Risks exist at all times in any and all businesses—whether or not you know it, you've been dealing with risk since the second you opened up shop. Critical risks that all businesses face include those in finance, legal and regulatory compliance and strategic and operational risks. It's important that all risk be at least noted and on your radar. Ideally though, you'd be able to proactively manage risk and any resulting consequences.
In order to identify, track and overcome potential issues, you need to have a clear snapshot of all the risks you're facing. Risk management software can help organize and track your risks. This enables you to prioritize tasks needed to manage and/or overcome the various risks you face. But what type of risk management software do you need? We're here to help you figure that out.
Here's what we'll cover:
Even the simplest risk management software tools include numerous components.
|Risk identification||Identifies and records risks your business faces. Defines the risks for a repository or allows you to choose from a pre-established risk dictionary.|
|Risk assessments||Assigns simple ratings to risks or enables you to develop detailed classifications based on multiple factors defined by individual business units.|
|Monitoring and testing||Defines key risk indicators (KRIs) and records the effectiveness of risk management processes.|
|Reporting and dashboards||Monitors risks and solutions with easy-to-understand visual reporting and dashboards.|
|Regulatory compliance||Ensures your risk management processes meet all necessary regulatory compliance by defining and tracking processes and required compliances.|
|Issue management||Manages the execution of key risk-based projects. Ensures critical risk management issues are identified and accounted for.|
|Document management||Allows you to collaborate and share documents and reports in real time. Houses a knowledge base for new and curious employees.|
Risk management solutions support businesses throughout the risk life cycle, from identification to assessment and on to monitoring and potentially eradication. The first line of defense is risk identification and assessment. It's here that you'll identify the risks facing your business. This could be as simple as inputting regulations and compliances, or it might take some digging and thinking to determine what your pressing risks are—which leads into the next step: assessment.
Once you have identified risks, it's time to assess their potential impact and prioritize them accordingly. Assessment can mean assigning your risks a simple rating within a given scale of severity (e.g., 1 - 5, with 1 being a low risk and 5 being a high risk). More detailed assessments can provide a risk score that takes many variables into account. Regardless of the complexity of the assessment, completing this step enables you to use your risk management tools to monitor risks and test your ability to manage and work through them.
Issue management is a key feature used in day-to-day operations surrounding risk testing and other related projects. Key capabilities within issue management include task assignment, workflow monitoring and automatic notifications and reminders for deadlines and communications.
A properly utilized risk management system will enable you to operate more efficiently. The awareness that comes with proactively and systematically monitoring critical risks will help you overcome any potential setbacks or downtime in your business.
Specific benefits of adopting risk management tools include:
Risk management systems have many benefits to offer your business, but that doesn't mean all risk tools are right for you. Choosing the risk software that's going to drive your business to greater success is no easy feat. There are a ton of risk management software vendors itching to get your business, so move carefully when navigating the vendor landscape.
The following recommendations will help you stay the course and choose the best risk management solution for your business. They come from a cross-industry software buyer survey we conducted to determine effective tactics for choosing the best software for your unique business. The most recommended tactics from the survey are:
Our service is simple and 100% free to customers like you because software vendors pay us when we connect them with quality leads. You save time and get great advice. Vendors get great referrals. It's a win for everyone!