Turn Every Risk into A Benefit: Enterprise Risk Management (ERM) Solutions
Risk management needs no introduction as it is a very essential factor in any business for reducing the accidents and improve the potential of your business. No matter how big or small your enterprise is, risk can come from various sources in the form of new regulations that may be subject to differing interpretation or as a brand new company storming into the market with considerable exposure and returns or as a latest merger/acquisition.
In such critical situations, enterprise risk management software solutions can be of ultimate importance because they can protect your assets, reduce accidents, improve project implementation and increase business potential. Once installed and customized in a proper way, an ERM system will help you to improve the mitigation programs and lower loss rates of the business. It can be integrated with many other key GRC software systems, thus giving the management an upper hand in access to information for more informed strategic enterprise wide decisions.
Embrace a culture of increased risk awareness:
The software can create a whole new culture of increased risk awareness which will lower the costs while reducing the major risks. The basic goals of any ERM solution are that to identify, quantify, assess monitor and manage the enterprise risk in an integrated manner. The risk heat maps of the enterprise risk management software can enable the companies to customize their priorities and make strategic decisions based on the risk feedback. The solution’s workflow capabilities usually streamline the risk assessment process mitigating your risks to prevent loss. It also is equipped to monitor the past losses of your enterprise.
The entire risk management related data- key risk indicators, results from individual assessments, events such as losses and near-misses, issues and remediation plans, the risks to their corresponding controls and assessments- comes in a single solution, when you have an enterprise risk management solution.
ERM solutions, which combine content and software in a special way, also provides embedded best practices that help define the possibilities of risk management processes and sub-processes. The software also heads the development of control and test libraries.
This new technological development in the field of risk management also offers access to ‘training content’ from the experts and thus facilitates the integration of business processes with industry alerts. Some of the risk management solutions allow its users to easily fix an ‘ad hoc approval process’ to initiate a formal testing review process to validate results. Reminders and notifications are generated in the system so that the administrator can send them through email to everyone involved in a particular task to keep it progress steadily. This also helps them to escalate issues that become stuck.
The integrated content eliminates the otherwise necessary evil of searching through a big pile of email and mountain of documents. The ERM solutions also give you an easy access to information and supporting documentation, thus you will be more successful in mitigating risks and threats.
ERM Strictly Means Business:
ERM successfully heightens consistency and communication of risks within the organization. Using an ERM, the concerned authorities can get an enhanced attention, focus and perspective to the usual risk data. The most publicized benefits of ERM are its cost effective risk management and task monitoring of risks. Another advantage of installing an ERM in your enterprise is the effective activities related to compliance, audit and regulatory matters.
Other specialties of ERM include a conceptual framework and standard terminology for all departments and members in the organization. The risk ‘dashboards’ in ERM is designed to increase the focus of executives and directors. This can lead to better decisions in the context of risk thresholds, risk tolerance and risk appetite. The reporting style of an ERM offers more convenience to executives as it has better classification and categorization of risk data.
The main pluses of ERM are its timeliness, flexibility and conciseness which lead to a more efficient communication in executive and director levels which facilitates improved decision making capabilities.
The ERM viewpoints basically present themselves in a complete and effective way. Efficient ERM processes provide the management a frame work which can evaluate risk as a chance to increase competitive positions and exploit specific operational and market conditions. It is easy to recognize and assess key performance indicators considering in risk using ERM methodologies and techniques. This also gives you a method to measure and improve quantify risk factors and tolerances. The extensive use of key metrics and measurements of risk further better the reporting and analysis. Evaluating its power to save your business from the potential risk factors, it’s high time you should go for a customized ERM solution if you really mean business!
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, and as a practicing manager of Business analysts successfully executing several projects in terms of Risk management strategies, in ORM Software solutions, Governance risk compliance