Organizations worldwide are increasingly impacted by emerging, complex challenges that could materially affect their ability to achieve their goals. In this rapidly changing environment, business leaders are looking for more than historical views, complicated models, and generic broker benchmarks to manage risk. They need real-time, actionable insights tailored to their business to see around the next corner and plan for the challenges — and opportunities — ahead.
Our analytics solutions empower you with knowledge, expertise, and insights to navigate today's environment, track and anticipate emerging risks, make better business decisions, and lead your organization with confidence.
With Marsh’s leading data, analytics, and technology, you can improve your risk intelligence and better plan, finance, and deliver risk management strategies that align to your leadership team's objectives. As a vital part of the Marsh Advisory team, our risk analytics specialists:
- Provide tailored insights to help you inform your risk management strategy and frame opportunities with greater precision.
- Connect our analytics, risk management, and insurance experience to deliver insightful business intelligence and risk analysis.
- Use industry-leading data, modeling, and advanced digital technology in our Blue[i] suite of digital solutions to deliver actionable insights in real time that empower you to make decisions confidently and position you for superior outcomes.
Our innovative solutions can help you reduce your cost of risk and provide a foundation to create a robust risk management strategy. We use a three-step approach to help you build your risk program.
- Determine: First, we work with you determine your risk exposures are and where your focus should be.
- What are the strategic or financial factors that affect your approach to risk and insurance?
- Where are your key exposures or losses coming from now, and where have they come from in the past?
- What is your potential loss volatility outside of experienced losses?
- Quantify: Next, we help you quantify your risk.
- What is the impact of your experienced losses?
- What is your potential loss volatility outside of those losses?
- Are your current risk financing and risk management strategies appropriately scaled for your potential exposures?
- Manage: Finally, we work with you to determine how to manage your risk management strategies.
- How can you secure a clearer view of your go-forward risk and loss profile?
- Are your current insurance program structures and capital allocations financially efficient?
- Can you unlock additional efficiencies across your full risk portfolio?
Your Marsh advisor can help you work through each of the three steps of the process, or deep dive into any single area where your organization is in need of help.
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FAQs
Managing risk can be a complex task. Having analytic tools to evaluate risk exposure and impact is essential to managing your business and making moves to continually improve your bottom line.
Analytics and technology can help simplify risk management. Data and risk analysis, backed by tools and a solid strategy, can give your business the essentials to monitor, mitigate, and manage risk. Leveraging analytics enables robust:
- Risk identification: Use specific data points to understand where risk comes from.
- Risk assessment: Profile each risk and determine its impact.
- Risk mitigation: Use data to respond to certain risks based on behaviors.
- Risk monitoring: Measure risk improvements and threats over time.
- Risk reporting: Reevaluate risks to determine the life cycle and learn from the past.
When risk analytics are rigorously applied, you’re better equipped to address ever-changing processes, evolving regulations, and economic conditions. This means you have more tools to implement strategies that focus on meeting bottom line business goals.
We live in a modern and accelerating risk environment. Having analytic tools is essential to mitigating risk in a way that enables you to stay focused on business agenda items. Some of the potential benefits of risk analytics for your business can include:
- Improving business insights: Analytics help you dive deeper into the potential problems occurring within your organization and put you in a better position to get them under control.
- Monitoring overall business performance: This gives you a clear picture of what’s working for the business and what’s not.
- Forecasting data to make strong decisions: Understanding issues early on may make it easier to avoid them in the future.
- Preventing losses over time: Identify red flags early to improve safety and efficacy across the business.
Simply put, risk analytics can prepare your business for the immediate future and beyond.
Advancements in artificial intelligence (AI) and predictive technology have significantly expanded the capabilities of risk analytics, accelerating adoption rates across organizations. As processing capabilities and software continue to grow in sophistication, some emerging trends include:
- Organizational strategy: Rather than being used as a secondary planning tool, risk analytics is increasingly being placed at the center of strategic discussions, guiding data-driven decisions in real time.
- Data clean-up: As organizations begin to realize the power of risk analytics, leaders are also starting to prioritize data-related initiatives to clean enterprise databases, allowing them to use risk analytics to produce results with an even higher degree of accuracy.
- Automation and AI: With massive growth in the volume of information available and the emergence of advanced AI-based algorithms, risk analytics is increasingly being used to help decision makers by providing data-driven insights and recommending potential solutions.
With the increasing sophistication and accessibility of risk analytics, organizations should consider investing in and integrating this capability into their risk management initiatives and strategies to achieve greater planning accuracy, take proactive measures, and reduce exposures.
Risk analytics offer business leaders the ability to reduce their total cost of risk through capabilities such as:
- Managing data: Risk analytics can help organizations integrate siloed data into a singular, holistic platform, creating a more unified perspective and generating valuable insights.
- Proactive risk planning: Risk analytics can help business leaders by providing actionable insights that proactively address industry-related challenges and minimize potential exposures, reducing response times and losses in the event of an actual crisis.
- Enterprise-wide collaboration: Given the wide-reaching nature of business interruptions, risk analytics help to unify an organization's approach, providing your teams with an understanding of their vulnerabilities and a clear plan to manage them.
In today’s complex risk landscape, risk analytics offer leaders the opportunity to monitor, assess, and address risk with greater confidence.
Risk analytics is a critical component of creating a comprehensive and effective risk management plan. Risk analytics takes the guesswork and subjectivity out of the planning process, instead of solely relying on opinions and limited historical data to identify future trends.
For decision makers and stakeholders, the use of risk analytics typically results in a stronger, more accurate approach to risk management planning.
Big data is a crucial tool in risk management as it helps organizations to evaluate disparate data from multiple sources. By pulling from a larger pool of data, the insights generated by risk analytics are more accurate due to the size of the population being extrapolated from.
In today’s rapidly changing risk landscape, business leaders need more than historical views to manage risk, allocate capital, and achieve results. Risk analytics should be placed at the center of decision making and planning.