Risk Management Software For Beginners: Everything You Need To Know

By Anita Jaynes on 15 October, 2020

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Modern businesses depend on software solutions to enable them to manage numerous aspects of their operations more effectively. Risk management software is another example of this type of software. Here’s what you need to know about risk management software and its purpose before committing to a purchase.

What Is Risk Management?

Risk is an inherent part of running a business. Every business needs to navigate risk throughout their day to day operations, balancing the potential rewards with the downsides of any decisions. The range of risk management software options on the market reflects the many contexts in which businesses need to manage risk. 

The most obvious example of risk to any business is in the form of health and safety. With some businesses, there are literal physical risks that need to be considered. However, in most contexts, the risks that companies deal with are more abstract. Risk management in a corporate setting is all about identifying and evaluating risks, as well as assessing how they affect exposure to loss.

The field of enterprise risk management is all about reducing risks for corporations and stamping out fraud within an organisation. ERM within large and complex organisations is a complicated undertaking. This is why risk management software has become so important for businesses. Risk management software gives businesses the tools they need to organise their risk management approach, catalogue their findings, and create a knowledge base that is accessible to the entire business.

Many risk management software options today also include a compliance component.  Since the 2008 financial crash, businesses have been under greater pressure to behave financially responsibly. There are now a plethora of regulators, government bodies, and other agencies who are looking much more carefully at how corporations behave. Ensuring compliance throughout a business means a single rogue operator can’t end up bringing an entire business to its knees.

What Risks To Businesses Face?

The range of risks facing businesses today are many and complex. Risk management software can help businesses to manage any of the risks facing them. These are some of the most common examples of risks facing SMEs and large corporations alike:

  • Financial risks: If even one division within a large multinational fails to meet their sales targets for the quarter, it can have a ripple effect on the rest of the business. Financial risk assessment enables businesses to identify these risks and head them off if possible.
  • Interest rate risks: As the 2008 crash made very clear, mortgage and financial institutions are the foundation of the global economy. If these institutions fail, the impacts can be far-reaching and devastating for numerous industries.
  • Legal liabilities: Whenever two big businesses wish to merge, regulators and other authorities need to give the go-ahead. For smaller businesses facing a potential takeover or acquisition, there are also complicated legal issues that will impact the business and its workers. Assessing the potential fallout of major legal decisions is essential for risk management.
  • Cyber risks: Cyberattacks are more common than ever before. There was a time when only the most prominent institutions would have been the targets of cyberattacks. Today, businesses of all sizes and descriptions are finding themselves under attack. Investing in cybersecurity is an important mitigation tactic. But businesses still need to prepare for the financial fallout that often comes with a major cyberattack.
  • Governance and regulatory compliance: Regulations evolve over time, and government agendas change. As a result, businesses often find themselves buffeted by the competing interests that shape regulations. Governance and regulatory compliance ensures that businesses are aware of the legislation and regulations that apply to them and are staying within their boundaries.

What Is The Best Risk Management Software?

There are numerous risk management software options on the market today; choosing the right one can be a real challenge. Below are three of the most popular options, each one targeting a slightly different audience range.

Vision by ACMS UK

Vision, from ACMS UK, is one of the best risk management and compliance software options on the market. It is suitable for portfolios of all sizes and also comes with compliance management capabilities. Ensuring compliance is, in itself, an essential component of corporate risk management.

Because Vision software by ACMS is a cloud-based solution that uses a module-based approach to enable users to tailor the service to their needs, it is one of the most flexible options available. Vision is already in use within a range of institutions, from hospitals and universities to retail and leisure centres. The variety of institutions using vision software is further evidence of how versatile the software is.

Resolver

Resolver is another cloud-based risk management solution, although this one is aimed squarely at mid-sized enterprises. Despite serving a more restricted market than Vision from AMCS UK, Resolver manages to cater to a diverse range of clients and institutions. It serves organisations within the banking, finance, and healthcare sectors. Resolver is also used throughout oil and gas enterprises utilities businesses and property businesses.

You can manage your mitigation plans, budgets, and other risk management components easily from Resolver. It also enables in-depth forecasting features.

Cority

Cority is focused primarily on managing health and safety risks. Cority makes it much easier to standardise your processes and workflows in this niche sector. It is suitable for any business looking for a single hub they can use to track their performance, centralise their data, and identify areas that need targeting for compliance fulfilment. The use of modular architecture means that you can tailor things to your needs. Extensive personalisation options also make it easy to set up your layout however you need to work efficiently.

The right risk management software can make a big difference to a growing business. As a business grows and its operations become more complex, managing risk becomes more complex. Risk management software make staying on top of those risks much easier. Make sure you consider all your options before you commit to a single choice.