StratexSystems’ Microsoft SharePoint™ based Enterprise Risk Management solution is unique. While other risk management software offers part of the solution, StratexSystems has developed a complete solution; integrating performance management and risk management into a comprehensive software solution.
StratexSystems used the strategic management system of the balanced scorecard, alongside COSO BS31100, ISO31000 and ISO31010 framework to create a Microsoft Certified Risk-Based Performance management software solution – StratexPoint.
The approach we take focuses on clarifying the organisational objectives and the level of risk (Appetite) required to achieve those objectives. Using Microsoft’s SharePoint™, we have produced a user-friendly, enterprise-wide, technology solution that allows risk taking to be monitored and optimised on a day-to-day basis.
StratexSystems understands that in order to keep tabs on strategy management, enterprise risk management (ERM) and enterprise performance management (EPM), the software solution must be integrated using conceptually sound methodology, and suited to every user.
When considering risk management, organisations often deliberate the following questions: How important is the Balanced Scorecard in business? How important is Enterprise Risk Management in business? How does the integration make a difference?
In a series of blogs, three often talked about approaches to integrating risk management and the balanced scorecard (the Theme Approach, the Perspective Approach and the Indicator Approach) are considered and evaluated, before introducing StratexSystems’ Appetite Approach.
- The Theme Approach looks at the pros and cons of simply adding a Risk Strategic Theme to the existing Balanced Scorecard.
- The Perspective Approach considers why adding a Risk Perspective to an organisation’s Balanced Scorecard is not enough.
- The Indicator Approach evaluates the most common approach to integration, in which key risk indicators (KRIs) are added to each objective alongside existing key performance indicators (KPIs). The blog on this approach explains why it is a sub-optimal business solution.
- The innovative Appetite Approach brings together strategy, performance and risk management, to form a ‘Risk Appetite’. This blog entry considers why this approach offers the most comprehensive business solution.
To read more thoughts on the four approaches to integrating Risk Management and the Balanced Scorecard, and to complete our survey about your organisation’s employment of various Risk Processes and Solutions, please visit www.riskbasedperformance.com
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