Risk management software
Software · Cloudbreak team · Updated October 29, 2026 · 7 sources
Definition
Risk management software is any system that holds the data behind risk decisions: claims, insurance policies, exposures such as property values and locations, and loss control work. The insurance-focused kind, built around claims, loss control and exposure data, is called a risk management information system (RMIS).1
How it works
The system brings data from insurers, brokers, claims administrators and internal records into one place. Users report on losses and exposures, track policies, and allocate the cost of risk to the departments or properties that generate it.
Results depend on the data. RIMS notes that if locations are analyzed against flood zones and hurricane exposure without the geocode for each location, the property data will not be accurate.2
Types of system
IRMI sorts the systems risk managers buy into four types, with functionality and cost rising as capabilities broaden:3
| Type | What it does | Typical buyer |
|---|---|---|
| Risk management information system (RMIS) | Collects and analyzes exposure data, user-defined reports, cost allocation | Corporations, insured public entities |
| Claims management information system (CMIS) | RMIS plus claim adjusting: payments, litigation, allocated expense | TPAs, self-administered public entities, large retentions |
| Integrated information system (IIS) | RMIS and CMIS plus underwriting, policy issuance, premium audit, reinsurance | Insurers, MGAs, large pools, captives |
| Enterprise resource planning (ERP) | Organization-wide finance and operations, with some risk reporting | The whole organization, not one function |
Enterprise risk tools are a separate line. Gartner defines integrated risk management (IRM) as the combined technology, processes and data that simplify, automate and integrate strategic, operational and IT risk management across an organization. Its feature list for these tools, last updated December 2020, counts risk quantification and analytics, risk monitoring, incident management, risk control and assessment, and risk mitigation action planning as optional features.4
IRMI puts the life of most applications at 5 years without upgrades, so it recommends planning for needs up to 5 years ahead before buying.3
Example: a state property program
In Texas, House Bill 3750 (84th Legislature) required the State Office of Risk Management (SORM) to study insurable state assets and, by June 1, 2016, put the data into a single database open to the legislature, state agencies and universities. SORM's request for proposals, issued August 14, 2015, asked for a system that would:5
- Consolidate property values, claims, policy and exposure information to monitor and control the overall cost of risk.5
- Perform property and content valuation and create asset inventories.5
- Host multiple agencies and roll their data up for cross-agency reports.5
- Keep historical data for at least 50 years.5
- Be operational within 10 days of a natural disaster under a tested recovery plan.5
Where you'll see it
- Property schedules: state programs such as Texas SORM and the District of Columbia's Office of Risk Management hold building values in their risk systems.5,6
- Procurement: IRMI describes a needs assessment, then a formal request for proposal (RFP) or a less formal request for information (RFI) that usually ends in a demonstration without a firm bid.7
Questions
- What is the difference between risk management software and an RMIS?
- An RMIS is one kind of risk management software, built around claims, loss control and exposure data. Integrated risk management tools are another kind, covering strategic, operational and IT risk across the whole organization.
- How do organizations choose risk management software?
- IRMI describes a needs assessment across all user groups, looking 3 to 5 years ahead, then an RFP or RFI sent to prequalified vendors, scored responses and system demonstrations.7
Cloudbreak
Cloudbreak keeps every policy, statement of values and loss run in one place per property, tracks renewals, and watches every building against storms with its proprietary predictive storm engine, built with AI and backed by meteorologists.
Sources
Written by the Cloudbreak team. Numbers, dates and rules cite the published sources below.
- 1. International Risk Management Institute (IRMI): risk management information system (RMIS)
- 2. RIMS, Risk Management Magazine: 6 Steps to Maximize the Value of RMIS Tools
- 3. International Risk Management Institute (IRMI): Information Systems: Which Type Is Right for Your Organization?
- 4. Gartner Peer Insights: Integrated Risk Management (IRM) Solutions Reviews and Ratings
- 5. Texas State Office of Risk Management: Request for Proposal for Risk Management Information System, Agency Requisition Number 16-47903
- 6. District of Columbia Office of Risk Management: Request for Quotations, Property Appraisals, Solicitation CM-APP-01-2023: Questions & Explanation
- 7. International Risk Management Institute (IRMI): RMIS Applications: Guidelines for Selection and Implementation