Operational Risk Management (ORM) software enables organizations to identity, assess, monitor, and implement remediation plans for any scenarios than can disrupt day-to-day business operations. Operational risk management solutions help businesses to uncover risks, develop plans to mitigate them, and support ongoing activities such as training, monitoring, and regular risk assessments.
All businesses operate under a degree of risk. Disruptions can be caused by large global events such as the Covid-19 pandemic or other natural disasters, to company specific events such as cybersecurity breach or disgruntled employee deleting company files. It’s important for organizations to have risk management plans in place that can anticipate, plan for, and remediate against any operational risks that may emerge. This is important to protect employees and customers, prevent financial losses, and to ensure compliance with industry regulations.
Key features of the ORM software includes, risk assessments, event management, monitoring and reporting, risk surveys, and scenario analysis workflow automation. Adopting a robust operational risk management solution helps organizations prevent financial loss, reduce reputational damage, and ensure compliance with legal and regulatory requirements.
It’s important for organizations to have a robust ORM solution in place to help prevent and respond to risks affecting their network. In this list, we will compare the top operational risk management software solutions, considering factors such as their features, ease of use, scalability, integration capabilities, and customer feedback.
Everything You Need To Know About Operational Risk Management Software (FAQs)
What Is Operational Risk Management Software?
Operational Risk Management (ORM) software enables organizations to identify, assess, mitigate, and monitor risks associated with their day-to-day operations. These solutions facilitate the evaluation of risks associated with operational processes, IT infrastructure, regulatory compliance, and third-party relationships, among other factors.
Operational Risk Management software is particularly valuable for organizations in highly regulated industries, such as finance, healthcare, and manufacturing, where compliance with industry standards and regulatory requirements is critical. It helps these organizations proactively manage and mitigate operational risks. This can have a significant impact on financial stability, reputation, and compliance.
How Does Operational Risk Management Software Work?
Operational risk management software enables teams to identify, assess, monitor, and protect against operational risks which may impact their organization. This includes a multi-step process, including the following activities:
- Risk Assessments: Identifying and cataloguing operational risks, such as human errors, system failures and compliance requirements. Risks are typically scored on severity and likelihood.
- Risk Monitoring: Continuously tracking and monitoring for risks. This may include collecting data from various sources, such as incident reports, audit findings, and external data feeds.
- Risk Mitigation: Developing and implementing risk mitigation strategies and action plans. It may offer tools to document and assign responsibilities for risk-reduction measures.
- Reporting: The software generates reports that provide insights into the organization’s risk landscape. These reports may be used for compliance and regulatory purposes.
What Features Should You Look For In Operational Risk Management Software?
ORM software typically includes features such as risk identification, risk assessment, risk mitigation planning, risk monitoring and reporting, as well as integration with regulatory frameworks and industry standards. Key features to consider when choosing an operational risk management solution include:
- Risk Assessment: Risk scoring and rating systems to prioritize risks based on severity and probability
- Risk Monitoring: Continuous tracking of risks with the ability to set up alerts for significant changes in risk profiles
- Incident Tracking: Functionality to log and report operational incidents, near-misses, and accidents
- Risk Mitigation and Action Plans: Capability to develop and manage risk mitigation strategies and action plans
- Reporting and Analytics: Customizable reporting features to generate reports tailored to the needs of different stakeholders, including management and regulatory authorities
- Compliance Management: Tools to ensure compliance with industry regulations and standards
- Audit Trails: Detailed record-keeping to maintain an audit trail of all changes, actions, and interactions within the software
- User Access Control and Security: Robust user access controls and data security features to protect sensitive risk information
- Mobile Accessibility: Mobile or remote access options to enable risk management from various locations
- Customization: The ability to customize the software to fit the unique risk management processes and requirements of your organization
- Training and Support: Availability of training resources and customer support to assist users in effectively utilizing the software