Enterprise risk has always been a dynamic, multidimensional, and ever-present phenomenon. In many industries today, sources of risk both within the business landscape and the workforce are evolving and proliferating at unprecedented speeds. In response, companies must develop proactive, coordinated, and flexible approaches to risk management, security, and compliance.
To this end, many organizations have sought modern technological solutions to better integrate risk management activities into their business culture and processes. Good financial risk management software can help provide a comprehensive view of the risk factors an organization faces, drive intelligent analyses of these factors, and promote a more risk-intelligent culture across the entire enterprise. Intelligent technology and comprehensive risk data can help company leaders and employees to make smarter, better-informed risk-related decisions.
If you’re looking to upgrade your company’s risk management infrastructure, you may be wondering what makes an ideal risk management solution. It’s logical to ask, for instance, what specific functional and technical capabilities companies should look for when exploring the available options. This article will walk you through five of the most valuable features you’ll want in risk management software.
Continuous monitoring capabilities
Contemporary approaches to risk management aim to foster a general culture of risk-awareness within an organization. Hence, you’ll want to invest in risk management software that does more than just control access permissions for different users. Look for solutions that help you analyze user activity and identify sources of risk by providing extensive configuration and transaction monitoring. These capabilities allow you to identify, respond to, and even arrest security breaches and fraudulent activities as soon as they happen in the very places where they originate.
Integrated real-time data
The best risk management solutions are always on and operate in real-time, which allows the software to work from the most up-to-date possible sources of data and guarantees 100% accurate risk reporting. User input and security updates are incorporated and reflected within the software immediately, with few (if any) integration or syncing issues. You can be assured of timely, complete, and highly detailed risk reports without having to spend additional time and resources on manual data reconciliation.
Good risk management is an enterprise-wide undertaking woven into the regular operations of many discrete units. Thus, you’ll need a solution that you can seamlessly integrate with your company’s existing systems in crucial areas like human resources, finance, supply chain, and others. The software should pull essential risk data from all these sources, consolidate it cleanly, and make it accessible to anyone who might need it. This integrated approach, in turn, will enable all your employees to make intelligent decisions and manage risk proactively regardless of their department or role.
Simple, user-friendly interface
Because risk management is generally company-wide rather than the sole responsibility of a particular individual or team, risk-related software solutions must be intuitive and straightforward to use. Data input functions should be incredibly user-friendly to add to and update the company’s stores of risk-related information in real-time.
Cloud-based software also expedites smooth workflows and collaboration across multiple user accounts and devices. These solutions thus make it easier for different teams to coordinate their risk management efforts, share information, and develop innovative strategies. Your organization’s risk-related initiatives will be much more likely to succeed when your company leadership, middle management, and staff on the ground are all actively engaged and participating.
State-of-the-art security features
The older risk management approaches that many companies today still utilize often spread out their processes across various disparate applications, such as spread-sheeting programs, email clients, and websites. However, this siloed approach doesn’t just hinder efficient interdepartmental coordination but also poses significant security risks. Data breaches and other security incidents can, in turn, cost a company dearly in terms of both material resources and reputational damage.
One of the biggest benefits of risk management software is that it can consolidate all your company’s risk-related processes, protocols, and information onto one unified, highly secure platform. You’ll be able to store business-critical data safely on the solution instead of on an external, potentially vulnerable server or data center. Ideally, your chosen software should also allow you to manage user permissions and functional privileges on a granular level. This reduces the risk that your data will be handled—and potentially misused—by anyone who isn’t officially allowed to access it.
Easy deployment and management
A risk management solution that you can deploy quickly and manage easily once it’s up and running can potentially save your company a lot in terms of operational costs. For the fastest possible deployment, you want pre-built solutions that don’t require additional programming, installation of additional software, or integration setup. Many of these programs will also integrate flexibly with other financial management and analytics software from the same provider, allowing you to create the best possible reports and dashboards.
A complete, highly functional risk management solution could be the key to confidently overcoming organizational hazards and challenges. With the right technology in place, you can be sure that changes in the business environment or unforeseen external disruptions won’t compromise your company’s security, financial integrity, or operational efficiency.
