Public entity risk managers looking to further reduce the costs associated with workers’ compensation claims continue to recognize the value of a behavior-based risk and safety management model. According to Public Entity Risk Managers Speak Out: Results of the 2017 Public Entity Employee Safety & Loss Control Survey, “Now more than ever, the best strategy is to take a holistic approach to risk management to prevent claims from occurring in the first place with loss control strategies.”
The development and implementation of a pre-loss model that measurably drives accident reduction and workplace safety requires effective collaboration between risk management and safety teams. Transparency and the sharing of information is essential to success. Both can be severely restricted when using spreadsheets or outdated legacy software. …
Calculating Total Cost of Risk (TCOR) for many organizations is a formidable task. Even agreeing on what the term means can be challenging. The Port of Houston Authority offered a concise yet effective definition in a 2016 presentation at Texas PRIMA, “A metric used to evaluate the success of your risk management process.” This definition underscores how critical TCOR is to understanding the effectiveness of risk management strategies across the entire organization.
The article “Total Cost of Risk (TCOR) – What Does It Mean to You?” notes that this valuable metric allows organizations to:
- Benchmark the costs (flexibly) against similar organizations
- Benchmark allocated risk expenses against other internal costs allocated to products and services
- Summarize risk management policies, procedures and appetites
Given the widespread acknowledgment of how essential this indicator is, why are most organizations unable to fully deploy it? Many organizations struggle to develop a sustainable process for generating TCOR component values. For example, one survey states that only 44% of respondents managed and tracked all components of TCOR. This post examines some of the barriers to more widespread adoption and outlines how the right RMIS can remove those roadblocks. …
While the work of planning and budgeting, analyzing requirements, and researching vendors are of critical importance, system demonstrations mark a significant milestone in the selection and purchase of RMIS software. As “Best Practices: How to Evaluate Software Demonstrations” points out, RMIS demos are “where you see the systems in action and learn what they can really do for you.”
Remember that this is your demo
Knowing what to expect as you enter this phase of the buying process ensures that you’ll get the most out of your RMIS demos. Each demo needs to show how proposed solutions can work to fix the specific challenges your organization faces both now and in the future. Be sure to find out not only what the system offers today, but also the rate of innovation, as well as your ability to take advantage of new functionality as it becomes available. How often are new features introduced? Are upgrades required to gain access? Do they cost extra?
Here are ways you can prepare for a RMIS demo that will help you assess how well both system and service will meet your risk management objectives, both now and in the years to come. …
Your internal assessments suggest that it’s time to move forward with the purchase of a new RMIS. In our recent post, “Tips for Selecting the Right RMIS“, we looked at potential next steps that range from considering the inclusion of other departments in the selection process to researching vendors to suggestions on what to look for in a new system. As you move into the next phase of the buying process, to ensure you get the most out of your investment, there are many questions to ask vendors when evaluating their RMIS offerings.
Consider grouping the questions into five categories:
- Service Model
Use the goals and priorities of your organization to weight the importance of sections or individual questions. Remember that getting clear answers to all your questions is critical to the success of a new system. …
Munich Re reports that 2017 was the second most expensive year for natural disasters ever recorded, with overall global losses estimated at over $360B. For the U.S., last year’s severe storms resulted in a share of losses that was significantly higher (50%), than the long-term average (32%). A recently published Business Insurance special report cites estimates of insured losses of $15.4B–with $12B caused by inland flooding–stemming from Hurricane Harvey, alone.
Ernst Rauch, head of Munich Re’s Corporate Climate Center, holds that these patterns are likely to continue. “We have a new normal. 2017 was not an outlier.”
A quick look at the weather on the first day of Spring seems to underscore that point.
- Businesses in the mid-Atlantic and Northeast expect to be digging out from the fourth winter storm in 3 weeks.
- High winds and hail are causing damage across the Southeast.
- Flash flood watches have been issued by the NWS in parts of Southern California.
Is your business prepared for the “new normal”?
With large-scale natural disasters becoming increasingly common and more costly, a renewed focus on business continuity and disaster recovery is essential. Preparing for these events, along with the ability to rebound from them, are a factor on which businesses must now be able to compete. …