In this series, we are focusing on ways in which a Risk Manager can add value to the bottom line of his or her organization using RMAP(1) technology.  These avenues of added value include: lower cost, asset protection, revenue enhancement and competitive advantage through better management of tactical and strategic Risk.

Lower Cost:  Risk Manager’s typically have influence in three cost categories.
1) Pre-Loss, 2) Point of Loss and 3) Post Loss. Today’s BLOG will focus on a Point of Loss item… Claim Reporting.

This leakage point is at the Point of Loss.  Study after study shows that if claims are not reported immediately and comprehensively, the cost of those claims skyrocket with every delay.  The problem is exacerbated when communication back to the injured party about what to expect is delayed.  Nervous claimants tend to seek legal assistance.  A simple, pervasive and ubiquitous Incident Management system with strong workflow can contribute greatly to solving this problem.

Imagine a web based Incident Intake system that can get the claim in the system quickly, perform predictive modeling – routing appropriate early intervention task to the various team members, producing information and instruction packets (with electronic signature if necessary) back to the employee or customer and supervisor, a real time lookup to detect repeaters – informing HR of the appropriate action based on the repeat behavior.  The industry is rife with claims that did not get the proper attention up front and turned in to six and seven figure losses.  Preventing even one of these runaway situations will pay for the RMAP⁽¹⁾ for an entire year.

⁽¹⁾ RMAP = Risk Management Automation Platform (this is not an official term… I just made it up)