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Thinking ‘bigger picture’ thanks to your risk management system

Everyone could use more time for "“blue ocean"” thinking, right?  More time to express strategic creativity and identify innovations that could lower total cost of risk?  That could really set the risk manager apart and impress the executives in the corner offices. Yet the duties of day-to-day risk management often seem like a 24/7 job. Who has time for thinking?

Topics: risk management risk management software total cost of risk

Believe-it-or-not tales of RMIS risk data consolidation

Despite the availability of advanced risk management software, companies today are still using dated methods for handling risk data. A global real estate company, for instance, excels at developing a portfolio of commercial, multifamily and residential properties yet it struggles at building its own risk management information system. Until the decision was made to turn to a RMIS to achieve data consolidation, this client had been using a complicated system of spreadsheets and databases to handle risk data. 

Topics: risk management risk management software data management total cost of risk

How a risk management system delivers ROI savings

A risk management information system (RMIS) provides you with a broad view of all your risks and exposures so you can make informed decisions that drive short-term profit and increase long-term organizational value. Furthermore, by providing you with more accurate and reliable data, you will be empowered to make decisions on what risks to retain or transfer, risk-retention strategies and how to effectively transfer risk, which all helps lower your overall cost of risk. Below are some key areas in which a RMIS can deliver ROI savings:

Topics: risk management risk management software total cost of risk

Total cost of risk: How does yours measure up?

Is it a mystery what the C-suite wants from its risk management department? Simply put, senior leadership wants it to be less of a cost center. That is the beauty of the total cost of risk (TCOR) measurement. It demonstrates a risk manager's success at achieving that, while also succeeding in protecting the company from risk. But the seeming simplicity and clarity of the measurement also explains why TCOR could be a bane for risk management – because the C-suite might pay very close attention to it!

Topics: risk management software total cost of risk

To lower your total cost of risk, first measure its elements

I’ve just begun digging in to Aon’s 2013 Global Risk Management Survey, a web-based biennial research report, and I recommend it highly to all risk managers. The survey’s findings on how organizations look at total cost of risk (TCOR) immediately caught my attention. The importance of tracking and managing TCOR was the focus of my previous blog post; the 2013 Global Risk Management Survey (GRMS) supports the proposition that, although most organizations understand the value of measuring TCOR, most companies struggle to get a handle on this essential function.

Topics: risk management software total cost of risk

Research shows value in measuring total cost of risk

total cost of risk (TCOR): drafting instruments

In the field of risk management, we’re fortunate to have at our disposal a growing volume of research into the evolving role of (and expectations on) risk management. For the risk manager, such research can be a useful confirmation of (or, sometimes, a corrective to) first-hand experience and viewpoints shared by peers. In other words, research offers a potentially valuable “macro” complement to the risk manager’s “micro” perspectives.

Topics: risk management risk management software total cost of risk data management

The TCOR Connection to Broad Organizational Priorities

Risk management was once regarded as a routine function of the risk manager with little or no connection to the company’s broader directions or priorities. It is now considerably more demanding, seen as a key part of a broader financial management strategy and linked to corporate priorities.This places increased reliance on good data around risks, risk controls, incident reporting and losses.

Topics: data intake & incident reporting risk management risk management software total cost of risk