Some Risk Management Software Tools – An Exploratory Study

Abstract

An organization can use risk assumption, risk avoidance, risk retention, risk transfer or any other strategy in order to properly manage the future events - based on ( Web Finance Inc., 2017 ). Like any other essential business activity (business process), risk management is a process with a clear purpose, reliable inputs, well-designed activities and value-added outputs (risk management software tools are an important pillar to the concept). The risk management process typically includes activities such as: the identification, sourcing, measurement, evaluation, mitigation and monitoring of the risk. A wellarticulated view of risk management process provides a benchmark for companies to help them formulate their proprietary view of their processes that is responsive to their needs - based on ( Corporate Compliance Insights, 2017 ). This paper is an exploratory study about some certain software tools used for the management of the risks within organizations and investigates the usage of software tools such as: Risk Watch, Riscare, Risk Management Studio, Krio, MEHARI 2010 basic tool. This article presents a comparative research regarding the software risk management tools which are analyzed through a template. The criterions used for the analysis are: tool architecture, interoperability with other tools, geographical spread, skills needed to install, etc. Information collected from some specialized references was also used.

Keywords: Riskmanagementtools

1.Introduction

Like any other effective business activity, risk management requires:

=a process with a clear purpose,

=reliable inputs,

=well-designed activities and value-added outputs.

The risk management process typically includes activities such as the identification, sourcing,

measurement, evaluation, mitigation and monitoring of risk. A well-articulated process view of risk

management provides a benchmark for companies to help them formulate their proprietary view of their

process that best fits their needs (Corporate Compliance Insights, 2017).

Risk management means an establishment of a balance between risk and results (Meghea et all,

2008). There are many other definitions of risk management, one of the most used is a five-step theory:

1. Identify – the identification and categorizing the risks;

2. Analyze – the assessment of risks according to their importance / what-if scenarios, the

evaluation of the risks impact;

3. Evaluate – the prioritization of the risks according to a set of criterions;

4. Treatment – methods of treatment: avoid, transfer, accept, reduce etc

5. Audit - monitor and review the risk management plan.

2.Problem Statement

Some tools and methodologies used during the various phases of the risk management are

presented below (Clarizen Inc., 2017):

-Tools and Techniques for Risk Identification

�=Brainstorming / Delphi method

�=Assumption analysis / Diagramming techniques / Cause and effect diagrams / System or process

flow charts

�Influence diagrams / SWOT analysis

-Tools and Techniques for Qualitative Risk Analysis

�=�The assessment based on risk probability and risk impact

�=�The matrix of probability and impact / The categorization of risks

�=Risk urgency assessment / Expert judgment

-Tools and Techniques for Quantities Risk Analysis

�=Data gathering & representation techniques

�=Interviewing / Probability distributions

�=Sensitivity analysis

�=Modelling & simulation

�=Schedule risk analysis

There are also a lot of software tools used to manage the risks of an organization, in the chapters

below there is an analysis of some of them.

3.Research Questions

1.Are there software tools for risk management?

2.Which are the most commonly used software tools in a company to manage the risks?

3.What are the risk management method phases supported by each analyzed software tool?

4.Taking into account the criterions such as: tool architecture, interoperability with other tools,

geographical dispersion, skills that are compulsory to install, compliance to IT standards, the

technologies used in the tool - is there an appropriate software tool to manage the risks in a

company?

4.Purpose of the Study

The paper is an exploratory research, a comparative view of some certain software tools used to

manage the risks in an organization represents the core of the article.

The core objectives of this paper are:

To describe some software tools for the management of risks: Risk Watch, Riscare, Risk Management Studio, Krio, MEHARI 2010 basic tool To comparatively describe some certain risk management software tools – which is the

essence - of the article based on some criterions such as: tool architecture,

interoperability with other tools, geographical dispersion, skills compulsory to install,

compliance to IT standards, the technologies used in the tool, etc.

To outline the final aspects based on the results of the study.

5.Research Methods

In this article the tools and methods used for research are:

�=Descriptive analysis;

�=Exploratory research;

�=Bibliographic study;

�=Analysis in a comparative manner.

Every software tool was described using criterions such as: tool architecture, interoperability with

other tools, geographical dispersion, skills compulsory to install, compliance to IT standards, the

technologies used in the tool, etc.

The descriptive analysis of every tool consists of the tool presentation and also the risk

management method phases supported.

6.Findings

6.2. The Software Tools - A Comparative Analysis

The tables from 1 to 6 show a comparative analysis of risk management tools, based on common

criterions. Using the template below (tables 1-6), based on the data from (E.N.I.S.A. Inventory of Risk

Management, 2017) and (ENISA Technical Department, 2006), each tool is described and compared to the

others.

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7.Conclusion

The constant evolution of information technology requires the usage of new tools during the risk

management process. This paper is a comparative study on tools which are being used by companies to

manage risks. Every tool has both advantages and disadvantages, for example: some of them are not free

to use. The most important criterions when choosing a good software tool for risk management are:

method phases supported, tool architecture and interoperability with other software platforms or

packages. The future tools for risk management must have a more efficient interoperability and also they

should integrate the risk management process other processes within the organizations.

Acknowledgments

This work has been funded by University Politehnica of Bucharest, through the “Excellence Research Grants” Program, UPB – GEX. Identifier: UPB–EXCELENȚĂ–2016, Contract number 11/30.09.2016.

References

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