How to Select the Right Risk Management Application?
A risk management application is used to control risk in an organization. It helps an organization to identify and evaluate different types of risks and reduce or mitigate them so they do not have significant detrimental effects in both the short and long-term goals and objectives.
The goal of a risk management application is to help companies develop and communicate suitable and effective risk management strategies. These applications draw upon the best standards and practices in the industry and helporganizations come up with useful guidelines, which usually make risk management easier.
The selection of a suitable risk management application usually depends on an organization’s mission statement and long-term goals, as well as the type of risks involved. It is important to bear in mind that some applications will not be effective against specific risks, while others may work quite well.
It is vital for an organization to define their risk management and analysis processes prior to selecting a risk management application. Ultimately, therelevant application should support both these processes. Below is a list of factors that must be consideredwhen choosing a risk management application:
The application must be aligned with the organization’s risk analysis objectives. It should support the risk analysis the organization wants to achieve. The choice of application will depend on whether an organization is trying to implement a continuing risk management process (real time web application) or perform a one-time analysis (spreadsheets).
The ability of the application to support decision making; It should be able to provide the requisite information needed foreffective decision making.
The application should be accessible to key users and stakeholders.
Another consideration is the availability of data, which the risk management application will analyze.