Ventiv Technology

360º | Aon eSolutions 3 9 The complete Top Ten Benefits list from the survey results are: » Accuracy and reliability of data » Automation of processes » Data consolidation and management » Management reporting improvements » Risk management process improvement » Ease of access to data from one location » Communication improvement » Increased awareness » Total cost of risk reduction / management » Auditability KEy TREnD: Tracking ROI When asked about how quickly companies expect return on their investment in risk technology and expectations for savings, more organizations indicated that they are now closely tracking their return on investment for risk technology tools. In 2012, 49.5 percent of organizations surveyed said that they expected savings of up to $500,000. When asked to quantify savings resulting from the use of risk technology, such as risk transfer costs in insurance premiums, more than half, 51.2 percent, said they had realized between 2.5 and 10 percent reduction. The fact that companies are actively tracking the ROI for risk technology investments indicates that the technology is becoming more entrenched in the way organizations do business and is seen as an added value in reducing total cost of risk. Top Ten Benefits 1. accuracY and relIaBIlItY of data. KEy fInDIng: Confidence in data is a key issue for global businesses managing vast data from operations. RMIS helps in providing precise and dependable reporting to senior management. 2. automatIon of processes. KEy fInDIng: Achieving more efficiencies that relieve time- consuming and error-prone tasks, an integrated RMIS is recognized as improving quality and consistency of information. 3. data consolIdatIon and management. KEy fInDIng: An effective risk technology that manages multi- source data improves reporting and tracking, and enhances operational excellence. 4. management reportIng ImproVements. KEy fInDIng: Accurate, high- quality and fully integrated data and management reports help to ensure organizational control and facilitate informed decision making at the management level. 5. rIsk management process ImproVement. KEy fInDIng: An effective RMIS helps organizations improve the way they leverage data, allowing them to translate data into structured information that can lead to measurable improvements in business performance. 6. ease of access to data from one locatIon. KEy fInDIng: Enabling all key personnel to access data in one location makes the organization as a whole more informed, nimble and, in turn, more competitive. Note: This year's survey introduced a new question category: familiarity with cloud computing and confidence in the security of products used in cloud computing. More than 74 percent of the respondents said they were familiar with cloud computing and almost half said they were very or reasonably confident that the products used are secure. 7. communIcatIon ImproVement. KEy fInDIng: Effective communication surrounding risk management findings is the missing link for many businesses. Simply gathering and collating risk information is not enough—the entire organization must be made aware of these findings and motivated to adapt to emerging risks. Consistent and persuasive communication is the foundation for addressing, mitigating and monitoring risks, in both the short and long term. 8. Increased awareness. KEy fInDIng: In this ongoing volatile environment, many risk managers are stressing the importance of managing risk at all levels of the organization. More boards of directors are supporting enterprise risk management (ERM) initiatives; they realize that to avoid catastrophe, risk must be more effectively controlled. Increased awareness of risk—including hazard, operational, strategic and financial—resonates on every level of the organization. 9. total cost of rIsk reductIon / management KEy fInDIng: Organizations understand that the key to risk management and TCOR reduction lies with better management of a company's risk data, enabling clear overviews of TCOR that allow CFOs to identify innovative strategies for reducing costs. 10. audItaBIlItY KEy fInDIng: At a time when most businesses are risk averse, ensuring that their operational and financial data is valid is clearly a top concern. METhoDology In July and August of 2011, Aon conducted its second Global Risk Technology Survey, consisting of 30 questions to Global 1500 companies. The main objective of the survey is to gain a deeper understanding of how the use of risk technologies are having an impact on risk and data management and total cost of risk (TCOR). The survey report is based on over 400 respondents in 57 countries and five regions. Nearly every industry is represented in the survey, from agribusiness and health care, to retail and wholesale trade. Slightly over half the respondents, 50.5% are publicly owned organizations, with 35% being privately owned companies. Not-for- profit or government-owned organizations primarily account for the remainder of respondents. The majority of respondents are from North America (64%), with Europe the second largest group at 26%, and Asia Pacific next at 7%.

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