If you don’t have a holistic view of Enterprise Risk Management (ERM), you’re likely missing risks in different areas throughout your organization. We’ve worked with many different clients to integrate all departments into their risk management program, and have seen problems arise from a manual, siloed approach.
Version control issues are one of the biggest problems organizations encounter when they’re managing risk in a segmented way. In particular, utilizing a manual process like spreadsheets means that there are multiple places where risk and control information is saved. If you’re using your risk data in order to make business decisions, you need to be sure that everyone in your organization is looking at the same, most up-to-date data possible.
There is a risk of version control issues with aggregating information as well. If there is a function where you or your team need to manually input data from one department’s documents into a master document, there is immediately room for human error. If the data was input into the same place for everyone, this minimizes the risk for input errors by removing the step of transferring data between documents.
Centralizing your risk management function gives you an opportunity to create a common area for risk data. Whether utilizing a software that integrates each department’s risk or working internally to build your own risk management database, comprehensive data gives you and your team the information needed to make thoughtful business decisions and sets the stage for turning risk management into a strategic asset for your company.
Need more insight? Download our whole article 7 Reasons ERM Planning Can Fail Without Holistic Strategies to get even more ERM pitfalls (and how to avoid them).