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Recently, the use of Risk Management Information System (RMIS) has become more advanced and comprehensive. Risk exposure, control, and risk action plans can now be used as software packages to analyze and record details of the risk that an organization may exposure to (Hopkin, 2017). Difficulty in anticipating quickly evolving risks, notably cyber responsibility and reputation risk, are pushing risk managers to inquire more from their risk management information systems. RMIS previously focused on basic tasks such as claims and insurance policy management. Observers say today’s risk managers want to increase their predictive analytics capabilities, but also worry about the accuracy of such calculations (Hofmann, 2016).
According to John Phelps, director of business risk solutions at Blue Cross and Blue Shield of Florida in Jacksonville; there are two schools of thought within the risk management community; One consists of traditional risk managers who are looking for claims management skills, policy management, and archiving abilities. The other school of thought involves risk managers who focus primarily on enterprise risk management and are not involved in risk financing.
In my opinion, RMIS helps in reduce administrative burdens by automating many manual processes such as; Data consolidation and validation against business rules, and this includes transforming data into a single currency and language for reporting purposes. It also helps in data imports from existing systems, such as third-party administrator systems or insurance carriers, data processing, and data exports (Hofmann, 2016). Also, distributing information to stakeholders, allocating premiums to business units, and invoicing and tracking payments from insurers.
Moreover, RMIS also improve data accuracy; Although data accuracy will always rely on people, RMIS can help in the following ways; automatically highlighting to users, at the point of entry, values that may contain errors, ensuring consistent synchronization of data from multiple sources. Moreover, it helps in providing context help for users.
The idea of risk management information systems represents a significant role in the risk management field. It guarantees that the organization shifts the focus to the behavioral change which in its way help employees working in different ranks in the company to detect risks and be able to acknowledge and document them, and then notify the management board of these risks. Moreover, it allows firms to become more compliance with the risk management system (Hopkin, 2017). RMIS ensures that all characters at the organizational management get usual to compliance by reducing the aftermath risks across the operations of the company.
Hopkin, P. (2017). Fundamentals of risk management: Understanding, evaluating and implementing effective risk management, 4th Edition. Kogan Page Limited: London, England.
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Risk Management Information Systems (RMIS) have become increasingly advanced and comprehensive in recent years. These systems allow organizations to analyze and record details of the risks they may be exposed to. Traditionally, RMIS focused on basic tasks such as claims and insurance policy management. However, today’s risk managers are seeking more advanced capabilities, such as predictive analytics, to better anticipate rapidly evolving risks like cyber responsibilities and reputation risks.
There are two schools of thought within the risk management community. The first group consists of traditional risk managers who focus on claims management skills, policy management, and archiving abilities. The second group is comprised of risk managers who prioritize enterprise risk management and are not involved in risk financing.
RMIS offers several benefits in risk management. It helps reduce administrative burdens by automating manual processes such as data consolidation, validation, and transformation. This includes converting data into a standardized currency and language for reporting purposes. RMIS can also import data from existing systems and export data for various stakeholders. Additionally, RMIS improves data accuracy by detecting errors at the point of data entry and ensuring consistent synchronization of data from multiple sources. It also provides contextual help for users.
The concept of RMIS plays a significant role in the risk management field. It encourages behavioral change within organizations, enabling employees at all levels to detect and document risks and inform management. It also promotes compliance with risk management systems, reducing operational risks throughout the company.
In conclusion, RMIS has evolved to address the changing risk landscape. It offers advanced features and automation capabilities that assist risk managers in analyzing and mitigating risks effectively. By utilizing RMIS, organizations can enhance their risk management practices and improve overall compliance and risk awareness.