Features in Enterprise Risk Management Systems
for Risk Management
Comprehensive platforms that provide an integrated view of all risks facing the pension fund, including tools for risk identification, assessment, mitigation, and reporting across multiple risk categories.
We ask vendors to mark their product against our feature list. It is not available for all products and in some cases we have derived data from publicly available sources. The list of features follows. Vendors can add a further 10 key features of their own.
Audit & Regulatory Compliance
Assures stakeholders that the system facilitates compliance audits, regulatory reporting, and adapts to regulatory changes.
- Audit Trail for Regulatory Activities
- Complete record of regulatory activities and changes.
- Automated Regulatory Reporting
- Pre-built tools and templates for regulatory filings (e.g., IORP II, Solvency II).
- Change Management Logging
- System logs all configuration changes for auditability.
- Compliance Evidence Repository
- Central store for documents recording evidence of compliance.
- External Audit Access
- Portal for external auditors to securely access required data.
- Regulatory Frameworks Supported
- Number of regulatory frameworks natively supported.
- Regulatory Update Alerts
- Auto-alerts for regulatory changes impacting pension funds.
- Role-Based Compliance Reporting
- Generates reports tailored for various compliance stakeholders.
- Update Time for Regulatory Changes
- Time taken for new regulations to be reflected in system tools/templates.
- Version Control for Documents
- Enables audit of changes in key policy or regulatory documents.
Governance & Workflow
Enables governance frameworks, approval workflows, compliance tracking, and alignment with internal and regulatory policies.
- Audit Logging
- Comprehensive logs of all actions for compliance audits.
- Compliance Dashboard
- Dedicated dashboard to track compliance at-a-glance.
- Delegation Management
- Controls for assigning and tracking temporary/standing delegations.
- Exception Reporting
- Reports policy breaches or process exceptions automatically.
- Multi-Level Approval Workflows
- Supports sequential or parallel approvals for risk decisions or changes.
- Number of Concurrent Approval Flows
- Maximum number of approval/review workflows running in parallel.
- Policy & Procedure Tracking
- Tracks publication, acknowledgment, and compliance with policies.
- Regulatory Compliance Templates
- Built-in templates for key regulations (IORP, Solvency II, etc.).
- Role-Based Access Control
- Configurable access rights for users based on their organizational role.
- Workflow Customizability
- Ability to design custom workflows to reflect organizational structure.
Integration & Interoperability
Ensures the ERM system connects smoothly with other internal and third-party systems, including investment management, accounting, and data repositories.
- API Access
- Provides extensive APIs for bidirectional data integration.
- Cloud Storage Compatibility
- Works with major cloud storage services for data archiving.
- Custom Integration Toolkit
- Toolkit for custom integrations where pre-built connectors don't exist.
- Data Import/Export Tools
- Bulk and scheduled importing/exporting of risk data in common formats (CSV, XML, JSON).
- External Data Source Support
- Number of distinct external data sources/platforms natively supported.
- Integration Latency
- Average time taken for data to move between systems.
- Maximum Data Volume per Sync
- Maximum amount of data that can be transferred in each data synchronization batch.
- Open Banking Integration
- Integration with open banking APIs for external data acquisition.
- Pre-Built Connectors
- Ready-made connectors for common financial, actuarial, and CRM platforms.
- Real-Time Data Sync
- Keeps data synchronized across core systems in near real-time.
Performance & Scalability
Capabilities related to system speed, uptime, and ability to scale with users, portfolios, and data.
- Backup Frequency
- How often does the platform back up data.
- Data Retention Period
- Maximum period transactional/risk data can be reliably stored.
- Disaster Recovery Time Objective (RTO)
- Targeted recovery time after an outage or disaster.
- Max Concurrent Users
- How many users can work simultaneously without degradation.
- Portfolio Capacity
- Maximum number of portfolios/accounts the system can manage.
- Real-Time Analytics Support
- Allows analytics and risk calculations to run in real time.
- Scalable Cloud Architecture
- Can be deployed elastically to handle variable workloads.
- System Uptime
- Service availability for users.
- Transaction Processing Speed
- Transactions that can be processed per second.
- Web Interface Response Time
- Average time to load or perform core workflows.
Risk Assessment & Measurement
Tools to quantify, evaluate, and prioritize risks, often using statistical or advanced analytical models.
- Concentration Risk Metrics
- Calculates concentration risk by sector, counterparty, or instrument.
- Counterparty Risk Measurement
- Measures the exposure to counterparties across positions.
- Custom Risk Models
- Enables creation and deployment of proprietary risk measurement models.
- Exposure Calculation Speed
- How quickly risk exposures are calculated in large portfolios.
- Monte Carlo Simulation
- Supports stochastic simulations for risk analysis.
- Risk Aggregation
- Aggregates risk exposures across different dimensions (e.g., asset class, geography).
- Risk Heatmaps
- Visualizes risk assessments in heatmap format for fast comprehension.
- Risk Scoring
- Assigns quantitative risk scores based on probability and impact.
- Sensitivity Analysis
- Evaluates portfolio sensitivity to key risk factors.
- Value at Risk (VaR) Calculation
- Capability to compute VaR for assets, portfolios, and enterprise-level exposures.
Risk Identification
Features that facilitate the recognition and cataloging of all potential risks to the pension fund, across credit, market, operational, liquidity, and other risk categories.
- Automated Risk Association
- Automatically links identified risks to affected assets, processes, or business areas.
- Automated Risk Mapping
- Automatically scans and maps risk exposures across portfolios and processes.
- Custom Risk Taxonomy
- Support for establishing custom risk categorizations tailored to the fund's unique exposures.
- Data Import Integration
- Capacity to integrate data feeds from various internal and external sources for comprehensive risk identification.
- Dynamic Risk Register
- Provides a centralized repository for all identified risks, updated in real-time.
- Early Warning Systems
- Notifies users of emerging risks based on thresholds and predictive analysis.
- External Event Integration
- Links external events/news to internal risk exposures.
- Portfolio Stress Testing
- Ability to stress-test the portfolio for Black Swan or extreme events.
- Risk Event Logging
- Enables the recording and tracking of risk incidents or near-misses.
- Scenario Analysis Engine
- Ability to define and run multiple risk scenarios to identify susceptibilities.
Risk Mitigation & Controls
Features for designing, implementing, and tracking risk controls, mitigation actions, and risk response strategies.
- Action Tracking
- Enables users to assign, track, and monitor the status of risk mitigation plans.
- Audit Trail
- Maintains a searchable log of all mitigation actions and changes.
- Automated Control Testing
- Tools to automatically test and validate risk controls.
- Control Libraries
- Pre-built and customizable control libraries for operational and financial risks.
- Integrated Policy Management
- Connects controls to organizational policies for compliance assurance.
- Mitigation Effectiveness Analysis
- Evaluates and reports the effectiveness of mitigation actions.
- Number of Simultaneous Mitigation Plans
- How many mitigation plans can be concurrently tracked.
- Remediation Alerts
- Sends notifications for overdue mitigation or control failures.
- Third-Party Control Assignment
- Supports assignment of mitigation actions to external service providers.
- Workflow Automation
- Automates the approval and escalation workflows for risk response actions.
Risk Reporting & Visualization
Capabilities to produce, customize, distribute, and visualize risk reports, dashboards, and alerts for diverse stakeholders.
- Alert Management System
- Configurable alerts via email, SMS, or app notification for critical events.
- Automated Scheduled Reporting
- Supports regular, automated generation and distribution of risk reports.
- Custom Report Builder
- Enables creation of bespoke reports drawing from any platform data points.
- Drill-Down Capabilities
- Allows users to click through summary reports to detailed underlying data.
- Graphical Risk Maps
- Geospatial mapping of risks for geographically distributed portfolios.
- Number of Concurrent Report Users
- Number of users who can access and interact with reports at once.
- Presentation Export Options
- Exports reports in multiple formats, such as PDF, PowerPoint, Excel.
- Real-Time Dashboards
- Interactive dashboards displaying live key risk indicators (KRIs).
- Role-Based Access to Reports
- Report access and content customized by user role or permissions.
- Visualization Load Speed
- How quickly large or complex visualizations load.
Security & Data Protection
Safeguards for protecting sensitive data, including encryption, privacy, access control, and cybersecurity features.
- Automatic Session Timeout
- Logs out idle sessions after configurable periods.
- Cyber Threat Detection
- Monitors for and flags suspicious activities and breaches.
- Data Masking
- Hides or anonymizes sensitive information in user interfaces/reports.
- Encryption Key Management
- User-controlled key storage and rotation.
- End-to-End Encryption
- Data encrypted during transmission and in storage.
- GDPR/Privacy Compliance Tools
- Facilitates compliance with GDPR and similar data privacy laws.
- Granular Permissions
- Fine-grained control over who can view, edit, export, or share data.
- Multifactor Authentication
- Strong user authentication via two-factor or multifactor methods.
- Security Patch Update Frequency
- How often security updates/patches are issued by the provider.
- Single Sign-On (SSO)
- Integration with corporate user directories for SSO access.
User Experience & Training
Features that impact system usability, learning curves, accessibility, and user support.
- Accessibility Compliance
- Follows accessibility standards (WCAG, section 508).
- Customizable User Interface
- UI layouts, dashboards, and widgets can be customized per user.
- Customization Time
- Estimated time to customize the platform for an enterprise client.
- Dedicated Support Portal
- 24/7 access to technical documentation and help.
- Implementation Assist
- Personalized onboarding and system setup support.
- In-Platform Guided Tutorials
- Contextual help and walkthroughs available in software.
- Mobile Accessibility
- Optimized and accessible for mobile/tablet devices.
- Multilingual Support
- Available in multiple user interface languages.
- On-Demand Training Materials
- Video, documentation, and e-training modules available.
- User Community Forums
- Online user groups for peer-to-peer support.
Vendor Support & Service Level
Service and vendor characteristics impacting operation, maintenance, upgrades, and downtime.
- 24/7 Customer Support
- Live assistance available at all times for critical queries.
- Average Upgrade Rollout Time
- Average time to deliver major system upgrades.
- Client User Group Meetings
- Organizes regular opportunities for client feedback.
- Dedicated Account Manager
- A single point of contact for enterprise clients.
- Incident Resolution Time
- Average time to resolve support incidents.
- Knowledge Base Completeness
- Extent of up-to-date support, FAQ, and help documentation.
- Onsite/Remote Training Availability
- Direct training options for large organizational rollouts.
- Regular System Updates
- Routine deployment of new features and fixes.
- Service Level Agreements (SLA)
- Clearly defined uptime, response, and issue resolution commitments.
- System Customization Support
- Provides tailoring of the platform for organization-specific needs.