Connecting the Dots with Risk Management Technology

The advent of risk management technology has highlighted just how limited a risk manager is in what he or she can do to improve risk management efficiency and effectiveness within their organizations. When all risk management processes are being handled manually, it is not easy to manage them all. The risk management team needs to stay updated on all the different processes and ensure that they are completed on time. The results of all processes – the reports, metrics, and documents – are presented to the board. However, there is rarely enough time or workforce available to connect the information within the different documents and spreadsheets for advanced analytics.

Risk managers have always known that they can get better insights, discover more vulnerabilities, and predict emerging risks if they are able to integrate all the risk data within the organization. Risk managers also know that the compliance data within the organization’s compliance framework is beneficial for risk analytics. However, combining all the data would take many days of dedicated work by an entire team, and even then, there would be concerns about data accuracy and outdated data.

Being able to connect the dots is one of the biggest benefits of risk management platforms. Risk managers are no longer limited because connecting data streams is difficult or too time-consuming. This enables risk managers to create new workflows and links between data, documents, metrics, and much more.

Managing Timely Updates and Follow-Up Tasks

The ability to connect the dots makes it easy for risk managers to get updates about different risk management activities and corrective actions that have been implemented. Under a manual system, the risk management team must connect with other departments via email and ask for updates or wait for the other departments to send updates. This delays risk processes and limits the visibility the risk management team has into risk activities throughout the organization.

The advent of risk management technology has highlighted just how limited a risk manager is in what he or she can do to improve risk management efficiency. Click To Tweet

Modern risk management software enable more efficient communication channels. The system brings all risk processes under one platform and gives risk managers a dashboard that shows a real-time view of all risk activities throughout the organization. Instead of having to ask people about updates on an ad-hoc basis, the risk management team can directly see where each task stands in terms of progression and act accordingly. The risk management team also has a clear idea about the goal achievement rate of risk objectives throughout the organization, allowing them to mitigate more risks throughout the organization.

Real-Time Analytics

The ability to connect data streams also enables real-time risk analytics. Analyzing risk data is a grueling task when done manually. The data needs to be collected from multiple sources, cleaned, standardized, and then analyzed. The time it takes to do this process limits the scope of most such analytics. It is impossible to get real-time analytics when risk is being managed manually; businesses can only utilize data from spreadsheets and already published reports.

Risk management platforms can easily connect different risk and compliance data streams. The risk management team can create custom dashboards that show the data they want to show. They can create their metrics, which are calculated based on different data points within the risk management framework. Instead of waiting for analytics based on old reports and spreadsheets, the risk management team gets real-time visibility into the risk framework’s efficiency as well as any problems related to risk management.

Anticipating Emerging Risks

The best time to mitigate risk is before the risk can affect the business in any capacity. This means that instead of simply managing and mitigating the risks currently affecting the business, the risk management team should be looking ahead and proactively mitigating emerging risks. Many risks can be predicted if the right metrics are being tracked. The ability of modern risk management platforms to track metrics allows risk teams to monitor leading indicators.

The indicators can come from multiple sources, connecting the dots to understand how each metric affects the overall risk environment. The risk teams can choose external indicators, market metrics, internal metrics, compliance data, complaint data, vendor risk data, and much more to predict emerging risks. Another significant advantage of anticipating risks is that it enables the business to factor in risks when making decisions about the future growth of the business. The risk team can provide information about the anticipated risks over the next quarter to help the business choose the right path towards success.

Interested in seeing how your business can enhance its risk management framework with a unified risk and compliance management platform? Get in touch with our risk experts for a demonstration of Predict360 and see what it can do for your organization.