The Emergence of Risk Management Technology

What are the things that can disrupt your business? That’s the one question that risk managers try to answer on a daily basis.

The truth is that there are many threats to enterprise-level businesses. Compliance, cybersecurity, and financial risks just scratch the surface.

Enterprise risk management is a challenge because you have to curb your CEO’s appetite for risk. A recent survey of 1400 CEOs revealed that half of them take more risks than they did in the past.

Enterprise risk managers also have to connect the dots across the enterprise, breaking down silos to uncover the most significant threats.

Enterprise risk technology helps risk managers see what most people in the organization can’t. Read on to learn more about this emerging technology.

You Can Save Money

The average fine for a HIPAA violation in 2019 was more than $1.2 million. The costs are greater when you consider the reputational damage to the organization, too.

Technology makes regulatory compliance easy. You’ll avoid these expensive fines and penalties from regulatory authorities.

Effective Risk Management

You probably feel like there are a million small parts that make up the enterprise. That increases the chances that one of those pieces gets overlooked, which is a significant risk to the business.

A risk management information system brings those various pieces under one dashboard. The system integrates with many of your existing systems, giving you a real-time view of the incidents and claims within your business.

Standardized Reporting

Enterprise risk managers have to work with many different departments, from finance to human resources. Each department usually works within silos that are hard to break down.

Every department has its own way of doing things. Best of luck getting information across these departments. You then have to distill these formats into a singular report.

Enterprise risk management solutions create standard reports for every department. The standardization makes it easy for you and the executive team to determine what the risks are.

Implement Risk Management Technology

Can you see the benefits of using risk management technology? How can you implement it in your business? First, you’ll want to conduct a thorough risk assessment.

That will help you understand where your business needs the most help in risk management. For example, your business may not have regulatory risks, but you have cybersecurity risks.

Once you know what your risks are you can find the right enterprise-level solution. You want to make sure that the risk management solution is aligned with your internal risk management framework.

Technology Makes Enterprise Risk Management Easier

Enterprise risk management is the biggest challenge facing organizations today. A cyberattack, a regulatory fine, silos, employee injuries are some of the risks that you need to manage.

Technologies have emerged to help risk managers navigate these challenges. Organizations are more efficient, save money, and have standardized reporting to make better decisions.

For more articles that address how technology impacts your business, visit the Business section of this site.