When selecting software for operational risk management, firms must think about who will be using the tool and what data outputs they need to extract.

When scoping out requirements for operational risk management software you must consider:

• Are there any risk related regulations that you must comply with and how will that affect how you structure your program?
• How will you to rate and categorise risk to ensure risk is comparable globally?
• Can the operational risk management tool be configured to meet any bespoke requirements?
• Can the operational risk management solution offer additional functionality to grow with you and provide more capabilities as your risk program matures?
• What security & data privacy protocols does operational risk management tool have to safeguard your company data?
• Can the operational risk software integrate with your other systems and spreadsheets via API Integrations to pull other risk related data into the platform?
• Which staff need to access the operational risk management software and what data will they enter and what reports & data do they need to view and extract from the tool?

The benefits of utilising operational risk management solutions include:

• Less time and money spent on risk reporting and admin work.
• Operational risk and safety management software solutions build a consolidated view of risk across the whole organisation through a series of reports & dashboards.
• Operational Risk management tools enable the entire enterprise to feed into the operational risk management program as part of daily operations – creating ample risk data to back-up decision-making.
• Operational risk management tools offer better visibility of an organisations risk profile and risk exposure due to extensive reporting capabilities, interactive dashboards, and data mapping across GRC use cases.
• Operational Risk Management Software offers a reduction in risk monitoring and reporting costs – improving overall safety and ensuring effective operational risk management.
• Operational risk management platforms enhance an organisations risk management program, by enabling companies to align risk management to strategic objectives and enterprise performance. 
• Financial institutions can benefit greatly from operational risk management tools as the frameworks & templates available within the platforms are designed to align with financial services regulations regarding risk management and controls.

When looking for the best operational risk management software:

• To ensure they are effectively managing operational risks firms should choose an operational risk management tool that is easy to configure as it will cut down costly implementation and set up fees.
• Choose operational risk management software with limitless risk registers, types, and categories.
• Select an operational risk reporting tool that offers instant reports and live dashboards that can be customized to suit your internal requirements.
• Select an operational risk software solution that links to your other systems to ensure a single source of truth for your risk program.
• Look for reliable operational risk management tools that offer multiple GRC functionality like governance, compliance, incident reporting, and ESG in the same platform – it is more efficient to manage these functions holistically and integrate the data for enhanced reporting. 
• Look for a solution that offers third-party risk management alongside ORM to manage supply chain risk.

• Poor quality operational risk data due to a lack of data governance rules.
• Managing operational risk data across various forms and spreadsheets leads to discrepancies and inaccuracies.
• Siloed ORM data located across various spreadsheets creates poor quality risk data, and an inconsistent risk framework that results in inaccurate reporting outputs. 
• Operational risk programs that rely on manual spreadsheet-based processes and lack automation take more time to escalate and resolve risk.
• Siloed spreadsheets make it difficult to map risks to the associated controls and risk mitigation measures without substantial manual ORM effort.
• Firms are unable to assess risk holistically across different sites, departments, and regions due to disparate data and incompatible risk frameworks.

A comprehensive operational risk management (ORM) program will support an organisation to identify, assess, mitigate, and monitor risks associated with internal processes, systems, people, and external events. ORM aims to minimize the likelihood of operational failures, enhance operational efficiency, and safeguard the organisation’s reputation and financial stability. Operational risk programs should also include strategic risks, project risks, compliance risks and third-party risks to ensure all potential risks are managed efficiently.

Access this ROI calculator tool to find out how much you could save in terms of costs and time spent on managing risks if you were to implement an operational risk management (ORM) platform. Simply fill in the applicable details about how you currently manage risk in your company and our ROI calculator will provide high level estimates on the likely time and monetary value you could save by implementing an operational risk tool.

Access our Operational Risk Management Solution ROI Calculator