Enterprise risk management (ERM) software is playing an increasingly important role in helping organizations identify, mitigate, and remediate business risks. This is particularly crucial as the number and complexity of risks faced by businesses continue to grow. To address this growing need, the risk management market is evolving from separate tools across different risk domains towards more integrated platforms that blend governance, risk, and compliance functions with the management of cybersecurity, IT, and third-party risks.
According to Kriti Seth, an analyst at research firm Everest Group, boards of directors are placing greater emphasis on ERM as they prioritize projects to create more risk-resilient business operations. This has led to a significant increase in spending on risk and compliance tools across various industries. Consequently, CIOs are faced with the critical decision of building a robust strategy and choosing the right ERM tool for their organizations.
When selecting an ERM software, there are several factors that CIOs, IT managers, and business executives involved in purchasing decisions need to consider. In addition to pricing, it is important to evaluate the reputation of ERM software vendors and the types of risk management frameworks they support. Furthermore, these decision-makers need to weigh the tools across various dimensions, including users, processes, governance impact, and technology. It is through this comprehensive evaluation that organizations can select the best risk management software that aligns with their specific needs.
To assist in this selection process, Nucleus Research analyst Charles Brennan suggests utilizing the following features and attributes:
1. Integration: The seamless integration of risk management tools with other technologies enables real-time data exchanges and provides a comprehensive overview of different business risks.
2. Analytics: Data analytics and reporting features are crucial for identifying relevant trends, patterns, and anomalies in an organization’s risk-related data sets.
3. Customization: Prioritizing tools that allow for customization ensures alignment with the organization’s risk management strategy and creates user-friendly interfaces for diverse business stakeholders.
4. Regulatory Compliance: Tools should be able to adapt to changing regulations affecting business operations, such as data privacy laws and climate risk disclosure rules.
5. Scalability: Look for tools that support modular and adaptable risk management capabilities to seamlessly integrate additional functionality as business requirements evolve.
6. Total Cost of Ownership: Evaluating implementation, maintenance, and future upgrade costs is essential to ensure that the chosen tool remains financially viable and aligned with the organization’s budget.
To aid organizations in their search for an appropriate ERM software, here is a list of 16 prominent vendors and the tools they offer:
1. Archer: Offers an integrated risk management (IRM) platform that supports various risk domains, compliance, and governance functions. Also includes risk reporting and data collection applications, risk quantification tools, and a marketplace for pre-built applications.
2. AuditBoard: Provides a cloud-based platform for audit and compliance management, IT risk management, ERM, and third-party risk management. Offers additional tools for compliance reporting, audit management, and automated evidence collection.
3. Camms: Offers a single cloud-based platform for governance, risk, and compliance. Supports operational, cybersecurity, and third-party risk management, as well as regulatory compliance, audits, and ESG programs.
4. Diligent: Provides a GRC platform that supports enterprise, IT, and third-party risk management, as well as audits, internal controls, and regulatory compliance. Includes advanced analytics, workflow automation, and board reporting tools.
5. IBM: Offers IBM OpenPages, an AI-driven GRC platform that supports risk management, regulatory compliance, and data governance programs. Includes tools for managing operational, third-party, and ESG risks, as well as IT governance, audits, and more.
In conclusion, ERM software plays a crucial role in helping organizations identify, mitigate, and remediate business risks. As the risk landscape continues to evolve and become more complex, choosing the right ERM tool is becoming a critical decision for CIOs and other decision-makers. By carefully evaluating key features and considering the specific needs of their organization, CIOs can select a comprehensive and effective ERM software that will help improve business performance and create more risk-resilient operations.