The Beginner’s Guide to Finding the Best Risk Management Software

Take a look at everything you need to know about finding the best risk management software for your organization in our comprehensive guide.

Resolver
July 25, 2023 · READ

Just like Batman swoops in to save the day, preventing disasters and keeping Gotham safe, a risk management solution is all about identifying potential risks in your business and taking steps to mitigate them before they cause harm.

Too often, risk management happens in bits across an organization, creating chaos in Gotham City. Burdened with tedious manual spreadsheets and emails for information gathering and analysis, risk teams are frustrated. They know they could deliver more strategic insight to their organization but lack the time and tools to make reporting and communicating simple and effective.

Risk management software is the technology in the Batcave combined with helpful butler Alfred for support. With the right software, you can streamline your processes, improve communication and collaboration, and gain valuable insights into potential risks before they become significant issues. Whether you’re a seasoned pro or just getting started, this ultimate guide to finding the best risk management software will cover everything you need to become a true risk management superhero.

In this guide, we’ll cover:

What is risk management software, and why is it essential for organizations?

Risk management software is a specialized technological tool designed to help organizations manage risks within their business operations more effectively. Implementing risk management solutions provides a structured and systematic approach to identifying, assessing, mitigating, and monitoring risks, enabling companies to make informed decisions and take appropriate actions to minimize potential negative impacts.

“Risk management teams evaluate the key objectives an organization is looking to achieve and helps outline the risks that could impact their success,” says Resolver’s VP of GRC Product, Amanda Cohen. “They highlight and drive investment toward the risks that may impact the organization’s ability to meet its objectives and key strategic goals successfully.”

According to Cohen, risk management tools help automate this process so that the risk team has a pulse on exactly how risks materialize across the organization. “It takes teams away from cumbersome interviews and manual processes so that the risk team can instantly provide a clear picture of the largest risks to the organization and communicate risk exposure effectively.”

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What does the best risk management software do?

The need for a risk management solution arises from the complex and dynamic nature of risks that organizations face. These risks can include financial risks, operational risks, compliance risks, cyber risks, and more. Optimally through a centralized, cloud-based platform, risk management software should:

Cohen’s work developing the best risk management software gives her a detailed understanding of how using technology solutions in risk, compliance, and audit functions can benefit organizations. “Risk management software helps the business understand where key risk areas are emerging, where the business should focus and invest to ensure that risks do not materialize, and what risk areas are trending outside of the organization’s risk tolerance.”

Ideally, according to Cohen, all of this is consolidated into easy-to-consume reports so that the Board of Directors and other executives can drive business decisions and focus their resources in the areas of most impact.

Effective risk software can help with the following:

Risk identification

Risk management solutions help organizations identify potential risks through risk assessments, surveys, and other data-gathering methods.

Building a risk register

The best risk management software solution can help create your risk register, enabling different departments, functions, and leadership teams to align on the risks the business faces while trying to achieve its objectives and strategic goals.

Risk analysis and evaluating inherent risk

Having centralized data in a risk management system offers the ability to derive a real-time risk assessment matrix and risk scores to help evaluate the significance of the risk to the business. Good software provides tools to assess the likelihood and impact of identified risks and to prioritize them based on their severity.

Assessing control effectiveness

More visibility and user-friendly data displays can help the business quickly understand how to address identified risks, assess which controls are in place, and whether they are operating effectively.

Risk incident tracking

Track risk incidents, report on their frequency and severity, and identify patterns or trends to help inform future risk management decisions.

Improving risk visibility across the business

The best risk management software provides a view into how risks materialize across the enterprise. They help you look at your key risk indicators (KRIs) and assess risk incidents to identify what’s occurring throughout the company. Determine the early indicators that risk levels are increasing or which controls are not adequately addressing risk.

Better identifying residual risk and measuring risk reduction

Understand how risk levels are reduced as a result of controls in place with simple visualizations built into the software’s features, and determine residual risk.

Understanding risk tolerance and risk acceptance levels

Risk management systems can help determine whether the reduced risk is acceptable for the organization. Cohen suggests another way to look at this: “Is the risk within risk tolerance for the business?”

Delivering influential risk reports

Risk management tools help eliminate spreadsheet chaos and the information chase that frustrate many risk managers and help teams generate impactful reports for leadership, executives, and the Board. “Risk reports highlight where you need to focus as a business and where to invest further to mitigate critical risk areas,” says Cohen.

Watch: The Top 10 Reports Every Risk, Compliance, and Audit Leader Needs

What are the key benefits of risk management software?

When it comes to risk management, practical strategies, and tools, such as risk management software, can make all the difference in saving time and money on your programs. By implementing a risk management platform, you can enjoy a range of benefits, including improved efficiency, better collaboration, enhanced reporting capabilities, continuous risk assessments, and cost savings. Here are the key advantages to consider:

Improved efficiency

Automate time-consuming tasks and streamline processes, making it easier for teams to collaborate, communicate, and track progress. A good risk management solution will help automate risk assessments, issue tracking, and reporting, saving your team valuable time and allowing them to focus on high-priority tasks.

Enhanced visibility

Gain a complete view of your organization’s risk landscape, typically through real-time dashboards and reports. Make data-driven decisions and quickly identify emerging risks that require attention.

Risk-informed decision-making

With centralized risk information, you can empower teams to make data-informed decisions that support organizational objectives and provide actionable insights. The best risk management software can also help simulate different scenarios to evaluate potential outcomes and assess the impact of your risk mitigation strategies.

Continuous risk assessments

A common problem in risk management is that the process is not automated, doesn’t involve key stakeholders, and the results of any assessments completed don’t get reported to the Board. The best risk management software is a complete solution that typically empowers continuous risk assessments, automating processes for gathering information and simplifying reporting and communication capabilities. Easy-to-use risk assessment forms promote active participation, so risk owners can independently manage risks, controls, issues, actions, indicators, and loss events.

Cost savings

Save money in the long run by reducing manual effort and improving efficiency. Look for scalable software that can grow with your organization, so you can continue to realize cost savings as you expand.

Resolver customer Eleni Willis, SVP and Director of ERM at Sterling Bank & Trust, suggests doing the math to understand the cost of current systems that manage different functions, like compliance and audit. At our 2023 GRC Trends webinar, she told the audience, “For us, it ended up being quite a considerable amount. The benefit was pretty clear — not just having it all in one system and one place where we can leverage each other’s work. But then the cost ended up being quite a bit less. It ended up being a pretty easy sell to our management team based on that alone.”

Read: How Sterling Bank & Trust increased issue identification by 4x and reduced risk silos with Resolver

How does risk management software improve processes?

Risk management software improves processes by addressing key challenges organizations face to achieve their objectives reliably. An effective software solution streamlines operations and enhances coordination across teams by providing a centralized platform for risk-related functions, such as risk assessments, issues management, compliance, and policy governance.

Risk management solutions eliminate siloed information and disparate systems, allowing for easy access to data and fostering collaboration. Additionally, the software you choose should facilitate combined assurance, aligning internal partners and different disciplines to gain deeper insights into governance, risk, and control management. Real-time reporting and dashboard functionality can enable organizations to track and address issues more efficiently, improving issue remediation.

By removing barriers and silos, the best risk management software enhances communication, standardizes processes, and can help you promote a robust risk culture, ultimately strengthening your organization’s risk management program.

Read: How Bangor Savings Bank Used Resolver to Improve ERM Process Efficiency & Collaboration with Risk Owners

Creating a powerful business case for risk management software

Securing funding for risk management software can be challenging, but building a solid business case is essential when convincing stakeholders of its value.

Align stakeholders: Learn how to align stakeholders by presenting a clear and objective view of the benefits and costs of investing in risk management software, reducing resistance to change, and involving critical decision-makers in the process.

Gather the information you need: Discover how to gather the necessary information to quantify the importance of risk-related work, including the costs of common risks, compliance infractions, and potential impacts on the business.

Demonstrate the value of the software: Communicate the ROI of risk management software to decision-makers, outlining the benefits it brings to risk identification, collaboration, and data-informed decision-making.

Take advantage of our step-by-step guide for creating a compelling argument for risk management software, from aligning stakeholders to addressing objections and presenting the business case effectively.

Read: Everything You Need to Build a Winning Business Case for Risk Management Software

Finding the best risk management solution can help you become a strategic advisor in your organization, equipping you with the tools to identify, assess, and address risks before they become significant threats. Harness the power of risk management software today to become a true risk management superhero.

“We have an integrated risk management platform that allows you to look at your risk exposure from a variety of different perspectives,” says Cohen, “and we are really experts in the technology space of how to bring that information together, how to find insights, and how to drive business decisions forward by pulling that information and then being able to extract those key insights.”

To see what we believe to be the best risk management software in action, we invite you to register for a short video walkthrough where you can explore the features and capabilities of Resolver’s platform.

Alternatively, if you prefer a more personalized experience, contact our knowledgeable sales team for a customized demo tailored to your organization’s specific needs. Take the first step towards revolutionizing your risk management approach with Resolver’s software.

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