As Robert S. Kaplan said, “Risk management is a more realistic term than safety”, businesses must focus on managing risks that come with new opportunities.
But, many businesses struggle to balance risk management and industry compliance which affects them sooner or later. However, with custom risk management and compliance software, businesses can duck these types of situations.
This blog explains how you can develop custom risk management and compliance software and manage business risks while adhering to industry regulations like a pro. So, let’s get started!
A Brief Introduction to Risk Management and Compliance Software
Risk management and compliance software are tools that are designed to help businesses identify risks and overcome them while ensuring they adhere to regulatory requirements.
Some popular examples of such software are RSA Archer, SAP GRC, IBM OpenPages, LogicGate, and more.
Businesses use risk management and compliance software to effectively identify and manage risks, such as operational, compliance, financial, cybersecurity, and strategic risks, protecting themselves from their severe effects while simultaneously following the industry standards and regularities.
Why is There a Need for Risk Management and Compliance Software?
Businesses are vulnerable to different types of risks. Some common ones are financial, operational, legal, cybersecurity, and EHS (Environment, Health,& Safety) risks that affect business financials, performance, and reputation in the market.
Many businesses struggle or even fail to overcome these risks as it is quite difficult to manage the risks involved while taking care of industry standards and compliance laws.
Risk management and compliance software, on the other hand, centralizes risk and compliance processes, analyzes them, and provides solutions that help the management team make better decisions to safeguard the business from potential risks and compliance with legal and regulatory requirements.
Step-by-Step Process to Develop a Risk Management and Compliance Software
Developing risk management and compliance software is crucial for businesses these days, as most of them are vulnerable to various risks involved.
Here, we have given a step-by-step process for risk management and compliance software development, making it easier to develop software that is necessary for businesses.
- Define Purpose
For developing risk management and compliance software, businesses should first define the purpose of development. What type of software it requires and with what types of risks the software can help with.
Also, they need to decide on hiring software developers to build the software or outsourcing the project to an offshore development team. Defining all these requirements in advance streamlines the further development process.
- Design the UI/UX
Begin with designing the UI/UX for the risk management and compliance software. Businesses must focus on creating a well-structured and user-friendly user interface to ensure enhanced user experience.
Also, they should add charts, analytics, and other interactive elements to enhance risk management reporting and analysis.
- Develop the Software
After designing, start developing the risk management and compliance software.
Build modules like risk identification, analysis, and evaluation for risk assessment.
Also, create compliance management tools like regulatory requirements tracking, and compliance checklists.
Moreover, develop functionalities for auditing and reporting and integrate third-party services data feeds and compliance updates.
- Testing and Quality Assurance
A business developing risk management and compliance software post-development must perform unit and integration testing to ensure different modules work together seamlessly.
Also, they must gather feedback from the internal team and make necessary adjustments in the software to ensure it perfectly aligns with the requirements.
Furthermore, businesses must take care that the software complies with relevant security standards, such as ISO 27001 and GDPR.
- Deployment and Maintenance
Once testing and quality assurance are done, it’s time to deploy the risk management and compliance software. A business can choose to deploy the software on-premises or on the Cloud.
Once it is deployed, perform the final checks and launch the software. Moreover, it is crucial to continuously monitor the software to identify issues that affect its performance. Upgrade the software to fix bugs, add new features and functionalities, and ensure that it complies with the latest regulations.
Technology Stack for Creating a Risk Management and Compliance Software
Here is the technology stack that you can use to create risk management and compliance software for your business
| Component | Technology Stack |
| Frontend Development | HTML, CSS, JavaScript, React, Angular, Vue.js |
| Backend Development | Python, Java, Node.js, Django, Spring Boot, Express.js |
| Database | PostgreSQL, MySQL (Relational), MongoDB, CouchDB (NoSQL) |
| DevOps | Docker, Kubernetes, Jenkins, GitLab CI |
| Security | SSL/TLS, AES, OAuth, JWT |
| Third-Party Integrations | APIs like Thomson Reuters API, Acuris Risk Intelligence, and Regulatory DataCorp (RDC) for regulatory updates. |
This is a suggested technology stack for developing risk management and compliance software. Please note that it is only recommendations. You can other tools and technologies to create software, that aligns with your specific needs.
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Key Features of Risk Management and Compliance Software
To maximize the benefits of your risk management compliance software, it is essential to integrate key features. Here are the top features you must include:
- Risk Assessment Tools
The core features of risk management and compliance software are risk assessment tools. These tools help users to identify and evaluate potential risks that can cause harm to the organization.
- Compliance Management
The compliance management feature manages compliance with regulatory requirements and internal policies. It also automates the process of updating and distributing compliance checklists and guidelines.
Moreover, this feature helps the organization stay up-to-date with changing laws and regulations.
- Audit Management
The audit management feature in the risk management and compliance software streamlines the audit process and helps businesses track audit findings and recommendations.
This ensures a timely resolution and provides a centralized repository for all audit-related documentation and evidence.
- Reporting and Dashboards
In risk management and compliance software, reporting and dashboards are used to generate comprehensive reports on risk and compliance activities for stakeholders.
This top-notch feature uses real-time dashboards to visualize key metrics and trends and helps organizations make reports and plans to meet the specific requirements of various departments within the organization and regulatory agencies.
- Incident Management
Businesses use the incident management feature to record and manage incidents and near-misses to identify patterns, and based on these patterns, they take necessary steps to prevent similar incidents that may happen in the future.
This feature also automates the incident reporting workflows, ensuring accurate reporting on time. Moreover, it streamlines root cause analysis and corrective action planning that organizations use to tackle any type of incident.
- Document Management
This feature helps organizations organize and control access to all the documents related to risk and compliance.
Organizations can ensure who can access the documents and simplify document retrieval with advanced search features.
- Training and Awareness
Organizations leverage the training and awareness feature to train and educate employees on risk management and compliance requirements.
It provides detailed e-learning modules that help employees get risk management and compliance-related information and awareness.
- Policy Management
This feature helps organizations with creating and distributing policies and procedures across the organization. It is also used to monitor policy compliance and address gaps through automated workflows.
- Third-Party Risk Management
The third-party risk management feature in the risk management and compliance software monitors vendors’ and third-party partners’ risk profiles.
It is used by organizations to conduct due diligence and ongoing evaluations to ensure that it complies with industry best practices and standards.
- Workflow Automation
Last but not least, the workflow automation feature helps businesses automate repetitive tasks and standardize processes to improve efficiency. Moreover, it ensures consistency and accuracy in risk management and compliance activities.
Benefits of Developing Risk Management and Compliance Software
The following are some benefits of developing risk management and compliance software.
- Enhanced Risk Mitigation
The major benefit of developing custom risk management and compliance software is that it enhances risk mitigation.
It helps identify and address potential risks and minimize harms, such as financial losses and operational disruptions.
- Helps Adherence to Regulatory Compliance
By building risk management and compliance software, you can ensure that your business adheres to industry standards and regulations, and avoid fines and legal penalties that may posted against an organization for not following the rules and regulations.
- Helps with Improved Decision-Making
Risk management and compliance software provides real-time data and analytics that help businesses make informed decisions on risk management and compliance strategies.
- Increases Operational Efficiency
Risk management and compliance software helps businesses streamline repetitive tasks and automate workflows, increasing overall efficiency and productivity.
- Strategic Advantage
Last, you can gain a competitive advantage by proactively managing risks and maintaining compliance in rapidly changing business environments, thanks to risk management and compliance software development.
Conclusion
In business, it is crucial to identify and manage risks before they could cause significant harm. But, managing risks would not be sufficient, you need to take care of industry standards and regulations.
If by chance while handling the risks you violate any regulatory standards, it may result in paying heavy fines and penalties. So, what is the solution for managing risk while complying with legal standards?
The solution is a custom risk management and compliance software that aligns with your specific business requirements. It helps you manage different types of risks related to your business while complying with industry standards and legal requirements.
To develop custom risk management and compliance software, you can use the development guide provided in this blog, or contact us. Our team will coordinate with you and build the best risk management and compliance software as per your needs.