- Your Role
- Your Business
- What We Do
- Who We Are
- Contact Us
Receive great blog updates once a week in your inbox.
In the last ten years or so, the risk management landscape has undergone dramatic change, much of which has been driven by factors outside the risk managers traditional purview. Among those factors are the expanding scope and impact of corporate governance; surging rates of litigation; ever-changing regulatory requirements; and, last but not least, evolving practices in the self-retention and transfer of risk.
Even in the face of such recent and ongoing changes, risk managers can stay ahead of the curve by maintaining their focus on sound risk management processes. Whats more, by focusing on sound risk management processes, risk managers can get more value from their risk management software.
In this blog post, Id like to focus on three key pillars of risk management that, although important in their own right, also support the goal of enhancing the business value in risk management software.
Whether your organization is relatively new to the use of risk management software or has an established system in place, a periodic review of the foundations supporting risk technology can be quite valuable.
For the purposes of this post, I define risk management processes as those that empower a risk manager to make critical decisions based upon information that is accurate, complete and relevant to the business environment. These processes are the bedrock upon which strategic planning and decisive action are based. If correctly integrated within the organization, risk management processes supported by software can transform raw data into valuable information, which in turn becomes business-critical knowledge about risk.
The success or failure of an organizations risk management strategy can be directly tied to how accurately and thoroughly risk managers answer fundamental questions like the ones listed below:
On its own, the use of risk management software cannot overcome the challenges that an organization might face in answering such important questions. Its true that technology plays an important role as an enabler when gathering, analyzing and disseminating data, but risk management software is only part of the total solution.
For many organizations, corporate governance has helped to elevate the function and discipline of risk management to the boardroom agenda. Todays stakeholders not only expect, but also demand, a total commitment to the management of risk; sound risk management processes play a key role in fulfilling this obligation in the following ways:
Within todays market, one of the greatest challenges faced by risk managers is how to present risk in the best possible light during negotiations with new or existing markets. The duty of disclosure is still critical in establishing trust and integrity within the marketplace, but underwriters acknowledge that those risks presented with accurate, concise and complete information are the ones most likely to attract interest and influence preferential attention.
Whether were talking about risk management with or without the support of technology, sound risk management processes will certainly strengthen your position when negotiating cover, capacity and price with underwriters in todays volatile marketplace by:
Mar 18, 2013
| Originally posted on
Ready to move your business forward?
Ric Henry | Managing Partner, BRP Pendulum
Lisa Mohler | Vice President of Claims and Risk Management, Indiana Public Employers' Plan
Lynn Barrett | Insurance Executive, Travelopia
Steve Robles | Assistant Chief Executive Officer Overseeing Risk Management and Privacy, County of Los Angeles
Katherine Cooley | insurance business analyst, HPIC