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to manage risk, companies are relying on risk management software. It
plays a vital role in the growth of the company by minimizing business
risk. Utilizing statistical and analytical methods, risk software
provides insight into a company's liability. Implemented a risk
management system (RMS) is not without challenges, below are five
potential issues you may face:
Integration costs:
Risk management software can impose additional expenses on your
business. The price of software can range drastically depending on how
the contract is structured. Generally speaking $2,000 per user,
excluding maintenance or support costs is expected. Costs can rise
well beyond that if additional features outside the scope are
requested. Despite that, these extra costs should not be dismissed.
Due to each businesses unique requirements, these modules or features
potentially could satisfy the needs of the organization and further
limit liability.
Apart from aforementioned expenditure, additional expenses may be
incurred. Implementation costs such as; training, data importation,
and hardware improvements would all add to the price. These costs, of
course, are borne only at the initial stages of usage. During the
lifecycle of a contract costs will arise such as; yearly maintenance,
bugs fixes, and system updates. Keep in mind this will vary depending
on how your vendor has structured the deal. In some cases these might
be no additional costs.
Training:
RMS interfaces contain complex tools in which employees will require
extensive training. Companies with limited resources attempt to work
around these expenses by using the trial and error method to learn the
product. While this may seem cost efficient at first, the long term
expense of not knowing full functionality of a RMS will outweigh any
short term gains.
Training reduces time spent and ultimately increases productivity.
Training decreases an employee learning curve and makes them less
likely to misinterpret system generated data.
Getting your employees to buy into a new system:
We are all creatures of habit. In some cases companies have been using
a legacy or outdated system (Microsoft Excel) with 1,000's of records
over the course of many years. Getting your team to buy into a new
system can take time and patience. It can be difficult to adopt a new
risk management system. Even though employees may exhibit hesitation
about a new software program, they need to understand the benefits the
business will receive by using one. This is where executive leadership
needs to step up. The trainer can only lead them to water, not force
them to drink from it. With adequate training and education by
internal managers, RMS implementation has the ability to save
companies of all sizes substantial amounts of revenue.
User experience:
Not all aspects of risk management software possess the characteristic
of user-friendliness. Each system has their own unique interface and
tools. As long as the software contains the ability for customization,
users should be able to navigate points of pain.
Technical and user errors:
Finally, if data input is incorrect due to inexperience or hardware
limitations your company will face additional risk related issues.
When implementing a RMS, make sure you have the appreciate hardware to
support it and a staff aware of the ramifications of incorrect data
input. If web applications fail due to server or connection issues,
this will also lead to harming your company's bottom line.
Although these challenges may seem daunting at first, putting in the
time and effort to implement a system can save a company revenue in a
short period of time.
JDi Data Corporation is providing insurance claims software for 30
years. The product suite includes workers compensation software and
claims management systems for property and casualty, medical
malpractice, risk managers, third party administrators, etc. JDi Data
has built a reputation in quality claims management software with
emphasis on complex litigation.
Article Source: http://EzineArticles.com/?expert=Steven_M_Richard
Article Source: http://EzineArticles.com/8917319
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