Different types of risk management software are needed depending on the area of the business where risk must be monitored, such as project management, finance and operations. Risk management software can reduce risk by calculating the probability of a certain event occurring, alerting management when an unfortunate event occurs and tracking risks in real-time. While most companies use out-of-the-box software, modules can also be purchased on most larger software packages to further enhance the product to fit the company’s individual needs. Training is also available for most programs so the business can take full advantage of the software quickly and with few errors.
Project management software provides the tools necessary for identifying potential areas of risk, building risk management into the project plan and identifying risks while executing the project plan. By using risk management software, project managers are more prepared when a risk materializes. It provides the user with a simple interface for predicting risks at the onset of projects, as well as tracking risks as the project progresses.
Financial software offers companies the tools for managing value creation, balancing risk, and return and capital management. Since most companies experience certain financial risks from competition, this type of software is a valuable tool for business sustainability. Smaller businesses already rely on simple spreadsheets to calculate financial risks, and the software can provide additional tools, imagery and data-mining options for more advanced analyses.
Operational risk management software provides companies with a series of data management and security protocol tools. Most software includes a centralized risk framework to document all risk faced by the company. This software also includes loss tracking, key risk indicators with automated notifications when thresholds are breached, issue management and reports. It ensures that data can be imported from all data sources easily and includes easy sharing and exporting of reports.
It can be very costly to implement and train employees to learn new software, so careful consideration must be made in the beginning before an investment is made on risk management software. Custom software solutions are available for organizations that cannot find an out-of-the-box solution to meet their needs. This option is generally much more expensive and time consuming, however, and all employees must be trained on the new solution. An out-of-the-box software can usually be customized with modules and add-ons to update it with higher level features so that it meets the needs of individual businesses.