Spring Training: Correcting Common Mistakes

Regular Season: Cutting Costs/Become a Hero

Post Season: Raising your Batting Average

Visual Analysis: The Value of Graphics for Risk Communications - RMG2111

Richard Denning President, Shelter Island Risk Services

Phone: (631) 749-1535 e-mail: rfdenning@sirisk.com

Website: http://www.shelterislandrisk.com/

Libby Christman Vice President of Risk Management, Ahold USA

Phone: (717) 240 - 5573 e-mail: lchristman@ahold.co

Website: http://www.Ahold.com/

Naomi RobinsConsultant and seminar leader on effective data presentationPrincipal, NBR

Phone: (973) 694 - 6009 e-mail: Naomi@NBR-GRAPHS.com

Website: http://www.NBR-Graphs.com/

Improving Performance Improving Performance In The Post SeasonIn The Post Season

Richard Denning President, CEOShelter Island Risk Services

Adapted from T. H. Davenport, J. G. Harris, Competing on Analytics

Analytics Improve Your Batting Average

• A fool is a person who expects different results when you do the same thing over and over.

Visualization deserves to move from the bottom of the batting order to clean-up

Sloan Management Review: – 58% of organizations see analytics as a

competitive advantage (2011 survey) – Up from 37% in 2010

Data

Classes of Risk Data

DataClaim Measurements

HR info on all Employees

Critical Dates

Exposures (Fleet size, miles driven,

etc.

Organization

The Analytical Payoffs

• Time

• Control

• Confidence

Play Ball!

Play Data

It’s a Team Sport

• Bounce ideas off others who bring specialist skills and experience

The Danger of Numbers!

Assume that your four Divisions: A, B, C and D

All have the same average frequency rate of 5 claims per 100 employees

The Flaw of Averages

Inspiration for Better Graphics:Naomi B. Robbins, http://blogs.forbes.com/naomirobbinsWall Street Journal for financial reportingSports Reporting for creative displaysEdward R. Tufte, The Visual Display of Quantitative Information (two other volumes)

Software Visualization Tools (Excel compatible / not expensive)

• Palisade Software @RISK• SAS Institute JMP• Tableau Software Tableau

16

Concentrating information is precisely how our brains work best:

CONCLUSION

OPERATIONS

COST ALLOCATION RISK SERVICES

ANALYTICS

Questions and Answers

Visual Analysis: The Value of Graphics for Risk Communications - RMG2111