"Do I need special software to do Enterprise Risk Management?"
Source: RGS Business Advisors
I get this question often, and my response is “No, you don’t need special software to do ERM”. This is primarily true if you are just getting started with Enterprise Risk Management.
One valuable lesson I learned during my many years in IT/Information Security, is that it’s best to implement manual processes at the beginning of any new program or process, and after you have matured those processes and worked through some adjustments, then you can choose what elements you want to automate or supplement with software. Knowing your process well and knowing what parts you want to automate, empowers you to select the right software tool for the job.
If you start with an ERM software package first, you are forced into a process dictated by that software at the beginning of your journey that may not ultimately fit your needs and achieve your ERM goals.
All you need is standard business productivity software: spreadsheet, word processor and maybe a presentation application. In other words, MS Office or Google Docs.
For risk analysis, you may already have or you may need, specialized software. For example, in banking you are already running stress tests and managing interest rate risks with special software. If you will be performing quantitative risk analysis, or Monte Carlo simulations on your operational and strategic risks, you will need additional software for that, such as a Microsoft Excel add-in (ModelRisk by Vose Software for example).
So maybe the better question is "When do I need special software for Enterprise Risk Management?"
By the way, some of the best hardware for risk management is a nice sized conference room and a large white board.
Geek Speak Summary: Managing risk is about identifying relevant risks and having meaningful and informed discussions about those risks so you can decide the right course of action. Software doesn’t have that conversation for you. Be specific and purposeful about what you want any software to achieve.
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