What is Risk Management Software?

Risk Management Software
May 20, 2021

A risk management program is composed of many components, each interacting with each other, and with other functions in the enterprise. As part of the program, risk assessments are conducted, including risk analysis, controls are implemented, and internal audits are performed to make sure that the risk management process is effective.

Given all the parts, and the critical importance of identifying potential risks, organizations should implement enterprise risk management software in order to have a data-driven approach.

A risk management platform helps to keep track of all identified risks in a risk register, as well as corresponding risk mitigation measures, such as controls and barriers. The software system also shows the residual risk for each risk after controls or barriers have been applied.

When looking for a risk management tool, it’s important not to fall in the trap of looking for a glorified database that simply lists risks and controls. First, make sure that the user experience is intuitive, in order to drive user adoption. The easier the software is to use, the more likely employees are to use it. It’s worth noting that user experience is not just about the user interface. It’s also about other aspects that make the software easy to use, such as drag-and-drop functionality, screen navigation, data entry, dashboards, reports, etc.

Second, a risk management tool should update risk data in real-time. If, for example, a new hazard or risk is entered through a mobile app, the risk management software system should be updated right away so that all employees see the new risk. Action plans can then be launched to further assess the risk and implement controls or barriers.

Third, risk management software should include roll-up and drill-down capabilities. As operational risks are entered by individual sites, a user can roll-up the important risks at the enterprise level to provide a summary to executives. Also, a user can drill-down at the level of a facility to see all risks affecting that particular location. They can even drill down at the asset level.

Finally, it’s important to view risk management software not as a stand-alone application, but as a part of an enterprise platform, and integrated with other applications with which data is exchanged. Software applications used for audits and inspections, regulatory compliance management, safety and health, event management, ESG management, and others, all include information that help to identify new hazards, threats, or risks. An enterprise-class software platform, one that includes the technological innovations of Industry 4.0, allows you to connect the dots in order to establish a 360-degree view on all risks across the organization.

Click here to learn more about Enablon’s Risk & Compliance software solution. Learn how it can help your organization achieve its objectives by supporting your risk management process. It can also address your assurance and compliance requirements through data transparency across your organization and with regulatory agencies. In addition, with Enablon’s risk management software, you can go beyond compliance through effective risk assessments and centralized tools and processes. And finally, you can ensure a consistent approach to risk management with an integrated, AI-enabled solution.

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