Enterprise Risk Management Software: The Ultimate Buyer’s Guide
Do you remember Deal or No Deal, the game show where contestants had to decide whether to take a guaranteed cash prize or risk it all for a chance to win more? Running a business can sometimes feel like playing that game, with risks lurking around every corner. How do you decide whether an opportunity lurking around the corner is worth the risk, or if it’s better to hold the line to keep your enterprise safe?
That’s where enterprise risk management software comes in. It’s like having a trusty sidekick that helps you identify and assess potential risks, so you can make informed decisions and stay ahead of the game. In this article, we’ll dive into risk management software for anyone considering buying an ERM solution and learn:
- Why risk management software is essential for businesses of all sizes
- How to choose the right solution for your needs
- The difference between cloud-based and on-premises risk management solutions
What is enterprise risk management software, and why do you need it?
Risk management is critical to any organization’s success, especially as businesses continue to grow and face increasingly complex risks. Enterprise risk management (ERM), or risk management software, provides an efficient and effective way to identify, assess, monitor, and mitigate risks.
By providing a comprehensive view of all risks across an organization, from compliance issues, incidents, and loss events, to financial risks, enterprise risk management software eliminates departmental silos, improves communication, and allows organizations to take action when needed.
An ERM software benefits organizations of all sizes by streamlining the risk management process with automated risk assessments, custom workflows, and reports to help reveal the opportunity in every risk through critical risk intelligence.
What preliminary discussions can help you decide your risk management solution needs?
When considering enterprise risk management software, there are several consideration factors to ensure you choose the right solution for your business. Here are some preliminary discussions to help you evaluate your organization’s needs for risk management:
Assessing your organization’s needs for risk management
When deciding on the right risk management solution assessing your organization’s needs is the first step. Consider the types of risks your organization faces and the specific requirements you need to meet. Understanding your organization’s overall risk appetite will help your chosen software align with your big-picture risk management goals.
Some questions to get alignment on:
- What are the primary risks your organization faces?
- How much time is spent on manual processes that could be automated by software? What specific compliance requirements does your organization need to meet?
- What’s currently missing from your risk management reporting? What level of risk appetite does your organization have?
- Who will be the primary users of the enterprise risk management software, and what areas of risk management do you need to address (compliance, financial risk, operational risk, or strategic risk)?
- Which functions could be better engaged and communicated in your risk management processes through the use of software? How much customization and flexibility does your organization need from the software?
- What is your budget for a risk management solution?
- What timeline are you working with for the implementation and adoption of the software?
Evaluating the ERM software user experience
The user experience (UX) of an enterprise risk management software solution can significantly impact the effectiveness of your risk management program. Ensure the software is user-friendly, with intuitive interfaces allowing easy navigation and minimal training time. The software should also be customizable, allowing users to configure it to their needs.
Key questions when evaluating your enterprise risk management software options:
- How intuitive is the software’s interface? Will users be able to understand how to navigate it quickly?
- Does the software reduce the need for extensive training?
- Is the software customizable to meet the unique needs of my organization?
- How does the software support collaboration and communication among users? Are there features that facilitate teamwork and coordination?
- Does the software offer additional features or tools that could enhance the user experience, such as mobile access or integration with other software platforms?
- How easy is it to integrate the enterprise risk management software with other systems and applications used by my organization
- Can the software generate reports and analytics that help me better understand and manage risks within my organization?
Assessing the total cost of ownership
When considering enterprise risk management software, it’s crucial to evaluate the total cost of ownership (TCO). While some solutions may seem less expensive upfront, they may require significant investments in training, implementation, and maintenance. Evaluate the software’s long-term costs to ensure you choose a solution that aligns with your budget and business goals.
- What is the initial cost of the enterprise risk management software, and what features are included in this price?
- What ongoing costs are associated with the software, such as maintenance fees or subscription costs?
- How long does it take to implement the software, and what costs are associated with the implementation process?
- What level of technical support and training is available to users of the software, and what are the associated costs?
- Are there any additional costs that may arise in the future, such as upgrades or new features?
Choosing the right type of risk management software for your organization
With many different enterprise risk management software types available, deciding between the most common — cloud-based and on-premises solutions — can be challenging. Cloud-based software is hosted on remote servers and accessible through the internet, while on-premises software is installed and runs on a company’s own servers or computers. Most companies typically prefer cloud-based solutions; however, on-premises is preferred by large enterprises.
The key to knowing which is best for your organization is understanding the key differences between the two:
Accessibility: Cloud-based software can be accessed from anywhere with an internet connection, while on-premises software is typically only accessible from the company’s network or devices.
Maintenance: With cloud-based software, the vendor is responsible for maintaining the servers and software, including updates and security patches. On the other hand, with on-premises software, the company is responsible for maintaining and updating the software and the servers or computers it’s installed on.
Scalability: Cloud-based software can be easily scaled up or down depending on the company’s needs, as the vendor can allocate more resources to the server. On-premises software may require additional hardware or software licenses to scale up.
Security: Cloud-based software typically offers increased safety of your information, as vendors invest heavily in security measures to protect their customers’ data. However, some companies may prefer on-premises software for sensitive data, as they have more control over security measures.
Cost: Cloud-based software is typically offered as a subscription service, with lower upfront costs and predictable ongoing expenses. On-premises software may require a significant upfront investment in hardware and software licenses and ongoing maintenance and upgrade costs.
A key question to ask when deciding between cloud-based or on-premises solutions is: “How does the software handle data privacy and security, and what measures are in place to protect sensitive information?” Ultimately, choosing cloud-based and on-premises enterprise risk management software will depend on your company’s specific needs and preferences. Some companies may prefer the flexibility and accessibility of cloud-based software, while others may prefer the responsibility of an on-premises solution in exchange for more control.
How Resolver’s risk management software benefits organizations like yours
Resolver’s end-to-end ERM solution provides a centralized platform for identifying, assessing, and mitigating risks across your organization. Our risk intelligence platform helps customers make data-driven decisions and improve their risk management processes by:
Reducing silos to improve issues identification
Learn how Resolver’s ERM software helped Sterling Bank & Trust streamline its risk management processes, resulting in increased issue identification and resolution through reducing silos and improving stakeholder communication.
Enhancing ERM strategic planning
Discover how the implementation of Resolver’s risk management software enabled Farmer’s Mutual Hail to improve its ERM processes, reduce risk exposure, and improve its overall risk posture.
Increasing ERM efficiency by reducing response times
See how Resolver’s enterprise risk management software helped Grow Financial, a US-based credit union, streamline its risk management processes and improve visibility and reporting capabilities, reducing incident response times by 50% and increasing efficiency.
Streamlining risk management for banking innovation
Find out how SC Ventures chose Resolver’s enterprise risk management software to simplify risk management, improve decision-making and reduce the time spent on manual processes.
Ready to see how an ERM solution can transform your business? Join an upcoming product showcase to see firsthand how our enterprise risk management software can streamline your processes, reduce risks, and increase efficiency. Register now to secure your spot and discover the power of ERM for your organization.