Transcript RIMS ppt - selling risk management program_final_no notes

Selling Your Risk Management Program
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Max Koonce, Senior Director, Risk Management, Wal-Mart Stores, Inc.
K. Max Koonce is the senior director of risk management for Wal-Mart Stores, Inc. responsible for
their claims administration process in the general liability and workers’ compensation arena. Mr.
Koonce received a B.B.A. degree in economics from Harding University and a J.D. degree from the
University of Arkansas at Little Rock. Mr. Koonce is a member of the Arkansas and American Bar
Associations, board member of the West Virginia Self Insured Association, board member of the
Northwest Arkansas Medical Centers, member of the National Association of Social Insurance,
and current president of the National Council of Self-Insured Employers.
Bob Peterson, Executive Vice President, Chief Marketing Officer, Sedgwick
Bob Peterson is executive vice president, chief marketing officer for Sedgwick responsible for
account development, relationship management, product development, strategy, and overall
marketing and business communications. Bob graduated from DePaul University with a BA in
business communication and holds the Associate in Risk Management (ARM) and the Associate in
Loss Control Management (ALCM) insurance designations.
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What to expect
After attending this session you should be able to:
Articulate the value of a risk management/safety program
Enlist the support of all levels of your organization
Identify and report on areas of measurement
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Selling Your Risk Management Program
Ground work
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Align with company’s macro goals
What areas are important to your company?
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Growth
Leverage
Returns
Productivity
Retention
Stability
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Quality
Increased margins
Brand reputation
Expansion
Innovation
Compliance
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Develop a solution-based plan
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Link risk information to strategic decision making
Embed a risk-aware culture at all levels
Embed risk management practices and responsibilities
within strategy and operations
Implement risk mitigation activities
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Know your audience
C-Suite
Operations
Employees
Maintain a close relationship with all parties to increase success.
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Selling to the C-suite
C-Suite
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Risk management as an investment
Financial pay-off
Direct/indirect costs – more than just
insurance buying
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Direct – workers’ compensation costs/OSHA fines
Indirect – loss of productivity, training and retaining,
recruiting
Support company’s macro goals
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Selling to operations
Operations
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Request their help
Raise awareness
Increased productivity
Improved workplace conditions
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Selling to the employee
Employee
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Drive behavior
Encourage safety discussions
Promote empowerment
Develop safety leadership skills
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Selling Your Risk Management Program
Walmart case study
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Align with company’s macro goals
OPERATE
for Less
BUY
Growth
for Less
Leverage
Growth in sales, number of
customers, new stores and in
new markets
Growing sales faster than
operating expenses
GROW
for Less
SELL
for Less
Returns
Provide a stable level of
returns to shareholders
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Solution-based plan
Growth
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Leverage
Safety initiatives
Provider selection
Return to work
Claims scoring
Claims routing
Rx strategy – Prium
Legislative focus – WCRI, etc.
Texas non-subscription
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Returns
Casualty allocation system
Litigation prediction
Vendor TPA optimization
Products liability
Funds flow integrity
RM compliance and optimization
Fraud detection
Walmart’s metrics-based, strategic risk management initiatives support our corporate priorities
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The best measures of success might not be based on lowest cost….
Strategic
Company Priorities
Growth
Cost-Based
Metrics
...but may be those that also
enable growth, reduce volatility
– or likely, all three
Leverage
Returns
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Other industry examples
Company A
Metrics driven, return on investment focused
Company B
Quality, efficiency, lean/black belt approach
Company C
Centrally governed versus antonymous
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Other interested parties
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Selling Your Risk Management Program
Measure, report and
communicate
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Implementing analytical solutions
Find
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Learn the business processes & drivers
Identify and size potential opportunities
Develop
Strategies
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Build strategies around key leverage points
Create
Tools
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Create tools/models to facilitate these strategies
Test /
Measure
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Design a test or experiment with a control group
Refine /
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Implement
Refine processes, discard strategies that don’t work,
continue testing
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Tools of the trade
Internally developed metrics
Industry benchmarks
Total risk profiling/mapping (financial sector)
Value at risk (financial sector)
Risk management/business intelligence software
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Messaging and strategy
Outside influences
Intended/unintended
consequences
Messaging - positive
versus negative
interpretation
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Questions, final comments and contact information
Max Koonce, Senior Director, Risk Management, Wal-Mart Stores, Inc.
P.O. Box 1288
Bentonville, AR 72716-1288
Email: [email protected]
Bob Peterson, Executive Vice President, Chief Marketing Officer, Sedgwick
1100 Ridgeway Loop
Memphis, TN 38120
Email: [email protected]
Recording of this session via any media type is strictly prohibited.
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