Spreadsheets are great. However, they really don’t cut it when you are trying to develop a complex enterprise risk management (ERM) framework. Multiple formulas, lots of sheets/tabs, broken links, numerous people editing the same document, version control issues… The list of issues goes on.
The solution? A dedicated, tailored risk management information system.
While spreadsheets do have their place and can be useful for your initial list of potential risks and some risk assessments, larger scale risk management framework and processes need a more robust system.
For example, perhaps you would have a separate text document for your objectives and risk appetite, a spreadsheet table for your risk profile, another couple for data input and reporting, and another program to document, communicate and implement the company’s risk management processes.
With a dedicated RMIS everything is all in one place - without complicated formulas or protected sheets and a huge amount of time saved from removing a lot of manual work.
Still not convinced? Here are a few more benefits of a dedicated risk management software package.
- One source of truth – With one up-to-date version in one place, you don’t have to search for the right document or be unsure if you have the latest data – all important for accurate business planning and calculating total cost of risk.
- Efficient collaboration – Everyone can work together on the same information and reports, risk owners can be assigned and teams all work to the same deadlines – everyone is working together to remove silos.
- Meet compliance and regulatory obligations – When auditors or data protection officers review processes, there is just one place to find what is needed and everything is dated and documented – reducing time on admin and ensuring you easily pass audits.
- Better risk profile – With better and more accurate reporting tools, it means that business decisions can be based on the latest data so that risks can be identified and opportunities can be acted upon.
- Work flow automation – Management can easily sign off tasks in work flows (and show their support for the risk strategy), and data consolidation and reporting can be automated – all allowing teams to spend more time on improving risk management processes rather than manual tasks.
- Embedding risk culture – Risk managers can draw on information from the RMIS to communicate and share processes and risk owners with all staff and get feedback into the framework – all to help develop a sustainable risk environment and a better enterprise risk management system.