Perhaps one of the reasons Risk Management is a leading benchmarking method in compliance today is that it is a universal language in many respects. In an organization, people may not always “speak” quality, they may not “speak” safety, but everyone speaks Risk. This especially true when you get to higher levels within the organization. Executives make decisions every day that impact the organization, and they need to be informed of various levels of compliance in order to make those decisions. Risk and risk reporting is the core method being employed to make enterprise-level decisions that spans all operational levels of the organization.
Enterprise risk management takes the concept of risk to a level that breaks down all the various operational areas within an organizations—Quality, Safety, Finance, Human Resources, Security, Operations, Corporate Governance, and others—and creates a risk report for all areas. Since risk can be universal, the various risks within these areas can be benchmarked in a systematic and standardized fashion. By standardizing compliance using risk, executive stakeholders can make more informed decisions throughout the organization.
Risk affects different areas across the organization so risk that occurs in one area of the enterprise can often be tied to risk in another. Pinpointing these similarities can help the organization find trends in risk, and put processes in place to mitigate the chance of these risks recurring. This is where EtQ's Enterprise Risk Management (ERM) module comes in.
EtQ's software for ERM defines risk in various operational areas to come up with a standardized method for solving these high-risk events. In doing so, the organization will be on common ground from an enterprise perspective and will also have visibility into risks associated with all operational areas.
EtQ Enterprise Risk Management Software is used to:
- Allow users throughout the enterprise to be involved in assessing lists of risk items, which are saved in the risk register application and grouped into risk templates.
- Establish a plan for specific risk templates and assign a risk assessor for each template, where they can use the Reliance risk calculator to determine the risk value of each item.
- Establish a control plan based on the risk items evaluation to mitigate risk items with highest risk by taking necessary corrective actions.
- Monitor the efficiency and adequacy of the established risk control plans through provided ERM views.
The goal of software for ERM is that although everyone manages risk differently, the core process should remain the same. If an organization can create an ERM methodology then they’ve standardized the way their employees identify risk. From there, they can find ways to look at any correlations behind risk and apply these methods throughout their enterprise.
ERM software translates compliance into a common denominator that everyone can identify with, and this level of understanding can help make the decision making process more efficient.
The impact of risk management is wide when you consider the need to have a systematic and objective means of measuring compliance. From a Governance, Risk and Compliance (GRC) perspective, the need to identify hazards, implement control and take corrective action is a strategic initiative for many organizations. EtQ’s Enterprise Risk Management software module provides visibility from both an operational context as well as a GRC context. The ERM software module is a series of risk management tools that provide the means to measure risk at various operational processes, but also provide the ability to report across modules and operational areas to create a wider, more comprehensive view on risk. Through Enterprise Risk Management dashboards and risk-based reports and views, you can categorize, action specific areas and assess risks at each level. From there, you can implement ERM controls, and conduct analysis on overall risk across the enterprise.