Evaluating RMIS Software

For a risk management professional, deciding between the numerous risk
management information systems out there goes a little beyond challenging.
That's because RMIS software prices can range from $5,000 to $800,000. The
vendors can be small two or three people firms or huge international
corporations. Yet, believe it or not, most of the software is similar, with the
exception of a few bells and whistles. Before you began what will seem like an
endless road of online demos, conference calls, and presentations, here are a
few things you should consider.

What is the main focus of your system? Risk Management can be broken into three
main sections, claims, safety, and risk. Unfortunately most RMIS systems cannot
effectively integrate all three. Some systems are more geared toward risks.
These systems are good for trending and showing the financial impact of the
risks that effect your organization. Safety systems are generally modular and
focus on job hazards, incident tracking, and training. Systems that are claims
based focus on claims management, workers compensation, and OSHA standards. So,
it is important for you to know the type of system you are looking for, because
it will keep you from wasting a lot of time.

How important is reporting to you? For most Risk Managers, reporting is the
single most important aspect of a RMIS system. So far, the best system for
reporting that I have seen has been RiskPro. With it's two levels or tiers of
reporting, the RiskPro software leads the pack and has the ability to produce
the lost forecasting triangles. The knowledge of the type and number of reports
that come "out of the box," or with the basic system is something you should ask
during or the demonstration. Is ad-hoc reporting possible? Are standard OSHA
reports apart of the standard package? What can be reported on? RMIS systems
usually capture much more data than they can report on. So the knowing which
fields are reportable will tell you immediately if the system can produce the
reports that you will need.
How much will it cost to customize? When looking at software, the word
customization will send ripples through the pages of your bankbook. The laws and
standards associated with risk management change often; so, the data that you
capture today may not be what you need to track tomorrow. You may find there is
more or less information needed for mediations, actuarial reviews, or OSHA
inspections. Can your new system adapt without breaking the bank? Can you add
the new fields yourself, or will you have to call the vendor? Will the basic
system need a lot of customizations to fit your needs? It's hard to pick a
system for customizations because it user specific. Different organization will
require various levels of customization. The key to customization will be to
lock the vendor in to a flat fee or ceiling, to keep you from having a panic
attack when the invoice or bid price arrives.

Will it make your life easier? Regardless of how good the salesperson's pitch is
the majority of RMIS systems do not automate a lot of tasks. These systems are
packed with notifications, ticklers, and alerts. Different ways to let you know
there are tasks to be completed and you have to complete them. If you are
looking for automation, the key phrase is Business Rules. Business Rules are a
set number of tasks that the system can be programmed to do automatically. The
best system I have seen for automation and workflow is Filehandler. The
Filehandler system can automate tasks like sending out an email after (x) number
of days. There are many systems that claim to be able to do these things, but
only few deliver.

How will you get your old data in the system? Data conversion can easily become
the most costly aspect of obtaining a new system. The key question to ask here
is what type of format can the data can be in? I found that most vendors are
unable to convert data in Lotus Notes. You need to know if the vendor has ever
converted data from the Third Party Administrator or current system that you
use. I have heard that the cheapest formats are the common ones such as, Access
or Excel.

There are other things you need to consider such as, annual maintenance costs,
price, upgrades, cost per user, security, and hosting. But, these issues should
be addressed once you have narrowed you're the playing field. Evaluating RMIS
software can be like walking down the yellow brick road, and this is just a
beginning.