For risk managers, data analytics has become one of the most critical activities to carry out. With analytics, decision-making becomes even more reliable and accurate, and can help with the long-term success that minimizes losses while maximizing gains. However, there are plenty of challenges to be faced when collecting and using data to make decisions and inform strategies.
Some of these challenges may be tougher than others, but they all impede the risk manager’s ability to analyze data. Fortunately, there are solutions for all of these roadblocks that can make a risk manager’s job easier and more effective.
Keep reading to learn more!
Challenge 1: Handling Overwhelming Amounts of Data
With essentially everything being data-driven, it’s easy to get overwhelmed with enormous amounts of data. For instance, an organization may decide to track every single activity that happens under its name, but this can lead to both relevant and irrelevant activities being recorded, leaving risk managers with too much data to make sense of.
Utilizing a data system that automatically records and organizes information is a must-have to deal with this issue. This system can handle the lion’s share of culling, sorting, and organizing data, while carrying this out manually would take too much time, and leave no room for an employee to focus on important tasks. But, with the help of software to automate this process, an employee can instead focus on making decisions based on data rather than trying to process it.
Challenge 2: Visually Representing Data
To make data easily understandable, it’s important to present it in a visual manner that makes the information more accessible and actionable. Things like graphs and charts are usually the best way to do this, and while data visualization makes it much easier to understand complex sets of data, creating these visuals can be time-consuming and difficult, especially if there is a large amount of data to visualize.
To tackle this challenge, utilizing software that can easily summarize data into a graphic is vital. This way, risk managers and other individuals can quickly make better decisions based on accessible visual representations while not spending too much time creating them.
Challenge 3: Ensuring Data Is Easily Accessible
When moving data around, there’s the risk of accidentally storing data somewhere that is hard to access, or worse, where it could get lost. This hinders the data analysis process, mainly because risk managers waste time trying to retrieve data when it should be easily accessible in the first place.
To facilitate easy data access, using a database that allows authorized users to access information quickly is essential. Such a system should support viewing and editing data from anywhere, allowing for quick decision-making no matter where the decision-maker is.
These are just some of the many challenges decision-makers face when trying to work with data analytics. Other challenges also include a limiting budget, shortage of skills, the need to collect data in real-time, maintaining accurate data, and more. Fortunately, no matter the challenge being faced, there’s a solution to fix them.
You may also want to consider partnering with a firm of data experts to help you come up with solutions to help eliminate these challenges and make data analytics more useful, valuable, and efficient.
Gemini Data are experts at transforming data and analytics to help businesses grow and achieve their goals. If you are looking for a partner to help with your data analysis and storytelling, contact us today to learn more.