More than 80% of risk managers rely on a RMIS to get a clear line of sight into insurable risk, drive new process efficiencies, and lower total cost of risk (TCOR). The insight and intelligence garnered from a RMIS leads to more informed, faster decisions around claims administration, policy management, and more.
While leveraging a RMIS to track and manage insurable risks will always be core to risk management, that’s only half the story. The other side of risk – the noninsurable events – are equally important, and they can hit you fast and hard if you’re unprepared.
Consider the risks that top the CEO agenda today — brand reputation, third-party risk, financial stability, and climate resiliency. These risks pose significant threats to revenue and profits, yet go unacknowledged in a RMIS.
To most C-suites, risk is risk. They are demanding to know how ALL risks are being addressed – and they’re asking tough questions. Are you as confident in your answers on the noninsurable side as you are on the insurable side?
Expand Your RMIS Toward Integrated Risk Management
Inside and outside the C-suite, the lines between insurable and noninsurable risk are blurring – and more organizations are turning to integrated risk management as a way to manage risk holistically. IRM connects the dots between all types of risk – insurable and noninsurable, strategic and operational – so you can understand the full impact of a risk event on your business.
Jumping into the deep end of integrated risk management, however, might be a big step to take all at once. The good news is that if you have a fairly robust RMIS, you can easily dip your toe into the IRM waters. Features like risk registers, risk assessments, risk scoring, and heat maps all can be used to get noninsurable risks on your radar. The next step is to create a consistent process for quantifying the impact of these risks. And the more structured, the better, since one of the challenges with noninsurable risks is that they are generally more subjective in nature.
A Thirst for More
With all of your risks present and accounted for, you can begin to see how a single risk event – like a problem with a third-party supplier – could impact other risk areas – like claims. That’s powerful stuff. Now think of the power you would have if all of your risks were properly identified, assessed, correlated, and managed cohesively across the organization. You could finally answer those C-suite questions – and have the data and analytics to offer your own insight as well.
If that’s the power you’re looking for, your RMIS might not be enough.
Are you ready for more power than a RMIS can offer? Find out how you can take your risk management program to the next level here.