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


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


David co-founded Verdantix in 2008 and leads the firm’s research and advisory work on the digitization of Operational Excellence which covers software, systems integration, wearables and drones. Prior to founding Verdantix, David was a Senior Vice President at Forrester Research and Head of Analysis and Forecasting for BT. He holds a PhD from Cambridge University in Game Theory and Decision Analysis and worked as a Research Associate at the Harvard Business School.

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