It is critical for risk managers to understand how implementing a risk management information system (RMIS) will deliver a return on investment. It is especially important to anticipate the full range of implementation costs, which has been a major obstacle to successful implementations in the past.
Unless there is a Chief Risk Officer with significant budget authority, risk managers must typically approach the CFO or treasurer to make the case for RMIS implementation. To be successful, a risk manager needs to do three things:
- Provide a cost estimate that is accurate and reasonable
- Avoid cost overruns during implementation
- Demonstrate a clear path to ROI
These tasks can be difficult, but the challenges can be overcome by partnering with the right technology provider and paying close attention to detail during the needs assessment and implementation processes.
Eliminate Unnecessary Fees and Hardware Expenses
In the past, implementing a new RMIS required a company to pay a substantial license fee upfront and make significant investments in hardware, related infrastructure, and staff. Today, cloud-based technology and software-as-a-service business models are dramatically reducing these upfront costs.
In addition to avoiding costly hardware purchases, companies also save by eliminating the need for an extensive in-house IT support staff or data center services. User training is also much faster and less expensive.
By providing an option with comparatively low upfront costs, a risk manager can significantly increase the chance that the RMIS implementation will be approved.
Avoid Off-Scope Customization Costs
To develop an accurate budget and avoid unanticipated cost overruns, two things need to happen. First, the risk manager must assemble a detailed description of their business processes and thoroughly delineate everything that they need or want their system to do. Second, the RMIS provider must have the right capabilities and be flexible enough to meet the requirements within the project scope.
If either one of these tasks is not completed appropriately, the entire implementation could be at risk due to the potential for large cost overruns. No CFO wants to hear that there’s going to be a 20% markup to get the integration completed correctly after they’ve already approved a significant investment in a new system.
Compared to conventional systems, a modern cloud-based RMIS combines the advantages of lower capital expenses and reduced operating costs—enabling risk managers to demonstrate a much shorter and clear path to achieve a return on investment.
Solartis Risk and Policy Manager is at the forefront of this new generation of systems, and offers three key advantages when it comes to delivering ROI:
- Low upfront costs: There are no upfront license fees or hardware requirements, and strategic outsourcing helps mitigate costs related to data conversion and integration.
- Flexibility and usage-based pricing: You’ll never have to pay for scale and functionality that you don’t need.
- Cost-cutting workflow improvements: Automate administrative tasks and extend self-service capabilities to program participants and other stakeholders.
A collaborative approach is critical to a successful RMIS implementation, which is why Solartis works with each new customer to understand their needs and deliver a tailored, cost-effective solution.
Contact us today to learn more about how Solartis Risk and Policy Manager can help reduce total cost of risk for your organization.