nterprise Risk Management (ERM) has become significantly more complex and dynamic in recent months due to cyber threats, new regulatory requirements, ESG, and volatile markets. A data-driven ERM software and a shift from error-prone spreadsheets are now essential to navigate the company efficiently through various risks.
In this article, you will receive an extensive guide for selecting risk management software with tips and tricks from practice, so you start with the right tool and build excellent processes around reporting.
Furthermore, we share with you our expertise from hundreds of matchings for medium-sized companies and corporations in the context of an individual software selection, where you efficiently gain an overview of the most relevant providers for you.
If you are already well versed in risk management, have heard of our free matching service, and want to start the selection process for a risk management tool according to your criteria directly, here's a shortcut.
Risk management has gained significant relevance in recent years and months. In addition to the long-existing legal obligations under the KonTraG, since 2021, new requirements for continuous risk analysis have arisen from the liability risks under StaRUG.
However, the current dynamics are shaped by two areas that recently bring extensive new requirements: Cybersecurity and ESG. The requirements related to cybersecurity to protect business-critical systems against cyberattacks and the use of AI within the company have significantly increased the risk exposure. Additionally, new regulations in sustainability management such as CSRD, CSDDD, EUDR, EU taxonomy, etc., have emerged. Environmental, Social, and Governance risks form a new, highly complex field.
This means numerous additional regulations for you that you must keep track of and continuously review. To efficiently set up risk management and transfer potential dangers into an automated monitoring system, many companies are currently seeking a software solution.
Let’s take a look at the market, criteria, and further information that will support you in the search for risk management software according to your individual needs.
The market for risk management tools has significantly evolved in recent years. Some listing portals list over 1,000 ERM software providers worldwide. Particularly due to the increased demand arising from the aforementioned current areas and the new opportunities through AI solutions, numerous new providers with a – mostly specialized – offering have established themselves in the market recently.
If you want to replace an existing ERM software or are even a newcomer, you face a mountain of information in the provider selection process at the start. Let’s try to climb it together and take a first categorization:
In general, we categorize the risk management tools into these three categories shown in our matchings. The categorization emerged from various match requests from companies in all sectors and sizes.
Primarily it must be clear which risk areas are to be supported with the ERM software. Depending on the industry, some areas are so highly regulated that they are exclusively focused on monitoring. For example, some ESG software solutions already offer a corresponding warning system specifically for sustainability reporting requirements. Once the risk areas have been identified, the question of the second software categorization (software type) becomes clear.
A GRC software or suite offers solutions for the overarching framework. It deals with corporate governance, compliance with regulations, and risk management. ERM software focuses specifically on risk management and is therefore a component within the GRC approach.
While GRC looks at the big picture, ERM specifically addresses the identification, assessment, and management of risks – not just in terms of compliance, but also strategically and operationally.
A comprehensive GRC software is not necessary from a cost and scaling perspective for all companies or may not be sufficiently deep in a specific risk management area – even in highly regulated industries, an industry-specific ERM software is necessary. In practice, mid-sized companies usually start with a risk management solution, add a compliance software, and thus gradually build up their GRC tech stack. This combination can be executed by multiple vendors, interfaces, or modules of a single software.
A third categorization is the size of the company the tool targets, as there are now also risk management software solutions that focus on smaller companies with a reduced range of functions. Here, the budget naturally plays a significant role.
An ERM software is used to aggregate all risks in process management, create clear structures, and design internal workflows to avoid or minimize the likelihood of risks occurring.
The following tasks are among those facilitated or taken over by the functions of an ERM tool:
Automatic Monitoring of Your Risks
The function of the software that effectively saves you the most manual resources is the monitoring of existing and identification of new risks within the company. This includes dashboards, automated reporting based on predefined areas, and alert functions for all types of acute threats.
Measures Management for Risk Minimization
The management of workflows, audits/interviews, and workshops for risk minimization are documented in risk management software. Predefined forms are created for both audits and interviews, ensuring your quality management and are automatically sent to the risk holders in the company and documented in the right place in the risk system. It also tracks when necessary workflows have been completed.
Consistent Data and Data Processes
By using ERM software, you minimize the risk of human errors in data collection and processing. The automated processes ensure continuity and accuracy of all data, leading to reliable alert systems. AI usually supports you with standard processes nowadays.
“Up to date” on Regulation Matters
The regulatory requirements for your company are constantly evolving. You can assume that necessary changes in laws and related reporting requirements and deadlines are directly incorporated into the system by properly selected software providers, so you no longer have to monitor them precisely yourself.
Transparency and Trust from Stakeholders
Risk management is an important aspect for your stakeholders. Transparent and standardized risk reports give investors and customers, especially in the areas of ESG and cybersecurity (currently the EU AI Act), the assurance that your company proactively manages risks and pursues sustainable and secure business processes.
Personal Sparring and Security
Nothing technical, but from our experience, a very important function that the cooperation partner takes over: Most software providers ensure, with continuous knowledge transfer into their frameworks and platform support assistants, that you always consider all essential risks.
The selection of the right ERM tool provider and relevant features for you is crucial for management that can grow with your company and develop flexibly. Both the software and the provider’s team will have a significant impact on how efficiently workflows are set up for you. Here are some crucial criteria to consider when making your selection:
Prefilter references and industry-specific risk catalogs
Providers of ERM solutions have different focuses regarding industries, company sizes, types of reports, etc. Filter out the providers that have already implemented projects with companies similar to yours to leverage existing risk catalogs.
Data, visualization, and data protection
ERM tools should be able to capture, manage, and analyze large amounts of data/data points. Dashboards for visualizing risks should provide a clear, intuitive presentation of the key metrics to enable quick decisions and identify potential threats early. Additionally, you should ensure that the risk management software protects sensitive data, adheres to high data protection standards, and complies with legal requirements such as the GDPR.
Integration / Interfaces
The integration of already existing systems should be an important criterion for companies with a complex IT landscape. Seamless data transfer and synchronization between different data sources simplify workflow and avoid redundant work. This also includes the simple integration of your various Excel sheets.
Compliance / Reporting Standards
In the context of reporting, it concerns the liability risks of management regarding legally compliant statements (keyword: duty of legality). Check if the software meets current and upcoming reporting standards, offers audit trail functions, and what methodology is generally used in the structure setup.
Adaptability to your risk structures
No risk management program is like another. Most providers offer excellent standard features, but not all allow them to be configured. However, processes must be adaptable to your specific requirements to map a risk assessment system in the software entirely according to your needs. This applies to the onboarding process as well as ongoing operations.
To support you in identifying the right providers for you, we ask in our Match Assistant for Risk Management Tools at the end of this article for the essential criteria.
The investment costs for an ERM software, like most prices in the tech sector, cannot be generalized, and there are only standard prices in the SME sector. In the offers submitted through our platform, the following parameters were decisive:
Number of software users Number of risks Type and number of frameworks used Organizational structure of the company
Example: ERM software costs for a mid-sized company
The evaluation of our previous matchings for mid-sized companies over the last two years results in a price range for a risk management software from 6,000 euros to 52,000 euros.
Our recommendation: For a non-binding budget estimation, simply fill out our ERM software match assistant and receive an initial price indication from selected tool providers on the matchboard.
Risk management has evolved into a distinct discipline that must be effectively monitored and controlled with specifically selected internal and technical structures at your company. Clearly: After implementation in your company (this does not mean on-premise), software saves manual resources through optimized processes and thus internal or external personnel budgets.
In risk management, however, the component of cost savings is added, which is realized by avoiding impending penalties through the use of software. Here, cost amortization can occur faster than expected. If operationally threatening risks are in monitoring, an ERM software can even technically become the savior of the entire company.
In principle, a risk management software can be classified like an insurance policy. Risks such as penalties, legal violations, currency risks, and similar threats are actively avoided.
The investment in an ERM software saves resources in the short term and generates additional potential in the long term.
As you can see from this article, we have been screening the market for risk management tools for a long time. Our database contains the most relevant software providers for the German-speaking region – backed with hard and soft factors such as functions, modules, standards, interfaces, industry expertise, prices, etc.
You now benefit from this unique market overview as well as our gained expertise from over 500 matchings for SMEs and corporations from various industries: We accompany you from the risk management software criteria catalog to the final provider selection and save long market research.
Through our individual ERM matching, we determine on a shortlist (which we call Matchboard) the three providers of software solutions that best fit your situation. The best part: This comparison of risk management-tool providers is for you non-binding, free of charge, and anonymous to the providers.
If you want to know which ERM solution best fits your requirements, take the time and fill out the Match-Assistant now!
We look forward to matching with you!
The approach of Matchilla is brilliant: I no longer have to laboriously research consultations and software providers and struggle through many comparison portals - the suitable providers basically come to me - with an effort of only a few minutes. The matching process saves us a lot of resources.
The search for suitable ESG service providers is simple and super-fast with Matchilla. We specified our requirements, and after a few days, the results were in. Through this process, we received information about providers we had not heard of before. A real added value.
Through Matchilla, we conveniently open up to impulses from new service providers that were previously outside our radar. Our search entries are matched with a database, but the final proposals are in the hands of the Matchilla team. The result: High quality and strong service!
We have comprehensively explained how dynamically the ERM software market is evolving in this article. The research of provider options and the selection process are complex and complicated.
The structured matching process you undergo with us has already been successfully implemented for many companies (mid-sized and large enterprises), and we are familiar with virtually every scenario in the search for ERM providers. We have the best-maintained database of software solutions in the German-speaking region.
With this market overview combined with our personal expertise, you gain an immense knowledge advantage that not only saves you tedious research work but also leads you to the right provider in a structured process via the Matchilla platform.
The service from Matchilla is free of charge, without obligation, and anonymized towards the providers. The individual assessment to select the best software for you, as well as providing extensive insights, is funded by the platform fees of the providers. Generally, we are not in a paid contract relationship with you; the selection is, of course, up to you, as is the termination of the matching process at any time.
Simply start by filling out the Match Assistant for ERM software. This gives us an initial insight into your requirements. We will contact you personally if further specifications are needed. This sharpens the selection criteria, and in addition to standard data, we add other individual decision factors into the matching process. With the aggregated information, we create the Matchboard on our platform with the most relevant tool providers for you.
The Matchilla platform can be used for an official invitation to tender for ERM software. In addition to the existing information about the providers, you also collect the respective offers that comply with your compliance regulations directly on the Matchboard. Using the invite function, you share the offers not only with the procurement team but optionally with all process participants in the company.
Moreover, Matchilla creates an individual supplier competition for your single match request, where the prices become more comparable and negotiable for you. This will please both the procurement team and the boss!
Our selection process is based on an efficient combination of data, algorithms, and a good portion of personal expertise. Due to the number of successful matching processes, our data foundation is unique. Additionally, no Matchboard is released without one of our experts adding their input. Even companies that have already spoken with several providers are surprised by even more suitable options that have not yet been researched.
After creating the Matchboard, we also accompany you in the provider discussions, jointly adjust your requirements if necessary with new insights, and are always approachable for you until we have jointly identified the right software for you.
Understand Matchilla as a neutral sparring partner in this software selection process. We want your company to use the Matchilla platform’s services in future searches for service providers. Therefore, we are very interested in ensuring you not only access an excellent procurement process but also always find the best possible providers through us.
Try it/us out without obligation: We look forward to the matching!
René Kühn is the founder and CEO of Matchilla. With experience from over 500 matchings for medium-sized companies and corporations, he and his team were able to build one of the best market overviews for service providers on the platform.
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