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Climbing the organizational ladder with your risk management system

climbing the ladderImagine one organization with multiple databases filled with risk management data. Claims information fills its spreadsheets, though data on estate movements and payment transactions are not recorded anywhere. Can you imagine what the risk manager from this firm – an actual healthcare and education provider – must do to impress the board?

Now, add a risk management information system (RMIS) to the picture: Take away the spreadsheets and the multiple databases, and replace them with a single database with claims and policy modules to integrate data across every location, business operation and third-party vendor. Then, include a flexible reporting capability that allows the risk manager to slice and dice that data with the power of 21st century analytics.

It’s easy to imagine the heightened impact that same risk manager would then have in presenting to the board!

The obvious missing denominator in scenario one versus scenario two is a risk management system that can translate insurance and risk-related information into a language that corporate leaders can appreciate. The right RMIS can produce a meaningful one-page report that shows how risk is affecting the company bottom line, and then support the strategies to improve the situation. Meanwhile, the RMIS can be made available to managers in the field through convenient incident reporting dashboards and accessible checklists for risk processes.

A cliché of clichés in the corporate world is "climbing the ladder," from entry level to middle management to executive status, in order to survive and thrive in the big, bad business world. For risk managers, climbing the ladder is also important in terms of getting recognition of the importance of risk management within an organization.

Risk managers must not just climb up that ladder to create reports for senior leadership and board members. They must climb sideways, proverbial speaking, to get the good word about risk management out across the organization.

Imagine another real-world example of building risk management awareness: A property management company relied on paper incident forms for its property managers to report incidents and collect property data. It decided to ditch the pencil and paper and turned to risk management software with claims and incident reporting capabilities. As a result, the company''s central risk management department gained the consolidated data source it needed to run reports and prove trends out of hunches. And its managers in the field gained a new-found awareness about identifying and addressing safety issues in the field.

So on one hand, a risk management information system can magnify risk management's message well beyond the limited resources that they typically have. This is important, considering a large majority of organizations – more than seven out of 10 according to the 2013 Aon Global Risk Management Survey – report having six or fewer staff in their risk management departments. Another 63 percent report having just one to two claims personnel on staff.

On the other hand, the right RMIS tool from the right RMIS vendor makes risk managers look good. Imagine that.

 


 

jay thieraufJay Thierauf is a territory vice president with Aon eSolutions, based in Chicago. Please email Jay at jay.thierauf@aon.com.

RMIS Guide

Sep 18, 2013

 | Originally posted on 

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