Challenges of managing risk for a global retailer

RIMS, the risk management society®, has announced Luke Figora, senior associate vice president and Chief Risk and Compliance Officer at Northwestern University, as the 2019 RIMS Risk Manager of the Year. The 2019 Risk Management Honor Roll inducted David Stills, vice president, Global Risk Management for Walmart Inc. Both individuals will be recognized at RIMS 2019 Annual Conference & Exhibition scheduled for April 28 through May 1 in Boston.

The Risk Manager of the Year program aims to raise the profile of the risk management profession and the outstanding programs the honorees have implemented within their organizations. The program was initiated in 1977 and the Risk Management Honor Roll was added in 1981.

“David Stills has embraced the evolving, more strategic role expected of today’s risk professional. Deservingly, we proudly welcome Mr. Stills to RIMS Risk Management Honor Roll and recognize him for his extraordinary success advancing Walmart’s robust risk management program,” said RIMS CEO Mary Roth in a statement.

Stills leads a team of more than 550 risk management and risk finance professionals who collectively have responsibility for Walmart’s Global Risk Management Division. The risk management team uses technology to improve productivity by, among others things,  implementing processes for instant closed circuit television access in its stores and clubs, case manager Scorecards to better identify, emulate, teach and reward best practices, a mobile app for a more efficient accident intake and bot technology.

Stills and his team also created a dynamic casualty allocation system (CAS) that allows Walmart to allocate the ultimate costs of accidents to the stores faster. CAS is now used in the more than 5,000 Walmart, Sam’s Club and supply chain locations in the U.S. and Puerto Rico. In its first year, CAS has resulted in an over $90 million favorable and sustained actuarial adjustment.

Related: Risk managers work hard for the money [infographic]

Getting to know David Stills

PropertyCasualty360 spoke with Arkansas native David Stills to learn more about his role at Walmart and what he sees as key issues for risk managers as we move into the next decade.

PC360: How did you get your job at Walmart?

Stills: Like many in the risk management profession, my path into risk management was neither direct nor deliberate. Prior to joining Walmart in 2002, I was a trial lawyer, and I served for a couple of years as chief legal officer for the Arkansas State Police. In 2002, I followed one of my long-time law partners into the Walmart Legal Department where I had responsibility for Walmart’s tort litigation in the United States. From there, with my background in law and accounting (I am an inactive CPA), it was a natural next step to head the Walmart global risk management team.

PC360: What are your specific responsibilities at Walmart?

Stills: I lead the 550-member team responsible for Walmart’s global risk management, including responsibility for its global insurance program, captive insurance company and responsibility for casualty claims management for the United States-based business (Walmart self-administers the majority of its casualty claims, in addition to working with two vendor third-party administrators). Additionally, I have responsibility for insurance claims impacting the global insurance policies.

PC360: How many employees are you responsible for and at what locations?

Stills: Walmart employs 2.2 million associates around the world, with about 1.5 million in the U.S. About 75% of our store management teams started as hourly associates, and they earn between $50,000 and $170,000 a year. Walmart has more than 11,000 locations in 27 countries around the world. The Global Risk Management Department operates from two locations: Rogers, Ark., and Carrollton, Texas

PC360: Where do you look for risk managers for your team?

Stills: We hire many people straight out of college and send them to an 18-week internal risk management course. We also think about recruiting people from different backgrounds. Veteran police officers, for example, make great claims investigators based on their prior experience. What is important is that the prospective risk manager can communicate well to people at various levels.

PC360: Which departments report to you?

Stills: Only Global Risk Management, which includes Walmart’s wholly-owned subsidiary third-party administrator, Claims Management, Inc.

PC360: Which issues do you find the most challenging?

Stills: Two things come to mind. First, the international aspect of global risk management, including meeting the needs of the country operations, and developing and maintaining global insurance programs, while at the same time effectively leveraging Walmart’s financial strength. Walmart has billions of dollars of assets around the world, and we make decisions every day around risk transfer and placing insurance programs.

Second is working on complex insurance claims impacting the global programs. Although this is challenging, it’s also one of the most rewarding aspects of my role.

PC360: What would you say to someone who is considering becoming a risk manager?

Stills: I would tell them that risk management is one of the most rewarding professions you can have. The role is challenging with unique, complex problems to solve every day as you strive to help your company meet its objectives. I would also tell them to get exposure to both the law and finance or accounting, as these are skills that I feel have served me and Walmart well in my role.

PC360: If you had it to do all over again, would you still become a risk manager?

Stills: Absolutely. Had I known it was going to be this fun and rewarding, I would have set a more deliberate path to the profession.

PC360: How does it feel to be the RIMS’ honor roll inductee for 2019?

Stills: Being included in the 2019 RIMS Honor Roll is an absolute honor for me and a testament to the hard work that my team does every day to innovate and support Walmart’s initiatives — it’s their work that made this honor possible for me. It is my privilege to lead this team of risk management professionals. I am also grateful to RIMS and Mary Roth, CEO of RIMS for this opportunity, which is a high point in my career.

PC360: Any other thoughts you’d like to share about being a risk manager?

Stills: Our world is rapidly changing, whether your risk management career is focused on claims, insurance or another aspect.  Risk professionals should consider themselves charged with responsibility to ensure our industry keeps up with the pace of change.  Automation, advanced analytics and digitization of information and communications are three areas that come to mind that our industry needs to focus on.  Doing so will improve outcomes and claims experiences for injured workers and claimants; it will make us more efficient; and it will increase the job satisfaction for our teams.