Manual Management Vs Risk Management Software| A Comparison Guide

Risk Management Software

A risk management software program offers a self-reporting feature that enables third parties to conduct their own risk assessments. A risk management system is an integral part of corporate management. 

These systems can help identify your most significant risks. Additionally, risk management systems enable you to analyze risks across your entire infrastructure, evaluate existing mitigation efforts to mitigate potential risks, and determine which remediation steps remain uncompleted.

Further, documentation is a crucial part of risk management. Data collection and analysis are essential to completing this documentation, either using software or by hand.  In comparison to manual methods, automated processes can deliver several benefits. Also, this software can play a vital role in the Business loan Underwriting process

Benefits Offered By Risk Management Software

Risk management software identifies gaps in your compliance program and compliance demands. Budgeting can be made easier with the assistance of this information. Other benefits include

  • They organize documents with a centralized repository and metadata search functions.
  • There is a clear definition of tasks, roles, and activities throughout the company.
  • There is a set of compliance rules integrated into the system that ensures compliance with the regulations and legal requirements. The standardization of processes is one way of avoiding waste and simplifying the collection, processing, and implementation of data.
  • Management can make decisions based on real-time data and reports.
  • Software for risk management tracks third-party relationships continuously for security breaches, compliance concerns, and areas of risk. During an emergency, businesses have the ability to react quickly and minimize the level of damage suffered. 
  • It’s easier to spot trouble before the issue gets out of hand.
  • There are limited distractions and improved day-to-day operations.
  • Software for risk management can design, build, and publish intelligent questionnaires in order to gain an understanding of consumers, suppliers, vendors, and agents when establishing new business relationships.

Choosing Between A Manual And An Automated Risk Management Process 

Listed below are the key differences between manual processes and automated processes. 

ParametersManual processAutomated process
Human participationAdding, editing, updating, and rechecking data require human effortRebates are calculated accrued, and allocated automatically
Error ReportingWhen an error is found, manual revisions and approvals are requestedAn email notification system that is proactive in reaching out to internal team members and trading partners
Keeping a recordEasy to falsify the dataSystem logs all actions with accurate time and date
InteractionsVerbal communication or in writingThe tool keeps a record of all communications 
ComplexityA tedious and lengthy processCentralized platform makes it easy and shorter
AccuracyData complexity and key person dependencies trigger human errorA real-time information, minimizes errors
Protecting the informationA lot of paperwork and documents  pose a security riskMore secure data with cloud storage and password protection
ScalabilityPerformance issues occur as data grows. E.g. When the spreadsheet loads and calculates slowly Multi-stakeholder transaction management and service
Approval ProcessesTime-consuming processFast approval with automated collaboration platform
Monitoring and reportingTime-consuming report generationThe software generates detailed reports
ProductivityCreating spreadsheets may be frustrating or individuals may waste time on low-value activitiesThey can focus on high-value work

The Business Loan Underwriting Process

Underwriting is not only important for mortgages and personal loans. It also applies to small business loans. The lender decides whether your business is capable of getting financing or not. This underwriting also tells at the rate of interest.

When lenders are underwriting small business loans, they look for three things to determine the eligibility of borrowers:

Lenders confirm if your business is financially stable and can pay back the loan plus interest. 

Further, they ensure that you will meet your financial obligations and make your payments on time. 

Lastly, lenders want to know if your business can withstand an unforeseeable event, like a fire, economic recession, or other disruption of revenue. 

With the business loan underwriting process, lenders can better predict how your business will fare when it comes to making payments. The options you qualify for will depend on how much you scored. 


Risk Management software provides the capability to capture, analyze, and evaluate risks. The use of this software is essential for integrated risk management due to its benefits. These software tools are also crucial for the business loan underwriting process.

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