Your organization’s risk management information system (RMIS) collects and stores incident data, enabling efficient root cause analysis. It allows your company to make quick, informed decisions and take action to prevent future incidents.
While a scalable, customizable and intuitive RMIS can help your company manage risk effectively and reduce claim costs, a limited system can lead to inefficiencies and delayed decision-making — ultimately affecting risk mitigation. With that in mind, it is worth considering if your current RMIS meets your organization’s needs.
The following are signs that it is time to switch to a new risk management information system:
1. Limited Configuration Capabilities
Your industry has unique inherent risks and risk management requirements. Your RMIS should be flexible enough to adapt to your company’s needs, regardless of your industry. In other words, you should not have to adapt your processes to accommodate your RMIS. If your current RMIS does not allow customization, or if it is too difficult to customize anything within your RMIS, it is probably time to consider a more adaptable, easy-to-use alternative.
A configurable RMIS allows you to tailor forms, fields, templates, dashboards and reports to save employees time and help prevent inaccurate data entry. For example, you should be able to customize fields and drop-downs within an incident report to suit your organization and streamline form completion.
It is also worth considering a new RMIS if you do not own configuration capabilities and must work with a developer to make customized changes. Choose an RMIS that is configurable out of the box and save your company the cost of working with a developer.
2. Scalability Issues
As your business grows, your risk management needs will evolve. You may need to add new users to your RMIS, integrate with different systems or manage a greater data volume. Your RMIS should support your processes as your organization expands — not be an obstacle. If your RMIS struggles to process or store increased data or limits user access, it may be time for a change.
Similarly, if your current system does not enable you to attach files in various formats or upload claim documentation like incident-related photos or videos, it may be challenging to track and monitor a larger number of claims. Choosing an RMIS with unlimited data storage allows you to keep all of the key pieces of information needed for root cause analysis, no matter the size of your organization.
3. Poor User Experience
User experience encompasses how your employees interact with your RMIS, as well as how they feel about it. A RMIS with a poorly designed interface, for example, can lead to user frustration or disengagement. By contrast, an intuitive, easy-to-navigate RMIS streamlines productivity, engages users and encourages them to use the system.
If management or other employees have avoided adopting your current RMIS, consider if your current system is user-friendly. Employees may not know how to use your RMIS or have found another, potentially inefficient, way to store and access risk management data. When considering a new RMIS, ensure it offers a positive user experience and is easy to navigate.
Your RMIS should smoothly integrate into your employees’ workflows and help them save time on claims and risk management processes. Employees should also feel confident when they log onto your system and understand how to use it quickly.
4. Inadequate Reporting and Analytics
One of the advantages of a well-rounded RMIS is being able to generate custom reports and utilize visualization tools, like graphs, to analyze data and make informed decisions quickly. It is worth evaluating your current system’s functionalities and considering if it has sufficient reporting and analytics tools to support your company’s goals.
In your evaluation, consider the quality of data you can access with your RMIS. If data, like claim codes, are outdated and challenging to modify, it may be difficult to generate accurate reports. Likewise, if you are unable to integrate with the insurance carrier and third-party administrator (TPA) systems, you may need to re-key financial data, increasing the chance of data entry errors and inaccurate reporting.
A solution would be to replace an outdated legacy system with new, comprehensive software that reduces the need for data re-entry.
5. Integration and Compatibility Issues
As mentioned above, if your current system requires employees to re-key information due to integration issues, you increase the chance of data entry errors and inaccurate reports. Accurate data is crucial to making decisions that will benefit your organization, such as deciding to implement a specific risk management technique.
It is also important that your RMIS promotes accurate and thorough data capture at the first notice of loss (FNOL). The key to accurate FNOL data is to quickly capture event details and enter the information directly into an RMIS. If your current RMIS lacks compatibility with other devices, it hinders the ability to input FNOL as soon as possible.
You can reduce data entry errors by choosing a cloud-based RMIS that seamlessly integrates with stakeholders’ systems and is mobile-device compatible. That way, claims adjusters can gather data at the site of the incident and enter it directly into your RMIS from their phone or tablet. With integration capabilities, stakeholders can easily access FNOL details and incident reports and respond promptly to the event.
6. Security and Compliance Concerns
A RMIS contains sensitive information, from personally identifiable information to company financial data. If you have any concerns about your system’s data security, it may be a sign you need a new RMIS. A data breach can harm an organization’s reputation and lead to regulatory fines and financial loss. According to IBM’s Cost of a Data Breach Report 2023, each data breach costs organizations an average of over $4 million.
A secure RMIS will protect your company’s data and ensure compliance with federal and state data protection laws. If you are searching for a new RMIS vendor, choose a vendor that can provide a SOC 2 Type II compliance report, as this demonstrates that its software has internal controls to adhere to privacy, security, processing integrity, confidentiality and data availability principles.
Consider Cloud Claims by APP Tech
A reliable RMIS that streamlines claim processing and helps your company identify and reduce risks can positively impact your bottom line and employee morale. If your current system no longer meets your organization’s needs, consider Cloud Claims.
Cloud Claim is our claims-focused risk management information system designed for self-insured businesses seeking comprehensive, user-friendly cloud-based software. Cloud Claims empowers organizations to promptly identify risks, take corrective actions and decrease claims costs.
With its incident-based architecture, Cloud Claims promotes accurate, streamlined data capture at FNOL. Users can customize FNOL fields and enter incident information, including uploading photos and videos, directly into their system from their mobile device — before there is even a claim. Cloud Claims allows you to:
- Seamlessly integrate with TPA, insurance carriers, human resources and accounting systems.
- Manage, track and process all claims within a single system.
- Automate stakeholder communications and employee workflows.
- Generate customizable and ready-to-go reports to gain insights and comply with regulations.
- Easily scale as your company grows.
- Feel confident about data security and compliance with Soc 2 Type II certification.
- Access tailored onboarding for quick deployment and a 100 percent successful implementation rate.
Contact us today to learn more about Cloud Claims or request a demo.