Smart Innovators: Operational Risk Management Software

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Executive Summary

This report provides operations, production and safety managers with a high-level assessment of the emerging category of operational risk management (ORM) software. Lost revenues, regulatory fines and costly reputational damage caused by accidents and shutdowns has resulted in Board-level risk committees looking for better risk controls at the operational level. The combination of enterprise-class ORM software, dynamic digital twin models, internet-connected equipment and graph databases provides the solution. To help operations managers identify potential vendors this report compares 22 ORM software providers, identifies each vendor’s strengths and weaknesses and charts the future course of an ORM reference architecture. Vendors are converging on the market with different product strategies and at present buyers will not find a single ORM software application that meets all usage scenarios globally. The next generation of ORM solutions will be built on a product architecture which permits the rapid creation of asset-level risk models.

Table of contents

Smart Innovators: Operational Risk Management Software
Operational Risk Management Is Moving Up The Corporate Agenda
Recent Innovations Position Technology As A Valuable Support For Operational Risk Management

Introducing The Operational Risk Management Software Market
Vendors Converge On The Operational Risk Opportunity From Different Directions
Operational Risk Management Software Has Nine Primary Capabilities 
Buyers Will Struggle To Find A Single Vendor With A Globally-Applicable ORM Application

Product Architecture Innovations Will Determine Which Vendors Win

Table of figures

Figure 1. Innovations Increase The Potential Of Technology For Operational Risk 
Figure 2. Vendors Converge On Operational Risk Management With Different Capabilities
Figure 3. Vendors Anticipate Double Digit Growth In ORM Software Sales
Figure 4. Operational Risk Management Software Capabilities Assessment 

About the authors

Divina Li

Analyst

Divina is an Analyst on the Environment, Health and Safety and Operational Risk practice groups. Her current research agenda includes software innovations to support operational risk management as it relates to physical assets. Prior to joining Verdantix, Divina worked at Institute for Policy Integrity, a nonpartisan think tank, calculating environmental regulatory costs, and at the United States Forest Service. Divina holds a BA in Environmental Studies at New York University.

David Metcalfe

CEO

David is the CEO of Verdantix and co-founded the firm in 2008. Based on his 20 years of experience in technology strategy and research roles he provides guidance on digital strategies to C-level executives at technology providers, partners at private equity firms and function heads at large corporations. His current focus is on helping clients understand their market opportunity tied to ESG investment trends and their impact on corporate sustainability strategies. During his 12 years running Verdantix – including 4 leading the New York office – he has helped dozens of clients grow their businesses through fund raising, acquisitions and international growth. David was previously SVP Research at Forrester and Head of Analysis & Forecasting at BT. He holds a PhD from Cambridge University and also worked as a Research Associate at the Harvard Business School.

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