The Future of Risk Software

In the ever-evolving landscape of risk management, the tools and platforms we rely on today may not be sufficient for tomorrow. This became strikingly clear during two recent conversations with seasoned risk professionals—leaders actively shaping the future of risk disciplines in Australia and abroad.

We find ourselves at a crossroads, with legacy risk management, GRC, compliance, and safety platforms facing the harsh reality of perpetual change. Some platforms have been used for over two decades, yet many are still transitioning to cloud-based services. But the question isn’t just about moving to the cloud; it’s about adaptability. How many systems can aggregate risk across multiple business areas, providing decision-makers with relevant, actionable insights?

Consider this: how many platforms can effectively manage new and emerging risks, particularly in the cyber domain? Cyber risk is no longer a standalone concern; it intertwines with third-party risk, supply chain vulnerabilities, and the complexities of threat intelligence. Can your current system stretch far enough to provide a single, comprehensive view of risk, or are you left piecing together disparate data points?

Is No-Code and Low-Code the Answer?

As the conversation continues, the idea of no-code and low-code platforms surfaces. These technologies promise agility and user-friendliness, but are they the silver bullet for risk management? Before investing in any solution, please ask yourself: How well do you know your software provider? What does their roadmap look like, and does it align with your strategic goals? More importantly, will their solution enable your business to reach your desired risk maturity rating?

The Challenge of Achieving and Maintaining Risk Maturity

When considering risk management software, one critical factor is whether it will enable your organisation to achieve—and maintain—a high level of risk maturity. Many businesses strive to move from a level 3 maturity, where risk processes are defined but not fully integrated, to levels 4 and 5, where risk management is optimised and embedded across the organisation.

However, this journey isn’t linear. The maturity assessment itself can often feel like a moving target, especially as external factors shift and new risks emerge. As you progress, what worked at level 3 might not suffice for the complexities of level 4 or 5. For instance, integrating cyber risk and third-party risk management into a holistic view may require new capabilities that your current platform doesn’t offer.

Moreover, achieving a higher level of maturity often requires better tools and a cultural shift within the organisation. The software you choose should support that shift, enabling continuous improvement rather than just checking the boxes. If your platform can’t evolve with your needs, you may plateau before reaching that elusive level 5.

The question then becomes: How adaptable is your chosen risk management solution? Does it provide the flexibility needed to address the ever-changing risk landscape, or will you need to reassess and reinvest sooner than anticipated?

The Role of AI and Best-of-Breed Solutions

Artificial Intelligence (AI) is another topic that’s impossible to ignore. AI can enhance risk management by automating data analysis and providing predictive insights. But what part does it play in your overall strategy? Should you invest in best-of-breed risk solutions for discrete functions and then integrate them, or is a more holistic approach necessary?

And what about those companies on an acquisition spree, snapping up software by the dozen? How do they manage the convergence and overlap of multiple platforms, each with its own strengths and limitations

A Call for Strategic Thinking

These are the questions that risk professionals around the world are grappling with, and the answers aren’t always clear. Simon Levy GAICD, MRMIA of the RMIA - Risk Management Institute of Australasia , is discussing these issues, and it’s a topic of conversation at risk leadership forums across the globe. But as you contemplate your next investment in risk management, consider where your company will be in five years. Your decisions today will have a tangible impact on your future risk posture.

With perpetual change, where standing still means falling behind, your approach to risk management must be as dynamic as the risks you face. So, before you commit your resources, take a moment to reflect. The landscape will continue to shift—will your risk management software be able to keep up?

Let’s keep the conversation going. Where do you see the future of risk management software heading?

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