Posted on January 19, 2021.
In navigating the Covid-19 pandemic, businesses have had to adapt rapidly to change, build greater resilience and develop new mindsets when it comes to managing risk.
Those already with risk management software within their toolkit have enjoyed the benefits of enterprise-wide visibility – a single view of all types of risk across the organization – and the insights gained have never been so critical. Businesses without up-to-date risk data, made accessible in real-time, may have lacked the agility necessary to adapt quickly to changing conditions and develop the resilience required to thrive in such unprecedent times.
How risk management software can bolster performance
It’s a given that managing risks safeguards companies, yet taking risks can create value too – some emerging risks may be ripe for exploitation. Making the right risk-taking decisions relies on access to the right analytics and data; armed with risk management software, organizations can benefit from a scalable approach, combining important risk information from all key business areas that can be used to measure and manage risks taken or not, meet key business objectives, and fuel growth.
Risk and the rise of digital
Even without the multifarious challenges of the last ten months, the demands on risk professionals are ever increasing. With risks ranging from governance and compliance, to legal, financial, security and reputational, the need for a dynamic risk management strategy is evident. Faced with increasing audit demands, ever-changing legislation and greater regulatory scrutiny, a traditional approach to risk management is unsustainable.
Thanks to risk management software, many time-consuming, manual processes have been superseded by innovative, automated digital processes. And as a result of greater efficiency and quality gains driven by technology, with analytics at their fingertips, risk professionals can reach better decisions that boost performance and add business value.
Benefits of risk management software
A digitised system offers many business advantages, including:
Risk management software supports better reporting and analysis of risks. With real-time access to accurate, concise and consolidated risk data, risks can be evaluated more effectively.
Standardized reports when presented to the board and non-exec directors can assist in risk mitigation decision-making. And with focus gained from a variety of risk data – including key risk indicators, mitigation strategies and emerging risks – business leaders can understand the risk landscape better and manage an organization’s risk tolerances and thresholds accordingly.
Risk management software enables potential risk events to be detected and provides advance notification before events occur. With key metrics in place, users have the ability to track changes in risk likelihoods or risk vulnerabilities, and are alerted to potential risk profile changes.
While traditional risk management primarily concentrates on risk acceptance, mitigation or avoidance, enterprise risk management provides a complete view of risk; a framework from which management can evaluate risk as a source of opportunity to gain competitive advantage or maximize upon conditions, whether they be market or operational.
Risk management software or better still, a fully integrated ERM system, consolidates siloed risk data into a single, central repository – with the most up-to-date risk information available, recorded by standardized methods to provide meaningful metrics, accessed via intuitive dashboards or reporting.
Risk management software engages the risk team at all levels. With a clearer view of responsibilities, less time and resource required to perform tasks and full visibility of risk incidents, risk professionals have greater control within their roles and are more actively engaged. A feature-rich, digitised system improves communication and enables collaborative working, whether individuals are field-based, or like so many over recent months, are working remotely from home.
With greater focus on risk and awareness instilled top-down throughout an organization, ERM helps all employees understand that managing risk is everyone’s business. Positive thinking, behaviours and actions around risk management can help mitigate risks and better insights and decision-making can maximize business opportunities.
By enhancing operational efficiency with risk management software, organizations can drive down unnecessary costs. Access to critical risk insights means risk-intelligent decisions can be reached and potential gains evaluated.
In short, organizations with better risk management enabling effective organizational responses will be ideally placed to build resilience, adapt to changes and perform better, whatever the future holds.
Enjoy a single view of risk for business performance