Boards and the C-suite may recognize that Enterprise Risk Management technology will provide better oversight and enhance risk management efforts overall, but still be reluctant to allocate budget. The challenge is defining and measuring value – cost, flexibility, efficiency, effectiveness – in a way that’s meaningful enough to sway those holding the purse strings.
The truth is that nothing speaks louder than numbers. Nailing down solid, defensible numbers, though, has been easier said than done – that is, until now. Riskonnect created an Enterprise Risk ROI Calculator to give you a concrete estimate of how much time and money you could save by implementing ERM software. The calculator produces a customized savings estimate based on your own processes, people, and output to use in justifying an ERM investment.
More than the Numbers
Just looking at hard-dollar costs of time and technology, ERM software almost always pays for itself – and in a shorter timeframe than you might think. But the real value of ERM software is so much greater than cost savings. It unites processes and roles across the organization for seamless collaboration and intelligent insights that support data-driven decisions. It breaks down walls and provides transparency among stakeholders so you can understand the connections between individual risks, as well as how everything comes together as a whole. As a result, you get huge gains in efficiency and accuracy, while simultaneously reducing costs.
Here’s a closer look at the advantages of ERM software:
Get more done. ERM software automates routine tasks, workflows, and follow up, drastically reducing the number of human hours needed. And because all data is housed in one place for all to use, it eliminates double work, so you can double down on analysis.
See who did what when. Having all risk data in a single repository with robust tracking capabilities provides you with a clear audit trail documenting every modification.
Collaborate seamlessly. ERM software brings all enterprise risks – insurable and noninsurable – into one place that’s easily accessible to all stakeholders. It breaks down silos by establishing consistent processes and controls across the organization. It also fosters a risk-aware culture and creates a sense of ownership where everyone plays a role in minimizing surprises.
See the big picture. ERM software allows you to connect initiatives and data to uncover real insights about how one part of the program affects another and understand the full impact on the organization. With better insight into your program as a whole, you can better identify, prioritize, and address issues before they escalate into full-fledged problems.
Answer tough questions. With streamlined processes, real-time data, and built-in analytics, ERM software makes it fast and easy to create meaningful reports that inspire data-driven decisions. Dashboards give you continuous insight into the effectiveness of your programs. And advanced analytics augment human intelligence by pulling out new and more detailed information from the data. Having this level of insight also allows risk teams to offer strategic counsel and predictive insights to leadership.
The cost savings achieved with ERM software can be substantial enough to justify your investment to the powers that be. But those harder-to-quantify benefits – better data, streamlined processes, easier reporting – are just as real. Think of how much the organization would benefit if all those hours of time previously spent on administration were redirected to tasks that provide much greater strategic value.
The true value of ERM software lies in its ability to improve decision-making. You have a clear picture of what’s happening, so you can confidently decide what risks are worth taking – and which are not.