A risk management information system (RMIS) is a computer information system that allows decision-makers to be wary of business risks. This information includes risk exposure, protection measures a firm can adopt, and risk management. The data that’s fed to the computer system includes loss-control measures, property values, past claims, and important insurance policies.
Similar to other computerized information systems, an RMIS System is super easy to get access from different locations and on different devices. It’s a flexible and agile solution, which is able to keep up with changing needs of a modern workplace. At the same time, a Risk Management Information System (RMIS), it’s tailored to support your business’ risk concerns, exposures, protection measures, and risk management.
What are The Features of RMIS?
Many organizations view RMIS as a claims management and incident reporting tool, but it does so much more than that. Every RMIS has its own set of features, some of them are custom made for specific industries, ranging from construction to healthcare.
To begin with, an RMIS offers a selection of features and modules that collect data. A larger, more comprehensive RMIS will include modules for businesses that need it. Some of these modules include policy management, premium calculation, financing risks, contracts, and vendor management.
An ideal RMIS should also include flexible reporting tools to make sure all the information is stored in a useful format. These tools are available in a fixed template format, but other tools are customized to meet the needs of an individual organization.
Moreover, an RMIS should help in automation. This way, businesses don’t have to input data manually. Today, RMIS reduces administrative burdens and improves data accuracy by automating the process to eliminate human error from the process.
Why Should Businesses Get RMIS?
Before a business invests in an RMIS, they’ll often maintain multiple spreadsheets and databases, and different siloed systems collecting data. A major goal of RMIS is to gather information and store it all in one place.
A complete integrated system can provide a great benefit to risk managers who need to make crucial decisions. In fact, part of these functions of RMIS may even keep a track of where physical online documents are stored.
If you’re planning to get an RMIS, then here are some of the most important reasons:
1. Expanding Responsibilities
Risk managers don’t just have to play a supporting role on a finance team. Today, they’re valued C-Level executives, and they’re responsible for presenting data to board members and other stakeholders regularly. They have to be able to access and manage the data that’s directly tied to their success.
2. Stricter Governance Regulations and More Insecurity
Running a business in today’s time is challenging and uncertain. The cost of mistakes grows higher and higher over time. There’s more at risk that you need to manage.
3. Brand Reputation
With a global economy and simple access to social media, every organization’s reputation is on the line every minute of the day. An organization’s ability to manage its reputation and prevent potential damage to the reputation is a market of its success.
4. Access to More Data than Ever
There’s information all around, and therefore collecting data in one place is more important than ever. It’s nearly impossible to manage all the information efficiently manually using spreadsheets. By using technology, however, the information becomes manageable and useful.
Which Businesses Can Benefit from RMIS?
Not every type of business needs to identify, evaluate, and prioritize risks. Businesses can run into risk from anywhere and expand at any time. The industries that can benefit from an RMIS are businesses that include insurance risks, such as construction, manufacturing, healthcare, hospitality, transportation, power and utility, and food and beverage.
Other businesses that have major concerns about liability will benefit from an RMIS as well. Businesses that are in need of an RMIS currently experience challenges around:
- Administration: Outdated systems, too much data to collect, or third-party admins.
- Risk Financing: Complicated insurance coverage with multiple carriers.
- Visibility: Unable to track business risks, from properties to vehicle fleets and other assets.
- International: Businesses that face the challenge with international insurance policies, multi-language or multi-currency requirements.
Why RMIS is Important for Businesses?
There are several reasons to use a risk management information system, and businesses can get several benefits. A business can use RMIS for many reasons including:
- Organizes Data: Having to handle more and more data is becoming challenging, a RMIS collects information from multiple sources, highlights errors get rid of irrelevant data, and provides context for users. Developers can actually specify field limitations and verify all the data entries against available options.
- Automation: A RMIS helps transforms data to compare like metrics. It helps in creating reports, dashboards to collect information from several sources. An RMIS makes all the crucial information available to all Stakeholders and notifies relevant parties when a threshold has been reached.
- Collects and Organizes Information: A RMIS collects data from several sources into a single system, and it also helps in presenting data in several important ways.
- Saves Money: By offering improving data collection and risk management procedures, organizations can expect to avoid insurance gaps and overages. Additionally, working with a single system makes the process more efficient and saves a lot of time and money.
By using an RMIS regularly, businesses can have a huge impact. It can provide crucial insights that most businesses skip. Reduce administrative burden, improve data accuracy and prevent business losses.