How to Pick the Best Risk Management Software

The size and complexity of risks facing businesses today are increasing exponentially due to the rapid development of technology and business mobility as all businesses strive for successful digital transformation. Geopolitical shocks, economic uncertainty, and natural disasters have not stopped as the attack surface continues to increase and threat actors exploit vulnerabilities with increasingly sophisticated cyberweapons.

Many organizations do not actively prepare for worst-case scenarios. In a survey conducted by Hyperproof in December 2020, 35% of security/compliance professionals surveyed (the largest group) stated that their organization manages IT risk on an ad hoc basis and only in the event of a negative event. Not surprisingly, this reactive approach to risk management has not worked. 61% of all respondents in the same survey had at least one security breach or non-compliance in the past three years.

The use of outdated ad hoc risk management tools poses significant limitations for businesses today. December 2020 A very ongoing survey of 1,000 risk management, compliance, and security professionals found that 50% of respondents still use spreadsheets to track risks.

Spreadsheets limit a company’s ability to manage risk: they do not allow users to describe the relationship between risk, control, and compliance requirements, nor do they allow users to collect evidence of security/compliance measures. In addition, they provide minimal data reporting and analysis capabilities to help risk professionals obtain useful risk information.

If your company is looking to improve its risk management, you’ve come to the right place. In the following, we will show you how to create a risk management strategy, the benefits your company can get from implementing risk management software, and how to choose the right risk management software for your company.

Develop a risk management approach

Does your organization have a risk management approach and method? This is important because risk management software acts as a tool in implementing your approach, but is not a substitute for strategy. Ensure that you have a risk management strategy in place before investigating any particular risk management application.

Not sure how to develop a risk management strategy? Don’t worry – we have you. First, determine the strategic goals of your organization. They are usually formed on important topics such as company growth goals, personnel plans, or financial goals. Once you have identified these business goals, determine how your technology supports the business processes that support those goals. Once you have an inventory of technologies that support strategic initiatives and processes, identify the biggest threats to your critical technologies and processes.

A successful risk management approach involves developing the security controls necessary to control all high-risk threats so that your most important processes continue to function.

Risk management frameworks can provide structured risk management policies that will help organizations become more consistent from day one. Here are some popular frameworks:

NIST Cybersecurity Framework: 

Developed by the National Institute of Standards and Technology, this list of standards, guidelines, and practices helps organizations better manage and reduce cyber risk. It is structured using industry best practices from various documents and standards such as ISO 27001 and COBIT 5. The framework helps teams assess risk levels, align with risk tolerance objectives, identify increased security priorities, and budget for threat mitigation.

NIST Privacy Framework: 

This voluntary tool, created by the National Institute of Standards and Technology, can be used by any organization to develop or improve a privacy program. Effective privacy risk programs can help companies build trust in their products and services, better communicate about confidentiality practices, and meet compliance requirements.

Information Risk Factor Analysis (FAIR) Model: 

This framework, which describes a key-value framework for cybersecurity and operational risk, defines risk management as “the combination of people, policies, processes, and technologies that enable an organization to achieve and sustain the cost level of loss risk that can be accepted effectively. ”The FAIR Book explains more about how this model framework can be implemented.

Cyber ​​Risk Forum maturity framework and model: 

This framework was published in 2015 in collaboration with Deloitte. Like the NIST RMF, this framework relies on subjective judgment and examining risk through a value-on-risk lens. This lens invites stakeholders to assess three components: the existing vulnerability and maturity of the organization’s defenses, the value of the assets, and the profile of the attacker.

Regardless of what risk management framework you choose, the end goal here is effective IT governance. You achieve effective IT governance when you can safeguard IT assets to ensure they’re functioning and supporting the achievement of organizational objectives. The best IT governance and risk management happens when your team can link all risks to mitigating controls already in place. 

How risk management software enables effective risk management

Risk management software enables you to identify, assess and document the risks associated with managing various business processes and IT resources, communicate risks, and manage risk mitigation tasks effectively. While different tools have different roles, risk management software allows you to create at least one risk list – a risk information repository that contains at least a description of a particular risk, its likelihood of occurring, and its possible impact on cost items. , because it generally comes first, all other risks react and who has a risk.

Benefits of risk management software

Risk management software offers many benefits to businesses seeking help controlling the potential negative effects of risk. Here are some of the main benefits that risk management software can provide for your business:

  • Understand the risks your business faces and make more informed decisions about which controls to implement
  • Reduce costs and maximize efficiency by integrating corporate governance, risk management, and compliance processes
  • Strengthen operations and internal controls through knowledge of the risk landscape and current mitigation measures
  • Demonstrate a sophisticated approach to IT management to build customer trust, enhance brand reputation, and increase shareholder value
  • Promote regulatory compliance and avoid violations, fines, legal fees, and business disruptions

 The main characteristics of risk management software

Below is a list of the top features to look for when purchasing risk management software:

Record risk data and track change: Your software should help document all risks with appropriate estimates of probability, tolerance, impact, and response. Your software must also be well equipped to track, record, and display changes in risk assessment result over time.

Easy to use: the process of creating a risk register should be intuitive and clear, starting with the ability to import existing wholesale risk lists from a spreadsheet or create new risks one by one.

Facilitate effective project management: Your software should allow you to continuously track and manage risk daily, and measure progress over time – something spreadsheets cannot do.

Facilitating effective collaboration: Risk management requires the teamwork of stakeholders inside and outside your company. Your software must support this collaboration through a collaborative process, e. g risk review and approval of risk treatment plans, assigning orders to different people, and developing a questionnaire to evaluate your supplier’s risk profile.

Integrated with existing compliance management software: You must not duplicate your risk management and compliance efforts. Your software should help by linking risk with mitigation. Creating a risk registry on the same software platform used to monitor compliance (including activities to achieve security certification such as ISO 27001) makes it easier to collect evidence of risk management activity when an audit arrives.

Tailored to your unique organization: Your software should allow easy customization, eg. the creation of specific risk assessment fields for various categories, teams, or regions. In addition, ensure that your software is compatible with the desired risk management model and that the rules for calculating risk can be tailored to the needs of your team.

Supports multiple roles and levels of access: Risk information can be sensitive, so your software should limit access to the information on your risk register. The software you choose should support multiple roles and allow you to properly control access to risk data.

Adequate Information Protection: When purchasing cloud-based risk management software, it is important to ensure that the provider has adequate and reliable data protection measures in place. Make sure your third-party software company has a certificate of conformity such as SOC 2 or ISO 27001 for added security.

Stakeholder Report: The Board of Directors and executives need to understand your company’s risk profile and how to manage that risk. The software you choose should allow open communication and easy reporting to senior management stakeholders. The ideal software solution should provide a visual aid to track risks over time, identify trends, and examine specific areas of high risk in depth.

3 steps to finding the right risk management software

When your team is ready to see the many benefits risk management software has to offer, it’s time to start the assessment process. Here are the steps we recommend for those who want to make the best decisions possible:

1. Research, Research, Research: 

We’ve covered key risk management skills. Now it’s time to list the software solutions you want to evaluate based on the features that are important to you and your budget. Additionally, you want to identify the main stakeholders involved in the evaluation process, such as B. Your CTO, security manager, or IT manager.

2. Build the Business Case: 

Your team needs to build a solid investment case with the support and support of senior management. Think about how much time your employees spend on manual risk tracking and how much time is lost duplicating risk/compliance efforts due to organizational silos. Then invite the decision-maker to try a specific demonstration to see first-hand the benefits of risk management software.

3. Budgeting

This last step logically follows the first two. Find out your priorities, check prices, then schedule demonstrations for the best stakeholders. If you choose the best option for your company’s needs and back it up with evidence, the budgeting step becomes much easier.

How Hyperproof’s risk management software solutions support your business

Continuously monitoring potential risks, protecting data, and maintaining compliance in today’s business world can be quite a responsibility, even for the most prepared organizations. Fortunately, your team doesn’t just have to deal with risk management. With Hyperproof’s risk management software solutions, your company can effectively identify, assess and manage risk in the context of your company’s core tasks and goals daily. With the Hyperproof platform, you can maintain a central risk register to track threats and document mitigation plans.

With Hyperproof risk management software, no effort or resource is wasted. Users can fully integrate risk management and compliance activities, reducing their workload and preventing repetitive activities. All controls can be weighed against risk and compliance requirements to rule out the possibility of wasted reductions.

As companies increasingly rely on third parties to conduct their business, supplier risk management has become a major concern today. Hyperproof risk management software provides your team with a significant advantage with a single platform for security management and vendor compliance. The platform provides easy access and control via a central register – contract management for suppliers, customizable risk assessment questionnaires, and documentation of current controls to reduce supplier risk.

 

The article How to Choose the Right Risk Management Software appeared first on Hyperproof.

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