Find the best ERM Software

Risks are an inherent part of every business, and they come in several forms. While some risks like natural calamities and accidents cannot be foreseen, others such as financial, strategic, and operational risks can be managed and mitigated using the proper risk management framework.

36% of businesses either don’t have a structured process for identifying and reporting top risk exposures to their board, or they track risks in silos with minimal reporting of aggregate risk exposures. Such businesses can use enterprise risk management (ERM) software to monitor their daily activities, identify risks, and build risk management strategies that safeguard against both internal and external business risks.

But choosing an ERM tool with the right features is a complex task. To help you, we’ve created this buyers guide that has all the information needed to evaluate the options available for your business.

Here's what we'll cover:

• What is ERM software?

• Common features of ERM software

• What type of buyer are you?

• Benefits of ERM software

• Considerations when choosing ERM software

What is ERM software?

ERM software is cloud-based software that helps businesses identify and monitor financial, strategic, and operational risks. It assists in mitigating the impact of risks on organizations’ earnings and operations.

ERM software alerts businesses about potential risks to prevent losses and subsequent business failure. Companies can analyze these alerts and thereafter use the findings to frame relevant risk management policies, avoid risk-prone processes, and eliminate the chances of exposure to familiar risks.

Risk trends graph in Essential ERM (Source

Common features of ERM software

Identifying the common features of ERM software will help you select a solution that offers the highest level of risk protection for your business. Here are some key features that you should look for in an ERM tool.

What type of buyer are you?

Based on the type of risk management required, there are two categories of ERM software buyers: businesses that want only compliance risk management software and business that want a complete risk management solution. Let's dive into both of these.

• Buyers that need only compliance risk management: Regulatory compliance is mandated by law, and many companies need assistance with managing business risks specific to compliance management. ERM software dedicated to compliance risk management helps companies mitigate compliance-related risks. It uses data extracted from systems to provide business intelligence on processes and areas that are prone to being noncompliant. This type of software assists businesses in eliminating risks caused on account of compliance violations.

• Buyers that need complete risk management: Besides compliance risks, businesses also need help with managing various types of internal and external risks. Internal risks are risks that arise during the normal course of business operations, while external risks can be attributed to factors beyond management’s control. A complete risk management solution offers protection against both internal and external risks. It identifies risks, analyzes the probability of these risks affecting business operations, and provides the data needed to build efficient risk mitigation strategies.

Benefits of ERM software

Understanding the benefits of ERM software will help you assess why your business needs this software and build a strong business case for an investment. Following are the key benefits of ERM software:

• Enhanced risk forecasting: ERM software alerts businesses to potential threats and gives them ample time to analyze and mitigate threat situations. As a result, businesses are more aware of the threats facing their operations and can use these alerts to respond immediately or frame risk mitigation strategies to tackle future threat situations.

• Improved decision making: ERM software is often linked to a project management dashboard that’s equipped with real-time data. Analysis of this data empowers businesses with the capability to make smarter business decisions and avoid processes that are more prone to risks.

• Timely escalation of matters: ERM software streamlines the risk management process and ensures that threats are escalated on time to the concerned personnel, who then devise a mitigation plan. The software analyzes risks in real time and sends immediate alerts when it detects a threat.

Considerations when choosing ERM software

Before zeroing in on an ERM tool, you should vet all available options and also consider the impact the tool’s implementation will have on your future workflows. Here are a few key considerations that you must keep in mind to maximize return on investments (ROI) from software purchase:

• Analyze your existing risk management processes: The best practice approach to buying ERM software is to first evaluate your current risk management stance. Analyze the effectiveness of your existing ERM processes and discuss the pain points faced by the security team. Once you’ve identified the pain points, choose an ERM solution that’s capable of effectively resolving these concerns.

• Availability as a mobile application: Considering risks can arise at any time, your preferred ERM software should be available on mobile devices in the form of an app. A mobile app will help reduce desktop dependence, offer a 360-degree view of risk situations, provide anytime access to risk analyses, and ensure that you receive threat alerts while you’re on the go.

• Integration capability: The ERM solution you wish to purchase should integrate well with your existing business applications. The integration capability will ensure that your ERM software has seamless access to business, financial, and strategic data that needs to be analyzed for potential risks and threats.

If you need more detailed information about the features and benefits of ERM software, you may fill out this form for an obligation-free consultation from Software Advice. Our advisors will understand your requirements and guide you in shortlisting the most suitable options for your business.