Caught in today’s fast-evolving risk landscape, many organizations are realizing they need to manage risk in a more organized and calculated way than can be done in spreadsheets. And a RMIS system is often the solution.
A Risk Management Information System – or RMIS – is a software solution that consolidates risk data to provide accurate, real-time information to inform better decisions about risk. If you’re thinking it might be time to upgrade your risk management technology, here’s what you need to know to get started.
What is a RMIS system?
A RMIS system brings together your insured risk data in one place where you can analyze and report risk, claims, and safety information. RMIS systems consolidate data on claims, insurance policies, property values, incidents, and more, so you have a better handle on things like cost allocations, exposures, and insurance limits.
A RMIS system gives you:
- Visibility. You have a clear view of your risks, the relationships between risks, and the impact on your organization.
- Accuracy. A RMIS system improves accuracy by automating tasks and streamlining workflows so you can trust your data.
- Time. You can stop wasting hours and resources tracking down data, following up on emails, and manually updating spreadsheets. High-caliber talent can go back to what they do best: managing risks from a strategic level.
Who needs a RMIS system?
Whether or not you need a RMIS depends on the complexity of your risks and how sophisticated your needs are. Signs that you need a RMIS system include:
- Administrative fatigue from spreadsheet maintenance, manual data entry, or email-based data collection
- Complex insurance coverages with multiple carriers, TPAs, or international policies
- Lack of visibility into the connections between your risks, experience, premiums, and claims
- Inability to provide timely, in-depth reports or insights to executive leadership
- Too much time spent collecting and analyzing information for insurance renewals
- Questionable data integrity
- Duplications or gaps in coverage
- Difficulties answering questions about premiums, coverage, or claims history
The expanding global economy also is creating more responsibility for risk managers, stricter government regulations, and tighter security needs – and the amount of data that needs to be collected for all that can be crushing. Meantime, brand reputation is always under the relentless scrutiny of social media. A single health and safety incident or mishandled claim that goes viral can inflict lasting damage.
What is a RMIS system typically used for?
A robust RMIS system can automate and streamline many aspects of risk management, including:
- Certificate Management – to minimize risk from contractors, tenants, suppliers, and other business partners
- Claims Administration – to track everything related to a claim from initial notification to adjudication, payment, and subrogation
- Claims Regulatory Compliance – to automate regulatory compliance and proactively monitor current and potential regulations
- Cost Allocations – to accurately allocate premiums and fees based on experience and methodology
- Exposure Management – to automate values collection
- Incident Management – to capture data accurately so the right people can investigate, evaluate, and take action
- Insurance Management – to track and manage all insurance policies, including premiums, layers, limits, deductibles, carriers, and more.
- Root Cause Analysis – to identify the underlying causes of incidents and issues so you can prevent future occurrences
- Reporting and Analytics – to help you make better decisions
How can a RMIS system help you?
A RMIS can bring instant relief to long-standing risk management pain points. It automates boring, routine tasks like values collection. The time saved can be spent on strategic actions that require human-level intelligence like analysis and decision making. And you always know you’re working with current, accurate data that has not – cannot – be corrupted. Phew!
The best part, though, is visibility. Being able to see all of your risks and how they are connected makes all the difference in your ability to proactively manage risks – and costs. You have a single source of truth, so you can follow, for instance, something that starts as an incident and turns into a claim, from the initial event all the way through final settlement.
In the end, an investment in the right RMIS system could be well worth it if you are ready to take your risk management program to the next level. Leaders today are faced with some hard decisions – and a RMIS system could help you get them the answers they need.