Risk management software plays an important role in businesses that need to manage risk on a daily basis through complex statistical and analytical methods. This software enables users to manage all aspects of risk from one interface and allows for advanced manipulation of data into simplified terms for analysis. Even though these powerful software programs provide strong benefits to organisations, there are disadvantages to implementing them within the risk department.
Risk management software averages around £1,300 or more per user. Additional modules are usually available at an additional fee to extend the features and capabilities of the software. These modules allow the organisation to customise the base software so that it fits the exact needs of the organisation. In addition, companies should consider the cost of setting up and training employees when looking into making an investment into implementing risk management software. Furthermore, some software also requires annual maintenance costs or fees for continual use of the product and receiving updates and bug fixes.
Risk management software can be very difficult to understand, so training is often necessary. Some interfaces can be very complex, with tools that employees are not used to using or do not understand enough to read the results. It is normal for risk management software to not include advanced documentation for its features, so learning by trial-and-error is common if the company does not invest in a training program. Training reduces the time needed to implement the software and allows for employees to start using it for their daily routine quicker. Also, employees trained to use the risk management software are least likely to misuse it and not misread the report results. Training can be available through the company that developed the software, as well as from third-party organisations. There are many third-party organisations that can come to the company to set up and train all employees on the software to ensure a smooth transition.
Employees that are comfortable with using programs such as Microsoft Excel are harder to persuade to adopt new methods. It takes years to master Excel to manipulate the data accordingly, so employees are generally hesitant to start over by learning a new program. Employees must understand the advantages of using such a complex risk management program and desire the training necessary to implement it in their daily routines for it to be a success.