A risk management information system (RMIS) is an essential solution for many organizations because it provides an organization with business-critical visibility while making it easier to finance risk management and meet administrative process challenges. Here are four ways to know if you need a risk management information system.
You Have Visibility Challenges
Organizations that benefit from an RMIS typically have multiple risks they need to track and they need a system to help them stay on top of all of them simultaneously. For example, an RMIS benefits companies that have to manage risks associated with:
- One or more properties
- Different business units
- Fleets of vehicles
- Multiple assets
- Internal operational policies
Also, companies that need an RMIS tend to have more than one kind of risk without a single, centralized view of how all of them can impact business. For instance, many companies use more than one third-party vendor and are susceptible to multiple types of natural disasters, such as hurricanes, floods, or windstorms. A risk management information system makes it easy to develop mitigation strategies for multiple risks while optimizing your use of resources.
You Have International or Global Operational Challenges
An RMIS is crucial for any company that has or could have international business units. For example, if you deal with any of the following—or may in the future—you need an RMIS:
- A complicated or dynamic organizational structure that involves business units in other countries or doing business across borders
- At least one or more international insurance policies
- The need to interface with people who speak different languages or use foreign currencies
- Data from different international locations that must be reported and/or entered
If any of the above apply to your organization, you need an RMIS because it provides a centralized system that unifies the risks associated with all business units, customers, and data, regardless of their physical locations.
You Have Risk Financing Challenges
Many companies need to use some form of insurance policy to mitigate risk. Balancing the insurance needs of your organization can be a complicated, time-devouring endeavor. If that applies to your company, you need a risk management information system. More specifically, companies that benefit from an RMIS tend to have at least one of the following:
- An in-depth approach to risk financing that may or may not involve a captive company
- A complicated insurance setup that involves more than one insurance company
- A self-insured retention strategy that necessitates a thorough overview of incidents and claims that could trigger mitigation using retained funds
An RMIS makes it easier to balance a diverse portfolio of insurance providers, regardless of which elements of your business they cover. You can also use it to weigh the benefits and drawbacks of using one insurance strategy over another. In this way, an RMIS is a powerful strategic tool as you pinpoint the most effective risk management tools.
You Have Administrative Process Challenges
Many organizations need help with administering their risk management strategy, and these companies would definitely benefit from an RMIS solution. For example, you may have complex claims management processes or third-party administrators that you need to communicate with before or during risk mitigation. A risk management information system streamlines these processes and interactions because it centralizes all the information you need to make decisions and communicate actionable data. This takes a lot less time and energy than, for example, digging up various spreadsheets or opening multiple asset management applications. With an RMIS, all the necessary documentation you need for a smooth administrative process is at your fingertips.
Complicated Renewal Processes
Some organizations also have to manage renewal processes, which can involve complicated, time-consuming consolidation and data collection processes. For example, if your business has changed significantly since your last policy renewal, you may be facing completely new risks that require coverage. Consolidating all these so you can figure out the best policy can take considerable time. But with a risk management information system, you have visibility into all of this data in a centralized location.
Outdated Systems
Outdated systems, including complicated spreadsheets, often end up as more of a financial burden than a solution. The people-hours it takes to muddle through an older, inefficient system can subtly sap valuable funds. In addition, if there’s an incident, the last thing you need is an outdated system that adds more stress to the situation. For organizations that don’t have a modern, efficient risk management system, an RMIS is a necessity.
Unless you have a very simple organization with local operations, full visibility into all possible risks, a simple insurance program, and a modern risk management system, you’ll benefit from a risk management information system. To see how Ventiv’s RMIS software can deliver minimize risks to improve efficiency, confidence, and business performance, connect with a Ventiv RMIS specialist today.
