From Defense to Offense with Real Time Data: How a CFO Can Better Manage the Total Cost of Risk

//From Defense to Offense with Real Time Data: How a CFO Can Better Manage the Total Cost of Risk

From Defense to Offense with Real Time Data: How a CFO Can Better Manage the Total Cost of Risk

Setting the Strategy

Everyone wants to say that their performance in risk and claims management is OK, but without the right KPI data, how do they know? Traditional data reporting isn’t enough. In an organization, the responsibility of assuring that the total cost of risk is managed effectively often falls into the hands of the CFO. To best manage that cost, a culture based on a Risk Performance Optimization (RPO) strategy—created Mark Dorn at DAVID Corporation—is proving a winning implementation solution. The CFO is in the best position to create the RPO strategy for boardroom-quality data, and leveraging the RMIS or Claims Management software using a RPO strategy becomes much more motivational and collaborative, sponsored from the top down.

Questions Every CFO Should Ask:

  • Am I benefiting from dynamic data analytics using my current live data?
  • How many pre-defined KPI’s do I already have in place for managing operational
    claim, policy or risk data and want to leverage?
  • Can I scale the current best practice processes for KPI’s within my operational data, i.e. from 5 to 50?
  • Am I using KPI’s to show organization performance against strategic goals?

Linking Workflow to KPI

Part of a winning RPO strategy is using the NAVRISK VISION Data Analytics program that links transaction processing with best practice KPI’s using a powerful infrastructure built around serving the actionable data needs of executives, managers, and users. Users can increase their productivity as they leverage their time, data and resources using KPI topics that fit their strategic goals. Best of all, the embedded analytics used in the program accelerate data decisions with an easy to use and “instant-on insight” to key data for even untrained users. NAVRISK VISION Data Analytics brings tightly integrated data into decision making to provide superior outcomes for KPI, SLA, and best practices.

An RPO focused Analytics platform allows leadership to:

  • Achieve strategic high-value outcomes including claim expense cost reductions, staff productivity improvements, risk management improvements and better compliance with best practices.
  • See real-time results of KPI performance and automatically notify the right people for action-oriented responses when needed
  • Access and transform corporate data faster into reports for greater insight
  • Visualize data using pre-built dashboards for better decision making
  • Leverage over a hundred preconfigured KPI’s per category including: Best Practice and Compliance, Cost Control, Productivity, Examiner Performance and Benchmarking.

ROI Planning

Once data is collected and analyzed against KPI goals in a RPO based program, the organization can then adjust their available resources including their staff time, to more effectively address the strategic goals they want to address. Even small savings and efficiencies in KPI optimized workflow can lead to benefits that return real-world results. Resource planning is also part of ROI and related gains. In fact, a 10% productivity gain using KPI based methods, can often yield $8,000 per year, per FTE in value.

Managing Financial Compliance

Once the (RPO) system is in place, financial compliance can be better managed across the entire organization. The CFO can access analytics in real time, and lead in strategic decision making that better manages the Total Cost of Risk (TCOR). TCOR is often 3-5% of total revenue. Simply relying on reports isn’t enough. Data must be reliable enough for long-term planning and up-to-date enough to examine short-term trends. It’s smart to move beyond summary reporting, beyond diaries, and beyond email to focus staff resources that guide the outcomes related to TCOR. Moving to RPO as a strategic and structured KPI environment takes more of the risk out of the process. Leadership has actionable data with the most insight into the scope of the cost, opportunities gained and lost, and the reason why.

Here’s a typical Old vs New approach scenario:

John is a successful CFO but is limited to Lost Run Reports On Large Losses, YTD and Multi-Year Trend reports, a few email notices and he must email IT to get the data from a reporting tool or Excel.

All solutions with old and static data and with no real-time access.

John thinks he sees the big picture, and when trends are good, he believes the overall risk management systems are working.  But could it be better, more effective and more efficient? Are there improvement opportunities being missed every day? Yes.

Jane is another successful CFO, but she has implemented a RPO structure with embedded dynamic KPI’s that sends her notifications instantly if critical claims events (CCE’s) trigger KPI ‘s related to strategic goals.

All the data is fully transparent and available in touchless user-friendly dashboards with granular drill down of all data fields.

Jane can see an issue or trend before it would have ever shown up on static reports. Using the agile RPO KPI structure Jane is provided with the insight to make micro-adjustments that keep staff on plan and focused on the highest value outcomes. She’s proactively benefiting from predefining data views to serve her goals. Not chasing data that fails to link to her strategic goals.

She is seeing more progress in her goals for medical cost management reductions, return to work improvements and litigation cost management. Her next board meeting report includes solid best practice KPI driven tactical results, instead of just a loss run or another pretty graph on increasing costs.

For questions or more information on RFP or KPI’s, contact Mark Dorn, President & CEO, DAVID Corporation at 978 729-7539 or via email at .


NAVRISK VISION’s Risk Performance Optimization platform combines key performance indicator goals, scoring algorithms, dashboards, reporting and analysis into one platform for claims, risk and policy administration. Our NAVRISK VISION Risk Management Information System (RMIS) supports user goals for managing the Total Cost Of Risk with a series integrated programs for claims, policy, property, vehicles, vendors, insurance certificates, loss control, safety and risk tracking needs. NAVRISK VISION analyzes collections of claims, exposure, and policy data, generating reports and trending resources. Uploading data, running reports, configuring KPIs to monitor data trends, and monitoring the claim management processes for Claim Executives, Risk Managers, TPAs and Carriers has never been easier. See for yourself. Schedule a free demo.



2018-02-24T18:37:26+00:00 Articles|