Supply chain management has always come with a wide range of risks—from capacity issues to operational disruption to inheriting the risks of a supplier. Recently, raw material shortages, climate change, and trade wars have come to the forefront of concerns. Regardless of a company’s size or the proximity of its suppliers, it’s likely to feel the impact of global risks like these. Risk managers are taking note. In Lockton’s 2018 Risk Management Survey, supply risk was among the top issues risk managers wanted to discuss more within their organizations.
As supply chains become more complex, so does the management of related risks. Manual management techniques or legacy technology previously used in performing the job may not work for addressing today’s challenges. “To make the best decisions, managers need access to real-time data about their supply chain, but the limitations of legacy technologies can thwart the goal of end-to-end transparency,” states the Harvard Business Review article The Death of Supply Chain Management.
Using the right technology, risk management teams and supply chain teams can take control. A fully integrated risk management information system (RMIS) with built-in automation and data analytics can help eliminate manual labor, increase efficiency, and allow for more accurate predictions. Ultimately, this can save companies money, and aid in avoiding supply disruptions that could take a business under or severely damage its reputation. (Read more about the far-reaching consequences of reputational damage due to supply chain failures.)
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Winter Storm Harper took its toll on large parts of the Midwest and Northeast, causing several deaths, hundreds of car accidents, and power outages that affected tens of thousands, according to the Weather Channel.
Extreme weather—from blizzards to hurricanes to wildfires—wreaks havoc on businesses in every region of the country, with damage having a lasting effect. In fact, according to the Insurance Institute for Business & Home Security, 40% of small businesses do not reopen after a severe weather event. This is in part due to a failure to have an actionable plan in place. As we discussed in Step up your disaster preparedness, don’t wait for the news report, organizations can get tripped up when there’s confusion over who should act and what those actions should be during a weather crisis. Without clear plans, practice, and timely alerts, critical resources may fail to execute.
Origami’s cloud-based RMIS continues to make weather preparedness a priority. With our new proximity search feature, audit functionality, and flexible data integration, you’ll be able to quickly identify major weather risks and effectively communicate how key parties can take action.
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A recent Business Intelligence article draws from a Redhand report claiming that “of all of the subsectors of the RMIS industry, the third-party administrator sector is the one that is the most in transition.” The article suggests this may be due to the fact that TPAs are trying to remain competitive while relying on fewer resources than insurers.
What is clear, according to the Redhand report, is that TPAs are trying to level the playing field with technology. “As will become obvious, there has been a lot of investment and improvement in the TPA sector regarding information technology…” The larger question is, are these substantial investments in upgrading systems even focused on the right area? A survey of customer data indicates this may not be the case.
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This is the first part of a three-part series. In upcoming posts, we’ll provide more information that we hope will prove helpful in the RMIS selection process. Part 2 weighs in on additional topics to consider, including who to involve in the process, budgeting, and initiating the process of working with a RMIS vendor. In Part 3, we’ll take a look at what many cite as a major concern or roadblock when considering the move to a RMIS–implementing a new system.
It’s 2018, and the RMIS industry is well into its fifth decade. RMIS vendors continue to develop and refine tools that give users the ability to integrate data from multiple sources, automate workflows, and improve analysis & reporting.
So, who’s still using spreadsheets to collect, analyze, and report on risk, claims, and insurance data? Plenty of people, it turns out.
According to the recently released 2018 RMIS Report, 26.8% of RMIS Report User Survey respondents indicated that they do not use a RMIS. Asked to specify the primary reason for not doing so, 23% cited the use of spreadsheets. Assuming the likelihood of at least some “non-RMIS users” opting out of responding to a RMIS survey altogether, it’s safe to assume that the actual number is probably even higher.
For some smaller organizations, using spreadsheets instead of a RMIS may still make sense. Perhaps the process of pulling together data and calculating a business’s total cost or risk is straightforward and easily accomplished. Maybe the annual volume of claims or the number of properties for which exposure values must be collected is small enough that investment in a RMIS isn’t warranted.
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