Top 10 Operational Risk Management Tools

Risk management is important in any organization with a view of ensuring that the organization is ready to handle risks in the event that they occur. ORM is an important activity that helps an organization guard against losses arising from operational risks that stem from inadequate or unsuccessful internal controls or from external circumstances.

Before knowing operational risk management, let’s know about Risk Management. It is the recognition, evaluation and supervision of risks which may adversely impact an organization’s capital or profits. These threats include such options as financial risks such as lack of liquidity and solvency threats, risks that may be associated with litigation and legal actions against the company, strategic management mistakes, opportunities for accidents to occur and natural disasters.

Operational risk management is part of risk management that deals with risk that may happen in regular organization business activities. This involves potential errors, technical or organizational failure, fraud, and other events that cause process interruption and financial loss or negative perceptions from the public.

Operational Risk Management provides numerous benefits:

• Proactive risk identification
• Reduction of potential risk and adverse effects that may crop up in the future.
• Enhanced decision-making processes
• Improved business efficiency
• Regulatory compliance
• Reputation protection

The first wave of ORM was a manual process that involved documents, spreadsheets, and separate systems. This approach contributed to having errors, having inefficiencies and not having visibility of the risk factors. It cannot catch up with the new domains of evolving risks.

Nected addresses these challenges through its modern, low-code/no-code platform with super rules engine and comprehensive workflow management. The platform offers one of the simplest and powerful rule engines and workflow manager for Operational Risk Management.

Simplify risk management with Nected’s workflow orchestration. Try now!

Not All Operational Risk Management Tools Are the same

It is important to understand that Operational Risk Management solutions are not the same across the board. Each organization presents different risk exposures, business environments, and compliance needs, which makes it imperative to have options when procuring ORM software.

Challenges with Traditional ORM Platforms

Traditional Operational Risk Management tools come with several challenges like rigidity, integration difficulties, limited customizations etc.

Nected offers a dynamic and flexible approach to Operational Risk Management, making use of its powerful rules engine and workflow orchestration capabilities:

1. Low-code/No-code platform: Allows non technical people to setup/modify and implement risks management tools without relying on IT departments.

‍2. Customizable workflows: Enhances specific, organization-targeted management of risks, making sure that it corresponds to particular operating requirements.

‍3. Advanced rules engine: Enables creation of complicated risk assessment rules that are interactive, up to date to current risk circumstances.

‍4. Seamless integration: Integrates with other enterprise applications to provide consolidated risk information and is therefore effective in avoiding information fragmentation.

‍5. Scalability: Fulfills current as well as growing business demands, and future large data requirements without eradicating performance reliability, making it sustainable.

6. Dynamic risk assessment: Continuously reviewing the risk profiles against the definitions laid down by the rules and changing business environment, thus offering the most current risk information.

7. Automated compliance monitoring: Ensure the compliance with the regulation using the rules based checks so that the number of manually checked cases will be minimized.

8. Customizable risk taxonomies: Enables identification of risks and categorization of these risks in a manner that suits the organizational context hence making it more holistic and applicable to the industry.

9. Audit trail and version control: Keeps a record of all risk management activities and changes for oversight and record-keeping purposes to ease audit and reporting.

Recognizing and overcoming the typical limitations associated with conventional ORM tools, Nected adds on with a powerful rules engine and sophisticated workflow capabilities. Thus, it provides a highly flexible solution that meets growing risk management requirements. As such, this approach makes Operational Risk Management indeed much more efficient and substantially more feasible for any organization.

Top 10 Operational Risk Management Platforms

While the importance of operational risk management is clear, choosing the right software solution can be challenging. To help you make an informed decision, let's explore the top 10 operational risk management tools available in the market today. Each of these tools offers distinctive features and capabilities to help with the risk management needs of organizations.

1. Sprinto

Sprinto is a cloud-based, integrated compliance automation and operational risk management software. It stands out for its ability to help organizations manage risks precisely, proactively, and impactfully. Sprinto's approach translates risks into advantages by mapping them to correct controls, making it an excellent choice for businesses looking to enhance their risk management strategies.

Key Features:

• Consolidates all risk data in a single platform for quick management review
• Launches comprehensive and updated risk assessments
• Rigorously assesses risks to understand their impact and make informed decisions
• Builds a comprehensive risk profile using a built-in risk library
• Updates risk register with custom risks and impact scores
• Automatically maps risks to compliance criteria and controls
• Provides a 360-degree view of entity-level and org-wide risks and controls

Pros:

• AI-based recommendations
• Role-based access
• Risk segregation based on criticality
• Centralized risk view, Real-time insight into posture
• Prompts corrective actions
• Risk quantification, Documents activities for audits
• Risk libraries, 360-degree risk overview

Cons:

• Some advanced features may be overkill for smaller organizations

Sprinto offers a powerful solution for businesses looking to elevate their operational risk management practices. Its comprehensive feature set and AI-driven insights make it a strong contender for organizations of various sizes, particularly those prioritizing a data-driven approach to risk management.

2. Pirani

Pirani is an operational risk management solution that simplifies risk-related tasks for businesses. It's particularly notable for its adaptability to various local and international standards and regulations, making it a versatile choice for organizations dealing with multiple compliance requirements.

Key Features:

• Manages risks to reduce operational load using indicators and generating reports
• Mobile application for managing economic, legal, or reputational risks
• Consolidates data in a single console for easy inquiries and updates
• Allows specification of custom fields to manage risks, processes, controls, or events
• Supports compliance with standards like ISO 31000, COSO ERM, Sarbanes-Oxley, and more

Pros:

• Streamlines collaboration
• Centralized risk information
• Intuitive platform
• Easy to use and highly accessible
• Supports Spanish language

Cons:

• Inadequate customization capabilities
• Generates poor quality graphs and charts

Pirani's strength lies in its simplicity and adaptability to various standards, making it an attractive option for businesses that prioritize ease of use and regulatory compliance. While it may lack some advanced features, its straightforward approach to risk management can be beneficial for organizations looking for a no-frills solution.

3. IBM OpenPages

IBM OpenPages is a comprehensive solution offering AI-based data governance, risk management, and regulatory compliance capabilities. It stands out for its ability to centralize siloed risk management functions, providing a single view for identifying, managing, monitoring, and reporting risks and regulatory compliance.

Key Features:

• Task-focused user interface that simplifies complex processes and actions
• Dynamic tools like dashboards, charts, and reporting systems for deep insights
• Customizable views, visualizations, widgets, tasks, and landing pages
• Calculator engine for automatically setting values for each risk activity
• Drag-and-drop functionality for creating custom workflows

Pros:

• Powerful sentiment analysis
• Interprets complex risk issues
• Rich customer feedback analysis
• Leverages machine learning algorithms
• Effective pattern identification
• Social media sentiment analysis capabilities

Cons:

• Not budget-friendly
• Low integration support
• Access management tool is not user-friendly

IBM OpenPages offers a powerful solution for organizations looking for advanced risk management capabilities. Its AI-driven features and comprehensive toolset make it particularly suitable for large enterprises dealing with complex risk landscapes. However, its price point and difficulties may be challenging for smaller organizations or those with limited IT resources.

4. LogicGate Risk Cloud

LogicGate Risk Cloud is a no-code risk management platform created to help businesses make sure about compliance and manage operational risks. Its adaptability to dynamic business needs and regulatory requirements makes it a versatile choice for various industries, including software, fintech, banking, healthcare, and more.

Key Features:

• Centralizes business continuity and response strategies
• Provides a repository of business disruptions for proactive continuity strategies
• Impact analysis module for identifying risks, outage impact, and resource gaps
• Incident reporting and management system with automatic scoring and mitigation roadmaps

Pros:

• Highly customizable
• Workflow automation
• Responsive customer support
• Implements customer feedback
• Logically connects system workflow

Cons:

• Frequent glitches and bugs reported by some users
• Confusing user interface for some

LogicGate Risk Cloud's no-code approach and industry-specific adaptability make it an attractive option for businesses looking for a flexible risk management solution. While it offers powerful customization capabilities, potential users should be prepared for a learning curve and possible technical hiccups.

5. Hyperproof

Hyperproof is a risk and compliance management platform that focuses on automating workflows, preparing for audits, and mitigating operational risks. It's particularly notable for its ability to map controls to compliance requirements and monitor compliance posture in real-time.

Key Features:

• Uses standard fields to measure risk tolerance, actual risk, inherent risk, and impact
• Real-time updates of reports and dashboards
• Centralized risk register for tracking and preventing overlooked risks
• Monitors data quality across on-premise and cloud bases
• Supports multiple compliance frameworks including SOC 2, ISO 27001, NIST, GDPR, and more

Pros:

• Control reuse feature
• Strong centralized platform
• Easy control management
• Custom audit programs
• Functional tracking of control variations
• Helpful live guided feature
• Facilitates collaboration across business functions

Cons:

• Reporting system is not fully automated
• Time-consuming framework customization
• Some users report occasional bugs and unresponsiveness

Hyperproof offers a comprehensive solution for businesses looking to streamline their risk and compliance management processes. Its support for multiple frameworks and real-time monitoring capabilities make it a strong contender, especially for organizations dealing with complex compliance requirements.

6. Strike Graph

Strike Graph is a compliance and operational risk management software that focuses on helping businesses gain security certifications and improve their overall security posture. It offers a centralized and transparent approach to make sure that data integrity and track progress across multiple frameworks.

Key Features:

• Project management and tracking tools for distributed task ownership
• AI-powered tool for consolidating manual efforts and automating tasks
• Automated security questionnaires using existing control data
• Pen testing services to identify potential security risks and vulnerabilities
• Supports multiple frameworks including SOC 2, NIST, ISO 27001, HIPAA, and more

Pros:

• Supports multiple out-of-the-box frameworks
• Automated security questionnaires
• Proactive customer success team
• Strong reporting and monitoring features
• Intuitive & user-friendly UI

Cons:

• Some users report generic templates
• Limited integrations compared to some competitors

Strike Graph's focus on security certifications and its AI-powered features make it an attractive option for businesses prioritizing cybersecurity compliance. While it may have some limitations in terms of integrations, its user-friendly interface and automated questionnaires can significantly streamline the compliance process for many organizations.

7. Ncontracts

Ncontracts is a SaaS-based risk management and compliance solution primarily created for financial service companies. It provides a comprehensive understanding of financial risks and offers tools to monitor and report both internal and external risks.

Key Features:

• KRI/KPI tracking and risk heat maps for real-time risk monitoring
• Business continuity module with disaster readiness programs
• Audit finding solution for streamlining mitigation efforts
• Risk tiering model for vendor review and due diligence

Pros:

• User-friendly UI
• Proactive customer support
• Report customization capabilities
• Seamless data flow within the platform
• Reasonably priced
• Configurable workflow

Cons:

• Poor loading capacity for large data sets
• Some configurations can be cumbersome

Ncontracts offers a solid solution for financial institutions looking to enhance their risk management and compliance processes. Its industry-specific features and reasonable pricing make it an attractive option, though organizations dealing with large volumes of data may need to consider its limitations carefully.

8. Camms.Risk

Camms.Risk, from the Camms Group, offers a comprehensive and integrated approach to streamline governance, risk, and compliance. It's created to cater to a wide range of industries, including defense, education, finance, healthcare, and more.

Key Features:

• Customizable risk register with bow-tie visualizations
• Centralized control library linking controls to risks
• Treatment plan documentation, assignment, and tracking
• Risk categorization and reporting with access control
• Key indicator establishment and quantitative risk analysis tools

Pros:

• Strong reporting capabilities
• User-friendly interface
• Proactive customer support and onboarding
• Seamlessly connects to multiple modules
• Deep customization capabilities

Cons:

• Some complications reported in initial setup
• Challenges during configuration for some users

Camms.Risk provides a versatile solution for organizations across various industries looking to enhance their risk management processes. Its customization capabilities and integrated approach make it a strong contender, though potential users should be prepared for a potentially complex initial setup process.

9. Resolver

Resolver is an integrated risk management solution that focuses on automating processes to mature existing risk cultures. It's created to help businesses evaluate the relationship between risks and understand control effectiveness across various industries.

Key Features:

• Consolidates functions into a single platform for deep risk landscape insights
• Simple software integration to eliminate manual data transfer tasks
• Built-in risk management practices such as COSO
• Comprehensive suite of tools including dashboards, reporting functionality, and visualizations

Pros:

• Responsive customer support
• Centralized control panel
• Highly scalable
• Advanced visualization capabilities
• Automatic record submission
• Highly customizable UI

Cons:

• Limited number of integrations
• Slow implementation process reported by some users
• Some users find reporting capabilities lacking

Resolver offers a powerful solution for organizations looking to automate and mature their risk management processes. Its scalability and customization options make it suitable for growing businesses, though the limited integrations and potentially slow implementation process should be considered.

10. LogicManager

LogicManager is a risk management platform created to help businesses predict disruptive loss events, improve reputation, and boost performance. It focuses on removing silos and consolidating risks using a centralized console.

Key Features:

• Comprehensive risk library categorized by root cause courses
• Pre-built configurable assessment templates
• Advanced dashboard and reporting capabilities
• Automated incident management system with alerts, tasks, and reminders
• Taxonomy technology for identifying trends across incidents, departments, vendors, or applications

Pros:

• Advanced KPI and KRI monitoring
• Intelligent dashboard
• 360-degree view of controls and processes
• Risk trend identification
• Preconfigured risk library
• Highly customizable and configurable
• Advanced analytics modules

Cons:

• Limited integrations compared to some competitors
• Reporting feature has a steep learning curve for some users

LogicManager provides a comprehensive risk management solution with advanced features for businesses looking to enhance their risk prediction and mitigation capabilities. While its powerful analytics and customization options are strengths, organizations should be prepared for a learning curve, particularly with its reporting features.

As we've explored the top 10 operational risk management platforms, it's clear that each tool offers distinctive strengths and capabilities to address various aspects of risk management. From Sprinto's AI-driven insights to LogicManager's advanced analytics, organizations have a range of options to choose from based on their specific needs, industry requirements, and scale of operations. However, it's crucial for organizations to carefully evaluate their specific requirements and consider factors such as scalability, integration capabilities, and ease of use when selecting the most suitable operational risk management platform.

How to Choose the Best Operational Risk Management Tool

When selecting the best Operational Risk Management (ORM) tool for your organization, consider the following key factors:

1. Risk Assessment Capabilities: Evaluate the tool's ability to identify, assess, and prioritize risks across various categories relevant to your business.
2. Integration Capabilities: Assess how well the system integrates with your existing infrastructure, including databases, APIs, and other risk management tools.
3. Customization: Look for tools that allow you to create risk management processes, workflows, and reports to your organization's specific needs.
4. Reporting and Analytics: Consider the depth and flexibility of reporting features, including real-time dashboards and advanced analytics capabilities.
5. Compliance Management: Make sure the tool supports relevant regulatory standards and helps streamline compliance processes.
6. User Interface: A user-friendly interface can significantly impact adoption rates and effectiveness, especially for non-technical users.
7. Scalability: Choose a system that can grow with your business and handle increasing difficulties over time.
8. Security Features: Assess the tool's security measures, including data encryption, access controls, and audit trails.
9. Vendor Support and Community: Consider the level of support provided by the vendor and the availability of community resources.
10. Cost and ROI: Evaluate the total cost of ownership against the expected benefits and risk reduction.
11. Modern Approaches: Look for tools like Nected for better scalability, accessibility, and automatic updates.

By carefully evaluating these factors, you can select an Operational Risk Management tool that not just meets your current needs but also supports your organization's long-term risk management strategy.

Conclusion

Choosing the right Operational Risk Management tool is critical for organizations aiming to effectively go through the complex domain of modern business risks. The top 10 platforms reviewed offer a range of features catering to different organizational needs, from AI-driven insights to comprehensive compliance management. By carefully evaluating factors such as integration capabilities, customization options, and scalability, businesses can select a solution that not just addresses their current risk management challenges but also supports their long-term strategic goals.

Integrated with other leading ORM tools, Nected becomes an even more powerful option for meeting the wide range of operational risk challenges. Low-code/no-code platform alongside advanced rules engine and smooth connections/ integrations enables Nected to work in unity with existing systems to deliver complete risk management. Irrespective of whether it's complex data, automated compliance, or real-time risk monitoring, pairing Nected with these tools enables organizations to meet operational risks boldly, achieving scalability, flexibility, and resilience in a changing risk environment.

FAQs

Q1. What are the tools of operational risk management?

Operational risk management (ORM) tools include Risk Control Self-Assessments (RCSAs), Key Risk Indicators (KRIs), and Incident Management Systems. These tools help organizations identify, assess, monitor, and mitigate operational risks to ensure business continuity and minimize losses.

Q2. What are the 4 operational risks?

The four primary types of operational risks are People, Processes, Systems, and External Events. These categories cover risks caused by human error, inadequate procedures, system failures, and external factors like natural disasters or cyber-attacks.

Q3. What are the 5 steps of operational risk management (ORM)?‍

The five steps in operational risk management are Identify Hazards, Assess Risks, Make Risk Control Decisions, Implement Controls, and Supervise and Review. These steps provide a structured approach for managing operational risks to reduce their impact on the organization.

Q4. What are the 4 C's of risk management?‍

The 4 C’s of risk management are Culture, Compliance, Controls, and Communication. Culture refers to the organization's attitude to risk, compliance makes sure that regulations are followed, controls are mechanisms to mitigate risk, and communication is key to ensuring all stakeholders are informed.

Q5. What are the 4 P's of operational risk?‍

The 4 P's of operational risk are People, Processes, Procedures, and Products. Each of these components addresses different facets of operational risk within an organization, helping to maintain smooth business operations while managing potential threats.