Visual Analysis:
The Value of Graphics for Risk
Communications - RMG2111
Spring Training: Correcting Common Mistakes
Regular Season: Cutting Costs/Become a Hero
Post Season: Raising your Batting Average
Naomi Robins
Consultant and seminar leader on
effective data presentation
Principal, NBR
Phone: (973) 694 - 6009
e-mail: [email protected]
Website: http://www.NBR-Graphs.com/
Libby Christman
Vice President of Risk Management, Ahold USA
Phone: (717) 240 - 5573
e-mail: [email protected]
Website: http://www.Ahold.com/
Richard Denning
President, Shelter Island Risk Services
Phone: (631) 749-1535
e-mail: [email protected]
Website: http://www.shelterislandrisk.com/
Improving Performance
In The Post Season
Richard Denning
President, CEO
Shelter 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
Classes of Risk Data
Critical Dates
Exposures (Fleet
size, miles driven,
etc.
HR info on all
Employees
Claim
Measurements
Data
Data
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
Div A
Div B
6
10
5
8
4
6
3
4
2
1
2
0
0
2008
2009
2010
2011
2008
Div C
2009
2010
2011
Div D
10
10
8
8
6
6
4
4
2
2
0
2008
2009
2010
2011
0
2008
2009
2010
2011
Inspiration for Better Graphics:
Naomi B. Robbins,
http://blogs.forbes.com/naomirobbins
Wall Street Journal for financial reporting
Sports Reporting for creative displays
Edward 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
Concentrating information is
precisely how our brains work best:
16
CONCLUSION
OPERATIONS
ANALYTICS
COST ALLOCATION
RISK SERVICES
Visual Analysis:
The Value of Graphics for Risk
Communications - RMG2111
Questions and Answers