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. Risk Management Information Systems Discussion Paper The other school of thought involves risk managers who focus primarily on enterprise risk management and are not involved in risk financing.

ORDER A PLAGIARISM-FREE PAPER HERE

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.

References :

Hofmann, M. A. (2016). Preparing for the inevitable: Risk managers turning to RMIS to aid rapid response to emerging liabilities. Business Insurance, 50(4), 20-n/a. Retrieved from https://ezproxy.philau.edu/login?url=https://searc…

Hopkin, P. (2017). Fundamentals of risk management: Understanding, evaluating and implementing effective risk management, 4th Edition. Kogan Page Limited: London, England.