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Article

Risk Management Software

Risk Management Software

Posted by Ncontracts on Nov 12, 2018 2:35:00 AM

Risk management software provides a system for dealing with risks, including:

  • financial risks

  • compliance risks

  • cyber risks

  • I.T. risks

  • reputational risks

  • credit risks

  • third party risks

  • strategic risks

  • transaction risks

  • operational risks

 Risk management software allows a company to easily identify, track and deal with threats that might damage the firm’s overall success. The software can be used to organize and track data about all types of risk, including operational risk,  transaction risk, and strategic risk.

There are several core features common to most risk management software: risk identification, risk assessments, monitoring and testing, reporting, regulatory compliance, issue management, and document management.

Identifying risks is always the best first step in risk management. Risk management software may come with a risk dictionary. It also has features that discover risks and record them for use by risk managers and employees. Next, risk assessment involves either rating risks very simply or using a multi-factor classification.

Through monitoring and testing, the software records the effectiveness of any changes made based on defined key risk indicators. Visual reporting is shown in a dashboard for easy comprehension of the data. Because documents need to be shared for many collaboration tasks, document management is an essential part of risk management software.

Risk management software defines and tracks processes and ensures that the firm is compliant with regulations to avoid compliance risk. Issue-management components of the software deal with critical risks that must be managed in a timely and efficient manner.

When risk management software is used, all members of the company can be aware of risks and stay involved in managing them. As long as the risk is present, data and changes are organized in systematic ways. The software aids in prioritizing risks and improving workflow. It allows managers to see the potential impact of the existence, increase, or mitigation of the risk.

 

Related: Creating Reliable Risk Assessments

Topics: Risk Management, Banks, Nrisk, Product Insight, Risk & Compliance, Credit Unions, Cluster: Risk Management

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