A Risk Management Information System (RMIS) is a significant investment. Like other functional technologies, for example: CRM, supply chain or HR benefits systems, there is a logical point in a risk management function’s maturity that the need for a RMIS arises.
As the complexity of the risk ecosystem grows, the right tools are critical to achieve clear line of sight to your risks. However, a RMIS is a powerful tool that not every company may need. Firms with less risk, fewer partners, and operating in more contained jurisdictions may be able to get by with carrier provided tools or spreadsheets (although spreadsheets present their own risks). More complex organizations may need more power to manage evolving risk, anticipate what’s around the corner, and analyze the big picture impact to their organization. The chart below can help you determine if you have reached a point in your organization’s maturity where a RMIS might be a good fit.
If you are in the top right quadrant, the answer is an easy yes. If you are in one of the other three quadrants, your need for a RMIS needs more clarity. Here are some questions to help you determine if a RMIS application might be right for you:
- Do you work with only one insurance carrier or TPA (past and present)?
- Do you have low frequency and severity of claims?
- Are you able to easily report to your executive management and/or board?
- Is your risk, safety, and claims data easily accessible to whomever, wherever and whenever it’s needed?
- Is it easy to collect and analyze the information you need for insurance renewals?
- Are you confident in the integrity of your insurance data?
- Are you discovering new insights from your data analysis?
- Are you certain that you have no duplications or gaps in coverage?
- Can you view the current status of a claim?
- Are your reports easy to run – and are they sophisticated enough for your purposes?
- Can you easily answer questions about premiums, coverage, and claims history?
If the majority of your answers are “yes,” you most likely fall into quadrant 3. Your current system is doing its job. A periodic review of the status will make sure you stay on track as your needs grow and change.
If the majority of your answers are “no,” you most likely fall into quadrant 1, 2 or 4. Your current approach might be more of a hindrance than a help – and is limiting your ability to manage risk effectively. Perhaps your organization has matured to a new point that a RMIS application will provide the foundation you need to better manage risk at a more strategic level.
To learn more about whether a RMIS is right for you, please download our Buyers Guide to RMIS.