The world has reached a level wherein if an ERM system isn’t applied in an organization, such a company will lose regard in the sector. This is why applying enterprise risk management is highly pertinent regardless of the company’s size and complexity. Applying good techniques to risk management will help to improve business performance provided it has the required features.
Knowing these features requires sound knowledge by experts. This is because they’re able to understand the functionalities and likewise know the way they apply to individual organizations.
What are the features of an Enterprise Risk Management system that must be present for effective results?
We’ve compiled 7 strong features that every safety manager should know. They are:
1) Adequate Risk Management Framework: This framework will be a guide that shows the right approach to go about things within the company. It allows easy management of organizational risks although they vary across firms based on the following factors:
– The kind of company,
– Risk exposures and
Furthermore, these risk management frameworks are meant to meet the peculiar needs of specific organizations for effective Enterprise Risk Management systems. These needs can be met by customizing your own frameworks where necessary. Regardless of inevitable organizational changes, both the current and future risks processes should be incorporated into the system.
2) Accountability: It is required for anyone who wants to use risk management software. To make this feature effective, it has to be implemented for both individuals and departments. Likewise, the respective managers at different departments and stages are expected to access risks that are relevant to them. This is what leads to the provision of little chunks of your risks by comparing them against hierarchy levels is made possible.
3) Integration of data storage: This involves proper management of data that is consistent for every user. This feature prevents the movement of data from one system to the other by doing the following:
– Tracking all data history for portfolios etc
– Sending of data updates as well as receiving them from clients, custodians, traders, etc.
Based on the collected data, managers are able to review several trade scenarios before they’re executed.
4) International standard compliant: Adhering to laid down principles of implementing things begets credibility and trust. This is a more reason why you have to purchase good ERM system that adheres with international standards like ISO 31000:2009. Based on the premise that an organization has various needs, the design and implementation of risk management plans are made possible by adherence to the ISO 31000:2009 standard. It’s worthy of note that this standard isn’t limited to a single sector or industry but it’s applicable to all forms of risks.
5) Regular reminders, alerts, and notifications: What’s your purpose of having an enterprise risk management tool in the first place? If it’s to manage risks better and more efficiently, then this is one of the key features that all software should have. The electronic alerts enable the authorities to control the risks once it has been identified. This means that the entire process will take place on time immediately without delay.
6) Generation of reports: As we mentioned above about reminders and alerts, likewise it’s also important that the risk assessment software has the power to generate timely reports. This is because these data gotten from such reports are crucial for efficient performance and risk management. These reports should be generated for boards of directors, regulators, and auditors.
7) Performance Measurement: Based on the reports gotten, the managers will be able to see where they have gotten things right and where they have fallen short. Hence they will be able to set performance goals against next reports and ensure they are able to meet up with it.
We have outlined seven critical features we believe every safety manager should know when considering enterprise risk management solutions. These features make the workflow of any company to be effective with little or no issues.
So are you ready to get an ERM software system that has all and more of these features combined that enables you to manage your risks and increase your performance? Then Beakon is the right choice. It has a plethora of management software tools that will save you time and increase your productivity. Start a free trial of Beakon today.