Businesses face risk every day. Some seen. And some unseen. But the key to success is being
able to identify and quantify the risk so decisions can be made, and progress moves forward.
Today's Risk Management Information Systems (RMIS) are designed to bring all of an
organization's risk data together in order to give the company a clear view of its risks, and the
relationships and impact of these risks on the organization. It allows the organization to
identify patterns of risks, quantify, track, and respond quickly should a risk come to fruition.
Risk management systems have come a long way over the last 20 years. These systems used
to be used primarily as "best of breed" point solutions, used for claims administration and
incident reporting.
But as companies grew and expanded – along with the risks – these siloed technologies were
not designed to address the larger "enterprise-wide" risks impacting other areas of the
organization.
MAKING SENSE OF RMIS | 1
According to Redhand Advisors, "more businesses now recognize the
benefit and importance of organizing all business risk under a single
umbrella within the organization. Now a board-level topic and no longer
just a line item in your budget for insurance coverage, risk has a
significant impact on your bottom line."
Fast Forward to Today
This change has led to two very important
developments:
The expansion of risk technology
platforms across the enterprise has
become one of the top 5 trends in risk
management today.
Building on the concept of "integrated
risk management", the industry is moving
to systems providing full risk
management capabilities rather than
siloed systems.
