Companies face a wide variety of risks, from internal and external sources alike. Quantifying and measuring risk exposures is the first step to making the proper business decisions about how to mitigate, transfer and reduce that risk. Accurate data is crucial. However, compiling, analyzing and managing that data is not always easy. Different technology platforms and measurement standards coupled with the challenges of coordinating claims, insurance policies and exposures all can create a management challenge of the first order.

What Will You Say When They Ask What Happened?

When contemplating the question of how data should be managed, executives should ask themselves the following:

• Can I quantify my organization’s total cost of risk?
• Do I have enough detailed information to establish effective loss control measures? And, can I easily calculate savings from the measures I implement?
• Is my interdepartmental workflow efficient?
• Can I communicate effectively throughout my organization regarding enterprise-wide risk events?
• Am I in compliance with state and federal regulations that affect my industry?
• Am I prepared to handle a mass tort action or other legal suit?
• Do I need to consolidate data from disparate systems?