A Free Open Source Portfolio Mgt System

A Free Auditing and ERM System

RiskWaves ERM by RCA LLC

RiskWaves is Unique

RiskWaves provides you with the best practice management information system attributes you need to drive the effectiveness and efficiency characteristic of a world class ERM program. Our system was developed to align with ISO 31000 and the ERM Technology Solution attributes outlined in by the RIMS organization. Here is what distinguishes our system:

Enhanced Strategic Context for More Impact
Great strategic thinkers understand that the world does not stand still while businesses reap the rewards of a well-designed strategy. Success attracts new entrants. Outstanding margins invite disruption in the value chain. Globalization and technology also provide a constant source of disruption to the status quo. As a result, companies must adapt and tap the evolving sources of value in their industry's value chain. Consider Apple's market value in 2004 ($22.5B) and 2014 (565.2B). Apple's 25 fold increase in market value did not appear out of thin air. It came from customers, other device manufacturers, and also the wireless carriers themselves. Carriers were forced to contribute a higher percent of service revenue to satisfy customer demand for the iPhone without being able to recoup the higher subsidies from customers. As a result, the value chain saw a shift in market capitalization from carriers as well as device makers to Apple. Risk Managers can add more value to their organization by viewing risks from a value chain perspective.

                                                    Value Chain Framework for Strategic Ledger

                                                                            A Rights and Obligations Approach to Defining Your Risk Universe.

RiskWaves supports this necessity with enhanced strategic contextual attributes. RiskWaves includes a strategic ledger comprising three optional components (see following) to link your risk management actions to your strategic environment.

  • The first component is a value chain framework to document the key elements of your value chain. RiskWaves comes prepopulated with standard value chain elements including environment, inputs (capital, materials, services, labor), systems, policies, processes, outputs, competitors, and customers.
  • The second component is a set of strategic event categories you can use to categorize the key happenings in and around your business. RiskWaves comes prepopulated with the following categories: Rights, Obligations, Opportunities, Threats, Assets, and Liabilities.
  • The final component is the ledger itself. In the ledger, you record the key situations, circumstances, events and activities that represent watershed moments for your business.

The strategic ledger benefits you for several reasons. The ledger provides you with a framework to ensure that implicit objectives are captured in your organization's objective setting process (not all objectives are specifically articulated in the business plan, e.g., safeguarding assets is an implicit objective rarely communicated in annual business plans). Maintaining the ledger provides an added check to verify the presence of key strategic factors in the objectives used as a basis for risk identification. Each objective should be scrubbed against the Value Chain components to brainwash for unidentified risks.

Another benefit stems from your ability to record the applicable Ledger and Value Chain attributes in each Risk record. Doing so enhances the value of your risk reporting. RiskWaves Risk Profile reports include the ledger information. Pivot tables also capture the ledger information giving you a quick means of analyzing your risks, exposures, treatments, costs and residual risks in the context of your value chain. You will find this information invaluable for significantly contributing to your organization's strategy from managing appetite, to optimizing organizational boundaries, to targeting growth opportunities. back

RiskWaves is designed to reduce your total cost of risk
In 2012 the total cost of risk was $0.017 per $1,000 in sales for the average American company, up 5% from 2011 after a mere 1.7% increase in the prior year (source: RIMS). It is imperative for Risk Management Executives to focus on cost effectiveness in addition to leveraging ERM to improve resiliency and deliver more value in the years to come. You will find in RiskWaves a variety of features to fuel a results driven risk management culture. RiskWaves provides instant access to financial gains and losses across counterparties, treatment vehicles, and event classes to help you identify and optimize underperforming strategies. RiskWaves Treatment module provides pre-treatment and post treatment exposures, impact, and residual risk in nominal terms as well as present value as of the treatment start and implementation dates. Treatments also provide potential payback ratios to support policies regarding treatment effectiveness. In the Follow-Up module, RiskWaves provides actual payback ratios as well as return on investment, treatment effectiveness ratings, and captures lessons learned for archiving by keyword.

Reporting includes summaries of treatments as well as follow-ups. The treatment summaries are very useful in assessing the overall impact and cost of treatments, which is provided by risk category, treatment status, and entity and time period. The entity summary is particularly useful in monitoring appetite because it provides risk levels at the entity level before and after treatment, in addition to impact and cost totals. The follow-up summary calculates total actual return in investment for your treatments based on the annualized cost and benefit of each treatment. Counterparty, Treatment Vehicle, and Event Class modules provide a summary report of costs and benefits with individual follow-up details provided below the summary.

RiskWaves also includes dashboards, alerts, and pivot tables with a focus on financial activity. Alerts come preconfigured for detecting variances to target total treatment costs, residual risk levels, and residual risk levels for treatments that have not been closed yet. Additional alerts can be established for any metric you desire using the RiskWatch module. Alerts are based on the entity and time period, and are flagged on the main menu for the currently active entity and time period.  Dashboards provide financial summaries of total exposure, treatment impacts, residual risk levels, and treatment costs sorted by treatment status for all treatments moved past the draft state. RiskWaves also comes preconfigured with four automatically generated pivot tables for quick access to custom analysis and reporting. The pivot tables include a Risk through Treatments pivot that includes strategic dimensions including value chain to help you summarize your risk landscape like never before.

It's Free
As outlined in the ISO ERM Framework, management information systems are an integral part of an ERM program. Systems improve efficiency and quality and maximize process throughput. A system that is priced by user puts downward pressure on user involvement, and can create unneeded obstacles to the successful deployment of ERM. RiskWaves is offered free regardless of the number of system users. License renewals for our system are required after the trial period and can be obtained through email. You will not be charged for a license renewal or the trial period.   back