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In this conversation between risk management expert Dr. Robert Mark of Black Diamond Risk Enterprises and Waynette Tubbs, Editor of The Knowledge Exchange, the return on investment (ROI) or risks management systems is revealed. Tubbs and Dr. Mark al

The ROI of risk management systems

In this conversation between risk management expert Dr. Robert Mark of Black Diamond Risk Enterprises and Waynette Tubbs, Editor of The Knowledge Exchange, the return on investment (ROI) or risks management systems is revealed. Tubbs and Dr. Mark also discuss difficulties, metrics for measurement, and priorities that along with a healthy risk management system, starting with the barriers encountered when attempting to implement a risk management system. As Dr. Mark explains: The barriers will vary, of course, based on the organization's unique circumstances. But I think the overarching question they're encountering is this: If you're going to invest significant time, energy, finances and talents in improving your ability to make fact-based decisions, that is, reinvigorating your IT infrastructure, what kinds of things are you seeking to obtain in return? Is it the quality of the information? Is it the timeliness — are you moving from weekly to daily data? Completeness is another attribute: what is the value of having the flexibility to drill into the data? What percentage of data is satisfactory from operational and regulatory perspectives? Ultimately, companies need to identify what metrics are most useful for determining ROI within a regulatory context. The interview goes on, exploring what hard and soft metrics are valuable (including project impact , cost and revenue on the hard data side and timeliness, flexibility, and completeness on the soft data side), and how the question “how can we do this quickly” fully depends on the organization that is attempting to implement the risk management system. All in all, the interview points out that determining ROI for risk management systems depends greatly on what measurements are being taken and what value the organization wants to see come from the system. If you don't first determine what a return on investment would be for the system, you can't accurately determine if you are getting that return in the first place.

About Matthew Kabik

Matthew Kabik is the former Editor of Computer Aid's Accelerating IT Success. He worked at Computer Aid, Inc. from 2008 to 2014 in the Harrisburg offices, where he was a copywriter, swordsman, social media consultant, and trainer before moving into editorial.

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