While startups can employ excel sheets or regular management systems, a growing company should be more intentional with enterprise risk management solutions to deal with the different risk levels.
According to the 2021 State of Risk Oversight Report, we are currently experiencing the highest risk levels in the last 12 years, further confirming the need for Enterprise risk management.
Enterprise risk management (ERM) is not just a list of processes and rules. It’s a comprehensive strategy with organized data to predict and avoid these issues.
Let’s now see how to build an ERM, its functions, features, benefits to your company, and the possibility of ERM outsourcing.
What is an ERM System?
An ERM system, or enterprise risk management system, is software designed to alleviate the effect of internal or external risks in your company. It is an incorporated information system that simplifies and organizes risk management processes throughout a company while adhering to local regulations
ERM software solutions are often accessible as cloud-based SaaS apps that collect all the risk data in a central location.
What Can You Do With ERM Software?
Custom risk management tools provide you with all-inclusive risk information and features to manage risks more effectively.
These features include:
- Constant real-time risk tracking
- Monitoring of risk ratio and key performance
- Assessing and auditing tools
- Analytics for informed predictions
The Benefits of a Custom Enterprise Risk Management Software
Now, you should ask: “what can ERM do for my business?”
A risk management software development system will help your company stay on track with your industry’s regulations and prepare all branches for non-insurable risks.
Decision-making from risk data
An ERM software compiles and displays a company’s risk data on a dashboard for senior management. With these data and key indicators, your executive team can measure risks, make informed decisions, and implement efficient planning to reduce damage.
Increased operations
Creating an ERM software will allow your operational managers access to immediate task indicators even on the go from their mobile devices. They can use analytics to find ideas that save time, reduce costs, and increase productivity.
Simplified risk management
Your company’s system examines risks and sends threat signals immediately. This function allows you to review the problem, measure the effects, and reach strategies to reduce them.
It also reduces the chance of human error and saves time, as the ERM platform automatically collates the data from several sources.
Challenges When Developing Enterprise Risk Management Software
So, we’ve seen the benefits of having a personalized ERM. However, if you’re looking for how to develop ERM software, there are some challenges you should consider
Vague objectives
You need to have clear objectives before building an ERM software. Start by defining the goals of your software – to reduce risks and increase business performance or adhere to rules and regulations
You should also determine the areas of integration to ensure that your software increases productivity and saves costs.
Integration problems
Since a good ERM solution reduces risks throughout your company, you should consider creating your own ERM software that seamlessly integrates with your business structures.
The software can compile and process all your data in a central location if your web software development team understands SDK and API integrations.
User-centric design
Remember that the software is for your executives and managers. So, ensure you design an ERM system that emphasizes user-friendliness with a thorough search engine, guides, FAQs, and layout. We also suggest having user training sections to help your staff understand the platform faster.
5 Core Features of an Effective ERM Program
What features should an ERM program have before it’s considered adequate?
Data repository
Effective software should have a collection of risks and corresponding strategies to respond. Every data is unique and organized in categories with descriptions, hierarchy, and manager in charge. Because these risks are often consistent, your teams would have response strategies for all cases over time.
Risk assessment
The analytics tools help organizations control risk effects by connecting the already existing structures through API connections or manually.
Setting up an ERM solution also provides the monetary equivalent for every risk, for a positive and negative result, and predicts problems and possible effects
Automatic notifications
Your team does not need to watch the dashboard all day. The business ERM solution automatically alerts all your managers about potential risks.
Mobile apps
Business risks do not only occur during work hours. So, an ERM’s mobile app ensures that your managers can retrieve essential data, attend to time-sensitive tasks, and get significant revisions on the go.
Robust security
Hackers do not play favorites. From the 2020 Annual Cost of Cybercrime Study, in 2020, one data hack cost $2.4 million and took almost 50 days to fix. That’s why an effective web ERM system has some features to protect your software from attacks:
- Multi-factor authentication
- DDoS and DNS attack prevention tools
- Access according to roles
- Logging tool
- Encryption
Summing Up
Companies employ ERM software to recognize, monitor, and prevent business risks. That is why Scimus, an online software development company, can help you grow your company with our suite of software services.
Also, our software development project outsourcing experts can work with your in-house team to build an ERM system from scratch. Contact us today.