Manual vs Automated Risk Management: Calculating Time Savings with ERM Software

How much time could you save by automating risk management? Try the free time savings calculator here.

January 5, 2024

Risk management should never feel like a chore.

When risk owners are burdened with hours of manual data entry and the relentless pursuit of information buried in emails and spreadsheets, it’s no wonder they may start avoiding it altogether. Imagine the possibilities with high-quality, timely data at your fingertips — the power to make informed decisions and drive actionable insights. However, for many key decision-makers, reviewing the pros and cons of manual vs. automated risk management solutions can lead to analysis paralysis.

What if there was a way to quantify the value of transforming your processes and assess how much time is saved when going from tedious manual entry to dynamic, data-informed insights? Download our simple calculator now to determine the ROI and time savings unlocked by the pivotal shift from manual to automated risk management.

And read on as we demonstrate that this transformation doesn’t just save time; it elevates risk management to a strategic advantage, ensuring financial institutions and other regulated industries stay agile and compliant in a rapidly changing landscape.

The challenge of manual risk management

The decision-making dilemma facing many institutions today hinges on choosing between sticking to existing processes — which work but are primarily manual — versus doing the work to onboard and implement more effective and accurate automated risk management software solutions. While manual systems have been the mainstay for years, they are increasingly viewed as inadequate in the face of growing regulatory demands and the need for agility in risk management practices.

As one risk management industry expert puts it, “The manual processing of information is not only slow but also fraught with the danger of human error, which can lead to significant missteps in risk management.” This impacts an institution’s ability to manage risk effectively and undermines confidence in manual vs automated risk management and reporting processes.

Traditional risk management processes often involve weeks, if not months, of data collection, resulting in quarterly risk reports that might already be outdated, especially for critical risks. This reliance on manual, cumbersome methods increases the burden on employees and raises the potential for errors and non-compliance due to the lag in data availability and quality.

The benefits of automated risk management

On the other hand, automated risk management, enhanced by AI, is a game-changer, offering real-time, data-driven decisions that impact your business and impress stakeholders. Effective Enterprise Risk Management (ERM) is a pivotal component of any organizational strategy, ensuring process efficiency, improved risk and compliance outcomes, and informed decision-making while building risk intelligence.

In our webinar on “The 10 Must-Have Reports for Risk, Compliance, or Audit Leaders,” Resolver Product Marketing Manager Pooja Azhalavan highlighted this shift: “With automated systems, we move from static, reactive risk reporting to a dynamic, proactive approach. It’s about having the right information at the right time to make impactful decisions.” Automation streamlines data collection and information dissemination and ensures a more consistent application of rules and standards, facilitating better governance and risk management.

Empowering teams with data-driven decision-making

Visual on how to choose a Risk Management System

Azhalavan emphasizes the importance of integrating risk registers and regulatory compliance libraries through automated systems, as it promotes informed and timely decision-making: “A solution that integrates with AI-powered technology helps teams adapt swiftly to changes.”

As Farm Credit Canada’s (FCC) Manager of Risk Information, Paulette Beauchesne says in our award-winning case study, “[With Resolver, we] are getting to a point where people don’t have to report multiple times… Conversations about unfinished risk treatment plans are easier.”

Resolver’s Risk Intelligence platform seamlessly integrates and reports on all three lines of defense, granting senior leaders enhanced visibility and a strategic decision-making role.

Impressing stakeholders with current insights

When comparing manual vs automated risk management tools, it’s clear that automated systems play an indispensable role in stakeholder communication. As Resolver Product Manager Ben Bradley explains in the webinar: “Real-time assessment of risks is crucial for executive-level decision-making.” The precision and speed of these systems in transforming complex data into understandable dashboards are essential for strategic and proactive planning.

Check out some of our impressive risk-reporting dashboards for a closer look.

Covering areas from risk tolerance to reporting on objectives and ERM strategy effectiveness, these reports provide actionable intelligence for converting risks into opportunities, ensuring compliance, and enhancing decision-making.

Manual vs automated risk management for real-time reports

Making informed decisions means understanding the distinct differences between manual vs automated risk management processes. Instant access to real-time risk reports delivers unprecedented impact. Imagine having these reports across your organization at your fingertips — no more weeks spent gathering data. Significantly enhance the efficiency and effectiveness of your risk management strategies and resources, freeing time to focus on delivering business insights to your organization.

TEI benefits represented as Integrated GRC software

As exemplified in Forrester’s independent study of Resolver, customers achieved an astounding 95% boost in executive reporting efficiency. Automated one-click reports eliminated laborious quarterly data aggregation, as confirmed by a Director of ERM operations in banking: “[Executives] access the system directly, eliminating the need to request updates.”

Another testament to the effectiveness of automation in risk management comes from a satisfied customer at Bangor Savings Bank: “Before Resolver, creating a board report package took us 10-16 hours. Now, we generate reports effortlessly with a click, saving my team up to five weeks of work annually.”

Automated risk management represents a significant leap from traditional methods, offering immediacy and accuracy that drive informed decisions and demonstrate a forward-thinking, responsive risk strategy to stakeholders.

Introducing Resolver’s Manual vs Automated Risk Management ROI Calculator

The emergence of real-time risk management through automation not only empowers your team with data-driven decisions that impact your business but also leaves a lasting impression on your stakeholders.

While we understand your capability to manage risks without software, have you considered the untapped potential of an ERM solution? It can revolutionize your role by automating tedious tasks, streamlining workflows, boosting efficiency, and delivering valuable, actionable insights at the push of a button. Without a risk management software solution, you might miss a golden opportunity to showcase the actual value of your ERM program.

To truly understand the benefits of automated risk management, we encourage you to download our Manual vs Automated Risk Management ROI Calculator. This tool helps you clearly see the time savings and return on investment of automated solutions, providing a data-driven basis for comparing manual and automated processes.

This content was originally published on September 28, 2018
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