A New Breed of Analytics: Holistic Risk Management Decision Making

Emerging risks and developing technology can make risk management decisions difficult. A new, holistic approach to data analytics can help improve risk management decision making throughout an organization as well as providing valuable information to help secure buy-in from the C-suite for those decisions. In this session at the RIMS 2019 Annual Conference and Exhibition, Ben Fidlow, Global Head of Core Analytics at Willis Towers Watson, discussed how to practice a portfolio approach to risk quantification.

The confluence of data and technology is transforming the world of predictive modeling. While this can provide information that is quite powerful, communicating the information in an actionable way continues to be a challenge. Holistic engagement drives connectivity through technology. It provides a way to show risk and return in one presentation, integrating risk tolerance, in order to articulate a more complete picture of risk for the entire organization. An analytical platform that uses visual presentations of complex data can help engage the C-suite with the risk management strategy for the organization’s entire portfolio, which is more beneficial than traditional analytical engagement. Historically, analytics included minimal feedback and risk support. Evolved analytical engagement, using a technology platform, provides holistic evaluation with feedback about risk tolerance, allowing for increased client engagement.

Benefits of using data to elevate the risk management proposition include:

• More data allows for a more accurate view of the risk profile
• This approach can allow for better (and smarter) decisions
• It also allows you to substantiate those decisions with data
• Better financial outcomes will follow.
• You can make the transition from Cost Manager to Strategic Partner
• It allows you to engage the C-suite with concise, financial language.
• Data can provide valuable information that helps prove your ROI.