Risk Management Tools - Assignment Example

In the modern era, the growth of business and technology is interrelated and are major contributors to an economy. With the development of technology, different risk factors are attached to enterprises. In this context, different risk management tools are required to be adopted in order to minimize the probability of risks in an enterprise. The spreadsheet is one of the most powerful tools, which help in preventing risk factors. Presently, the spreadsheet is used by companies for important features that include adaptability and flexibility. The spreadsheet provides immediate as well as quick results in a short period. The spreadsheet is also very easy to be configured for personal and professional usage (Protiviti, “Spreadsheet Risk Management”; Rost 1-5).

The spreadsheet is an important application for financial as well as operational reporting procedures in organizations. In this context, the spreadsheet is applied for different purposes that include account settlement, transaction conclusions, and making business models (Protiviti, “Spreadsheet Risk Management”). Additionally, it assists in managing the payroll and other related business operations in an effective manner. In the current complex business scenario, the spreadsheet is used for managing compliance, risk as well as governance (Rost 1-5).

The spreadsheet is also identified to possess certain limitations that can affect the performance of an organization largely. The spreadsheet is unreliable, as unauthorized users can access financial information without approval, which raises security risks. Error in formulas of the spreadsheet can raise disputes for computing financial information (Rost 1-5).

In this context, there should be software related to risk management, which will provide the embedded information with an expert solution. The ‘risk management software’ would manage the risk level associated with the spreadsheet. In this respect, spreadsheets with the integration of risk management software would be effective in managing data with better integrity as well as reliability (Rost 1-5).