Monthly Archives: July 2018

ERM – Moving beyond risk assessments and heat maps

heat maps

Risk assessments and heat maps remain central components in most enterprise risk management (ERM) programs. Yet there is considerable debate about their effectiveness and both tools have no shortage of critics. In 2011 Howard Sklar, a Forbes contributor, outlined one of the most popular criticisms regarding companies that viewed risk assessments as a document instead of a process. He noted, “Companies that fail in this way are often trying to check the risk-assessment box on their program. That’s fine, as far as it goes. At first glance, a risk assessment seems like a low-ROI effort. You put in time and potentially money, and you get back a piece of paper laying out what you already know.

Similarly, others deride heat maps as nothing more than “colorful guesses.” Brian Priezkalns, in the not-too-subtly titled article, Why I hate Heat Maps, says “Heat maps are just a terrible terrible terrible way to understand, communicate about, and decide how to respond to risks. They either mess up what you already knew, or they hide the fact you are too ignorant to make a rational decision. Everything that can be done with heat maps would be done better with actual numbers.”

If these tools have such fierce critics, then why are they still central to most ERM programs? In this article, we’ll examine what drives the limitations, and the key missing ingredient that turns them into powerful assets.

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RMIS switch ahead? 5 factors to avoid hidden costs and lost time

RMIS system switch

Perhaps outdated technology or the need for functionality that can handle changes to risk management practices means your existing RMIS has outlived its usefulness. Or, based on recent developments, you may be taking proactive steps in the face of the uncertainties that come with the acquisition of your RMIS vendor.

Regardless of why you’re looking to change systems, one thing is certain—you don’t want to have to go through the process again any time soon. When evaluating RMIS vendors, consider the following factors to reduce the likelihood that you’ll encounter the unexpected when it comes to getting a new RMIS up and running. This can help ensure that you avoid hidden costs months—or even years—down the road.

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What AI, IoT & Wearables Mean to Your Policy Administration System

The impact of insurtech on today’s carrier is easily seen. McKinsey notes that investment in insurtech skyrocketed from $140 million in 2011 to more than $2.7 billion four years later. The PWC 2017 Global InsurTech Report shows that nearly half of all respondents are currently partnering with insurtech. With so much buzz around the risk and opportunities insurtech offers, it can be difficult to extrapolate what these potential changes mean for today’s carrier.

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Two Key Considerations for Choosing a RMIS Partner

Two Key Considerations for Choosing a RMIS Partner

Choosing the right RMIS can seem like a balancing act. You’re looking for a solution that solves for the challenges the organization currently faces, while, at the same time, seeking a system and provider capable of evolving to meet needs that may arise.

Given the amount of work that goes into selecting a RMIS—not to mention the investment being made on behalf of the organization—the last thing you want to do is repeat the process in the near future. When interviewed for the CIO magazine article How to Choose the Right Software Vendor, Malcolm Cowley, CEO of the Performance Horizon Group, put it this way: “The last thing CIOs and other technology decision-makers want to be faced with is the need to re-evaluate and invest in a new solution two or three years down the road, when the existing system can’t handle the company’s emerging needs.”

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