Operational risk management software identifies, assesses, and addresses operational risks across all departments of a company. This type of software is used to prevent losses caused by different factors such as human behavior, inconsistent processes, technology-related issues, or operational impacts of external events.
Companies use operational risk management solutions to define and implement strategies and plans required to streamline the management and mitigation of operational risks. Compliance officers and managers from all departments of a company use operational risk management tools to share information and collaborate on risk assessment and remediation.
Operational risk management software is often implemented as part of an organization’s governance, risk, and compliance (GRC) efforts and is an essential component of an overall enterprise risk management strategy. These solutions consolidate data from multiple systems such as enterprise resource planning (ERP) systems, accounting software, IT risk management software, and environmental health and safety (EHS) software, and may also ingest external data through other integrations. Operational risk management software also helps support business resilience when paired with other types of GRC tools such as business continuity management software.
To qualify for inclusion in the Operational Risk Management category, a product must:
Support various methodologies, frameworks, laws, and regulations for operational risk management such as ISO 31000 and COSO
Provide workflows to define and assign tasks related to operational risk management
Utilize heat maps, risk scoring, scenario analysis, dynamic dashboards, and other risk assessment metrics for analysis and reporting purposes
Integrate and align operational risks with business processes and company policies
Analyze operational incidents and facilitate remediation
