Enterprise risk management software is the key to mastering risk vs reward

One of the great skills or attributes for anyone in business to have, is a sense of how best to balance risk vs reward. Few organisations thrive by playing it safe and there is more pressure now than ever to be disruptive, innovative and game-changing.

But to be disruptive requires taking risks and while the rewards are great if this works out, it can also be very damaging to a business if the risk does not pay off. Some business people have an instinctive and intuitive understanding of risk, seemingly always knowing at what price they should sell, or which company they should partner with.

But for many others it can be truly hard to assess risk and decide whether it’s one that is worth taking or not. That’s why enterprise risk management software is becoming so influential in modern business.

There are a range of operational risk management tools available to businesses in 2019. The right one can help manage and mitigate risk accurately and comprehensively, giving board members all the information they need to make informed decisions on what risks to take and what risks are just too hot to handle.

The increased risk in modern business

We live and work in fairly uncertain times in 2019. Organisations are facing more risk than they have ever done. This ranges from short, mid and long-term uncertainty over Brexit to increased cyber security breaches, and many points in between.

Looking specifically at Brexit, whether you are a UK firm looking to continue trading with the EU or a company in the EU that wishes to continue strong business relations with the UK, the threat of Brexit implications are tough to manage. Should you continue to recruit, even if you are unsure whether a no-deal Brexit might impact what business you can generate? Should you open a new office in a different country, when you don’t know what the exact nature of trading will be in that country, post-Brexit?

These are all big decisions for any organisation to take. The risk of establishing a new location for example, is huge. Doing so is expensive and requires commitment and resource and if there isn’t enough revenue to warrant doing so, failure could be catastrophic. Yet expecting a business leader to understand this risk and make a decision on whether it is a risk worth taking, is nigh on impossible. That’s why enterprise risk management software is becoming such an important tool for boards all over the world.

What’s the reward?

So why should organisations take risks that might damage the company? The answer lies in bigger profits, new markets, quicker expansion. Most companies exist to generate revenue and make a profit. They want to do that both quickly and safely, which can be a contradiction. But managing risk effectively means greater reward.

This reward can even mean surviving, in some cases. Financial Services (FS) is a sector that has seen major disruption over the past decade. Established banks and FS providers have their market share come under major threat from more agile and dynamic start-ups. These are able to offer innovative services that resonate with consumers and business alike much quicker and easier than bigger banks, which are less agile and find innovation much harder.

It therefore becomes the case, that for many organisations they must take risks to even survive. If a bank does not risk trying to bring innovative and modern services to its customers, then there will almost certainly be another organisation that will.

Oxial partner, EY’s Pierre Pourquery, who leads the Control and Compliance solution for Europe, has discussed the urgent need for FS firms companies to change their entire approach to digital and compliance – this is essentially highlighting their need to take risks to survive.

The deployment of enterprise risk management software

All this is why enterprise risk management software has grown so popular. Oxial’s sGRC solution, which includes risk as part of an overall IT GRC tool, allows an organisation to manage and mitigate risk very effectively.

It has two platforms, the sGRC Express and sGRC Suite, both of which are tailored to meet an organisation’s specific needs. They allow very accurate and effective management and mitigation of risk, meaning executives can make informed decisions on how much risk they should take and what the likely reward would be.

This balancing of risk vs reward is essential in modern business, given the volume and scale of the risks and the potential rewards for taking risks.Enterprise risk management software such as Oxial’s sGRC solution is key to managing this effectively.

For more information on Oxial’s solutions, please visit our product page here. Or to talk to one of our risk management experts about how we might be able to help your company, please get in touch with us here.

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