CRAMS - Risk Management Platform
Every business decision is related to risk resulting in a positive or negative impact on enterprise performance. Taken risks could help to gain additional margin if risks assessed and managed properly.
There are four aspects to risk management falling in to two groups reflecting the source of risks (external / internal) and risk treatment strategy (negative / positive). External risks represent threats/opportunities outside the organization whereas internal – risks inside the organization. Timing is a very important aspect of the risk assessment process and reflects when assessment activities are carried out: in real-time during risky activity (on-fact), after activity or transaction has been completed (post-fact), or in advance of risky activity or transaction (pre-fact). The former two reflects a negative risk treatment strategy where as the latter is usually used in positive risk management strategy.
No matter what aspect to management is applied the core element of dealing with risk effectively – as much as possible precise risk assessment. Thanks to the fact that risk assessment is just another type of decision making process, same principles of EDM applies. Systematic approach to decision management driven by EDM helps to assess risks more accurately, resulting in a more effective resource allocation and business process management. Once the risk assessment model has been designed and deployed it should be further evolved over time due to the ever changing business environment. Enhancing risk management processes – continuous activity, which is based on a closed loop understand-prepare-model-evaluate-deploy decision strategy evolvement.
CRAMS is designed as a risk assessment and management platform for solving diverse risk problems across enterprise. The architecture of CRAMS enables to leverage advantages of EDM components for maximizing the quality of risk assessment models as well as to benefit from ECM platform in realizing effective risk management processes.