Most companies proactively take measures to analyze and mitigate risk but are they leveraging the right technology, resources, and principles for effective risk management outcomes? As the challenges of the past few years have continued to mount, it has become increasingly apparent that there is certainly room for improvement. We see measurable business outcomes where effective risk management is approached in a modern and integrated strategy.
What makes an effective risk management program?
- Integrate your Risk and Claims Management Systems
Risk and claims organizations often rely on several disparate systems to process data, manage their programs, and provide customer service. With so many different systems in place, data tends to be siloed and departmental barriers can impede collaboration. Achieving greater accessibility and enhanced efficiency are critical top priorities for organizations seeking to improve claim outcomes and centralize services. This can be accomplished by replacing separate systems with a FULLY INTEGRATED RISK AND CLAIMS MANAGEMENT SOLUTION.
- Simplify system maintenance and support
Using multiple systems can result in inefficient operations at the business level and from a technical standpoint. Software systems require regular updates and maintenance, and each platform has unique standards and schedules for upgrades and other changes. Not only that, but each system likely has a unique support team and service level agreement. Having several different points of contact can create even more inefficiency and frustration when support is needed. Effective risk management streamlines your tech stack and centralizes maintenance through a single point-of-contact for support and a dedicated team to manage system updates.
- Leverage coordinated teams
Effective risk management strategies will then leverage the data aggregated for risk management assessments across decision-making functions within their organization. This includes managers, employees, and stakeholders. Additionally, effective risk management requires that the information is easily read and understood by everyone who engages with it. Advanced analytics is not easily understandable by most — however, there are ways to MAKE MESSY, UNSYSTEMATIC DATA MORE DISCERNIBLE TO PUT INTO ACTIONABLE SOLUTIONS. By building upon the knowledge of a centralized data source, your company can thrive knowing that risks will be identified, and solutions can be carried out promptly.
- Used advanced analytics to streamline the decision-making process
According to the Harvard Business Review, “The [COVID-19] crisis accelerated the adoption of analytics and AI, and this momentum will continue into the 2020s, surveys show. Fifty-two percent of companies accelerated their AI adoption plans because of the Covid crisis, a study by PwC finds. Just about all, 86%, say that AI is becoming a “mainstream technology” at their company in 2021. Harris Poll, working with Appen, found that 55% of companies reported they accelerated their AI strategy in 2020 due to Covid, and 67% expect to further accelerate their AI strategy in 2021.”
Companies with effective risk management strategies leverage the most innovative technology solutions to their advantage or risk getting quickly surpassed by more innovative competitors. Machine learning is another subset of AI that employs data analysis, allowing companies to predict these risk levels that is experiencing growing adoption in the risk management space. As AI advances rapidly, trends emerge that show just how useful data-driven decisions may be.
- Effective risk management ensures long-term scalability
Relying on several different (and often outdated) legacy systems can limit long-term progress as your business needs change. You may eventually need to retire legacy systems and make difficult decisions about upgrading. With a FULLY INTEGRATED RISK AND CLAIMS MANAGEMENT SYSTEM, your solution can easily scale along with your evolving business requirements. But it’s equally important to ensure that the solution that you’re choosing is proven and supported by a team of innovated thinkers. Choosing the right technology partner can be just as critical as the technology itself because it is paramount to achieving the other four objectives listed above; integrated systems that provide data visibility, streamlined maintenance, coordination and personalized support for your internal stakeholders, and a vision to evolve to meet your future competitive needs. Effective risk management is backed by a provider with extensive experience in complex risk and claim data conversions.
Effective risk management will be a popular businesses imperative in the years to come as organizations look to not only weather what ever storms await but also to embolden their organizations with the resilience to seize competitive opportunities to proactively mitigate or leverage risk regardless of the political and economic environments in which they do business.
To discuss how you can develop a more effective risk management strategy, BOOK A DEMO today.
