Yes, having access to audited and auditable data matters for many different aspects of risk management. On the other hand, risk managers want to avoid audit replication by not attempting to do or redo the auditing department's job for them. When, for example, a risk manager finds herself spending most of her time auditing for insurance renewals and not working with brokers to get the right coverage at the right price, there may be a problem with the company's processes.
Auditing Risk Data Can be a Problem for Many Companies
Consider one example highlighted in a Business Insurance article about how converting to a new risk management information system uncovered millions of dollars worth of unreconciled reserve cash. According to the same article, one manager of an RMIS and auditing services firm said that one out of every three claims that he sees has some kind of error. In some cases, the errors may be minor an easy to correct, like having a name spelled slightly wrong. In other cases, the error could be in the actual claim details and amounts.
Can an RMIS Help Your Company's Auditing Department Too?
Ensure good data starts at the source: Risk managers should not spend an inordinate amount of time auditing for insurance renewals. To avoid audit replication, many companies have turned to a risk management information system or RMIS. This technology provides companies with a consolidated source of information that has been automatically validated and converted at the time of input. Since human error is the source of most data errors, this simple measure is usually enough to greatly improve data quality.
For example, the input forms will catch a minor typo in a name because it won't match up with any employee names. In addition, the system can convert details like currency or measurements into a standard format that will be easy to verify. Numbers that are out of an expected range may require a confirmation or explanation. Because of these measures, auditors are likely to spend less time tracking down simple typos and other input errors, and they will have more time to spend improving the overall quality of data that gets used by risk managers.
Receive auditing reports from the same consolidated source of information: Finally, as described in one of our previous posts, "How to Eliminate Human Errors in the Insurance Renewal Process," risk management technology can also be used to produce a variety of different reports. Risk managers may only consider the reports that they use for insurance submissions, management reports, or analysis of incidents.
However, the auditing department might also format and access reports that can make them more productive. A risk management information system doesn't replace auditors or risk managers, but it can help people in both departments do their jobs better and faster.
Do You Have Concerns Over Your Data's Auditing Process?
At Ventiv Technology, we pride ourselves on helping companies streamline and improve their entire risk management process. We hope to work with you to make your data easier to get and more reliable.