The Challenge

A challenge for the for the Insurance Company Board, Executives and Risk, Information, Compliance and Audit Professionals

  • Calculated risks have to be taken every day to run an organization, but most insurers fail to monitor and manage risk effectively. Insurance Companies need to understand how to monitor risk-taking, whether they are taking the right risks, and whether risk is managed effectively. A cavalier and silo approach to risk-taking is a result of a poorly defined leadership and risk culture. It results in disaster, providing case studies for future generations on how poor risk management leads to the demise of insurance companies.
  • Insurance companies are using multiple platforms in silos which further cements the silo culture. This is driven by either having legacy systems, not being aware of the integrated GRC tools or it could be driven by “egos of resistance to change”. Nonetheless, unless the organization shifts a culture and changes the play book that we are going to break down the silos between Governance, Risk, Information, Compliance, Audit and foster a culture of tighter communication between each functional departments and ensure visibility of risk and compliance metrics across all of the functions through a single platform, it will never achieve optimal efficiency nor enterprise excellence.
  • Gone are the years of simplicity in insurance business operations. Keeping the complexity and change in sync is a significant challenge for boards, executives, as well as risk management professionals throughout the business. Insurance industry has to invest in modernizing and implement an integrated governance, risk, information, compliance and audit system with bleeding edge artificial technology and architecture to improve operational throughput and minimize non-interest expenses. In order to stay competitive, provide exceptional service and increase quality, insurance companies have to balance their focus from growing their portfolio to investing in integrated governance, risk, information, compliance and audit management systems.
  • For some insurance companies, risk management is only an expanded view of routine financial controls, it is nothing more than a deeper look into internal controls with some heat maps and that does NOT truly provide an enterprise view of risk. Risk is pervasive throughout the entire organization. There are variety of departments that manage risk and compliance with various tools, models, varying taxonomies, with different frameworks and point of view in how risk should be monitored and measured at a functional level that continues for the organization to remain in chaos and creates a huge challenge.

The Solution

Considering how advanced technology is with artificial intelligence, advance data informatics, and pattern detection, insurance companies can easily implement an integrated Governance, Risk, Information, Compliance and Audit Management (GRICA) system based on artificial intelligence which is a big data approach to GRICA. It can automate several risk and compliance process flows such as:

  • Automate the regulatory change management with alerts and tasks.
  • Enable mapping of regulations and standards to internal and financial controls.
  • Map risk to company & department goals.
  • Take in external data feeds from other internal systems such as market risk, liquidity systems and create concept maps between market, liquidity risk data to operational risk data at the asset level which can give you a view of where all the risks interrelates and provides enterprise risk view through a single platform.
  • Automate efficacy and effectiveness of internal controls which is tedious and manual process requiring an army of people.

We offer the following solutions to Insurance Companies:

Value

  • Insurance Companies that will switch from legacy applications to emerging technologies by investing in integrated Governance, Risk Information, Compliance and Audit system will undoubtedly gain efficiencies and reduce costs by minimum of 20%.
  • In addition, an integrated GRC platform based on artificial intelligence will provide insurers visibility into data analytics to drive insights and context around risk management, business strategy, objectives and performance which will enable the organization to make intelligent decisions about acquiring and retaining the best customers as well as safeguard the reputational and financial health of your insurance company.

A Case Study

Currently we are not aware of any Insurance Company that implemented an integrated enterprise governance risk, information, compliance and audit management system.

If you’d like to become our case study of implementing an integrated governance, risk, compliance and audit management system or would like for us to do a proof of concept for, please fill out the form or contact us.