How to Successfully Implement an Enterprise Risk Management System

For most organisations, utilizing an Enterprise Risk Management (ERM) software could be a daunting task. In the modern world, analytics is a great asset in risk management systems using sophisticated technological tools and an abundance of data.

As a result, potential risks that could affect your company’s workflow can be easily detected. Thus, insights and actions are hence provided concerning how to make corrections.  

Based on knowledge and experience, business owners understand that an effective ERM is majorly about capturing, analyzing and responding to risks but how can they align their assets and goals that will lead to great organizational management? And what kind of processes and mechanisms are required in reporting risks?

This article explores the answers and many more.

How Every Company can successfully implement an Enterprise Risk Management System?

The following are 5 ways that organizations can create business values by identifying risks through an effective and enhanced enterprise risk management system:

1)  Support from the Top management:  When those who are at the apex section of a company see no importance of risk management, there’s no way real investment in this area can be achieved. Thus, to successfully implement a formal process for an enterprise risk management system, there has to be committed personnel who are willing to proactively manage risks. This personnel includes everyone starting from the board, CEO and other senior managers. Thus, when there’s support from the top, the probability that an ERM system will be used more effective will be high.

2)  Educate the staffs on all levels: It’s important to educate your staffs about the relevance of an effective ERM system and why it must be implemented. For effective result, this knowledge is required to be communicated to all levels in the company. This communication creates a risk awareness culture among them which is then embedded into their day-to-day operations.  Likewise, it also promotes an accountability culture and ensures that the mechanisms that will be utilized to report risks are clear enough. This training process can occur annually or quarterly as the management deems fit and should be made mandatory for all staffs and sub-contractors.

3) Awareness that the ERM system is a continuous process: To implement an ERM system, you need to know that the process is ongoing on rather than a one-off exercise. So it doesn’t suffice for anyone to conclude after noting the company’s risks into writing that it all ends there till next time. In fact, no true successful program happens all at once. It involves a continuous collection of data and monitoring. More so, regular review of risks and updates will ensure that adequate resources are allocated appropriately for proper and effective management.

4) Identify the risks with huge threats: To improve your company’s business performance and governance there’s a need to focus on the most pressing risks. What do we mean by this? Time is of the essence in the business world so it’s considered a waste of time and effort when attention is given to a risk of less importance when urgency is needed at more important matters. Hence, the risks that have a high impact and tendency to occur should be given priority.

5) Provision of periodic progress reports: There’s a need for risk owners to have regular updates on the attainment of milestones specific to key enterprise risk management objectives. These reports highlight matters like the comparison between risk profiles and the targeted outcome, material risks, and ERM system progression.    

Conclusion

Obviously, there is no doubt that complying with the demands of an ERM system is a great opportunity to empower your company. To successfully implement a good risk management program in your company, all you have to do is to adhere to our above mentioned systematic ways.

You can make this possible by starting a free trial of our enterprise risk management system safety software. 

 

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Enterprise Risk Management Tools: What Every Manager Ought to Know

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Enterprise Risk Management Tools: What Every Manager Ought to Know

Enterprise risk management covers all activities directed towards making sure that your organization reduces the effect of risk on its financial security. Risks in the organizational setting cover a broad perspective depending on the organizational structure. However, it is fundamental that the organization’s information is the main object of risk. Technological solutions or software to manage enterprise risks are referred to as ERM tools.

ERM Tools: Why So Important

Serious enterprise risk management doesn’t happen without the right tools. Choosing the right tools, however, involves that you identify the risks and where the threat is coming from. Enterprise Risk Management tools make risk management easier and even more effective. Managing the ERM program of your business comes easier when you have the following facts at the back of your mind.

  1. Outlined Management Plan Simplifies Your Task: Organizational objectives are the first department to visit when it comes to usage of ERM tools. you need to get a clear overview of the organizational structure before taking any step. your organization’s history, present milestone, and prospective feats should be kept in view.

This will not only help you draw a transitional roadmap for risk management, but it will also influence your choice of ERM software, thereby guiding you to an easier ERM tool selection process. It will help you select tools that can function at more than one phase of organizational buildup.

  1. Risk Assessment Is an Eye Opener: conduct an overview of all the possibilities of risks to which your organization is liable. This will inform your next move regarding risk management. To do this effectively, you must study your organization’s activities carefully. Make sure you take a critical look into the data type, where data used for processing is obtained from, and how it is obtained. After that, you assign the measure of possible risk related to each factor and its implication on the security of the organization.
  2. Installed Safety Controls are very important: preventing hackers from having access to your database is a hectic task. Although you can’t influence their activities, you can make it difficult for them to infiltrate your database. You do this by establishing policies, protocols, and security controls.
  3. Internet Usage Ethics Reduces Vulnerability: the level of dedication of your employees matter when it comes to cybersecurity. Let them understand that the password to their E-mail account is just as important as the key to the office. Constant training, reminders, and tips for maintaining the right attitude to cybersecurity will help create and sustain this important culture.
  4. New Trends puts you a step ahead: risk is dynamic. The potential danger your business organisation is exposed to changes from time to time. This may be due to change in industrial policies, adoption of new software, or a step up in hackers’ activities.

Effective risk management requires that you pay attention to happenings around you. Upgrades in your risk management software should be carefully studied. This is to ensure that it doesn’t come with loopholes that may leave your data open to hackers.

  1. Keep Staffs Informed: don’t keep information about the new trend to yourself, it won’t help your organization. You can’t be everywhere at all time. Provide information about the latest developments to your ERM software tools to the right staffs, or if appropriate, all staffs. Set up round table discussion with ERM key stakeholders in your organization. That should be members of the risk management committee or department. There, you can analyze the latest trends in ERM tools, steps to be taken for right adjustment and sample their opinion on the discussed subject(s).
  2. Observe Constantly: Don’t wait for monthly or annual retreats before you monitor changes in your controls. damages may have been done far too deep by then. When changes that put your data at risk is noticed In your ERM tool, you should organize an impromptu round table session to inform your team and take decisive action to ensure the risks are controlled effectively.

Conclusion

Your risk management move is not complete if you don’t have the right Enterprise Risk Management tools. Let us help you with that today.

You can take advantage of our Safety Management software which is designed based on the experiences of successful, A-list organisations in managing and reducing workspace incidents. You can start by signing up for free and see how we can be of help.

 

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Enterprise Risk Management (ERM) Software: 7 Features Safety Managers Should Look Out For

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

– Needs.

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.

Conclusion

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.

Risk Management Software: 6 Benefits Every Manager Should Know

A myriad of risks is part of a daily operations organisations, from small to global organisations. This is because risks are an intrinsic part of a corporate landscape. These risks can range governance, compliance, financial, security, legal, and reputational as well as risks posed by natural disasters. Risk management software helps businesses measure, predict, and manage possible risks appropriately.

Risk Management Software

Risk management software helps companies to identify possible risks associated with their operations and processes, and displays them via a display dashboard. Any threat posed to an enterprise is virtually measured and monitored by such software.

As a business grows, so does risk this made it essential to incorporate risk management software into your business. Risk management integrated at various levels could be an equivalent to adding a revenue stream to a business organization. Multiple tools are combined to RMS to help manage product design and manufacturing operations. Risk management software has many benefits to a business organization below are six examples.

Benefits of risk management software

  1. Business risks are identified and classified: Risks are identified and classified accordingly with the aid of an RMS. It takes proper measures based on the detected and classified risks, to evade them by suggesting an appropriate risk management strategy.
  2. Minimize the complexities of business risks: Risk management software responds appropriately with the help of the industry’s checklist and task-based calendar and minimizes the complications of risk. The software will generate a customized approach to avoid risk based on the unique needs of a business.
  3. Automated risk reports: A user is informed of any necessary actions to be taken to prevent risk through an automated report, which provides precise data on the objectives as well as information regarding the associated risks.
  4. Accurate and relevant: It is made easy for managers to view risk in real-time because Beakon uses real-time data, results are accurate and related to the business operations.
  5. Secure data: Organization’s data is secured with password protection, thus limiting the availability. With the help of automated backups, it offers complete protection to the system. It becomes reliable without putting much effort.
  6. Real-time recording: The advent of risk management software made it far easier to record and update information related to risk compared to traditional paper-based systems or Excel where people spend hours updating risk relevant data.

Conclusion

Risk management is an important element for any organisation looking to be compliant, and have a safety culture in the workplace. Beakon offers a range of software to help safety managers do their jobs more efficiently and effectively. Take our all-in-one software for a spin with a free trial today.

Risk Management Strategy: A Guide to Getting Started

Most large organisations do not have a problem developing risk management programs because they got the basic framework right several years ago. The same cannot be said for newer organisations or startups that have experienced exponential growth.

These companies often rely on lean methodology principles that are not quite as effective in putting together an effective risk management strategy as it is in helping them scale. One of the significant causes of risk exposure is because many organisations think of risk management as a project.

Risk management is not a project

Risk management is a program, not a project. The Project Management Institute defines a project as temporary because “it has a defined beginning and end in time, and therefore defined scope and resources.” However, a  program is “a group of related projects managed in a coordinated manner to obtain benefits not available from managing them individually.”

The first step towards creating an effective risk management strategy is first to recognise that risk management is a program and not a project. That means instead of looking at it as something with a beginning and end, it should be viewed as a series of connected projects that works together to reduce the overall risk exposure in an organization. Once that has been addressed, we can easily towards constructing a risk management framework that works.

5-step framework for creating a risk management strategy     

Although there are several versions of what makes up a fundamental risk management strategy, a vast majority falls into the following 5-step framework.

Step 1 – Discover potential risks to the organization

The first step is to discover what your organisation’s potential risks are. You cannot deal with what you do not know. Taking inventory of all the things that could go wrong is a great way to prepare for the rest of the process.

Step 2 – Analyse those risks and assess their impact

The next step is to analyse the risks you discovered in the first step and try to evaluate their impact o your business. It is important to note that while eliminating all the risks you discovered might not be entirely possible, prioritizing them are. When analysing these risks, the most important factors to consider are the impact of the risk and the likelihood of its occurrence.

Step 3 – Implement Necessary Controls

The next logical step after compiling your list of possible risks and analysing the likelihood of its occurrence is to put controls in place to combat and mitigate these risks when they do occur. Examples of these controls include policies, systems or tools that allow you to manage your company’s risks effectively.

Step 4 – Monitor

After your controls have been put in place, you need to implement a system to monitor it. You need a way to track which of your controls have been met and which ones are still operational. This 3000ft view of your entire risk management operation helps you paint a clear picture of where your organisation is when it comes to risk reduction.

Step 5 – Communicate and Report   Data

The final step of this framework is to report key data captured from your activities. A comprehensive risk management report helps your organizations decision makers make better decisions that will affect the company positively.

Additionally, your reports should not only focus on decision makers but should also include other key personnel, for example, lime manager, supervisor, project manager etc. The first audience will want summary information that shows the full picture while the second audience would like to see operational data. This is especially true for those who are in charge of contractor management.

Risk management software ties everything together

Every aspect of a successful risk management strategy can easily be managed using Beakon’s risk management software. Our risk management software is easy to use and comes with a free trial that lets you look at all the features without any financial commitment.

 

 

 

Risk Management Software: What It Is and Why Your Business Needs One Today

One of the most critical factors in running a successful business is to have good decision-making skills. Making good decisions require a proper assessment of the risks and opportunities involved in any matter being deliberated on.

While there are several decision-making frameworks available, the best way to analyse every aspect of your business before making any important decision is to use risk management software. In this article, we look what the definition of risk management software and how it will benefit your company.

 

What Is Risk Management Software?

Risk management software is a vital part of business growth. It is an enterprise software used by organisations to help them identify, manage, and reduce all the different aspects of risks their business may face.

The software does this by using its risk assessment tools to process existing data and projections in order to identify potential risks the company may face. The results of the assessment can be found in the reports, and it contains a detailed analysis that helps company executives with decision-making.

 

Benefits of Risk Management Software

The advantages of such a critical piece of software cannot be overstated. If you are not currently using software to manage your company’s decision-making process, then this section will help you think twice.

Some of the benefits of using a risk assessment and management software for your company are:

  • It helps in recognising and classifying the possible risks: we have talked quite a bit about this already because it is what makes the software so unique. The software first identifies the risks involved after running an assessment and then it classifies them based on predefined parameters. Next, the software takes the generated report and analyses the results to suggest a suitable strategy.
  • Helps with managing your projects: We know how much hard work goes into achieving project goals. Delegation is an essential aspect of this and this risk management software by doing that effectively. By using this software, project managers can easily delegate tasks that have been assessed for risks along with the relevant recommendations to various departments of the organisation.
  • The software provides you with clear and consistent communication: Another obvious benefit is the ability to get accurate information from the reports consistently. Based on predetermined parameters that have been stored in the risk management software, the results of the risk assessment tool provides are consistent. Also, the software offers a centralised risk register that allows various departments to communicate with each other about the projects they are working on.
  • The software provides you with automated risk reports: Probably one of the most overlooked benefits. The in-depth reports that Beakon’s risk management software offers are accurate and automatic. These reports offer proper data on the organisation’s objectives and the related risks along with the necessary steps to take to mitigate those risks.

It is true that can still technically perform risk management manually. However, it would serve you better to invest in software. Risk management software helps you make complex decisions more effectively, get a good grip on possible risks and accurate results on how to prevent it. If you are looking for how to get started with risk management software, taking advantage of our free trial is the best way to go.

 

Why Risk Management Matters

It’s the obvious question, and the answer is usually simpler than what you might think: Better risk management leads to better business performance. And  the business benefits of embracing risk management are stronger now than ever before.

Risk is a tricky thing. Without it, growth is impossible. But it’s not just about taking more risks, it’s about understanding and controlling the risks you take.

The threats that face business risks take many forms, including strategic, operational, financial and compliance risks. Individually or combined, these can jeopardize a company’s financial and operational stability.

First, what is risk management system? and why do I need it?

A risk management system is a methodical approach to identifying and managing the risks that businesses face every day, and an effective way to ensure you are providing a safe environment, protecting the assets, people and reputation of your company

Under workplace health and safety legislations and the common law duty of care, employers are legally required to manage the risks associated with the running of their business. This entails taking adequate steps to minimize reasonably foreseeable risks.

Risk Identification and Evaluation

During the course of their day to day activities, all businesses are exposed to varying degrees of risk. These exposures will vary greatly for each business in terms of scope and severity. The process of risk management is to assist the organisation to balance their risk exposures against business opportunities to achieve corporate plans and objectives.

A total analysis of the risk facing any business is enormous, ranging from such things as incorrect marketing or customer segment decisions, poor financing arrangements, employee disputes and the effects of a major fire or catastrophe.

Some risk exposures can be considered to be fundamental to the overall strategic planning and management control of the business and are generally under the control of the board or senior executives. Performance and ongoing viability of the business can be adversely affected by poor decision making or planning relating to a wide range of these risks.

Other risks can more readily be managed (or partly managed) at an operational level to eliminate or reduce the threat to the business. A final category of risks may be those over which the management and employees of the business have little control, or capability of reducing to any significant degree.

Using the process of Risk Management encapsulated in AS/NZS 4360, an organisation can create a framework to assist in the identification and analysis of the risks specific to its particular business activities.

Avoiding, Reducing and Controlling Risk Exposures

The next step in the risk management process is the balancing of key corporate objectives (like profitability and expense control), against safety, and the avoidance, reduction and control of losses.

The conventional wisdom says that putting an emphasis on risk management slows your business, but based on recent studies the contrary is true: Companies that put a premium on risk management are seeing better growth and increased profit margins.

Companies that put a premium on risk management can cope with ever-increasing business risks while seizing opportunities that present themselves.

 

How Technology is Changing the Face of Risk Management

The Impact of Technology on Risk Management

Being a Compliance Officer is a tough job, and it may soon be a job recorded in the history books with the age of technology rendering it obsolete. There is no doubt that an auditor’s job is only getting more complicated with increasing OH&S regulatory pressures to ensure Risk Management, and the need to stay compliant. If technology makes staying compliant easier and simpler, why not use it? This article shares some insight into the age of big data as well as the automation of business processes and the impact it will have on compliance over the next 5 years.

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Importance Of Enterprise Risk Management Software For Business

Crucial Features of an Appropriate Enterprise Risk Management Software System

With the increasing complexity of business operations, most companies are implementing company wide Enterprise Risk Management Software. Risk Management Software enables them to manage risks, reduce waste, maximize the use of resources, find answers quickly, and increase efficiency for faster growth.

With the many Risk Management Solutions Software packages out there, the best way to go about finding one that is appropriate for your business is to know the differences between these solutions.