What you should know about Risk Management software before committing to a RMIS system

All Risk Management Information Systems (RMIS) solutions are not equal. Before committing to a risk management software solution, it is beneficial to research and understand capabilities, network security, services, and ongoing costs.

The right RMIS system for covering risks, including workers compensation tracking software, can be invaluable to an organization. According to Grandview Research “The global vendor risk management market size was valued at USD 7.27 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 15.0% from 2022 to 2030.”

Collectively, organizations pay billions of dollars annually for risk management. This is a substantial amount for each individual business, government agencies, or nonprofits. Spending on RMIS solutions can make a difference that affects the bottom line.

As organizations often look to reduce expenses, the money saved with the right workers’ compensation claims management software, claims software, and Risk Management Information Systems can be tens of thousands of dollars and in some cases hundreds of thousands of dollars annually.

The market demand for claims management software solutions is diverse. There has been a consolidation of RMIS vendors, with some RMIS systems changing names and even going out of business. It is important to find an RMIS vendor that is stable, with a historical track record of helping customers with their risk management solutions.

Before committing to a risk management information system, there are several steps you can take to make certain you are well informed and make a good decision.

• Schedule a live demonstration with the RMIS vendors who are candidates for your final decision.
• When you have narrowed the list, schedule a second demonstration as features and capabilities tend to blur together over time as you review multiple systems.
• During each demonstration, have a vendor “walk through” entering a claim with your organization’s workflow, rather than their scripted process.
• Have your IT department review network security requirements to understand what steps vendor is taking to secure your data.
• Find out what standards are being used to protect privacy data and that outside audits conducted to validate their compliance. An example of a standard would be HIPAA.
• Data should be encrypted both in transit and while it is being stored. Many vendors only encrypt data while in transit, and you should confirm data is also encrypted while it is stored.
• Determine if the RMIS vendor provides multiyear pricing with upgrades. This is important as vendors may price the software lower for the first year to secure your business, then require an upgrade or higher costs for additional years, when it is difficult for your organization to change.
• Understand all costs, including upgrades, storage, and data transfer. These should all be clearly addressed in a contract.
• Determine the hours of support, response time, and whether support is being conducted by staff within the United States. Support terms should be listed in the contract as well.
• Identify the location of data storage and the RMIS software system. Confirm that the system and data are both being hosted in the United States
• Find out what systems are managing the hosting, and how often the data is backed-up. These terms should be outlined in the contract.
• Obtain references. You will want to confirm that the RMIS vendor has the capabilities and experience to handle your project.
• Identify the cancellation clause in the agreement if you are unhappy with services. Any cancellation should come with the timely returning of client data in a predetermined format such as Comma Separated Value (CSV).
• Is the RMIS solution also addressing safety and case management? Find out how it is specifically helping to provide a safer workplace, and whether it offers both tracking and predictive analysis.
• Be careful of too much customization of your RMIS system. While customization may appear attractive up-front, it can make your system so unique that it makes it difficult to upgrade, even when it’s necessary for security and stability. Customization can also make it more difficult to change RMIS vendors or systems in future years.

Written by Paul Kofman. He is President of Recordables. He has been providing software solutions in the area of Risk Management, Claims Management, Disability Management, Safety and Occupational for more than 30 years.