Risk Management Information Services (RMIS) are processes that enable a risk manager to make critical decisions based upon information that is accurate, complete and relevant to the business environment. If correctly integrated within the business, RMIS will enable raw data to become valuable information. The risk manager can then use that information to make business-critical decisions about risk.

RMIS is the very foundation upon which key strategic planning and decisive action are based. The effectiveness (and therefore reputation) of the risk management operation depends heavily upon it—so it's critical to get it right.

Below are typical questions that a risk manager has to answer in order to assess their risk condition and make fundamental decisions that can directly impact the success or failure of the company's risk management strategy.

• Are we on target to achieve our risk reduction goals?
• Is this risk pattern recurring elsewhere—if so, where and how?
• Where should our loss control resources be prioritized and invested?
• Is the current method of risk transfer optimal in today's market climate?
• Should we consider a higher level of self-retention?
• Where can we reward good risk management practice?
• How are we managing risk with our suppliers, partners or contractors?

Speculation vs Calculation:
A Good Risk Management Information Service (RMIS) provides results

Often such decisions have to be made on short notice without possessing the full facts and figures. Such decisions have to be accounted for and RMIS assists by transforming speculation into calculation during the decision-making process.

One way RMIS assists companies is with sophisticated technology.t does this is through technology. However, there is often a misconception that RMIS is simply about technology. It's true that technology plays an important role as an "enabler" when gathering, analyzing and disseminating data, but it is only part of the total solution.

An effective RMIS strategy is also about communicating a message that is both empowered by your senior executives and clearly understood among your internal and external stakeholders.

For many organizations, corporate governance has helped to elevate the function and discipline of risk management onto the boardroom agenda. Today's stakeholders not only expect but also demand a total commitment to the management of risk.

RMIS is playing its part in fulfilling this obligation. First, it gives the risk management process true visibility and credibility. The capacity to deliver regular, meaningful quality management reports depicting up-to-date risk trends and analyses helps secure the board's attention and drive through risk management strategies.

Second, because the board may be held directly accountable by stakeholders for certain risk types, members will take comfort in knowing that a process is in place to assist with the qualification and management of risk. While RMIS will not detect every possible exposure upon the corporation's risk radar, it will at least act as a barometer showing where there is a potential accumulation of exposure requiring further evaluation.

Third, the RMIS process helps the risk manager articulate his message to both internal and external stakeholders. For example, by internally circulating risk performance benchmark reports, the risk manager can justify the equitable basis upon which a premium is apportioned among business divisions.

Managing Time and Risk

When considering new and alternate methods of transferring risk, the information acquired during the RMIS process gives the risk manager a wider choice of options. Finally, the RMIS process helps to free up precious time and resources within the risk management function. Instead of trying to gather, validate and interpret data from a variety of independent sources, the risk manager can focus upon making the right decisions and taking decisive action to reduce risk.

Bottom line, an effective Risk Management Information Service helps the risk manager perform with greater success.