Technology solutions can provide strong support for an enterprise risk management process, making an organization's objectives, and risks to achieving those objectives, clearly visible to management, concluded an executive report released today by the Risk and Insurance Management Society.
The report, titled "Enterprise Risk Management Technology Solutions," was designed to help risk managers identify and evaluate appropriate technology system functionality for their ERM practices, RIMS said.
The report added that care must be taken, to ensure that the technology solutions are user friendly and flexible.
"Technology can provide strong support for an ERM process; however, practitioners must make certain that the system is user-friendly and flexible enough to accommodate the changes that most ERM programs experience over time," Leslie A. Lamb, member of RIMS Technology Advisory Council and risk manager at Cisco Systems, Inc., said in a statement.
She said the paper is intended to provide insights to risk practitioners at the beginning and intermediate stages of adopting ERM, and considering technology solutions to help them implement a new or next phase in the process.
The report continued that data integration using an ERM data model can increase reporting capabilities by showing risks by entity, business, product line, risk or control categories, by manager, policy or procedure or by function.
The re-entry of data into systems, when that data already exists in related systems, is inefficient. Ideally, it said, ERM technology solutions should be adopted with an eye towards integrated data storage so that information can be pushed or pulled throughout the organization.
The executive report is authored by Michael E. Thoits, past member of the RIMS Technology Advisory Council and director of risk management at Affinia Group, Inc. The focus of the paper is on the functional needs of ERM processes and the corresponding functionality available from technology providers.
It is based on results from two surveys--one to ERM practitioners and one to system providers. Data was collected in the summer of 2008 from 651 risk practitioners who identified more than 20 different technology solutions they are using, and the key functionality for their ERM programs.
RIMS said the study, "Enterprise Risk Management Technology Solutions," is available free to everyone who registers at www.RIMS.org/ResourceLibrary.
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