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Aon Insights As organizations' expectations for what a RMIS can and should do for them expand, risk management teams are seeking out tools that deliver accurate and timely information. These tools must demonstrate that the organization is using a high-quality, transparent system that clearly describes its business risk profile. Increasingly savvy risk management teams recognize that simple spreadsheets, which are easily compromised or corrupted, do not meet the needs of the organization. Collaboration Business leaders need tools that engender collaboration between the risk manager, broker and the insurance market. The analytical aspects of these tools will be as important as the collection mechanism itself. Historically, different departments might seek out different technologies – for example, the health and safety department might purchase a system to handle OSHA, while the legal team would obtain a RMIS to help manage litigation issues. Organizations are keen to implement one system to provide all requirements and deliver comprehensively tighter controls over the operational budget, as well as reviews and approvals of spending. This spirit of collaboration is well suited to the use of RMIS – fewer organizations use a silo approach to technology decisions; more use an overall plan to find risk solutions that work across the organization. Integration with internal information is critical. An organization can integrate a RMIS with its business systems to allow information to be replicated, either in real time or on a regular basis, thus avoiding the time needed to re-key the data and the inaccuracy that can result. This approach covers exposure details such as employee or property data, or specific business transaction information such as customer purchases, customer disputes, or logistic shipment information where the required details are copied into the relevant part of the RMIS. Additionally, the organization can interface with its accounting system so that invoices can be triggered from financials captured in the RMIS. Compliance Regulatory compliance will be increasingly important in the months and years to come. This will drive risk management and the adoption of enterprise risk management and business continuity management, and it will be one of the reasons that risk management will become even more deeply embedded in the organization. Regulators demanding transparent and easily authenticated tracking systems will require formal systems such as RMIS rather than spreadsheets. This is reinforced by developments such as Standard & Poor's announcement to enhance its rating process to include a review of enterprise risk management programs, as well as, for captives, the impact of the forthcoming Solvency II legislation. Data Standards Within the Risk and Insurance Management Society, the industry trade group, there has been a significant push for risk data standards. All risk technology providers currently use data loads in varying formats. The industry is seeking for the data being collected or sent to conform to a standard, so providers can develop one interface for loading the same information from any other provider. When data is collected and sent using standards it improves the consistency of the data, which promotes confidence in decisions made by risk management teams. Also as the support for data standards increases, overall reductions can be made in the number of system interfaces being supported. Consequently, an effective and well-designed RMIS can transform an arduous task into a manageable, transparent and accurate process. 44 Global Risk Technology Survey 2012 Aon Risk Solutions | Aon eSolutions