Proper risk management in today’s business landscape is increasingly contingent on an enterprise’s ability to gather and act on data-powered insights. Without these capabilities, firms have only manual collection and analysis efforts for translating multiple dimensions of enterprise risk into strategic initiatives and planning efforts.
A risk management information system (RMIS) acts as a central platform for garnering these insights—by drawing from multiple sources to aggregate risk data, RMIS platforms provide a comprehensive view of enterprise risk and are critical for powering strategic planning efforts and risk mitigation/transfer initiatives.
With an RMIS, organizations have continuous access to the data required for understanding and managing risk, as well as granular detail levels regarding specific risk data (e.g., claims trends) for driving more intelligent and expedient decision making. In this article, we’ll look at the key advantages of an RMIS and how your organization may stand to benefit from adopting a comprehensive risk management solution.
A Centralized Hub for Risk Management
An RMIS functions as a central repository for the collection, management, and analysis of enterprise risk information. In the past, firms used a combination of spreadsheets, documents, and emails to drive risk management processes; over time, these manually integrated processes and toolsets have become increasingly ineffective for managing risk in today’s rapidly evolving business landscape.
RMIS platforms provide the agility to move at the speed of information when it comes to matters of enterprise risk—with all of the relevant risk data unified in a central platform, firms can easily get a clear view of their enterprise risks and the interplay between each, as well impacts on the organization at large. And by automating manual tasks and streamlining risk workflows, an RMIS helps organizations save time, make more well-informed decisions, reduce overall risk exposure, and transfer risk more effectively and cost-efficiently.
Does Your organization Need an RMIS?
The following are several key indicators that your firm may stand to benefit from adopting an RMIS.
Is your risk team outgrowing spreadsheets and desktop tools?
As mentioned previously, spreadsheets and documents no longer suffice in providing organizations with the necessary data collection, processing, storage, and analysis capabilities required for traversing the modern risk landscape. If your enterprise is looking to support a growing number of offices/locations, employees, and/or assets/fleets, an RMIS provides limitless agility and scalability.
Does your enterprise require real-time access to data for monitoring risk trends and mitigating undue risk exposures?
Organizational stakeholders and oversight bodies now commonly prescribe a risk-based approach to enterprise decision-making. With an RMIS, your organization can take proactive measures in identifying trends and emerging risks for early response and mitigation.
Does your organization stand to benefit from improved transparency and tighter alignment across the enterprise?
An RMIS effectively de-silos the risk data across the organization, facilitating better data sharing, communication, and cross-departmental collaboration via a unified platform. Stakeholders across the firm have common access to various views of risk in different domains, as well as reporting that draws from multiple risk dimensions.
Does your risk team require a more diverse, multi-dimensional view of the organization’s risk exposures in a single pane of glass?
An RMIS provides integrated, meaningful views of enterprise risk and loss data in one centralized system. The information provided includes risk exposures, protection measures, and risk management measures such as loss controls, property values, prior claim records, related insurance policies, and more.
Does your organization wish to optimize existing risk management processes to reduce its total cost of risk (TCOR)?
Enterprises are continuously grappling with measures to reduce TCOR; unfortunately, this goal is an ever-moving target that shifts with the expanding risk landscape. The emergence of cyber risk as a dominant threat to the enterprise along with unprecedented global events like the COVID-19 pandemic add further uncertainty to existing risk models, contributing to the rising cost of claims. An RMIS helps organizations bolster their risk posture against a future of unknown threats by enabling them to monitor, understand, and quantify the performance of their risk management programs through advanced risk analytics and assessments.
Deeper, More Meaningful Risk Analysis
By adopting an RMIS platform, modern organizations are better positioned to automate existing manual processes and perform deeper, more meaningful analyses of the organization’s risk management program. An RMIS is a powerful tool in an enterprise’s risk management toolbox as it allows for more accurate assessments of the firm’s performance vis-a-vis risk exposure and its impact on the business.
With an RMIS’ in-built analytics and data insights, organizations can make better-informed decisions regarding crucial risk management processes like identifying/assessing risk, risk transfer programs, and claims management processes. To learn more about how an RMIS can benefit your organization, contact Ventiv Technology today for a free demo.
