2017 Risk All Star: Steve Richards

Seeing Opportunity in Expansion

In 2014, Coca-Cola Bottling Company Consolidated announced it would be expanding its territory over the following two years, but didn’t specify by how much.

Steve Richards, Director Claims & Litigation, Coca-Cola Bottling Company Consolidated

“The information trickled out slowly, and I got the sense that we were going to grow much more than I originally anticipated,” said Steve Richards, director of claims and litigation for the company.

His premonition was correct. He expected Coca-Cola to grow its workforce by about 50 percent, which would bring the payroll up to roughly 10,000 employees. Instead, it almost tripled in size, increasing the number of workers to upwards of 14,000.

Since the initial announcement, the company also acquired 25 new locations across six states. With a massive influx of new workers — both union and non-union — and varying state laws to contend with, the workers’ compensation program faced some growing pains.

In an effort to head off the expected spike in workers’ comp claims, Richards conducted a comprehensive review of the program, allowing him to identify the primary drivers of claim costs, the suitability of network penetration, and inefficiencies in claims management.

Advertisement




“We had an unbundled program that wasn’t scalable,” Richards said. “Some of our partners in the unbundled model couldn’t handle the flood of new employees. We needed partners with more providers so there were more in-network options for our workers, which also leads to greater cost savings. Bundling the program expanded our access to these providers.”

Implementing stricter loss control measures was also a key feature of the program overhaul. But overcoming cultural differences among the new workers and locations took persistence and consistency of message.

“We lead with safety,” Richards said. “Some of the new territories were not accustomed to strict loss control and were more skeptical of leadership. They were used to different claims-filing procedures, different payment methods … a totally different work injury experience. We want to make that experience as easy as possible, and it took time to convince them that the changes were in their best interest.”

“We needed partners with more providers so there were more in-network options for our workers, which also leads to greater cost-savings. Bundling the program expanded our access to these providers.” — Steve Richards, Director Claims & Litigation, Coca-Cola Bottling Company Consolidated

Prior to the expansion, 6 to 7 percent of the employee population would be injured at any given time. Since acquiring the new locations, that figure initially jumped to 10 to 15 percent, but has since dropped down to 8 to 9 percent.

“The longer workers stay on with us, the more I expect to see that number drop as they grow more used to our safety program,” Richards said.

He also streamlined the approach to claims management in an effort to improve cost control and speed up claim closure.

“Steve’s engagement and expertise, not to mention his great communication skills, provided the foundation from which we were able to meet CCBCC’s needs during the transition process,” said Sharon LaCour, account principal, Gallagher Bassett. “Partnering with Coca-Cola Bottling Co. Consolidated — and especially working with Steve Richards — demonstrated the value of true strategic collaboration.” &

_____________________________________________

Risk All Stars stand out from their peers by overcoming challenges through exceptional problem solving, creativity, perseverance and passion.

See the complete list of 2017 Risk All Stars.

More from Risk & Insurance

More from Risk & Insurance

The Profession

For This Pharmaceutical Risk Director, Managing Risk Means Being Part of the Mission to Save Lives

Meet Eric Dobkin, director, insurance and risk management, for Merck & Co. Inc.
By: | September 28, 2018 • 5 min read

R&I: What was your first job?
My first job out of undergrad was as an actuarial trainee at Chubb.I was a math major in school, and I think the options for a math major coming out are either a teacher or an actuary, right? Anyway, I was really happy when the opportunity at Chubb presented itself. Fantastic company. I learned a lot there.

R&I: How did you come to work in risk management?
After I went back to get my MBA, I decided I wanted to work in corporate finance. When I was interviewing, one of the opportunities was with Merck. I really liked their mission, and things worked out. Given my background, they thought a good starting job would be in Merck’s risk management group. I started there, rotated through other areas within Merck finance but ultimately came back to the Insurance & Risk Management group. I guess I’m just one of those people who enjoy this type of work.

Advertisement




R&I: What is risk management doing right?
I think the community is doing a good job of promoting education, sharing ideas and advancing knowledge. Opportunities like this help make us all better business partners. We can take these ideas and translate them into actionable solutions to help our companies.

R&I: What could the risk management community be doing a better job of?
I think we have made good advancements in articulating the value proposition of investing in risk management, but much more can be done. Sometimes there is such a focus on delivering immediate value, such as cost savings, that risk management does not get appropriate attention (until something happens). We need to develop better tools that can reinforce that risk management is value-creating and good for operational efficiency, customers and shareholders.

R&I: What’s been the biggest change in the risk management and insurance industry since you’ve been in it?
I’d actually say there hasn’t been as much change as I would have hoped. I think the industry speaks about innovation more often than it does it. To be fair, at Merck we do have key partners that are innovators, but some in the industry are less enthusiastic to consider new approaches. I think there is a real need to find new and relevant solutions for large, complex risks.

R&I: What emerging commercial risk most concerns you?
Cyber risk. While it’s not emerging anymore, it’s evolving, dynamic and deserves the attention it gets. Merck was an early adopter of risk transfer solutions for cyber risk, and we continue to see insurance as an important component of the overall cyber risk management framework. From my perspective, this risk, more than any other, demands continuous forward-thinking to ensure we evolve solutions.

R&I: What’s the biggest challenge you’ve faced in your career?
Sticking with the cyber theme, I’d say navigating through a cyber incident is right up there. In June 2017, Merck experienced a network cyber attack that led to a disruption of its worldwide operations, including manufacturing, research and sales. It was a very challenging environment. And managing the insurance claim that resulted has been extremely complex. But at the same time, I have learned a tremendous amount in terms of how to think about the risk, enterprise resiliency and how to manage through a cyber incident.

R&I: What advice might you give to students or other aspiring risk managers?
Have strong intellectual curiosity. Always be willing to listen and learn. Ask “why?” We deal with a lot of ambiguity in our business, and the more you seek to understand, the better you will be able to apply those learnings toward developing solutions that meet the evolving risk landscape and needs of the business.

Advertisement




R&I: What role does technology play in your company’s approach to risk management?
We’re continuing to look for ways to apply technology. For example, being able to extract and leverage data that resides in our systems to evaluate risk, drive efficiencies and make things like property-value reporting easier. We’re also looking to utilize data visualization tools to help gain insights into our risks.

R&I: What are your goals for the next five to 10 years of your career?
I think, at this time, I would like to continue to learn and grow in the type of work I do and broaden my scope of responsibilities. There are many opportunities to deliver value. I want to continue to focus on becoming a stronger business partner and help enable growth.

R&I: What is your favorite book or movie?
I’d say right now Star Wars is top on my list. It has been magical re-watching and re-living the series I watched as a kid through the eyes of my children.

R&I: What is the riskiest activity you ever engaged in? When I was about 15, I went to a New York Rangers versus Philadelphia Flyers game at the Philadelphia Spectrum. I wore my Rangers jersey. I would not do that again.

Eric Dobkin, director, insurance & risk management, Merck & Co. Inc

R&I: What is it about this work you find most fulfilling or rewarding?
I am passionate about Merck’s mission of saving and improving lives. “Inventing for Life” is Merck’s tagline. It’s funny, but most people don’t associate “inventing” with medicine. But Merck has been inventing medicines and vaccines for many of the world’s most challenging diseases for a long time. It’s amazing to think the products we make can help people fight terrible diseases like cancer. Whatever little bit I can do to help advance that mission is very fulfilling and rewarding.

R&I: What do your friends and family think you do?
Ha! My kids think I make medicine. I guess they think that because I work for Merck. I suppose if even in a small way I can contribute to Merck’s mission of saving and improving lives, I am good with that. &




Katie Dwyer is an associate editor at Risk & Insurance®. She can be reached at [email protected]