Risk managers want software providers to integrate more AI tools

The 2024 Risk Management Information Systems (RMIS) report by Amrae shows that risk managers are broadly happy with the software available in the market but would like to see more functionality linked to new technologies, such as artificial intelligence. The report also identifies that more companies are opting to purchase their risk management software in a software as a system (SaaS) structure, where it is outsourced to a third party. The 2024 RMIS report was drafted by the French risk management association with the support of consultants EY. It is based on answers to 145 questions provided by 58 software companies, as well as the views of 249 risk managers from 36 countries and a group of insurers and brokers. “It is a very dynamic market that is still growing,” said Oliver Wild, president of Amrae, during an interview with the official podcast from US risk management association RIMS. “We are seeing ever-more risk managers implementing those systems.” “The trend is to have a single tool to respond the needs of different departments. And the key benefits are all about information sharing within the organisation and with partners such as brokers,” he added. The study found that customised flexibility is the most desirable element of risk management software for risk professionals. However, 41% of those surveyed said this is not something delivered by their current systems. A majority of respondents (57%) said that innovative features such as artificial intelligence tools, which are only just emerging in this field, fall below their expectations right now. The survey also identified a lack of interface between different information systems. This hinders communication with other departments or business partners, and disappoints 54% of respondents. Forty-one percent believe that reporting capabilities must be improved too. In general, however, risk managers appear happy with the quality of the software available in the market. Seventy percent of participants said that their level of satisfaction is high, compared to 66% in 2023. They reported that risk mapping, audit, risk prevention and action plans are the best functionalities of risk management software. High levels of satisfaction may be a reason why demand for risk management information systems is apparently on the rise. Seven out of ten vendors reported that there have been more calls for tenders from clients in recent times. The same ratio estimated that it takes an average of less than four months for a client to implement a new system. The research shows that more and more companies are opting for SaaS solutions, where the systems are hosted by a cloud maintained by the vendor or another third party. The average cost of an SaaS-based system is €95,000 a year, according to the report. Wild noted that costs vary, being higher in the US, while in Europe there are a significant number of small providers that help to reduce the costs of implementation. In any case, RMIS budgets seem to be on the rise. Last year, 54% of the risk managers interviewed expected to spend less than €100,000 on their systems, and 34% between €100,000 and €300,000. In 2024, the ratios are 42% and 44% respectively. A further 14% have a budget of more than €300,000, compared to 12% last year. The English version of the report can be downloaded from the Amrae website.

Risk managers want software providers to integrate more AI tools

Satisfaction grows with solutions on offer

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