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 that may be caused by different factors such as human behavior, inconsistent processes, or issues related to technology. Companies use operational risk management solutions to define and implement strategies and plans required to streamline the management 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 mitigation and avoidance.
Operational risk management software is often implemented as part of enterprise risk management or governance, risk, and compliance projects. This type of software consolidates data from multiple systems such as ERP systems or accounting software. Operational risk management tools can be integrated with other risk management software such as IT risk management software or environmental health and safety software.
To qualify for inclusion in the Operational Risk Management category, a product must:
Deliver various methodologies and frameworks for risk management
Include standard processes for risk assessment and mitigation
Provide workflows to define and assign tasks related to risk management
Integrate and align operational risks with business processes
Comply with laws and regulations or internal company policies
Monitor the performance of the operational risk management activities
Analyze operational incidents or losses and their impact on the company
