LogicManager Case Studies Acting on Risk Appetite and Tolerances

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	Acting on Risk Appetite and Tolerances LogicManager

Acting on Risk Appetite and Tolerances

LogicManager

Technology Category	Application Infrastructure & Middleware - Data Exchange & Integration
Applicable Industries	Healthcare & Hospitals
Applicable Functions	Business Operation
Services	Data Science Services System Integration
Challenge	The health insurance provider was facing major cash flow disruptions due to sudden losses of large accounts to competitors, especially during renewals. The company had multiple divisions and products, and used spreadsheets to report separate account revenue and cost data to the CFO. Connecting revenue to the direct costs, aggregating this information, and tracking data over time were error-prone and time-consuming processes. The cross-functional nature of product usage and double counting data made results difficult to interpret accurately. Read More
About Customer	The customer is a large health plan provider that provides coverage to more than half of its state's population. With a membership of over 500,000, the customer works alongside industry partners like the National Committee for Quality Assurance (NCQA) to continue providing affordable plans to its members. The customer extends its impact through an affiliated nonprofit foundation that supports social welfare and increased access to healthcare services. The company is a nonprofit organization with 1,000 - 5,000 employees and $2.9B in revenue. The company operates in the insurance industry. Read More
Solution	The customer used LogicManager to monitor revenue and direct costs from multiple systems, aggregating this information to track data over time. Visualizing these trends in charts provided a clearer picture over time. The customer discovered that a major cause of cash flow issues was the acquisition of existing members by competitors, especially during renewals of large accounts. In response to the new data collection methods, the customer was able to set risk tolerances on losses of key accounts, as well as their impact on cash flow. Formalized risk tolerances allowed the risk manager to build a business case for developing and deploying educational programs designed to decrease customer claims and prevent the increase of insurance premiums. Read More Log in to view content
Contents

Technology Category

Application Infrastructure & Middleware - Data Exchange & Integration

Applicable Industries

Healthcare & Hospitals

Applicable Functions

Business Operation

Services

Data Science Services

System Integration

Challenge

The health insurance provider was facing major cash flow disruptions due to sudden losses of large accounts to competitors, especially during renewals. The company had multiple divisions and products, and used spreadsheets to report separate account revenue and cost data to the CFO. Connecting revenue to the direct costs, aggregating this information, and tracking data over time were error-prone and time-consuming processes. The cross-functional nature of product usage and double counting data made results difficult to interpret accurately.

About Customer

The customer is a large health plan provider that provides coverage to more than half of its state's population. With a membership of over 500,000, the customer works alongside industry partners like the National Committee for Quality Assurance (NCQA) to continue providing affordable plans to its members. The customer extends its impact through an affiliated nonprofit foundation that supports social welfare and increased access to healthcare services. The company is a nonprofit organization with 1,000 - 5,000 employees and $2.9B in revenue. The company operates in the insurance industry.

Solution

The customer used LogicManager to monitor revenue and direct costs from multiple systems, aggregating this information to track data over time. Visualizing these trends in charts provided a clearer picture over time. The customer discovered that a major cause of cash flow issues was the acquisition of existing members by competitors, especially during renewals of large accounts. In response to the new data collection methods, the customer was able to set risk tolerances on losses of key accounts, as well as their impact on cash flow. Formalized risk tolerances allowed the risk manager to build a business case for developing and deploying educational programs designed to decrease customer claims and prevent the increase of insurance premiums.

Impact #1	Improved cash flow predictability by identifying and addressing the root cause of major cash flow disruptions.
Impact #2	Enhanced data accuracy and interpretation by aggregating and tracking revenue and cost data over time using LogicManager.
Impact #3	Developed and deployed educational programs to decrease customer claims and prevent the increase of insurance premiums.

Impact #1

Improved cash flow predictability by identifying and addressing the root cause of major cash flow disruptions.

Impact #2

Enhanced data accuracy and interpretation by aggregating and tracking revenue and cost data over time using LogicManager.

Impact #3

Developed and deployed educational programs to decrease customer claims and prevent the increase of insurance premiums.

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Overview

Acting on Risk Appetite and Tolerances

Operational Impact