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. … read more
Perhaps outdated technology or the need for functionality that can handle changes to risk management practices means your existing RMIS has outlived its usefulness.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. … read more
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. … read more
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.” … read more
Technology is often the first thing risk managers turn to when seeking to enhance enterprise risk management (ERM) programs. The appeal of leaving behind a jumble of spreadsheets and manual processes for a single, dedicated ERM workhorse is undeniable. Yet, without the right context to shape the selection process, a new technology solution may not help at all. In fact, it could even make matters worse. … read more
Loss reduction efforts and improvements in safe workplace behavior require the cooperation of everyone in an organization. Risk managers can encourage enterprise-wide participation in the collection of critical risk and safety data by making it easier for employees to report accidents and near misses. Providing users with the ability to capture this information from mobile devices increases the likelihood that incidents are reported quickly and accurately, regardless of where they occur.
Because the details of an accident or near miss can be difficult to fully describe using words, allowing for incident reports to be supplemented by attached files is essential. Yet even these data elements can fail to provide clarity in relation to the motion of vehicles, the sequence of events, or the intended area of focus within an image. For this reason, Origami Risk provides mobile app functionality that allows for the annotation of attached diagrams to ensure that risk managers and safety professionals have access to details they would not have had otherwise. … read more
Certificates of Insurance (COI) are an essential part of managing liability in an organization. Failing to properly obtain, inspect, and update these documents can lead to risk transfer from contractors and increased exposure to unforeseen liabilities. As George Page writes, “These certificates are an important part of doing business, and the more effectively you manage them, the less likely you are to run into problems.”
A manual process for COI management can easily become a resource draining nightmare. In Why You Should Be Concerned with Certificate Tracking Gibson highlights, “… properly managing certificates of insurance poses a significant administrative challenge. It is time intensive and complex.” It is this combination, time intensity, and complexity, that creates the administrative burden frequently associated with certificate management. A closer look reveals how each component contributes to this burden. … read more
In recent posts, we looked at the Origami Compliance forms solution contributes to a more efficient and accurate approach to workers’ compensation reporting. Given the fact that reporting workers’ compensation claims is a requirement that carries the threat of penalties and fines and security of systems and data is a growing concern, we’ve also addressed the importance of choosing a proven technology partner you can trust to provide claim reporting accurately and take the security of your data as serious as you do.
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