Risk Management and Spreadsheets

Many organisations are now using spreadsheets to monitor and manage their risks but research suggests that this could be inefficient and impractical for risk managers.

Software, such as StratexPoint, allows risks, that an organisation face, to be clarified, aligned and effectively managed. StratexSystems believe that every business should be able to execute their business strategy whilst operating within an acceptable level of risk exposure. With a series of easy-to-deploy visual tools, like those provided in StratexPoint, risk management can be made more efficient and effective, for any organisation.

The following papers reinforce the view that spreadsheets are not the best risk management tool; throughout the papers, common weaknesses and limitations when using spreadsheets to manage risks, particularly within the financial sector, are discussed.

http://blogs.hbr.org/cs/2010/09/basel_iii_and_the_problem_with.html

http://arxiv.org/abs/0908.4420

http://www.spreadsheetrisks.com/SpreadsheetsLondon.pdf

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