Risk management exists to identify, mitigate and manage events that can threaten the operational viability of an organization. If Risk Managers do not have line of sight to their risks, they cannot manage them well. TCOR goes up. Exposure to risk goes up. Pressure on risk management goes up. For that reason, 82% of Risk Managers (StrategicRisk, 2016) are relying on Risk Management Information Systems (RMIS) to help manage evolving risk, anticipate what’s around the corner, and analyze the big picture impact to their organization. Here are 5 reasons why 82% of Risk Managers use a RMIS:
1. Make informed decisions – A RMIS seamlessly collects and integrates data from the stakeholders and systems in the risk ecosystem (Carriers, Third Party Administrators, Vendors, Brokers, Employees, etc.). All data is consolidated for a single view into risk, safety and claims information so action can be taken. Powerful analytic and reporting capabilities allow Risk Managers to explore their data, proactively answer questions, and uncover trends. The centralized view from a RMIS helps them better understand the relationships between critical risks and the cumulative impact on the organization. This allows Risk Managers make smarter, faster decisions to mitigate losses – and ultimately lower premiums.
2. Increase productivity – A RMIS automates and streamlines risk management processes so Risk Managers can spend less time consolidating data and more time analyzing and identifying insights. Reports that previously took Risk Managers hours to create manually can be generated with the touch of a button – no reformatting or cutting and pasting required. Automatically sending alerts, reminders, and regular progress reports to key stakeholders are just a few examples of ways a RMIS can increase productivity. Here are a few workflows that a RMIS can streamline:
- Values collection
- Claims management
- Policy & program management
- Incident management
- Root cause analysis
- Premium allocations
3. Improve data quality – A RMIS captures data consistently and thoroughly with standard templates, intuitive forms, and auto-filled fields. Consistent data capture minimizes human error by guiding users through the data collection process. Data is automatically validated as it is entered, and any unexpected, missing, or inconsistent data fields are flagged. This provides an advantage to Risk Managers, for example, during values collection processes by flagging any significant variances from prior year values. It is also critical for collecting the right information, the first time, for quicker action and processing.
4. Improve security – Access to a RMIS is strictly limited to authorized users, and every change and update is documented. This eliminates the security threats that often come with spreadsheets and the difficulty Risk Managers face imposing restrictions on who can access their spreadsheets, allowing confidential information to be vulnerable. And what happens if a laptop is lost or stolen? The data will likely disappear along with the laptop since most spreadsheets aren’t automatically backed up. With a RMIS, data is stored and protected in a secure cloud based platform with a robust disaster-recovery infrastructure.
5. Reduce TCOR – RMIS streamlines workflow which reduces costs by consolidating and eliminating duplicate systems and tasks. The centralized view from a RMIS helps Risk Managers better understand the relationships between critical risks and the cumulative impact on the organization. This information can help them make smarter, faster decisions to mitigate losses – and ultimately lower premiums.
A RMIS provides Risk Managers the clear line of sight they need to manage their risk more efficiently and effectively. RMIS integrates easy-to-use apps with deep analytics in one information platform, allowing for real-time analysis and collaboration among all risk, safety, and claims decision makers. It is no wonder why 82% of Risk Managers are relying on RMIS to manage their evolving risk needs.