At the 2015 WCI Conference, risk managers take you behind the scenes in a candid conversation about what they have learned throughout their careers as risk managers.
The speakers included David Stills, Vice President, Risk Management, Walmart Stores, Inc, Marc Salm, Vice President, Risk Management, Publix Super Markets, Inc and Michael Fenlon, Senior Director of Global Risk Management, UPS.
Lesson 1. Keep your friend close and your actuaries closer
It is beneficial to be on the lookout for unintended consequences. Companies will go through time of change, analyze how the company was affected by this change and make note
Lesson 2. It is never the problems that you are most worried about that bite you.
People say the more problems you have, the more opportunities you have. Companies do not focus on the problems that are going to bite them but why? Companies think the risk is too remote, don’t focus on the risk because the risk condition is always there.
Lesson 3. What got you here will not get you there
Companies should try to not get in the way of new fresh ideas, teamwork and collaboration are important to the success of the company. Risk managers are constantly looking for ways to improve and reduce risk
Lesson 4. Watch for Misalignment of incentives
Risk managers look at cost allocation as a measure of success. It is important to have balance and alignment. Workers compensation claims to not start over from year to year. Risk managers look at the past to help align a productive future.
Lesson 5. Integration with the business pays dividends
Risk managers do not want to be a Dr. No. They want to align risk management with corporate objectives. A company’s mission is not to eliminate risk, the objective is to do what their business does best. Sometimes you have to accept more risk to receive more reward
Lesson 6. One size does not fit all
Each company is different, each claim is different and the amount of risk is different. Risk managers look at each scenario to determine the most effective way to handle the risk.