How to Choose a Risk Management Solution?
Gartner research shows that only the better-prepared enterprise firms developed contingency plans much before situations worsened in the wake of the unprecedented Coronavirus pandemic. With obvious management and operational risks, and additional cybersecurity risks (there was a 273% rise in cyber attacks in Q1 alone), risk management has become essential for enterprises to both survive and thrive.
What is Risk Management?
A decade ago, risk management meant property insurance, malpractice insurance or derivative instruments. However, modern businesses have more diverse risks. In the present day, Risk Management is a business strategy that designs a framework for Management of Risks to Reputation, Operations, Legal Management, Human Resources Management (HRM), Security and overall Governance. It involves active management of risks and making the Plan of Action available to stakeholders. If your organization has finally decided to invest in an Risk Management software, here are the questions that you need answers to before taking the next step.
A Risk Management software is a long-term investment, so make sure it is worthwhile by getting concrete answers to the following questions.
1. What are your organization's compliance and risk management requirements?
Evaluate these key aspects and rank them in order of priority along with other unique concerns.
- Risk register and scoring
- Risk assessment and mitigation
- Policy and procedure management
- Compliance management
- Built-in regulatory framework
- Incident management
Make sure you take current and potential future regulatory standards into account and ensure that your chosen Risk Management software can evolve accordingly.
2. What is the risk management process of the software?
Once you have determined your specific requirements, evaluate the software's entire risk management process and check if it aligns with your organization's existing procedures. If your organization doesn't have an adequate risk resolution database, you should ideally look for risk lifecycle management as a key process. Features such as real-time risk management and active monitoring are a must.
3. Do its features align with your organization's objectives?
Making a list of non-compromizable features before selecting an Risk Management software would be helpful. For example, if yours is a small organization where teams are new to risk management, a risk workshop feature would be essential. You need to ensure that the software's pace and wavelength are in sync with your organization's pace and wavelength.
4. Can it be integrated with existing software?
Look for a system that can smoothly integrate with your ERP, HR, eCommerce, Accounting, point of sale, and other software. An Integrated Risk Management software can help you ensure that management is not carried out in silos and avoided in any department.
5. Is it a cloud-based or an on-premise-house software?
While it makes more sense for compliance-heavy industries such as pharma and finance, a tech startup might find a cloud solution more feasible because of its scalability and fewer resource requirements. Cloud solutions can free you from maintenance tasks, providing better scope to focus on core business strategies.
6. Does it have a mechanism to involve stakeholders?
Internal stakeholders need to be given their rightful say in risk management in the age of inclusion instead of limiting it to top management or a specific team. Choose a tool that allows you to evaluate risks with co-workers and collaborate and communicate well.
7. Does it have active monitoring features?
Risks, especially cybersecurity-related, can strike at any moment. It is crucial to have a good monitoring system that continuously evaluates all controls to mitigate any approaching risk better.
8. What is the software company's customer service like?
The quality of customer service is as important as the quality of the Risk Management software. Opt for a service that is available 24x7, has highly-skilled support specialists on board, and has a wide knowledge base to guide you.
A Risk Management software is indispensable in this day and age, and choosing the right one help your team be more effective.
VComply offers a complete compliance management solution to help you streamline everyday compliance processes with a centrally managed, cloud-hosted system.
About the author
VComply Editorial Team