What Is Enterprise Risk Management Software?
Enterprise risk management (ERM) software helps businesses prepare for a variety of risks that they encounter by analyzing business data and then ranking those risks so they can be addressed by security teams. Enterprise risk management takes a proactive approach to identifying the risks that all companies face: posing potential scenarios and analyzing third-party vendor partnerships, hiring plans, finances, security, websites, and even employees.
What Does ERM Software Do?
ERM software is computer programs that keep track of events, risks, and mitigation in an enterprise environment by integrating information from various systems and user access accounts such as web browsers.
- Makes regular financial and security predictions based on current business data and risk status
- Assesses network and infrastructure security threats
- Helps businesses prepare for breaches, ransomware attacks, and web server downtime
- Monitors and tracks progress of all business projects so that enterprises can see how likely they are to succeed and if they run any risk of failing
- Regularly reports on financial status and performance so enterprises know their monetary standing and any risk of losing revenue
ERM software uses the following information to build a digital framework that ranks these risks by the level of threat that they pose and then tracks risks those risks over time:
- Company financial data
- Information on sales leads
- Assessments of projects risks provided by team and department leads
- Network and threat intelligence
- Employee mobile device use
- On-premises office security
- Storage systems, both cloud and physical servers
With a 2020 valuation of approximately $31 billion, the global Enterprise Governance, Risk Management, and Compliance market will more than double by 2027 to over $71 billion.
Key features of ERM software
- Threat and vulnerability analysis identifies physical and technical vulnerabilities and ranks the likelihood of those threats for enterprises.
- Compliance management monitors company resources for compliance with statutory regulations and enterprise-specific policies.
- Vendor and third-party risk management tracks possible vulnerabilities that come from working with third-party software and vendors.
- Modeling and forecasting creates scenarios based on financial data and estimates financial performance and revenue.
- IT governance and security help security teams to accomplish company goals and comply with IT regulations.
- Incident management prepares people, processes, and technology in advance for problems or threats that can negatively impact the enterprise.
- Audit management automates and streamlines auditing processes by reviewing, approving, and scheduling audits.
- Financial reporting features help enterprises reduce inaccurate financial data and silos within the company.
- Policy management improves creation and availability of enterprise policies.
- Notifications streamline the alerting process for IT security teams and enterprise managers.
Read More: Compare 2021’s Best ERM Software