Global Risk Technology Survey

Aon's 2012 Global Risk Technology Survey reveals insights into how leading organisations view and use risk technology.

The survey offers a deeper understanding of how the use of risk technology has an impact on an organisation's risk and data management, along with the total cost of risk.

A focus on data

"The survey highlights that the number one benefit of risk technology is that it enables organisations to have accurate and reliable data," says Justin Gale, Business Development Manager, Aon eSolutions. "Having quality information that can easily be integrated and analysed produces business and risk intelligence that can lead to significant cost savings."

The results of the survey come from more than 400 risk professionals from 57 countries representing a broad range of industries. Information was gained from risk managers, CROs, CFOs and others who provided feedback and insight on how they utilise risk technology for their insurance and risk management choices, interests and concerns.

The outcomes, which were similar to the last survey conducted in 2009, indicate that organisations use risk management information systems, commonly known as RMIS, to manage business operations and generate accurate financial information.

The need for knowledge

What are the main benefits to an organisation?

Respondents in the survey were asked to identify and rank the benefits of using risk management technology. The result is a list which illustrates the benefits deemed most important or valuable to
the organisations that participated in the survey.

"This list provides a valuable snapshot of a continuing economic downturn - as well as the rising demands and expectations that businesses have on risk technology," says Gale.

Compliance and tracking

The survey also revealed compliance as an emerging benefit of using risk management tools. The results indicate that regulatory compliance will be increasingly important as a driver of risk management, in addition to the adoption of enterprise risk management and business continuity management.

The combination of these factors will be one of the reasons that risk management will become even more deeply embedded in the organisation.

A key trend was revealed in the survey - more organisations are now closely tracking return on investment for risk technology tools. More than 25 per cent of respondents said they expect to save up to $50,000 per year from using risk/insurance and claims technology.

Control and transparency

Notable absentees from the top ten benefits this year were claims management along with control and transparency.

Historically, claims management has been the primary rationale for implementing risk technology - however, today, RMIS are used to manage much more than claims reporting.

Meanwhile, control and transparency may have dropped off the 2012 survey as risk management departments have become more visible to boards of directors and CFOs, who look to these departments to inform and guide the organisation in all aspects of risk.

Collaboration is critical

Business leaders need tools that engender collaboration between the risk manager, broker and the insurance market. The spirit of collaboration is well suited to the use of RMIS and fewer organisations are using a silo approach to technology issues.

The key is to use an overall plan to find risk solutions that work well across the entire organisation. Regulators demanding transparent and authenticated systems will require formal systems such as RMIS rather than spreadsheets.

Finding solutions

The Global Risk Technology Survey provides valuable insights into what can be applied and implemented on a local level.

A corporate risk data strategy is critical - the sole objective should be to empower the risk and insurance manager to drive the cost of risk down while raising awareness of corporate risk with senior management.

"It's important that businesses are empowered to achieve efficient risk management and loss control measures - to enable risk managers to advise the board on key risk performance issues," says Gale. "From a local perspective, Aon RiskConsole is the premier global web based Risk Management Information System (RMIS) today - allowing risk managers to address risk issues with greater efficiency and more control than ever before."

Aon RiskConsole's flexibility, ease of use and wide array of features enable risk management programs to be taken to the next level - and as a modular solution it can be tailored to meet the individual needs of an organisation.

"It has been developed from the ground up by combining in-depth risk consulting expertise and leading edge technology," says Gale.

What next?

The 2012 survey indicates there is a drive for efficiency and a demand to move risk technology beyond traditional tracking and towards a broader and more powerful context of risk management.

Organisations are in the process of evaluating how to best manage information and anticipate change - with many placing more confidence and reliance on RMIS.



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