Enterprise Risk Management [ERM] |
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Corporate boards, CEOs, CFOs and other members of the senior leadership team are facing unprecedented levels of business complexity, changing geopolitical threats, new regulations and legislation, and increasing shareholder demands. To address these challenges, business leaders are embracing the discipline of enterprise risk management in the planning and assessment of strategic objectives, and the monitoring and reporting on risks associated with those objectives. Motivated by the need to gain better insight into their business processes and more transparency throughout the enterprise to understand and control risks and align them with their business strategy, organizations must develop an overall approach to how they define, establish oversight for, manage, and monitor events within their corporate boundaries and with respect to external events. Enterprise Risk Management [ERM] is a process, affected by an entity's board of directors, management and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect the entity, and manage risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives. Furthermore, Enterprise Risk Management solutions must be comprehensive and span all risks to understand and manage the interplay among various types of risks and the fact that certain events carry with them more than one type of risk. ERM also offers the following benefits:
A comprehensive Enterprise Risk Management solution supports all stages of the ERM lifecycle allowing you to establish the context, identify, analyze, evaluate, monitor and consult your risks toward the enterprise organization.
 SoftExpert ERM Suite enables organizations to identify, analyze, evaluate, monitor, and manage their enterprise risk in an integrated manner. It brings together all risk management related data - a reusable library of risks, controls and assessments, events such as losses and non-conformance, key risk indicators, issues and treatment plans - in a single comprehensive solution.The solution serves as the foundation for a company's enterprise risk management efforts through its ability to unite and support different categories of risk – financial, security, compliance, planning – accomplishing with other risk family solutions as Financial Control Management, Operational Risk Management, IT Risk Management and General Compliance Management.The following are some of the main features of SoftExpert ERM Suite: Context Definition – defines the scope (activity, process, function, project, product, service or asset) in terms of responsibilities and location well as its goal and objectives. Process Management – Provides a well-integrated platform for describing and modeling the business process that can be used for risk analysis. Asset/PDM Management – Maintains details of company assets/products used on risk management, covering inventory, maintenance, ownership, location, reservations, usage, downtime, verification, check-in/out status, and much more. Risk Identification – Facilitates risk identification through checklists application and unified risk repository. Risk Analysis – Powerful analysis toll that empowers the application of quantitative and qualitative methods, or a combination of these. Graphically visualization of significant risks. Control Definition – Establishes and implements policies and procedures ensuring effectively risk responses. Control Self-Assessment – Keeps internal control effectiveness through periodical tests and questionnaires application. Treatment Plan – Fully integrated Project and Portfolio Management [PPM] Suite to select, implement and monitor risk responses without requiring third party tools or custom programming. Risk Monitoring – Ongoing management activities, automatically and manual, using summary lists, risk matrix, KRI and more. Event Management - Complete automated handling of events, non-conformance and corrective/preventive actions using worldwide renowned methods: PDCA for problem solving, and 5W2H for action planning. Business Intelligence – Delivers line-of-business reporting and helps business users identify department problems. BI capabilities provide managers with the ability to drill down on data and “slice and dice” from different perspectives, based on Online Analytical Processing (OLAP) technology. Return on Investment in Enterprise Risk Management Traditionally, when enterprise professionals discuss the ROI of an investment, they are mostly thinking of "financial" benefits. Today, organizations must also consider the "non financial" benefits of an investment. Financial Benefits include impacts on the organization's budget and finances, e.g., reduced costs or increased revenues. Non-Financial Benefits are the so-called "intangible", "soft," or "unquantifiable" benefits of an investment. Unlike financial returns, there may be no widely-accepted metrics for organizations to apply. However, the SoftExpert solutions present undeniable potential for producing positive impacts on business performance and mission results. These include improved customer satisfaction, more precise information and a shorter cycle time. ERM projects tend to be driven either by a desire to prevent serious losses that could result from interdependent risks across multiple risk types or by specific regulatory requirements. So, it's difficult to calculate a generic and direct ROI, besides in a specific case, where the risks and controls used are completely known. The SoftExpert Enterprise Risk Management [ERM] solution offers the following benefits:
Financial ROI: Annual Savings
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Non Financial ROI:
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