The value of data driven risk management is taking center stage as companies strive to digitally transform their organizations and compete in a more quickly paced and competitive world. Beyond reporting, emerging risk management solutions now provide organizations a way to predict risk and claims management outcomes with more timeliness and precision through built in analytics solutions designed to support the way your teams work and make critical risk decisions.
A Quick Case Study: The Value of Data Driven Risk Management
Many companies are making deliberate action to institute and scale their resourcing around risk management. One company that is making the most of their technology solution is Imperial Brands. In addition to the collection of data around the insurance renewal process, Imperial’s users leverage the advanced analytics capabilities of their risk management solution to update material changes in risk all year round – 24 hours a day, seven days a week. Leveraging a constantly updated risk profile empowers their business to move away from an unwieldy avalanche of spreadsheets and emails to an up-to-date, accurate and live risk profile.
Prioritizing a data driven risk management approach, Imperial is now able to keep their renewal questionnaires open all year round, which enables the entities to declare any relevant changes online as and when they happen. The built-in capabilities and the comprehensiveness of the solutions’ functionality drives real business outcomes by fundamentally achieving 3 key things.
3 Ways Built-In Analytics Supports Proactive Data Driven Risk Management
- Anyone can quickly identify relevant findings and easily collaborate across resources.
The best data driven risk management solutions, which incorporate built-in analytics features are designed with a diverse group of users in mind. By design, the right technology streamlines action-oriented collaboration between teams. Riding on the wave of digital transformation, solutions that bring innovation to the forefront, incorporate natural language querying and pre-created algorithms so that the systems are user-friendly and purpose-built to support proactive decision making. The outcomes and analysis is also easy to disseminate throughout the organization. Data-driven risk management socializes the findings from built-in analytics through a variety of visualizations and dashboards to ensure transparency and understanding.
- Companies can predict claim developments and take proactive steps to minimize the severity of unavoidable outcomes
Data driven risk management strategy fundamentally transforms the way you assess your risks. While classic risk assessments can fall short in highlighting key emerging risks, risk management software that brings built-in analytics capabilities to the table allow you to evolve the standard scoring system to meet your unique needs and communicate proactive recommendations effectively to executive stakeholders.
By leveraging a more sophisticated data analysis, your team’s most strategic thought leaders can now make decisions that incorporate more granular and accurate details including risk velocity calculations and a comprehensive view of pure minimum and maximum impact ranges. Armed with more information, your organization can then also utilize a completely different strategic methodology. With total control and flexibility, the power is in your hands to make strategic decisions to benefit your organization.
- Automate workflows and integrate systems to make consistently informed decisions.
Assessing and managing enterprise risk is not a one-time exercise. It is a persistent problem that requires diligent and dependable processes. Establishing automated workflows facilitates the ongoing coverage required. For claim organizations and risk and insurance teams, data driven process automation streamlines the tasks that require a great deal of manual, repetitive work: gathering external data, pointing and clicking, typing, double entry of information, and values checking. This not only saves teams time and resources but also produces more predictable and accurate outcomes.
These automated workflows should also be sophisticated enough to leverage data and integrate seamlessly with other solutions, including your ERM solution, for example. In doing so, your ERM and insurance activities can work together in the same enterprise risk management software platform. Distinct activities can be reviewed independently as appropriate, or analyzed in conjunction. This enables you to benefit from integrated incident and loss reporting including corrective measure tracking and root cause analysis, analysis around common operational information including company hierarchy, and the discovery of other hidden insights that can ultimately mitigate risk and impact Total Cost of Risk.
There are several real and measurable ways top companies are implementing technology solutions that leverage data driven risk management with built-in analytics to secure their company’s future. We are no longer operating in a world that allows for show and convoluted decision-making. Partner with a technology solution provider that works alongside your team to proactively shape the future of risk management.
NEXT STEPS:
To learn more about how data driven risk management organizations can further mitigate risk and the Total Cost of Risk, read how artificial intelligence (AI) benefits the most forward-looking risk managers.
