Businesses, organizations, and government agencies are constantly struggling to use traditional risk management models in a way that accommodates increasingly complex changes in the risk environment. While the availability of data, thanks to the digitization of a wide range of services and functions, has increased, it can be a challenge to assimilate, analyze and leverage the mountains of information constantly streaming in from different sources.
For companies whose success depends on managing risk, it’s crucial to get a handle on how to use technology to turn data into risk assessment and decision-making tools. The good news is that the tools, particularly when it comes to integrated risk management systems, have been getting more sophisticated, capable, and dependable, as well as easier to use. Read on to discover some key features of cutting-edge risk management solutions available right now.
Tools for Managing a Wide Range of Business Risks
Instead of using different applications, spreadsheets, or other systems to manage risk for different departments, with an integrated risk management solution, you can leverage just one solution to assess a wide range of risks in multiple facets of your business.
For example, if an insurance company has a central risk management solution integrated into its organization’s infrastructure, decision-makers can simultaneously monitor the risks associated with both operational costs and claims processing. This enables them to access data pertaining to both departments, compare them in real-time, and see how they stack up against each other historically.
If, for instance, operational costs are going up along with the cost of paying out claims, the company can identify a potential correlation. They can then address this issue, cutting down the cost of each claim to reduce overall operational expenses. In addition, the insurer can see the effects of their changes—or the lack thereof—and use that data to adjust its procedures.
Predictive Modeling to Preempt Future Risk
An integrated risk management system can also give you a glimpse into the future, providing an estimation of the risks that your organization may be confronted with. This is possible thanks to predictive modeling based on advanced analytics. Predictive risk management analytics and modeling involves processing data, identifying trends, and then using it to estimate what may happen in the future given similar conditions.
Armed with this, a wide variety of organizations can assess their future risk. For example, a company with many of its digital resources housed on-premises can use predictive modeling to calculate the probability of a natural disaster disrupting its operations. This data can then be used to justify an investment in a cloud-based backup infrastructure that could help maintain continuity—as opposed to a more expensive insurance policy, or vice versa.
Artificial Intelligence and Augmented Decision-Making
AI, when incorporated into an integrated risk management system, can help provide insights based on the data it processes. This can preclude the need to make decisions based on “gut instinct.”
Artificial intelligence can, for example, eliminate the personal bias that often clouds good judgment. For instance, if you already have a hypothesis regarding the insights data may reveal, your mind may be looking for correlations that support your thinking. On the other hand, with an integrated risk management system that uses AI, the data gets processed without any inherent biases, resulting in better decisions.
Low Code/No Code Customization Options
Gone are the days when you need to be a programmer to customize everything in your risk management system. With a low/no code integrated solution, you only need a basic understanding of your platform’s surface features.
For example, an insurance provider can adjust how their premiums are calculated based on factors unique to certain geographical areas. Instead of having to code its solution from the ground up, by adjusting a few key parameters, they can customize how the system calculates premiums for each geographic region.
Enterprise-Grade Solutions Built for Complex Organizations
With the right integrated risk management solution, even very complex enterprises can enjoy a solution that spans all departments, accounting for their unique circumstances. By giving enterprises the freedom to incorporate several facets of their risk management programs, an integrated system frees them up to create a truly comprehensive solution.
Whether the complexity stems from a diverse arrangement of departments or a complicated assortment of potential risk events, the company has the tools it needs to centrally manage its risks. Further, the right integrated system can also use automation to port data from multiple, complex departments into a single system. This reduces the chances of human error while saving time.
With Ventiv’s integrated solutions, you get the tools you need to stay on the cutting edge of risk management, benefitting from the latest AI and predictive modeling, in an easily customizable low/no code platform. To see how Ventiv’s tools can help future-proof your organization, check out the e-book “Taming the Black Swan: The Power Behind New Risk Management Technologies.”
