The 7 Best Risk Management Software 2022

The 7 Best Risk Management Software 2022

March 21, 2022

Exposure to risk is a fact of life for every company, from the smallest sole trader to multinational giants. For the vast majority of organizations, structured risk management is either necessary or recommended in order to minimize losses and boost their potential.

In general terms, everyone agrees that examining and addressing risk is important, and many are putting their money where their mouth is: The risk management market is projected to reach $28.87 billion in value by 2027 – growth of 18.7% over seven years, per Allied Market Research. 

It is quite the umbrella term, though: Risk involves everything from global inflation and geopolitical developments to fraud and scams targeting your company in particular. 

So, how do you choose risk management software and tools? What do you take into account, and which vendors are worth your attention? 

List of the Best Risk Management Software for 2022

  1. SEON: 360-Degree Protection from Fraud Risk
  2. Signifyd: Tailored to US-Based Ecommerce Brands
  3. Riskified: Compliance and Chargeback Guarantee
  4. BioCatch: Advanced Behavioral Biometrics vs Risk
  5. Kount: Ideal for Offline Retail Enterprises
  6. ThreatMark: Safer Transactions & Signups with Biometry
  7. TruValidate (Iovation): Homing In on ID Verification Risk

What Is Risk Management Software?

Risk management software allows an organization to balance risk and reward in its operations, by having a clear view of risks and choosing which frameworks and methodologies are most appropriate to mitigate them – as well as when.

According to the International Standards Organization, the authority behind ISO certifications, risk is defined as “the effect of uncertainty on objectives”. Every business faces risk, and needs to accept and integrate risk. To think otherwise would be unrealistic. 

Efficient risk management starts with choosing which risks are worth introducing into the process, which to mitigate once identified and how, and which to always avoid. And this is done with the help of methodologies, software and tools, including modules and comprehensive platforms.

As an umbrella term, risk management deals with everything from risk of customer-attempted fraud to cybercrime, disruptions, faulty equipment breakdowns, etc. – all subject to a company’s industry and particulars. 

We should also point out that compliance is a key concern adjacent to risk management, and ISO 31000:2018 itself is a risk management standard, providing a framework for managing risk regardless of organization size or sector.

Top Features of Risk Management Software

When choosing a piece of software, the key risk management system features to watch out for depend entirely on your area of activity – as well as your risk appetite. 

For instance, an ecommerce company will want to mitigate financial risk from fraudulent transactions and chargebacks, and would thus have different priorities over a lender focused on assessing loan applicants as accurately as possible.

However, the function of risk management software can be thought of as covering the following general areas: 

  • Risk tracking: Monitoring to identify present and potential risks, including their roots and sources. This can, for example, come from historical or present-day data.
  • Risk evaluation: Assessing the potential impact each scenario will have on the company, its margins and growth, including to individual KPIs. 
  • Risk prioritization: Looking at risk vs reward, which of these risks are worth taking? This stage often involves a risk matrix to help with decision making.
  • Risk prevention: Risks previously assessed as medium and high, to be avoided, will be addressed using tools that monitor and prevent in real-time – either as part of the risk management platform or the overall risk stack. 

Keeping these in mind will help you identify which areas each piece of software can help with, so you can integrate those that work for your company best.

The Best Risk Management Software in 2022

Without further ado, let’s look at the best risk management software you can get in 2022.

Disclaimer: Everything in this article was gleaned from research, including user reviews. We did not have time to manually test all the tools. This guide was last updated in spring 2022. Please contact us to request any changes or corrections.

SEON 

SEON Logo

The dimension of risk management addressed by SEON’s solutions covers fraud and scam-adjacent risk throughout the risk assessment and mitigation process. 

In terms of the monitoring and identification of risks, the SEON search engine utilizes transparent, whitebox AI technology to trawl through historical fraud and risk events for each company and generate a list of rules suggestions.

The result is different for each individual company and can be further adjusted and adapted at will, simplifying the process for many.

Meanwhile, the end-to-end platform continuously monitors operations for suspicious users and transactions, applying the aforementioned and/or other rulesets to either flag or block risks, per the organizational strategy.

The technology powering this under the hood includes unique digital footprinting, comprehensive device fingerprinting, IP analysis modules, velocity searches and machine learning. 

In action, SEON’s products can help identify and manage the risk of fraud, scams, account takeover and chargebacks across a spectrum of industries, employing dynamic friction methods that protect the customer journey from churn. These include:

Available at SEON is a free demo using the customer’s own batch data, as well as a 30-day trial with no strings attached.

Signifyd 

Signifyd

As a vendor, California-based Signifyd primarily serves the ecommerce sector, promising to deliver revenue protection, abuse prevention and payment compliance. As such, there are various ways in which Signifyd identifies and mitigates risk for merchants, inclusive of account protection, prevention of fraud, and stopping fraudsters and scammers from harming the company and its customers.

Signifyd monitors risks in real-time through its console, also allowing for automation at scale. This means merchants need not be involved in day-to-day fraud fighting, and sacrifices control for convenience.

Naturally, it can be a good option for some yet not ideal for others. This vendor’s solutions also integrate well with popular ecommerce management platforms.

One more aspect of fraud prevention with Signifyd is the chargeback guarantee it provides to merchants. This means that the brand will pay out of pocket for any fraudulent chargeback requests that slip through the net, thus doing away with the pain point of chargebacks – at least in theory.

However, it’s important to note that this model generally leads to more false positives, and can thus drive customers away compared to friction-free strategies.

Signifyd starts from $1,500 a month + approved order charge of 0.8%, though support is free and there is a free trial. 

Riskified

Riskified_logo

Payment, chargeback and policy protection platform Riskified can help manage risk on several fronts, including the above as well as securing accounts and PSD2 optimization. As such, it can be a useful addition to the risk stack of companies in online retail and services, as well as ticketing and services.

Riskified was created in 2013 in an effort to respond to the shifting landscape of online shopping. Powering the offering at Riskified, we find technology such as behavior tracking, chargeback guarantees, machine learning, IP analysis and device fingerprinting.

Because this vendor tailors its products to ecommerce organizations in particular, it has developed solutions that correspond to some of their most common needs – including those of online retail giants such as Wish, Trip.com and Ticketmaster.

Importantly, this also includes covering the revised Payment Services Directive (PSD2) that mandates strong customer authorization (SCA) in Europe, and can thus help towards compliance or expansion into the European market, minimizing risk from EU-imposed fines.

Another two key areas of focus for Riskified in terms of risk mitigation is what they call policy protection, which deals with the risk of customers abusing promotional and other types of bonuses, as well as protection from account takeovers.

In terms of Riskified pricing, there is no publicly available information at the time of writing. 

BioCatch

biocatch logo

Boston-based company BioCatch proposes advanced biometrics and behavior analysis to minimize risk and prevent fraud – and has been doing so for over a decade, since its 2011 beginnings.

It is certainly no understatement to label BioCatch as pioneering, considering it holds over 60 biometrics patents, in part owing to its founder’s prior involvement in cyberwarfare and military operations. The BioCatch strategy focuses almost exclusively on behavior analysis, yet does it so well that it is a valuable addition to the product stacks of high-risk enterprises. 

Specifically, this software analyzes disparate elements before it scores the risk according to 20 key signals that help distinguish good from bad users. These aspects are grouped into behavioral biometrics, cognitive analysis, and behavioral insights and include:

  • haptics such as press size 
  • typing cadence
  • abnormal interactions
  • process familiarity
  • hesitation
  • etc.

As a result, this risk management software is able to compare someone’s behavior to what is expected of the average user as well as this particular customer’s past actions, flagging suspicious behavior and thus allowing for enhanced risk mitigation from fraudsters, hackers and other bad actors.

Information on BioCatch pricing is not available at this time without speaking to the sales team.

Kount

kount logo

Once a startup, Kount now belongs to the product roster of financial services powerhouse Equifax, after a February 2021 acquisition.

Tailoring its offering to the retail sector, this brand has been met with great success since its 2006 establishment and is ideally suited for large enterprises that process card not present transactions both offline and online. There is also a separate solution for payment providers.

Types of risk Kount helps prevent in real-time include digital fraud, policy abuse, and account takeovers, while the consequences of risky behavior are also dealt with through functionality such as chargeback and dispute management. 

Kount’s Identity Trust Global Network has been built over 13 years of activity and includes 32+ billion interactions per year from across 250 countries and dozens of payment processors and card networks. However, it should be noted that this is historical data, not live data and can thus become stale and inaccurate.

Positioning its artificial intelligence-powered end-to-end fraud risk solution, Kount Command, as an automated solution, Kount is best suited to those organizations who prefer a set-and-forget approach where decisions are made automatically in the background by unsupervised machine learning modules.

Companies which instead would like to know why certain decisions are being reached, as well as fine-tune their processes, will be best served elsewhere.

Kount pricing is available as a custom quote for your business via the official website. 

ThreatMark 

threatmark logo

Founded in 2015 and with offices in the Czech Republic and the USA, this startup offers transaction and fraud risk detection and analysis, inclusive of risk-based SCA. The vendor has so far received funding from Rockaway Capital, Springtide Ventures and EASME. 

There are two solutions that address certain types of risk. 

  • The Anti-Fraud Suite (AFS) is tailored to the banking sector, covering KYC, fraud prevention and transaction scoring for online and mobile banking, as well as business banking and API-based open banking. 
  • There is also ThreatMark Clair, created specifically to address the risks associated with onboarding and account opening.

Behind the scenes, the technology employed involves behavioral biometry, actionable heuristics, device fingerprinting, and deep analysis using whitebox scoring models.  

Credit risk, transaction risk and KYC compliance are the main areas ThreatMark can address, promising to minimize fraud inclusive of human error stemming from social engineering, phishing and zero-day attacks. 

Unfortunately, ThreatMark has not made public the pricing for AFS but there is a free demo available to get started. Clair plans start from $250/month.

TruValidate (Iovation)

transunion logo

Iovation has been a popular name in the fraud fighting world since its 2004 founding, especially so for customers in the iGaming sector. In 2018, it was acquired by TransUnion and rebranded – now serving customers using the moniker TruValidate.

As part of the credit scoring agency’s offering, TruValidate focuses on mitigating compliance and financial risk linked to KYC and CDD, identity verification, and fraud at large. To do so, it employs IP analysis, behavior tracking, device fingerprinting, and more industry staples. There is also strong document verification using facial recognition. 

In terms of potential shortcomings, we should point out that the data used, though extensive in volume and generally useful, is not live. This can pose risks in certain cases.

As part of TransUnion’s suite of products, TruValidate can help its clients deal with risk through additional solutions – for example, those linked to credit risk and customer experience.

As it tends to happen with this type of company structure, integration is exceptional with affiliated products but there have been reports of issues when deployed alongside other vendors’ products.

TruValidate pricing information is currently not available to the public.

Risk Management Software Selection Tips

As it happens, there is no perfect risk management software that will fit every single company’s requirements and preferences. 

We’ve already noted above that it largely depends on the size and type of your business, as well as your risk appetite and overall risk landscape in your sector. 

However, to get you started, we would advise you to use any tools or information you already have at your disposal to identify and assess risk as best as you can, including doing risk matrix analysis.

From there, you can begin to consider which of the above or other risk management tools will satisfy the criteria that you have defined. Hopefully, the suggestions we’ve provided will be a good starting point.

Risk Management Software FAQ

Why use risk management software?

This type of tool allows you to more clearly identify risk, so you can make informed decisions on taking it or avoiding it – and also helps protect your organization from risks.

What is a risk matrix?

A risk matrix is part of the risk assessment process, allowing us to see the range of risks present, their severity, their likelihood or probability, etc. It helps us prioritize and categorize which is best avoided at all costs and which risks may be worth taking, and to what extent.

Who uses risk management software?

Any organization looking to create value and minimize losses may use risk management software, though this tends to be more common the larger the company, arising from the need to align many different moving parts. 

What is GRC risk management software?

GRC stands for governance, risk management and compliance, a set of strategies and methodologies to address risk and information security management for companies that are primarily of concern to enterprises.

How much do risk management tools cost?

Unfortunately, there’s no short answer to this question. Vendors have different pricing models. In some cases, one or two tools are enough for a company, while in others many more are ideal, at a higher cost overall. The best course of action is to clearly identify your risk management needs and speak to each individual vendor separately.

Sources

  • PR Newswire: Risk Management Market to Garner $28.87 Bn, Globally, by 2027 at 18.7% CAGR: Allied Market Research

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SEON Team


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