Spreadsheets should be banned from the Risk Management process, says Sword Active Risk
(M2 PressWIRE Via Acquire Media NewsEdge) Sword Active Risk, a supplier of specialist risk management software and services, has published a paper highlighting the risks of relying on spreadsheets within the risk management process. In the paper, Sword Active Risk Marketing Director Keith Ricketts explains why the spreadsheet approach does not work for risk management.
Ricketts states; "Spreadsheets are universally loved. Why, because they give everyone their own version of the truth, with complete autonomy to update and amend them as often as they like. However, while spreadsheets might be a great tool at an individual level they are completely un-scalable, and therefore totally unsuitable for compiling and analysing important information such as Risk data, either at enterprise or individual project level."
"Worst of all," states Ricketts, "is that organisation's using spreadsheets for risk think they have 'ticked the box' when in fact they are probably in a worse situation because they are more complacent, and therefore more susceptible to risks to the business. "
Increasingly risk management is no longer a standalone function. Taking a proactive approach to risk management is becoming ever more critical to success and can deliver major benefits including:
Improved EBITDA - up to three times, according to the Ernst & Young study in 2012
Improved Visibility - Enhanced visibility and accountability builds confidence in the risk management process
Actionable information - supports more effective strategic planning and decision making
Better resource allocation - across the enterprise leads to better asset utilisation
Achieve Goals - Increased ability to deliver capital projects on time and on budget
Better relationships with insurance providers, regulators and stakeholders
Ricketts concludes; "Manual methods and spreadsheet solutions have become the high-risk option for managing risks and are no longer up to the job. Only a true enterprise risk management solution will capture consistent data, provide a single version of the truth, allow access to real-time, trustworthy information and provide the reports required to proactively manage risk and opportunities. ERM can move risk management from a cost to the business to a value-adding process which can make a difference to the bottom line of any organization or project.
For a copy of the paper 'Using Spreadsheets to manage Risk is Risky Business indeed!' please call Andreina West on 01491 639500 or email firstname.lastname@example.org
NOTES TO EDITORS
About Sword Active Risk
Sword Active Risk makes risk management simple, valuable and personal. Sword Active Risk provides the world's first risk management software that drives business performance by enhancing visibility, accountability and confidence at project, program and enterprise levels. Active Risk Manager (ARM) is the first solution available which integrates Risk Management, Cost Management and Schedule Management to show the real impact of risk, to enable better-informed decisions, and the ability to leverage risk to create competitive advantage.
Sword Active Risk is the project risk software provider of choice for the world's leading Energy, Infrastructure and Defense projects, working with organizations like the US Air Force, Bechtel, Crossrail, US Federal Aviation Administration, Lockheed Martin, Rio Tinto and Skanska to manage project risk worldwide.
Sword Active Risk has offices in the UK, USA and Australia, servicing customers worldwide directly and through a growing network of partners.
In September 2013 Active Risk was acquired by Sword Group. For more information please visit:www.sword-group.com
For further information and a detailed view of Sword Active Risk and ARM please visit: www.activerisk.com
Sword Active Risk
+44 (0) 1628 582500
(c) 2014 M2 COMMUNICATIONS
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