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Business Benefits of Risk Management Information System (RMIS)

Enterprise Security Magazine | Wednesday, July 14, 2021

A risk management information system (RMIS) is a consolidated computer information system that collects risk data and assists decision-makers in evaluating business risks.

FREMONT, CA: Before implementing a Risk Management Information System (RMIS), businesses commonly use multiple spreadsheets and databases, email communications, and various siloed data collection systems. A primary objective of an RMIS is to consolidate and store data in a centralized location. A truly integrated system can be highly beneficial for risk managers who are responsible for making critical decisions. Indeed, part of an RMIS's function may be to keep track of where physical or electronic documents are stored. Several of the most compelling reasons to consider an RMIS investment include the following:

  • Increased responsibilities: Risk managers are no longer an afterthought on the finance team. Today, they are highly regarded C-level executives who are regularly tasked with presenting to boards of directors and other stakeholders. Their ability to access and manage data is inextricably linked to their success in streamlining processes and assisting with decision-making.
  • Increased insecurity as a result of stricter governance regulations: The world of today is litigious and uncertain. There is a higher danger-the cost of mistakes increases in an unstable economy with an increasing population and a greater frequency of natural disasters.
  • The brand’s reputation: With a global economy and easy access to social media, every organization's reputation is at risk daily. The capacity of an organization to control its reputation–and potential damage to it – is also a barometer of its success.
  • More data: Because information is ubiquitous, aggregating risk data has become more critical than ever. It is nearly impossible to direct all of the data efficiently anymore using disjointed spreadsheets. However, with the aid of technology, information becomes not only manageable but also functional.

Which businesses stand to profit the most from an RMIS?

Risk management entails the identification, assessment, and prioritization of risks. These dangers can originate from anywhere and spread at any time. The industries that stand to benefit the most from an RMIS involve safety or insurance risks, such as construction, manufacturing, healthcare, hospitality, transportation, power and utility, and food and beverage. Other businesses with significant liability concerns will also benefit. Companies that are most in need of an RMIS are currently confronted with the following challenges:

  • Administration: Outdated systems, an excessive amount of data to collect, or reliance on third-party administrators.
  • Risk financing: Complicated insurance coverages with multiple carriers
  • Visibility: Countless risks to monitor, ranging from properties to vehicle fleets and other assets.
  • International: International insurance policies, as well as requirements for multilingual or multicurrency operations, are complicated.

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