Enterprise Risk Management Includes Customized Tools to Mitigate Threats

Anything that is in movement faces risk. And, by risk, here we mean anything that happens unexpectedly. Philosophy has defined this something like this: life is that happens between what you have planned and expected. Similarly, when a well-planned business faces something that was not taken into consideration or which that was not expected is called risk and therefore, it has to employ strategic measures to mitigate it.

Such measures are defined as enterprise risk management. An effective risk management takes the help of powerful risk management tool that helps businesses assess the risk and prompt a proactive action. But, before employing any such tool, it is important to take business impact analysis in a sense how the identified risk can affect the operational and financial functions of the organization. In managing such risks, though information and technology can be of great help, it is not always that the softwares available out there are helpful. They need to have certain features that can effectively contribute in enterprise risk management.

Major features that are of great importance to the strategic management include analytical flexibility in graphics, ability to process the largest amount of data, and ability to give signals prompting a proactive action accurately and timely. Another most important thing to any such risk management tool is its flexibility to get customized as per the business needs of the institutions. There are instances when such tools are not compatible with the overall process of the business and the businesses are too not in a position to change the processes either. In such a situation, it is important to check any risk management tool that the businesses may want to set up as part of their strategic measures to mitigate the risk facing their organizations. There are also some organizations which after having used some modern softwares, have preferred to choose excel spread shits for the sheer reason of its user friendliness and quick accessibility.

Risk Management Software Essential to Growth of Any Business

Business is synonymous with taking risks intentionally and consciously. Hence, to set up enterprise risk management with the help of risk management software is essential to the systematic growth of any business! The use of technology is not confined to having computer systems and internet set up. Technology touches almost all parts of business ranging from operational, communication, customer care, finance and accounting as well as public relation department. Though, all these departments have professionals to manage them efficiently, it is difficult to handle them manually. Also, each and every department has different type of risk involved in its operation and functioning that needs to be identified. Risk management software identifies such risks – both apparent and potential. Identification of the risk is the first step in enterprise risk management as all other steps such as measuring, prioritizing and responding to identified risks follow this first step.

Risk management software is often comprised of integrated and comprehensive tools that present the businesses with effective framework the operating of which is easy and user friendly. This framework documents and defines rolls and helps implement correct decisions to mitigate the identified risk. This often considerably reduces businesses’ exposure to risk and possible loss incurred due to the risk. Many such softwares provide solutions like configurable risk calculators and risk heat maps. Following are some of the benefits of using risk management software:

• Faster identification of risk
• Easy to use and understand
• Encompassing entire enterprise
• Measuring the intensity of the exposure to risk
• Giving the options to mitigate that exposure
• Building a robust brand and identity of the business

Having said this, risk management software though is an integral part of overall enterprise risk management; it does not eliminate the need of sharp and seasoned mind on the boards. The main task of this software is to identify the risk and give suggestions. It does not implement the measures which are supposed to be taken by the concerned executives. The tool is for the guidance and not a decision maker! But, certainly a great friend of the decision maker whose decision ultimately decides the fate of the business!