Being the prolific heroes of the critical times, risk managers are supposed to make operational decisions about risk factors on a daily basis. There are expectations riding on them every day, from the regulators, the board and the external stakeholders. ERM software is designed for helping them achieve the best in enterprise risk management and improve their business potential. As risk managers with potential, you need to know more about a few things related to ERM that can make you the best in the business.
Set Your Priorities – Know What You Want
ERM software can give you an upper hand in standardizing and objectifying all risk assessments organizations-wide. Once you get used to the enterprise risk management software, you can make full use of dash boards, heat maps and reports to analyze how the resources can benefit the organization the most. It can help managers to make recommendations confidently and objectively to the Board and Senior Leadership. Making a business case for allocating your business resources for the most critical tasks is critical to any risk manager. ERM software allows managers to enable it more objectively, faster and easier. ERM can attribute a risk assessment score to the enterprise by analyzing relationships to all connected policies, control and contracts, and delivering instant feedback. The feedback helps the managers to do what needs to be done to improve their risk management process.
Increase Efficiency in Risk Handling
ERM helps managers to gain more efficiency in handling risk situations in business. It is profitable to spend lesser time in creating templates, collecting data and creating/compiling reports and basically it adds more value to the process through analysis and aggregation. Mostly, ERM has pre populated frame works that are open to customization. They also have the most important templates risk managers require to breathe in critical situation. In the list of their options, ERMs also have a root cause risk library and assessment evaluation criteria. Drag and drop functionality of this software allows you to assign risks from the user’s library to be assessed by participants and business areas. It will also update the assigned risk subsets for next assignment automatically. ERM can also empower managers as it permits them to e mail guided tasks to business process owners. As ERM software saves the time usually spent on preparing and pushing out assignments, it helps the managers to analyze the information in more organized manner.
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Managing Relationships In The Right Way
Managing relationships are very critical to a risk manager as he has to comprehend the nuances of the relationships and interdependencies between risks in the various aspects of business areas. He should also have a clear idea about how those elements can affect the strategic goals of his organization. If you couldn’t properly organize the stakeholder priorities and organizational goals, it will become tough for you to know whether the right risks are covered in a proper manner. In the older days, risk managers used to take so much weight on their shoulders because their job demanded it but with the arrival of ERM software, the pressure on the risk managers went down. ERM finds out who is connected to who in an organization, maintains these relationships and automatically sends you notifications of the important changes. You are not going to miss anymore memo and there is going to be no ‘gaps’ in your specific control environment because of this software’s efficiency.
Risk Based Compliance
If you study the stages of Risk Based Compliance in an ERM frame work, you will usually find these stages –
- Identifying the requirements that are either legal or internal or regulatory.
- Assessing the applicability of these given requirements
- Assess whether an action is required.
- Mitigate with procedures and policies (according to how you have the requirement)
- Monitor the audit testing of controls and observance to your internal policies.
Risk Based Performance
The process works for performance in the finest way and the objectives and missions are recognized and evaluated according to their positive impacts if met. The activities and projects also can back them up. The achievements of the objectives are further monitored with performance metrics and KRIs.
Value of Risk-Based Process
One can re-use the relationship building and information by standardizing control with a risk based process. The same controls that are used to mitigate risk might also be used for ensuring your organization stays compliance. Metrics and testing which give a vivid idea about the effectiveness of your control environment can also be put in use to resource allocation and audit scoping too.
About The author:
Sophia Wright is the Marketing Executive. She worked in several process improvement projects involving the multi-national teams for one of the best companies based across the world. She has over 5 years of experience in ERM Software Training, and as a practicing manager of Business analysts successfully executing several projects in terms of Risk management strategies, ORM Software solutions, Governance risk compliance.
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