It’s tough earning a seat at the decision-making table as a risk manager…and it’s nearly impossible if you can’t be decisive, fast.
But, being decisive, fast, means you have to trust the quality of data that influences your decision making, as well as understand the data and the story it’s trying to tell. This is a real challenge if you rely on manual processes to collect and report on your data—often resulting in erroneous, rear-view information that hardly inspires confidence in data or decision making.
That’s why it’s so important to have the necessary tools and technology to enable you-—and those around you—to quickly and confidently make decisions. In effect, you can become a critical, integral part of the organization’s strategic decision making process.
Improve Data Quality
Data quality is top of mind for most executives as they want to avoid making and being held accountable for poor decisions based on erroneous or incomplete data. Still, in a recent KPMG study, 84% of CEOs indicated they’re concerned about the quality of the data on which they base their decisions.
Legacy risk management systems can contribute to this data distrust. Often, such systems are unable to seamlessly import or export real-time data, particularly in standardized formats that would make sense to any stakeholder across the enterprise.
In addition, data can rarely be integrated. This means different data sets don’t “talk to each other,” and changes to one set of data won’t be reflected in another set of data—even if the data is ultimately related and does in fact affect each other. It also means data typically must be updated manually or “re-keyed” multiple times, which often results in error prone data.
These limitations translate into “rear-view mirror data” at best, and entirely inaccurate data at worst. Either way, trends are difficult to identify, and confident decision-making is a struggle—whether that decision making is on behalf of risk, safety or claims managers, or the leadership overseeing their programs and initiatives.
Conversely, Integrated Risk Management Technology can surface relevant risk information from wherever it’s hiding in an organization and analyze it, connect it with other internal and external data, and normalize it securely in the cloud. It also makes risk data dynamic—updated and visualized in real time.
Questions can be asked and answered on the spot, in the same meeting, rather than weeks at a time elapsing while a new report is crafted. With such advanced technology, actionable intelligence is as easy to create as it is to consume.
Improve Data Understanding
When data is visual, it’s easier for stakeholders to comprehend complex concepts and detect trends. This can lead to more informed and expedient decision making, and ultimately, more proactive risk management. That’s why conveying risk data in visual formats can make such an impact.
Data visualization—the process of transforming text-heavy data into pictorial or graphical formats—provides visuals like infographics, dials and gauges, geographic maps, sparklines, heat maps, and detailed bar, pie and fever charts, so stakeholders can more easily spot trends or outliers, and make revenue-impacting or management decisions at a glance.
But make no mistake: Pretty data isn’t everything. Even the most eye-catching dashboards, charts and graphs equate to “lipstick on a pig” if they reflect incomplete or out-of-date information; if they showcase surface-level or static data; or even if they are difficult to produce.
As such, data visualization is an important and practical function within web-based risk management technology. With the right functionality, risk management technology can exploit its deep connection to expansive and critical risk and insurance data to automatically create visuals that take into account the full spectrum of risk.
Further, it can make visualizing data dynamic—allowing users to instantly manipulate images and drill deeper with more specific queries for any type of information. Related data can be configured and reconfigured visually time and time again based on what the stakeholder interested in the information wants to see, or the business problems specific stakeholders are trying to resolve.
Insurance claim and policy data are just two examples of information that can be visualized and analyzed from 360 degrees within risk management technology. For instance, a risk manager might want to see claim severity data from trending, timeline and geographic perspectives to get a handle on incidents; what’s causing them; and how they can be prevented at certain locations.
A claims manager, on the other hand, might want to see claim severity data through the lens of how long the most severe claims are open versus less severe claims in order to evolve processes and shorten the claims lifecycle for severe claims.
Improve Decision Making
Improved data quality and the subsequent understanding of that data makes for overall better decision making–both on your part and the part of any other stakeholders.
With the right risk management technology, you don’t have to be afraid of making uninformed decisions because of inaccurate data that was cobbled together from multiple sources and was rekeyed countless times. Further, you can speed up reporting times and be more confident that the graphical representations of your data reflect real-time information.
Your ability to make good decisions, fast—as well as support your leaders in their own sound and expedient decision making—can make you the hero of your organization, elevating your career and the role of risk management at your company.