a cut in health care costs of up to 55%, reduction in short-term sick leave of up to 32%, and productivity increases of up to 52%, according to the U.S. Department of Health and Human Services. Statistics on such things as the reduction in workplace injuries and plan utilization are equally eye popping.

If the health of your employees, therefore, is a big risk to manage, just as you manage other risks, well-ness is an indispensable risk-management strategy for your business.

Wellness 101Wellness is a combination of techniques and programs designed to manage and improve the health of your employees both at work and at home. It falls into three broad categories: personal health maintenance, work-life balance and workplace injuries.

Personal health maintenance includes good eating and exercise habits, prevention techniques, disease management for existing conditions, proper use of


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CWellness is a combination of techniques and programs designed to manage and improve the health of your employees both at work and at home. It falls into three broad categories: personal health maintenance, work-life balance and workplace injuries.


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doctors and medicines, ergonomics, and more. Here, your company would offer workshops, seminars, educational materials, incentives and one-on-one interventions by trained wellness experts.

Work-life balance entails what the name implies: company policies and practices that provide employ-ees and executives a more holistic balance between work and priorities at home, such as child care and elder care. Perhaps several employees need to work at home and telecommute some days of the month instead of being at the offi ce all the time. Perhaps they need more fl exible working hours, whether per-manently or temporarily to deal with a sick elder.

Prevention of workplace injuries is more common-ly known among CEOs, particularly in such prone settings as construction, manufacturing, restaurant kitchens, docks, and heavy-lifting work. Less known are injuries in more sedentary offi ce settings such as

sitting all day in a chair, typing all day in a comput-er and standing all day behind a cash register. There are established and highly proven strategies to deal with all of the above and keep your employees not just safe, but more importantly healthy.

The Lausell exampleA logical fi rst step would be to seek the help of wellness experts who can step into your company and get it done.

“The important thing is for the company’s senior leaders to be committed to wellness and the benefi ts it brings,” said Marie Carmen Serrano, assistant vice president of the Employee Benefi ts Practice at Fulcro Insurance, a leading insurance broker & risk man-agement company in Puerto Rico.

“That’s important because best results are achieved when the wellness program is integrated, compre-hensive and long-term, as opposed to segmented

and temporary, and for that you need the staying power

and investment that comes from com-mitment.”

To illustrate, Serrano points to

Empresas Lausell, which began its

wellness program in 2000 and is still going

strong.

“At Lausell, well-ness has become part of its culture. It’s a way of doing business, of relating to employees and

C“We’re convinced that to the extent employees do wellness on their own and support each other in the process, the results will be even better. It’s also part of our culture to genuinely care for employees and make sure they’re as happy and ful� lled as possible, and their health is a critical part of that mission.”

- Alberto Recio, CEO, Empresas Lausell

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producing top notch results,” added María Díaz, health educator & Fulcro’s wellness point person.

The fi rst thing the Fulcro team did at Lausell, as they recommend that all companies proceed, is a thorough evaluation of employee health conditions and attitudes, the health plan’s utilization, working conditions at the company, OSHA injury reports, and other such indicators. The data analysis is painstaking, tracking gender, age, type of work, injury per occupation, existing conditions, and other risk factors.

That in hand, they presented Lausell with a compre-hensive wellness program to cover all gaps and improve performance in a series of steps across several years,

allowing the company to phase in the investment and measure progress as they went along.

The package includes any combination of the follow-ing: safety and health committees, clinics, conferences, workshops, internal communications for awareness and knowledge, disease management, individual employee as-sistance, nutrition and exercise interventions, and more.

In the case of Lausell, a company of 580 employees manufacturing windows and doors at six sites around the island, more than 45 health-related intervention and awareness activities have been held, in addition to other techniques. A solid 98% of participants report improved lifestyle changes as a result.

Employee participation in the wellness program, which varies from year to year based on several factors, has been as high as 43%, and company executives are expanding the program to include more.

A wide range of conditions—diabetes, obesity, choles-terol, blood pressure, arterial disease, asthma, others—as well as workplace injuries and days lost as a result, show marked improvements.

Consequently, Lausell is spending about 35% less per employee on health care than it would without the wellness program.

Needed: vision“It has been a great success story at our company, and we encourage other companies to do the same,” said Lausell CEO Alberto Recio.

“We’ve strived to make it cultural in our case, since

we’re convinced that to the extent employees do wellness on their own and support each other in the process, the results will be even better,” he added. “It’s also part of our culture to genuinely care for employees and make sure they’re as happy and fulfi lled as possible, and their health is a critical part of that mission.”

So given this overwhelming case in favor of wellness, why do so many CEOs say no?

“It’s mainly lack of awareness and vision, and a reluctance to pull employees out of their jobs to attend sessions,” said Fulcro’s Serrano.

During this time of deep recession, when cutting costs (like health care) and improving performance are top priorities, having better vision and pulling employees away from their jobs is exactly the prescription the doctor should order.

C“The important thing is for the company’s senior leaders to be committed to wellness and the bene� ts it brings. Best results are achieved when the wellness program is integrated, comprehensive and long-term, as opposed to segmented and temporary, and for that you need the staying power and investment that comes from commitment.”

- Marie Carmen Serrano, Assistant Vice President Employee Bene� ts Practice, Fulcro Insurance



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C C R I S I S T O A P E X

Unit #1 under fire.


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C R I S I S T O A P E X

Following back-to-back � res in December 2006, which produced the biggest local insurance claim in history, the Palo Seco power plant rebounded to become one of the most advanced in the Hemisphere. The story reveals critical lessons any business can follow.

From ashesto historyto history

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C R I S I S T O A P E XC

On December 29, 2006 at 4:00 p.m., an electrical failure at the Puerto Rico Electric Power Authority (PREPA) Palo Seco power plant in San Juan caused

a fi re that engulfed an 85 megawatt (MW) generating unit, better known as Unit 1.

At 10:00 p.m. the following day, a second elec-tric failure reduced the plant’s control room and switch gear to rubble and ashes, forcing the whole 602 MW plant to shut down and sending ripple effects throughout the entire power grid.

The Palo Seco fi re became the biggest such loss of any government agency or private company in the history of Puerto Rico, with insurance claims surpassing the $230 million mark.

Today, the Palo Seco plant has been rebuilt.

PREPA replaced the damaged or destroyed equip-ment with more modern technology, as the old tech was no longer available. The control room and switch gear are now state-of-the-art, able to manage the plant with greater effi ciency and lower costs.

Among the new technologies, Palo Seco now features a gas-insulated substation (GIS), one of only two substations of its kind in the world. The other one is operational in Japan.

The plant’s personnel, as well as PREPA’s senior team, gained priceless insights and knowledge they are now applying to other parts of the system.

Cost hike avoidedDuring the crisis, PREPA had to deal with anoth-

er big issue. While Palo Seco was shut down for

CToday, Palo Seco has been rebuilt. The control room and switch gear are now state-of-the-art, able to manage the plant with greater ef� ciency and lower costs. Among the new technologies, Palo Seco now features a gas-insulated substation (GIS), one of only two substations of its kind in the world. The other one is operational in Japan.

Unit #1 fully rebuilt. Control room before


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CBecause of a well designed insurance coverage and PREPA’s ability to maintain service to its customers, the impacts of the events of December 2006 were mild and short lived.

repair, the agency was forced to rely more on other plants. But those plants use more expensive fuel than Palo Seco, and the agency faced the prospect of passing that extra expense on to consumers.

The answer: activate the agency’s extra-expense coverage, a feature of its insurance policy that cov-ers PREPA for the higher cost during the repair.

The higher-cost challenge was particularly daunting given Palo Seco’s strategic location on the grid and the fact it supplies a whopping 16% of the grid’s generating capacity. This coverage avoided having to pass these higher operational costs to its customers.

Because of a well designed insurance coverage and PREPA’s ability to maintain service to its cus-tomers, the impacts of the events of December 2006 were mild and short lived.

“We have had the privilege of working hand-in-hand with PREPA from the very fi rst moment to demonstrate to the agency’s insurers the magnitude of the loss,” said Arturo Ortiz Rodríguez, partner in charge of business development at Fulcro Insurance, the fi rm that designed and brokered PREPA’s insur-ance program.

“Overall, PREPA has been able to recover a signifi -cant amount of money from its insurers, avoiding the need to pass the cost to its customers.”

Because of the sheer size of the loss and the mul-tiple related technical issues, the insurance claims community in Puerto Rico now considers the Palo Seco case to be “once in a lifetime”, he added.

For the sake of all businesses and government agencies in Puerto Rico, let’s hope it’s once in many lifetimes.

C R I S I S T O A P E X C

... and brand new...right after the fire


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C N E X T L E V E L

A new model

If ever there was an example of a dramatic reinvention in business, we have one right here in Puerto Rico. Because more than a reinvention, El Amal has created a health-clinic model unique in the world, that serves as a solution to rising health care costs & an inspiration to all.


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N E X T L E V E L

When most people think of El Amal these days, they think of the bankruptcy reorganization recently fi led by the 37-year-

old pharmacy and retail company.

What they don’t know is the real—indeed, revolutionary—reorganization taking place behind the scenes, one that promises to catapult the company from bankruptcy—it expects a doubling of its revenues as a result of the change—into global stardom.

That’s because when news of the novel model reaches Congress and the White House, as it surely will, El Amal may very well become the sort of private-sector-led solution President Obama is looking for in his crusade against ballooning health care costs—a crisis bankrupting businesses and families across the United States and Puerto Rico.

“This is the fi rst time we tell our story,” said Sultan Yassin, vice president of new business development and the mastermind behind the reinvention, in an exclusive in-terview with C-Level. “We think that when President Obama hears the story, he just might use us as a model for the rest of the country.”

Goal: new habitsPharmacies used to be mainly about pre-scription drugs, until they became “mini Kmarts,” as Yassin explains: “little depart-ment stores with everything from gardening products to coffee bars to household goods.”

El Amal bought into the model, but the category became commoditized by a prolif-eration of competitors that made it all but impossible to differentiate the brand and win. Making matters worse, “margins have been squeezed on the prescription end by health insurers.”

CIt is nothing short of a revolutionary change of behavior El Amal seeks, for “every person in Puerto Rico to acquire a new habit, the habit of prevention, and drop their bad habits, like unhealthy diets, zero exercise and zero annual check-ups,” said project mastermind Sultan Yassin.

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C N E X T L E V E L

El Amal’s management had a decision to make. “We would either stay the course and fi ght it out, or break away in a new direction.” They chose a new direction: the El Amal Health Clinic, of which one is now operational on Piñero Ave. in Río Piedras, with plans for most of the remaining 38 locations to convert in the next 2-3 years.

There are, of course, other health clinics. But none delivers the unique combination El Amal has launched. The prescription counter stayed, as did a less varied but still robust retail offering, mostly to meet basic needs. The space freed by the eliminated retail products is occupied by a full-fl edged clinic and “urgency room”: doctors, nurses and equipment to attend to people’s urgencies that are not emergencies (fevers, cuts, pains, and the like, which constitute roughly 70% of all

emergency room visits in Puerto Rico), as well as provide year-round prevention and patient care.

All with the extended hours of a pharmacy, which doctors’ offi ces and other clinics do not offer, and 30+ locations around the island. Cutting-edge technology accelerates everything. And doctors will see you by appointment at the hour scheduled. No four-hour waits and excessive time lost from work.

The convenience, pharmacy, remaining retail offering and urgency room will draw people in. But what really excites Yassin and his El Amal colleagues is the potential of persuading every customer-patient who walks through their doors to adopt year-round prevention for improved health care and a better life.

CThe convenience, pharmacy, remaining retail offering and urgency room will draw people in. But what really excites Sultan Yassin and his El Amal colleagues is the potential of persuading every customer-patient who walks through their doors to adopt year-round prevention for improved health care and a better life.


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N E X T L E V E L C

It is nothing short of a revolutionary change of behavior El Amal seeks, for “every person in Puerto Rico to acquire a new habit, the habit of prevention, and drop their bad habits, like unhealthy diets, zero exercise and zero annual check-ups.”

For Yassin, son of El Amal founder Saleh Yassin, this is a return to the company’s roots and core mis-sion. “When the U.S. Surgeon General announced in 1984 that cigarettes are bad for people’s health, we were the only pharmacy that stopped selling them, and we still don’t. We were the fi rst to create the mobile health RV to deliver services to communities around the island. Prevention is in our blood. It’s our passion. We want people to come to us to avoid get-ting sick, instead of coming when they do get sick.”

Dramatic savingsPrevention, of course, is well branded as THE solu-tion to rising health care costs. The less you get sick, the less you buy medical services and medicines, and therefore the lower the use of health plans, which in turn reduces health costs to employers and to the government’s health card program.

When you do get sick, El Amal’s doctors are trained to start you off with the lowest-cost medicine and treatment for the condition and work their way up to the more costly only if the condition warrants.

“Doctors far too often prescribe a higher-cost drug when a less expensive one will do just fi ne,” explained Yassin. “We follow the (U.S.) national standard that avoids that practice.” And that, too, reduces health care costs.

“This is the focus family doctors take, the trusted physician who gives you what you need and truly wants to keep you well,” he said. “Not having a family doctor means that people do not take good care of themselves, including annual check-ups.”

Sure enough, El Amal’s doctors (internists, general-ists and nutritionists) are meant to be family doctors, not impersonal types.

“Most people in Puerto Rico do not have a family doctor. They have specialists who take care of condi-tions, but no family doctor to keep them from getting those conditions. That’s the role we want to play,” part of the prevention strategy that will reduce costs, he added.

CEl Amal’s doctors will serve as family doctors, “the trusted physician who gives you what you need and truly wants to keep you well,” said Yassin. “Most people in Puerto Rico do not have a family doctor. They have specialists who take care of conditions, but no family doctor to keep them from getting those conditions. That’s the role we want to play.”

Dr. Abner J. Gabaldón


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CIt is, in the end, an ironic twist: by going back to basics—prevention, family doctors, on-time appointments—El Amal is creating a new 21st century model that promises to shake up the entire local health industry and send shockwaves outside the island. Says Yassin: “This is a game changer.”

Prevention and the use El Amal for urgencies will also reduce the use of overcrowded hospital emergency rooms, one of the biggest sources of high health care costs in the system.

Then there’s technology. President Obama recently pushed through Congress a sizeable investment in medical-records technology to cut excessive paperwork at hospitals and clinics, while enhancing service.

“We’re already there,” Yassin noted.

Not just a sloganEl Amal’s slogan, Te cuidamos mejor (We take

better care of you), has become top-of-mind among consumers in Puerto Rico, after years on the air. But for Yassin, it is far more than a slogan.

“It is our calling. It really is what we’re in busi-ness for: to take better care of our customer and of people in general.”

That’s why this corporate reinvention is actually a reconnection with and rediscovery of the company’s roots. It is, in the end, an ironic twist: by going back to basics – prevention, family doctors, on-time appointments – El Amal is creating a new 21st century model that promises to shake up the entire local health industry and send shockwaves outside the island.

“This is a game changer,” Yassin concluded. Or better said, a life saver.

CPresident Obama recently pushed through Congress a sizeable investment in medical-records technology to cut excessive paperwork at hospitals and clinics, while enhancing service. “We’re already there,” Yassin noted, pointing to El Amal’s new digital records system.





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F I N E L I V I N GC

It’s beautiful, but is it really ‘yours’?

Think you’re the only owner of that work of art on your wall? Think again. Oh, and if you sell it, 5% goes to… Welcome to the legal aspects of art.


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Congratulations! You saw a painting or sculpture that captured your eye and decided to buy it. Now it is

time to become acquainted with the different legal aspects that protect you and the artist who created your newly acquired masterpiece.

In Puerto Rico, all works of art (as well as their owners and artists) are governed by a number of local and federal laws. The fi rst thing you should know, probably a surprise, is that purchasing a piece of art in Puerto Rico does not mean you are its sole proprietor. You share the ownership and become a custodian.

According to Frances Santiago-Cruz, Esq., a specialist in art rights, the artist has rights over “your”

painting during his/her lifetime and even 50 years after death—through the heirs or estate. This

applies to works of art created in Puerto Rico by locals or foreigners and sold on the island or abroad.

Some of those rights also allow an artist to come to you and borrow the painting/sculpture to include it in an exhibition, and you cannot legally refuse.

And just because you bought a painting or sculpture, you can’t do with it as you see fi t. You can showcase it in your home or offi ce, of course, but you don’t have the

right to reproduce it (take a picture for your next Christmas card, for example), as Puerto Rico law says the artist has moral rights to attribution and integrity.

In addition, if you resell a work of art, the artist has the right to receive 5% of the sale price, making the artist become a participant in the value appreciation of his or her work.

There are certain things all art buyers should be aware of in order to protect their investment. First, obtain a certifi cate of authenticity. It must include the author’s and seller’s names, the title of the piece (ideally accompanied by a photograph), and a full description stating if it’s an oil or acrylic painting or a brass or plaster sculpture, etc.

“The buyer has the right to know to make sure the piece of art was not stolen and that the alleged author did indeed create it,” said Santiago. “This document is also important for ap-praisals, for insurance and inheritance purposes, if you plan to take your artwork abroad, and much more.”

Also, keep an updated inventory of your art collection, regardless of its size. “Art theft is the fourth most lucrative illegal endeavor worldwide, and only about 30% of stolen artwork is ever recovered. The inventory will come in handy not only in case of burglary or loss, but also for commercial purposes in case you want to sell.”

CDid you know that:An artist can borrow “your” painting or sculpture for an exhibition, and you can’t legally refuse. And just because you bought a painting or sculpture, you can’t do with it as you see � t; the artist has moral rights to attribution and integrity.

F I N E L I V I N G C


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F I N E L I V I N G CPreserveyour works

There are many reasons why we choose to invest in a work of art. Some are fi nancial in nature, but there are also big emotional factors involved. More often than not, a work of art is acquired

because the buyer simply “falls in love” with it.

So what is the best way to protect your precious painting or watercolor—or any other piece of art for that matter? Here’s where Rafael A. Parés Cruz, P.E., LEED A.P., owner of R.A.P. Consulting Engineer PSC, sheds very valu-able light on the subject.

“When we talk about original art preservation on paper, the fi rst thing we have to analyze are the causes of degradation or damage. Chemicals contained in the paper or canvas and chemicals from objects that come in contact with it are the main causes of artwork damage. The best way to prevent damage is avoiding artwork to

come in contact with oxygen,” Parés explained.If a buyer plans to store his or her artwork without

a frame, he added, “it is advisable to archive it using archival corners, placing it between two mylar (polyes-ter) sleeves inside an acid-free box containing silica gel granules to prevent moisture and pests. Ideally, oxygen should be eliminated through encapsulation, replacing the air with nitrogen. Now, if the artwork is going to be framed, be sure to ask for UV light-blocking glass, never allow any type of self-stick tape to be placed on the artwork, and make sure it is completely encapsulated.”

An important aspect for preserving a displayed work of art is to maintain the air quality inside the display area. Architects and engineers designing these areas should take into consideration factors like light, relative humidity, temperature, pest/mold infestation and mechanical system failure.

“Art can undergo permanent photochemical or photo-physical changes from exposure to light. Good ways to prevent damage are to avoid overexposure to daylight, avoid UV light, and limiting illumination intensity and duration,” Parés said.

Under normal conditions, framed paper art can be exposed to areas with 50% relative humidity, but in Puerto Rico normal ambient air contains around 80% relative humidity, so it is best to display art within an air-conditioned, climate-controlled area.

According to Parés, “excessive relative humidity over extended periods can accelerate mold growth, and changes in temperature can activate chemicals that cause degradation. A temperature of 72° F is ideal. To maintain a display area’s air quality, its air conditioning system should have at least 35% effi ciency fi lters and be

capable of maintaining positive pressure inside the room. In addition, it is recommended that a technician check the unit’s performance and clean and/or replace its fi lters every three months.”

One must not forget that art preservation also means taking daily care of your prized paintings, which includes dusting. Dust your painting using a special soft brush available at art supply stores, and do not use cleaning agents like sprays or polishes because they will ruin your artwork.

To preserve antique art or very expensive pieces, it is best to consult a professional preservation specialist for details on required conditions.

Providing proper care to any work of art will not only add years to your prized possession, but will also allow you to play an active role as a trustee of the artist’s legacy.

C“Art can undergo permanent photochemical or photo-physical changes from exposure to light. Good ways to prevent damage are to avoid overexposure to daylight, avoid UV light, and limiting illumination intensity and duration.”

- Rafael A. Parés Cruz, owner, R.A.P. Consulting


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The science ofart restorationYou walk through your home or offi ce and

suddenly realize that your cherished artwork is looking somewhat different. Upon closer inspection you might notice discoloration

or even incipient fungus damage. What is an art collector to do?

Marianne Ramírez, executive director at the Museo de Arte Contemporáneo de Puerto Rico in Santurce, has an answer.

“Our museum has an art restoration & conservation lab that has been in operation for many years,” she told C-Level. “Our lab’s services are available to the general public, and we specialize

in restoring and preserving polychromatic paintings like watercolors, paintings like oils and acrylics, mainly on canvas and on wood. Preserving works of art on paper is a different area of specialization, and it is available from other art restoration professionals here in Puerto Rico.”

Concerned art collectors should begin by calling to schedule an appointment. Usually the museum’s art restoration expert goes to the collector’s home or offi ce to perform an in situ evaluation of the artwork and assess what type of remedial service it requires. Sometimes owners opt for taking smaller-sized works of art directly to the Museum. The evaluation costs $150.00, but if the owner

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F I N E L I V I N G C

(Right) Ulrik Runeberg, formerly in charge of artwork conservation and restoration at the Museum of Contemporary Art, cleans a painting. (Left) Runeberg and Abigail Pantoja during the process of preserving and restoring two pieces of art.

C“It is always advisable to have a specialized person handle this type of conservation work so as not to damage the piece.”

- Marianne Ramírez, executive director, Puerto Rico Museum of Contemporary Art, Santurce

chooses to go ahead and have his or her painting restored, the amount is credited to the cost of the service.

The evaluation consists of a detailed inspection of the artwork assisted by a microscope and sometimes requires more complex techniques. Later, the art preservation specialist issues a condition report with photos, documenting the state of the artwork examined and provides recommendations as to what type of remedial treatment it requires.

“Not all restorative work is necessarily due to damage,” Ramírez pointed out. “There are times when a painting has collected dust through the years. It is always advisable to have a specialized person

handle this type of conservation work so as not to damage the piece.”

Owners should always take the time to inspect their artwork carefully and check for dust accumula-tion, the emergence of fungus, paint cracking or color fading, among others.

“Common sense is always helpful, as is consulting a specialist if you have any specifi c concerns or need advice,” Ramírez recommended. “Oh, and make sure you have your artwork appraised by a professional art evaluator. Not only will you know the current value of your investment in today’s marketplace, but you will also have the necessary documentation for insurance purposes.”


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C F U N L I V I N G

The rush of adrenaline, feeling the raw power, becoming one with the machine… those are just some of the things that might inspire one to fall in love with car racing, according to Luis Berríos,

president of Universal Insurance Company, whose pas-sion for the sport is always at full throttle.

It is a passion that drove him to car racing early on, in the 1970s. “I began racing a little Fiat Abarth my dad and I had worked on, and I caught the eyes of certain key people. They made me an offer to race with a sponsorship. Back then I was racing in rallies; we had exceptional rallies at that time in Puerto Rico,” he remembered fondly.

“I became 100% sponsored by Renault and Subaru. We won some races and earned cash prizes, which at the time turned you into a something of a professional driver, but I was never paid to drive.”

Berríos raced in the 24 Hours of Puerto Rico rally and the 300 Miles of the West rally. “There were many races,” he said with a tinge of nostalgia.

He fi rst joined the Subaru team. “It must have been 1973-74,” he recalled. Later (1975-76) he joined the Renault team and returned soon after to the Subaru ranks, where he stayed until 1978. “By 1979-80, rally racing had disappeared locally,” he lamented.

The 1980s and 90s meant a racing hiatus for Berríos. “Well, almost. I bought a little Toyota MR2 and raced in a small event organized by some members of the San Juan Sports Cars Club, held at the Hiram Bithorn. We won that day, and later we got into motorcycles. Ours was a ‘Harley family’; my wife even had a Fat Boy model.”

he rush of adrenaline, feeling the raw power, becoming one with the machine… those are justsome of the things that might inspire one to fall in love with car racing, according to Luis Berríos,

president of Universal Insurance Company, whose pas-sion for the sport is always at full throttle.

It is a passion that drove him to car racing earlyon, in the 1970s. “I began racing a little Fiat Abarth my dad and I had worked on, and I caught the eyes of certain key people. They made me an offer to race witha sponsorship Back then I was racing in rallies; we

Berríos raced in the 24 Hoursof Puerto Rico rally and the 300 Miles of the West rally. “There were manyraces,” he said with a tinge of nostalgia.

He fi rst joined the Subaru team. “It must havebeen 1973-74,” he recalled. Later (1975-76) he joined the Renault team and returned soon after to the Subaru ranks, where he stayed until 1978. “By 1979-80, rally

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For Luis Berríos, risk management is a passion in his role as president of Universal Insurance Company. It is just as big a passion in another role he loves to play.

F U N L I V I N G C

C “Some people love golf, but for me doing mechanic work in my garage is part of my therapy. The

other part is racing real fast.”

- Luis Berríos, President

Universal Insurance

Company

The racing bug bit Berríos again in 2004. “As soon as the Subaru STI was available on the island, I bought one. We started going to the Ponce racetrack, just to run laps. Almost as soon as I bought it, I began taking it apart. This is something I really love, tinkering with cars and improving them. Some people love golf, but for me doing mechanic work in my garage is part of my therapy. The other part is racing real fast,” he said with a huge grin.

Fast, yes, and safe. For Berríos, the risk inherent in high-speed racing is

managed by equipping the vehicle with cutting-edge safety features, getting behind the wheel only when mind and body are fully focused, and making damn sure the mechanics are just right.

Working on cars is a family affair at the Berríos household. “Our ‘crew’ includes my son José Miguel Berríos, who is an excellent mechanic; James

Tigers, who used to be my teammate in our rally-racing days and he’s practically

family by now; and myself. That’s it.”

Berríos currently races at the Salinas Speedway—against the clock, not other rac-

ers. He loves curves and has driven his Subaru STI at 150 mph on the track, allowing most of its 600 horses (as in horsepower) run free.

Although he races for sheer fun and exhila-ration, Berríos has bigger dreams. “I would take

my STI and compete at Road Atlanta [a 2.54-mile road course with 12 turns]. I also love endurance races and would love to enter events like the 24 Hours of Day-tona or Le Mans, but that would require another kind of car, plus winning the Lotto or getting a corporate sponsor, because this is something you simply cannot afford on your own.” Any takers?

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The racing bug bit Berríosagain in 2004. “As soon as theSubaru STI was available on the i l d I b ht W t t d i t

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