Walmart has over 1.6 million associates and 3,500 facilities. With that being said, due to the fact that they manage such a huge corporation,they are faced with many different types of risk. However, Walmart has done a great job at managing these risk. This fact is proven because the company is still one of the largest franchises in the United States.
The goals of Walmart are to determine potential risk and manage the cost of risk after analyzing. Walmart uses data and analytics to help determine what the company's risk are. Analyzing the cost of risk helps the company determine what insurance company program they should select, they will choses the insurance company that best meets the needs and objectives of the company.
The goals of Walmart are also to effectively control the Risk management process and the claims management process. Walmart uses risk minimization strategies to address risk management. Walmart works closely with store operations and safety and control teams to effectively minimize risk or address risk management.
Walmart uses an in house claims department that addresses all in store claims.
This department manages and addresses the store claims. They have over 600 employees that work in that department and they have a claims department in 49 states. Economic conditions can effect the financial performance of the company, whether it be globally or in one or more of the markets Walmart serves. These economic conditions could be higher energy cost, inflation, deflation, increase cost of medical care, increase cost of utilities, unemployment levels, higher tax rates, changes in tax laws, weakness in sales in other countries, especially when the average income is lower then the average in the United States. There are may other economic factors as well. The ability to expand and maintain the Walmart corporation depends on the company's ability to hire and keep qualified and dependable associates. The risk factors to address this situation are unemployment levels within the markets, demographic changes, health and other insurance cost, and cost of labor.
Retail is one of the most competitive businesses in the world. Walmart competes for sales, customers , store sites, employees, products and services, and other important components of business. Walmart competes with retailers offering a variety of discounts, specialty stores, super markets, whole sale stores, internet based stores, catalog stores and dollar stores. Walmart must always find and retain qualified suppliers that meet Walmart's standards, comply with labor laws, comply with safety and environmental laws, and access and deliver products effectively in a timely manner. Walmart understands that this is of there biggest risk and challenges. Supplier risk could be merchandise quality issues, transport availability and cost, U.S foreign trade policy changes, and many more. All of these risk can cause harm in the financial income of the company
To address these issues walmart managers are taught how to control or eliminate expenses. Walmart believes that a sales go up, expenses as a percentage of sales must go away. management of expenses reduces risk. To get and retain talented employees walmart developed a hiring strategy. They hire people with no experience in retail and they…