What You Should Know About Enterprise Resource Management (ERM)
Nov 29, 2021
Today’s risk environment is growing increasingly complex due to an increase in cybercrime and the pace of businesses’ digital transformations. So it’s not surprising that only 30% of business executives are confident in their organization’s risk management strategy.
The simple solution would be to tell business leaders to prioritize continuous risk assessments and analyses for every new business initiative. But it’s not feasible to expect business leaders to take the time to review each case quickly and accurately. When it comes to managing risk, there’s no one-size-fits-all solution — but finding the right risk management strategy and technology for your organization can result in improved visibility and a more agile business.
Enterprise Resource Management 101 for large organizations
Many large organizations have turned to enterprise risk management (ERM) in the past several years. ERM is a top-down approach to managing risk that’s used to identify, analyze, and manage areas of exposure in a business.
For example, suppose a brick-and-mortar retail brand decides to develop an e-commerce website. The risk management team would need to perform ERM to evaluate potential threats, including financial, operational, technology, and strategic risks.
An enterprise risk management strategy and its supporting technologies can be an effective way to mitigate business risks — just not for every business. ERM software can be difficult to implement and it frequently requires extensive resources that are beyond the reach of most small to mid-sized businesses.
What if Enterprise Risk Software isn’t right for your organization?
So, what if you're a small or medium-sized business looking for a better way to manage risk? This is where a risk management platform or risk software comes into play. This type of risk management software is a more user-friendly and cost-effective alternative to an ERM solution —and it’s also significantly easier to implement.
A risk management platform enables you to report incidents in real-time, complete risk analysis, and implement new initiatives to mitigate future risks — all on a single dashboard. The platform is easy to access across the organization, helping break down information silos for a more holistic approach to managing risk. And working with a single, centralized data source helps produce more accurate risk analyses, which better equips your organization for future threats.
Additionally, a risk management platform implementation eliminates the need for a third-party consultant, which makes it a more cost-effective option for medium-sized businesses.
Is an ERM the right fit for you?
Just because ERM is an effective strategy for large enterprises doesn’t mean it’s the right choice for your organization. Finding the right solution or risk software is more important than ever given the increasing complexity of today’s risk environment.
Aclaimant’s risk management platform provides a user-friendly alternative to ERM that can help your business mitigate project risk and ultimately create a more risk-aware culture.
Read more about Aclaimant’s data-driven risk management solutions.