Gartner Magic Quadrant for Operational Risk Management Solutions review

Gartner Magic Quadrant for Operational Risk Management Solutions review

Mar 1st, 2017

In this Gartner Magic Quadrant for Operational Risk Management Solutions review, we try to go a tad deeper in the analysis.

Gartner Magic Quadrant for Operational Risk Management Solutions review

We really appreciated the precise definitions of ORM (Operational Risk Management), IRM (Integrated Risk Management) in the Market Definition/ Description.Gartner Magic Quadrant for Operational Risk Management Solutions review

The sub-headings describe the “specs” that ORM/IRM applications should offer although we found, like usual, that the glossary and the definitions could receive more attention. We find it also hard to accept that the specs cover lists of features, but no true “operational questions” answering capabilities like, for example: i) what will be my business interruption, ii) how much should I insure for this or that hazard. In other words, we find the specs deliver “theoretical lists of features” and not “performance capabilities the buyer will require”.

The Magic Quadrant for operational risk management applications uses two metrics:

  • horizontally: completeness of vision
  • vertically: ability to execute

The publication has an excellent description of the evaluation criteria used for the comparisons, divided in sub-classes.

Riskope’s point of view

We know that when it comes to ORM the devil is in the details. Strengths/cautions points described in the paper are important and valuable but will certainly not tell you if the product is capable of answering important questions your company may have.

We would certainly not consider any of the described evaluation criteria, namely:

  • Ability to Execute
  • Completeness of Vision

as sufficient to understand if the software deliver any support in describing risk tolerance or if they allow sophisticated queries into the risk and hazard register so as to properly evaluate mitigations, etc.

Conclusion

The Gartner Magic Quadrant for Operational Risk Management Solutions review is a very interesting general comparison between solutions providers. However, please, do not use it to screen a solution!
If you are serious about finding an operational solution, start instead the opposite way:

  • why do you need a solution (what are the unanswered questions in your company, organization),
  • how you intend to present it to the selected stakeholders you have and finally,
  • what kind of answer you’d like to have.

We can assure you that “your own Magic Quadrant” will have “Vendors Added and Dropped” and a bunch of smaller companies.

Contact us to learn mORE!

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