The risk management framework is evolving as leadership begins to find a competitive edge in the loss control office. Organizations are working smarter with their data by taking advantage of InsurTech solutions. As a result, the capability to optimize risk increases organizational resilience and improves the bottom line.
In other words, Risk Management 2.0 is on the market!
Investopedia explains InsurTech as, “the use of technology innovations designed to squeeze out savings and efficiency from the current insurance industry model”.
What does the evolution of the RM Framework look like? A tell-tale characteristic of this shift is the way data is managed and put to work.
Risk Management 1.0
“Risk management fails when information is scattered, redundant, non-reliable, and managed as a system of parts that do not integrate and work as a collective whole.”
– Michael Rasmussen, GRC Economist & Pundit
Risk Management 2.0
“Risk management thrives when the data is in a centralized location, aggregated, consistent, and readily available for all interested parties to access and put to work.”
– Roger Duffield CPCU, ARM
InsurTech & Smart Data Management
Risk management data tools are no silver bullet, but are becoming a foundational pillar necessary for effective risk management. A lack of attention in this area is one of the greatest hindrances to stepping up an organization’s risk management efforts.
Bottom line—your data should not be putting you to work; it should be working for you.
You are working for your data if:
- Employees slave over a single report for months.
- The report ends up in a file cabinet with no proactive function.
- Data management cannot establish a baseline to benchmark progress over time.
- Data is managed mostly in Word or Excel format.
- The resources spent in managing data do not produce an ROI
Your data is working for you if:
- Reports are automated and ready to export on demand.
- Reports go with the C-Suite Execs whenever they make a decision.
- Results are benchmarked over time to visualize progress and identify blind spots.
- Data is managed in a central location and automatically aggregated.
- The resources expended demonstrated an ROI.
Work smarter, not harder. Let’s make risk management simple again.
Want to hear more on this topic? Watch our recorded webinar–Risk Assessments and Results: Taking Advantage of the InsurTech Edge by in2vate President Roger Duffield, CPCU, ARM.