1. Page 1 Recording of this session via any media type is strictly prohibited. Page 1 Selling Your Risk Management Program

2. Page 2 Recording of this session via any media type is strictly prohibited. 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.

3. Page 3 Recording of this session via any media type is strictly prohibited. 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

4. Page 4 Recording of this session via any media type is strictly prohibited. Page 4 Selling Your Risk Management Program Ground work

5. Page 5 Recording of this session via any media type is strictly prohibited. Align with company’s macro goals What areas are important to your company? Growth Leverage Returns Productivity Retention Stability Quality Increased margins Brand reputation Expansion Innovation Compliance

6. Page 6 Recording of this session via any media type is strictly prohibited. Develop a solution-based plan 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

7. Page 7 Recording of this session via any media type is strictly prohibited. Maintain a close relationship with all parties to increase success. Know your audience C-Suite Operations Employees

8. Page 8 Recording of this session via any media type is strictly prohibited. Selling to the C-suite -Risk management as an investment -Financial pay-off -Direct/indirect costs – more than just insurance buying - Direct – workers’ compensation costs/OSHA fines - Indirect – loss of productivity, training and retaining, recruiting -Support company’s macro goals C-Suite

9. Page 9 Recording of this session via any media type is strictly prohibited. Selling to operations Operations -Request their help -Raise awareness -Increased productivity -Improved workplace conditions

10. Page 10 Recording of this session via any media type is strictly prohibited. Selling to the employee Employee -Drive behavior -Encourage safety discussions -Promote empowerment -Develop safety leadership skills

11. Page 11 Recording of this session via any media type is strictly prohibited. Page 11 Selling Your Risk Management Program Walmart case study

12. Page 12 Recording of this session via any media type is strictly prohibited. Align with company’s macro goals BUY for Less OPERATE for Less SELL for Less GROW for Less Growth Leverage Returns Growth in sales, number of customers, new stores and in new markets Growing sales faster than operating expenses Provide a stable level of returns to shareholders

13. Page 13 Recording of this session via any media type is strictly prohibited. Walmart’s metrics-based, strategic risk management initiatives support our corporate priorities Solution-based plan Safety initiatives Provider selection Return to work Claims scoring Claims routing Rx strategy – Prium Legislative focus – WCRI, etc. Texas non-subscription Casualty allocation system Litigation prediction Vendor TPA optimization Products liability Funds flow integrity RM compliance and optimization Fraud detection GrowthLeverageReturns

14. Page 14 Recording of this session via any media type is strictly prohibited....but may be those that also enable growth, reduce volatility – or likely, all three The best measures of success might not be based on lowest cost…. Strategic Company Priorities Growth Leverage Returns Cost-Based Metrics

15. Page 15 Recording of this session via any media type is strictly prohibited. Other industry examples Company ACompany BCompany C Metrics driven, return on investment focused Quality, efficiency, lean/black belt approach Centrally governed versus antonymous

16. Page 16 Recording of this session via any media type is strictly prohibited. Other interested parties

17. Page 17 Recording of this session via any media type is strictly prohibited. Page 17 Selling Your Risk Management Program Measure, report and communicate

18. Page 18 Recording of this session via any media type is strictly prohibited. Implementing analytical solutions Develop Strategies Create Tools Build strategies around key leverage points Learn the business processes & drivers Identify and size potential opportunities Create tools/models to facilitate these strategies Refine processes, discard strategies that don’t work, continue testing Design a test or experiment with a control group Refine / Implement Test / Measure Find

19. Page 19 Recording of this session via any media type is strictly prohibited. Internally developed metrics Tools of the trade Industry benchmarks Total risk profiling/mapping (financial sector) Value at risk (financial sector) Risk management/business intelligence software

20. Page 20 Recording of this session via any media type is strictly prohibited. Messaging and strategy Messaging - positive versus negative interpretation Intended/unintended consequences Outside influences

21. Page 21 Recording of this session via any media type is strictly prohibited. Max Koonce, Senior Director, Risk Management, Wal-Mart Stores, Inc. P.O. Box 1288 Bentonville, AR 72716-1288 Email: max.koonce@wal-mart.com Bob Peterson, Executive Vice President, Chief Marketing Officer, Sedgwick 1100 Ridgeway Loop Memphis, TN 38120 Email: bob.peterson@sedgwick.com Questions, final comments and contact information