On a global scale, most risks are changing rapidly with technology and development. Issues that organisations face today haven't been ones that have been experienced in the past - think AI, blockchain, cybersecurity etc. Keeping in mind the exponential rate of change, managing risks systematically and proactively to overcome challenges that arise has become imperative to building trust across your organisation.
When creating an enterprise risk management plan for your organisation, an integral component to your framework will be Key Risk Indicators (KRIs). Key risk indicators measure the potential risk related to a specific action that could negatively affect your company as well as the likeliness of risks occurring. You can think of them as early warning signals that alert your organisation to financial, operational and reputational issues, to name a few, so you can take early action to avoid or mitigate the possible risks. They are typically quantitative, often in the form of percentages, and when detected, serve as an impetus for deciding how to take action.
If you are an enterprise you must know the many challenges that you might face running an organisation with a lot of moving parts. While you ensure that you get the business to run efficiently, you should be leaning on a robust software to manage your risks and communicate with your board, committee and business units.
Once your organisation has committed to building a solid Enterprise Risk Management (ERM) strategy, it will be crucial to invest in the best tools to inform and execute that strategy in order to make sound business decisions. This is where enterprise risk management software comes in and there are five essential features you need to look for.
If you’ve Googled Enterprise Risk Management (ERM), the results can make your head spin. To simplify what all this means, we’re going back to the basics of what ERM is and why it’s something organisations need to invest in.