Risk Management Software

An Introduction to Enterprise Risk Management Software

Enterprise risk management (ERM) software helps businesses follow regulations and protects against losing time and money. This critical tool is used in many industries or types of businesses: from healthcare and finance to insurance and retail, among others. For example, financial analysts use the software to look at cost effectiveness and waste of projects and legal specialists may use ERM tools to check compliance. Risk management software not only protects against hackers’ attacks like DNS and DDoS attacks on information but also identifies risks that could stifle or close down a project.

Risk is a part of any business. Owners or managers need to think through all of the potential issues that could arise plus their potential impact on the budget, project and business as a whole. Once identified, risks are put into two main categories: acceptable or unacceptable. After all, some businesses can manage the risks whereas others cannot. Teams make plans or projects with potential issues or roadblocks in mind. This lower the potential impact of any issue and helps team work efficiently on the project.

The following guide gives an overview of how to best use the different types of software available today and how it can support businesses and increase potential growth goals. This is also a chance to consider your type of business and which software model is best for you.

Features of Risk Management Software

One of the main reasons for risk management software popularity and usage is linked to software breaches. New state and federal regulations were implemented to dissuade hackers from stealing information. In recent years, security breaches have increased by over 40 percent. This not only affects businesses’ information and customers’ privacy but also damaged one’s reputation. Everything from home addresses to credit card information is stored in cloud software systems. Having the right risk management software helps businesses take back their security. This is a chance to look at potential weaknesses and close them up before an issue happens.

Enterprise risk management software speaks to all types of businesses because information is a universal commodity. Common enterprise risk management features include:

• Threat or Risk Analysis
• Financial Reporting and Audit Management
• Compliance Management
• Forecasting
• Incident Management
• Third-Party or Vendor Risk Assessment
• IT / Cyber Risk Management
• Policy Management
• Alerts & Notifications
• Regulatory Change Management
• Regulatory Reporting

When choosing the right software for your business, consider how it integrates with existing systems and records. After all, you want to easily upload your records to this software. Time is money and the best tools are those that work with your organization. A lot of risk management software vendors have a host of integration services to make it easy for a business to update their technology. When comparing vendors, consider if they have the following options:

• On-site support or databases
• Cloud databases
• CRM, document management, and fleet management software
• Accounting and Legal support tools
• Supply chain management
• Document management tools

Understanding Usage

Different positions and industries require different needs from their software. Understanding your intentions means you can choose the right tools for you. For example, some folks just need their documents digitized, organized and protected whereas others need to make sure their government contracts are in order. The following information should help you better understand how you might use risk management software.

A lot of businesses use ERM software to assess internal systems and the flow of information. For example, one could use the tools to see how much a project will cost and to identify the risks. This is also a chance for managers to see how much is on an individual employee’s plate and how information is accessed and used. Enterprise risk software is a great way to manage the internal side of the business to make sure time and resources are not exploited or wasted.

It is important for businesses to follow the state and federal regulations in place to protect businesses and customers. Software is a great way to make sure all contracts and agreements are in order. This protects a business’s intellectual property and makes sure that everything is in order with third-party groups.

Human resources and finance departments use ERM software to control business resources. This is an easy way to see if a project is under- or over-staffed, to see how projects could be more efficiently managed, and to organize key documents. All of this improves both employee satisfaction and customer satisfaction.

ERM software allows financial groups to understand external and internal risks and to better manage the flow of money both in and out of the organization. This is also a great tool to detect potential fraud and to better protect key information. After all, managers and owners can limit access to key information and set up policies and procedures that protect the organization. Lastly, by staying on top of regulations, one avoids having to go through an extensive audit and potential fines.

How to Compare ERM Software

The sky is the limit when it comes to ERM software options. For example, a business can purchase stand-alone products or invest in a large ERP suite. The first thing a business should consider is their budget and the second thing to consider is how the software will be used and by whom in the organization. Businesses that operate in information or finances may not need a full supply chain or warehouse management system, but a business with products being shipped will need this capability. Businesses should also consider how they might grow in the next couple of years. When considering the best ERM software, consider identification, assignment, prioritization and response planning and implementation.

Identification means considering the risks that affect a company both internally and externally. If you already know your weaknesses, this will help you zero in on the desired features of your ERM software. Additionally, consider what you are lacking. If you still have file folders of documents, then you may need document management. If your businesses is just beginning to up its technology game, then you may need integration services.

Assignment are the features that determine the outcome of risks. For example, what could happen if you waste time or do not follow through on regulations? Consider how software will work when used with other business applications like CRM software. Once you identify risks, you have to prioritize them. You cannot tackle every weakness at the same level. ERM software allows you to look at risks on a dashboard and really consider them. An owner or manager can then make a timeline of actions.

Response planning is important for any organization. You should know what you will do in the event of an emergency or issue. The best businesses have rich staff manuals and policies and procedures in place to ensure everyone is on the same page. Understanding the proper steps everyone should go through makes it easier to deal with an audit. Response implementation refers to the software features that help organizations implement risk management plans. There are tools for people who need support with contracts, regulations or accounting. Additionally, there are project management tools too.