Risk management tools
Encyclopedia
Risk Management
is a non-intuitive field of study, where the most simple of models consist of a probability
multiplied by an impact. Even understanding individual risks is difficult as multiple probabilities can contribute to Risk total probability, and impacts can be "units" of cost, time, events (for example, a catastrophe), market states, etc. This is further complicated by there being no straightforward approach to consider how multiple risks will influence one another or increase the overall risk of the subject of analysis.
Risk management tools allow planners to explicitly address uncertainty by identifying and generating metrics, parameterizing, prioritizing, and developing mitigations, and tracking risk. These capabilities are very difficult to track without some form of documentation or, with the advent of information technology, software application. Simple risk management tools allow documentation. More sophisticated tools provide a visual display of risks, while the most cutting edge, such as those developed by Air Force Research Laboratory Headquarters, are able to aggregate risks into a coherent picture. A few tools have predictive capability, which, through collaboration between partners allow fair partition of risks and improvement of business relations.
The following is a list of risk management
tools.
@Risk - performs risk analysis using Monte Carlo simulation
to show many possible outcomes in Microsoft Excel spreadsheet—and predicts how likely they are to occur.
Active Risk Manager - (ARM) , addresses enterprise-wide risk management (ERM)
and governance, risk and compliance (GRC)
requirements, enabling the identification, communication, analysis and mitigation of risks and opportunities in both quantitative and qualitative formats.
The Aggregate Risk Tool - (ART) , generates predictive financial data from any probability-impact model.
BMT HARMS - A web based Safety, Environment, Project Risk and Environmental Risk Management tool.
Bow tie diagrams - a fault identifying visual tool.
Capital asset pricing model (CAPM)
is used to determine the appropriate required rate of return of an asset, if that asset be added to an already well diversified portfolio, based on non-diversifiable risk.
Control Estratégico de Riesgo (CERO) - Software tool with specific tools for each activity of the risk management process. With clients mostly in Latin America.
Cost/Risk Identification & Management System (CRIMS)
- Integrated Probabilistic risk assessment
model with cost and other variables.
Crystal Ball - performs risk analysis using Monte Carlo simulation, analyzes time series and creates statistical forecasts, and determines the best values of decision variables based on stochastic optimization
, all in a Microsoft Excel spreadsheet.
Cura Enterprise - Cura's GRC platform is a highly configurable solution that meets organizational requirements, and provides a balance between qualified and quantified data, all of which can be normalized and reported on across the entire organization.
Cura Quants - Is a quantitative modeling solution designed to integrate with the existing Enterprise GRC Platform. Cura Quants enables customers to quickly and easily quantify the impact of capital and project related risks as well as the effects of accompanying treatment strategies.
Dymonda - Dymonda is a software tool that enables Dynamic Flowgraph Methodology (DFM) modelling and analysis. The model explicitly identifies the cause-and-effect and timing relationships between parameters and states that are best suited to describe a particular system behavior.
EasyRisk Manager (ERM)
, Web based project (PRM), business (BRM) and enterprise risk management (ERM), highly extendible to relate risk to any business model (KPIs, compliance, RBS, WBS etc.). Process and action follow-up, BowTie for cause effect analysis, mainly qualitative, with quantitative extensions.
Resolve by RPM - Cloud software toolbox to manage, track and audit processes associated with risk and safety areas within corporations.
IBM
OpenPages
GRC Platform - Integrated enterprise governance, risk and compliance solution that includes modules for operational risk management
, policy and compliance management, financial controls management, IT governance, and internal audit management
IBS CompliantPro ERM - A web-based, configurable platform providing a workflow and repository for organizing and simplifying the management of an enterprise's operational risk information and activities.
Methodware
- Methodware's ERA is a GRC solution that is a scalable,and flexible tool to automate,identify and track risk across departments, regions, and business units effectively.
Operational risk management
- The continual cyclic process which includes risk assessment, risk decision making, and implementation of risk controls, which results in acceptance, mitigation, or avoidance of risk.
PIMS Risk Is a complete risk framework for identifying, analysing and evaluate threats and opportunities. Created for and used by major companies in oil and energy sector.
Probabilistic risk assessment
(PRA), Probability Consequence (P/C) or Probability Impact Model - Simple model where estimates of probability of occurrence are multiplied by the consequence (cost, schedule delay, etc.). This is the most common tool, examples are RiskNav and RiskMatrix.
PROMS-MC: PROMS-MC is a low cost, easy-to-use software application for Project and Risk Managers to use as a dynamic tool to record, analyse, monitor, manage and report project risks and opportunities. PROMS-MC is annually licensed per project, not per user. PROMS-MC is accessed through user-friendly graphic interfaces and can be used for both qualitative and quantitative analysis. PROMS-MC requires no architectural changes to existing IT infrastructure and is appropriate and scalable for use on small, medium and large projects. PROMS-MC captures a complete audit trail of each risk and opportunity from inception to closure. PROMS-MC is a genuinely complete off-the-shelf product.
Reference class forecasting
– Predicts the outcome of a planned, risky action based on actual outcomes in a reference class of similar actions to that being forecast.
RiskAid products - collaborative web/intranet-based risk management software environments for projects, operations and Enterprise Risk Management (ERM), developed by Risk Reasoning.
RiskAoA
– A predictive tool used to discriminate between proposals, choices or alternatives, by expressing risk for each as a single number, so a proposal's trade-space between cost, scheduled time and risk from its desired characteristics can be compared instantly. RiskAoA and variations of PRA are the only approved tools for United States Department of Defense
Military Acquisition
.
RiskComplete - Tracks project risk from planning approached to measuring tasks, from concept to manufacture.
RiskIssue.com - An online risk management tool for business, projects, teams and processes.
RiskLike'Con - A free probabilistic risk assessment
tool. Displays risks in the industry-standard matrix; Probability vs. Consequence.
Risk register
- A project planning and organizational risk assessment tool. It is often referred to as a Risk Log.
RiskPath - An improvement of RiskAoA, available to the public, where forecasts are quantified for each alternative.
Safety case
- An assessment of the potential risks in a project and of the measures to be taken to minimize them.
SAPHIRE
- A probabilistic risk and reliability assessment software tool. SAPHIRE stands for Systems Analysis Programs for Hands-on Integrated Reliability Evaluations.
SCHRAM - The Schedule Risk Assessment Manager; allows the generation of risk-adjusted schedules; the time of least risk, consequence of rushed/broken schedules. Allows realistic planning based on operational realities.
STREAM - Is a user-configurable enterprise GRC software platform, with the base platform available for free. STREAM became the first Information Security Forum
compliant product.
TRIMS - Provides insight as a knowledge-based tool that measures technical risk management rather than cost and schedule.
Unified Risk Assessment and Regulatory Compliance - A standards based end-to-end comprehensive cloud service from Unisys
that performs model based risk assessment and also provides a real time dashboard for Regulatory & Policy Compliance traceability
and transparency
.
Xero Risk - Web based enterprise risk governance tool to identify, track and balance risks across an organization using user definable assessment and impact criteria.
Risk management
Risk management is the identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities...
is a non-intuitive field of study, where the most simple of models consist of a probability
Probability
Probability is ordinarily used to describe an attitude of mind towards some proposition of whose truth we arenot certain. The proposition of interest is usually of the form "Will a specific event occur?" The attitude of mind is of the form "How certain are we that the event will occur?" The...
multiplied by an impact. Even understanding individual risks is difficult as multiple probabilities can contribute to Risk total probability, and impacts can be "units" of cost, time, events (for example, a catastrophe), market states, etc. This is further complicated by there being no straightforward approach to consider how multiple risks will influence one another or increase the overall risk of the subject of analysis.
Risk management tools allow planners to explicitly address uncertainty by identifying and generating metrics, parameterizing, prioritizing, and developing mitigations, and tracking risk. These capabilities are very difficult to track without some form of documentation or, with the advent of information technology, software application. Simple risk management tools allow documentation. More sophisticated tools provide a visual display of risks, while the most cutting edge, such as those developed by Air Force Research Laboratory Headquarters, are able to aggregate risks into a coherent picture. A few tools have predictive capability, which, through collaboration between partners allow fair partition of risks and improvement of business relations.
The following is a list of risk management
Risk management
Risk management is the identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities...
tools.
@Risk - performs risk analysis using Monte Carlo simulation
Monte Carlo method
Monte Carlo methods are a class of computational algorithms that rely on repeated random sampling to compute their results. Monte Carlo methods are often used in computer simulations of physical and mathematical systems...
to show many possible outcomes in Microsoft Excel spreadsheet—and predicts how likely they are to occur.
Active Risk Manager - (ARM) , addresses enterprise-wide risk management (ERM)
Enterprise Risk Management
Enterprise risk management in business includes the methods and processes used by organizations to manage risks and seize opportunities related to the achievement of their objectives...
and governance, risk and compliance (GRC)
Governance, Risk Management, and Compliance
Governance, Risk Management, and Compliance or GRC is the umbrella term covering an organization's approach across these three areas. Being closely related concerns, governance, risk and compliance activities are increasingly being integrated and aligned to some extent in order to avoid conflicts,...
requirements, enabling the identification, communication, analysis and mitigation of risks and opportunities in both quantitative and qualitative formats.
The Aggregate Risk Tool - (ART) , generates predictive financial data from any probability-impact model.
BMT HARMS - A web based Safety, Environment, Project Risk and Environmental Risk Management tool.
Bow tie diagrams - a fault identifying visual tool.
Capital asset pricing model (CAPM)
Capital asset pricing model
In finance, the capital asset pricing model is used to determine a theoretically appropriate required rate of return of an asset, if that asset is to be added to an already well-diversified portfolio, given that asset's non-diversifiable risk...
is used to determine the appropriate required rate of return of an asset, if that asset be added to an already well diversified portfolio, based on non-diversifiable risk.
Control Estratégico de Riesgo (CERO) - Software tool with specific tools for each activity of the risk management process. With clients mostly in Latin America.
Cost/Risk Identification & Management System (CRIMS)
Crims
Crims can refer to:* CRIMS , a risk management software and methodology used to accurately capture and quantify cost impact due to technical and schedule risk....
- Integrated Probabilistic risk assessment
Probabilistic risk assessment
Probabilistic risk assessment is a systematic and comprehensive methodology to evaluate risks associated with a complex engineered technological entity ....
model with cost and other variables.
Crystal Ball - performs risk analysis using Monte Carlo simulation, analyzes time series and creates statistical forecasts, and determines the best values of decision variables based on stochastic optimization
Stochastic optimization
Stochastic optimization methods are optimization methods that generate and use random variables. For stochastic problems, the random variables appear in the formulation of the optimization problem itself, which involve random objective functions or random constraints, for example. Stochastic...
, all in a Microsoft Excel spreadsheet.
Cura Enterprise - Cura's GRC platform is a highly configurable solution that meets organizational requirements, and provides a balance between qualified and quantified data, all of which can be normalized and reported on across the entire organization.
Cura Quants - Is a quantitative modeling solution designed to integrate with the existing Enterprise GRC Platform. Cura Quants enables customers to quickly and easily quantify the impact of capital and project related risks as well as the effects of accompanying treatment strategies.
Dymonda - Dymonda is a software tool that enables Dynamic Flowgraph Methodology (DFM) modelling and analysis. The model explicitly identifies the cause-and-effect and timing relationships between parameters and states that are best suited to describe a particular system behavior.
EasyRisk Manager (ERM)
EasyRisk Manager
EasyRisk Manager is a web based qualitative risk management tool, developed by the Det Norske Veritas .-The history of EasyRisk:1988 Initial project between Norwegian Armed Forces, Aérospatiale and DNV....
, Web based project (PRM), business (BRM) and enterprise risk management (ERM), highly extendible to relate risk to any business model (KPIs, compliance, RBS, WBS etc.). Process and action follow-up, BowTie for cause effect analysis, mainly qualitative, with quantitative extensions.
Resolve by RPM - Cloud software toolbox to manage, track and audit processes associated with risk and safety areas within corporations.
IBM
IBM
International Business Machines Corporation or IBM is an American multinational technology and consulting corporation headquartered in Armonk, New York, United States. IBM manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in areas...
OpenPages
OpenPages
OpenPages was a Waltham, Massachusetts-based company providing Governance, Risk, and Compliance software and services to enterprise customers primarily in the financial services industry. Founded in 1996, OpenPages has more than 200 customers worldwide including Barclays, Duke Energy, and TIAA...
GRC Platform - Integrated enterprise governance, risk and compliance solution that includes modules for operational risk management
Operational risk management
The term Operational Risk Management is defined as a continual cyclic process which includes risk assessment, risk decision making, and implementation of risk controls, which results in acceptance, mitigation, or avoidance of risk...
, policy and compliance management, financial controls management, IT governance, and internal audit management
IBS CompliantPro ERM - A web-based, configurable platform providing a workflow and repository for organizing and simplifying the management of an enterprise's operational risk information and activities.
Methodware
- Methodware's ERA is a GRC solution that is a scalable,and flexible tool to automate,identify and track risk across departments, regions, and business units effectively.
Operational risk management
Operational risk management
The term Operational Risk Management is defined as a continual cyclic process which includes risk assessment, risk decision making, and implementation of risk controls, which results in acceptance, mitigation, or avoidance of risk...
- The continual cyclic process which includes risk assessment, risk decision making, and implementation of risk controls, which results in acceptance, mitigation, or avoidance of risk.
PIMS Risk Is a complete risk framework for identifying, analysing and evaluate threats and opportunities. Created for and used by major companies in oil and energy sector.
Probabilistic risk assessment
Probabilistic risk assessment
Probabilistic risk assessment is a systematic and comprehensive methodology to evaluate risks associated with a complex engineered technological entity ....
(PRA), Probability Consequence (P/C) or Probability Impact Model - Simple model where estimates of probability of occurrence are multiplied by the consequence (cost, schedule delay, etc.). This is the most common tool, examples are RiskNav and RiskMatrix.
PROMS-MC: PROMS-MC is a low cost, easy-to-use software application for Project and Risk Managers to use as a dynamic tool to record, analyse, monitor, manage and report project risks and opportunities. PROMS-MC is annually licensed per project, not per user. PROMS-MC is accessed through user-friendly graphic interfaces and can be used for both qualitative and quantitative analysis. PROMS-MC requires no architectural changes to existing IT infrastructure and is appropriate and scalable for use on small, medium and large projects. PROMS-MC captures a complete audit trail of each risk and opportunity from inception to closure. PROMS-MC is a genuinely complete off-the-shelf product.
Reference class forecasting
Reference class forecasting
Reference class forecasting is the method of predicting the future, through looking at similar past situations and their outcomes.Reference class forcasting predicts the outcome of a planned action based on actual outcomes in a reference class of similar actions to that being forecast. The theories...
– Predicts the outcome of a planned, risky action based on actual outcomes in a reference class of similar actions to that being forecast.
RiskAid products - collaborative web/intranet-based risk management software environments for projects, operations and Enterprise Risk Management (ERM), developed by Risk Reasoning.
RiskAoA
RiskAoA
RiskAoA is a United States Department of Defense project Risk Management tool, allowing the instantaneous review of portfolio , proposal or alternatives Risk. It was designed by Air Force Research Laboratory Headquarters to perform predictive risk analysis for the Analysis of Alternatives ...
– A predictive tool used to discriminate between proposals, choices or alternatives, by expressing risk for each as a single number, so a proposal's trade-space between cost, scheduled time and risk from its desired characteristics can be compared instantly. RiskAoA and variations of PRA are the only approved tools for United States Department of Defense
United States Department of Defense
The United States Department of Defense is the U.S...
Military Acquisition
Military acquisition
Military acquisition is the bureaucratic management and procurement process dealing with a nation's investments in the technologies, programs, and product support necessary to achieve its national security strategy and support its armed forces...
.
RiskComplete - Tracks project risk from planning approached to measuring tasks, from concept to manufacture.
RiskIssue.com - An online risk management tool for business, projects, teams and processes.
RiskLike'Con - A free probabilistic risk assessment
Probabilistic risk assessment
Probabilistic risk assessment is a systematic and comprehensive methodology to evaluate risks associated with a complex engineered technological entity ....
tool. Displays risks in the industry-standard matrix; Probability vs. Consequence.
Risk register
Risk register
A Risk Register is a Risk Management tool commonly used in Project Management and organisational risk assessments. It acts as a central repository for all risks identified by the project or organisation and, for each risk, includes information such as risk probability, impact, counter-measures,...
- A project planning and organizational risk assessment tool. It is often referred to as a Risk Log.
RiskPath - An improvement of RiskAoA, available to the public, where forecasts are quantified for each alternative.
Safety case
Safety case
A safety case is a structured argument that presentsevidence that is intended to demonstrate that a system issafe. More specifically, a safety case aims to showthat specific safety claims are met....
- An assessment of the potential risks in a project and of the measures to be taken to minimize them.
SAPHIRE
SAPHIRE
SAPHIRE is a probabilistic risk and reliability assessment software tool. SAPHIRE stands for Systems Analysis Programs for Hands-on Integrated Reliability Evaluations. The system was developed for the U.S...
- A probabilistic risk and reliability assessment software tool. SAPHIRE stands for Systems Analysis Programs for Hands-on Integrated Reliability Evaluations.
SCHRAM - The Schedule Risk Assessment Manager; allows the generation of risk-adjusted schedules; the time of least risk, consequence of rushed/broken schedules. Allows realistic planning based on operational realities.
STREAM - Is a user-configurable enterprise GRC software platform, with the base platform available for free. STREAM became the first Information Security Forum
Information Security Forum
The Information Security Forum is an independent, not-for-profit association of leading organizations from around the world. It is dedicated to investigating, clarifying and resolving key issues in information security, and developing best practice methodologies, processes and solutions that meet...
compliant product.
TRIMS - Provides insight as a knowledge-based tool that measures technical risk management rather than cost and schedule.
Unified Risk Assessment and Regulatory Compliance - A standards based end-to-end comprehensive cloud service from Unisys
Unisys
Unisys Corporation , headquartered in Blue Bell, Pennsylvania, United States, and incorporated in Delaware, is a long established business whose core products now involves computing and networking.-History:...
that performs model based risk assessment and also provides a real time dashboard for Regulatory & Policy Compliance traceability
Traceability
Traceability refers to the completeness of the information about every step in a process chain.The formal definition: Traceability is the ability to chronologically interrelate uniquely identifiable entities in a way that is verifiable....
and transparency
Corporate transparency
Corporate transparency is set of information, privacy, and business policies to improve corporate decisionmaking and operations openness to employees, stakeholders, shareholders and the general public. Standard & Poor's has included a definition of corporate transparency in its aimed at analysis...
.
Xero Risk - Web based enterprise risk governance tool to identify, track and balance risks across an organization using user definable assessment and impact criteria.