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
- SEON: 360-Degree Protection from Fraud Risk
- Signifyd: Great Chargeback Guarantee Option
- BioCatch: Advanced Behavioral Biometrics vs Risk
- Kount: Ideal for Set-and-Forget Functionality
- ThreatMark: Safer Transactions & Signups with Biometry
- TruValidate (Iovation): Homing In on ID Verification Risk
- Cybersource: A Reliable Option by Visa
- ArkOwl: A Robust, Highly Specialized Risk Tool
- Feedzai: Customer Risk Assessment Powerhouse
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.
Partner with SEON to reduce fraud rates in your business with real time data enrichment, clearbox machine learning, and advanced APIs.
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 Q3 2022. Please contact us to request any changes or corrections.
SEON: 360° Protection from Fraud Risk
The dimension of risk management addressed by SEON’s solutions covers fraud and scam-adjacent risk throughout the risk assessment and mitigation process. At the center of this is the unique ability the software has to create real-time profiles of each customer using 50+ sources of intel, including social media and digital platforms – in addition to hundreds more data points.
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 rule suggestions – in addition to standard, industry-specific, and custom risk rules.
The result is different for each individual company and can be further adjusted and adapted at will, simplifying the process for many. Thanks to the easy-to-use Admin Panel, SEON customers can easily set the platform to the level of risk they feel comfortable with, from set-and-forget best practices that are tried and tested in their sector to granular reporting and detailed risk scoring.
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.
- Fully featured vs fraud: The technology powering this under the hood includes unique digital footprinting, comprehensive device fingerprinting, IP analysis modules, velocity searches and machine learning.
- Dynamic friction: 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.
- Focus on online fraud: At present, the type of risk SEON can help against is the risk of fraud, scams, account takeover and chargebacks. There is no IDV, for example, or management of offline risks.
Pay per API call, with $299/month minimum charge. Available is a free demo, as well as a 14-day trial with no strings attached.
Signifyd: Great Chargeback Guarantee Option
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.
Signifyd offers a chargeback guarantee model. 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 on paper. 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.
- Big data: The vendor leverages big data to prevent abuse, block attempts at hacking into customer accounts, and protect from fraud.
- Caters to PSPs: Signifyd boasts a purpose-built solution for payment service providers that includes SCA exemption management and transaction risk analysis.
- Chargeback guarantee model: A big pull for online merchants is the chargeback guarantee it provides, but this can incentivize the solution to err on the side of caution, potentially resulting in more false positives than without such a guarantee.
Signifyd starts from $1,500 a month + approved order charge of 0.8%, though support is free and there is a free trial.
BioCatch: Advanced Behavioral Biometrics vs Risk
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.
The software analyzes disparate elements before it scores the risk according to 20 key signals that help distinguish good from bad users.
- Behavior analysis: Behavioral biometrics, cognitive analysis, and behavioral insights examined include haptics such as press size, typing cadence, abnormal interactions, hesitation, etc. As a result, it 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.
- Several touchpoints: Works at different touchpoints including account opening, PSD2 SCA, sign-in, etc.
- Primarily for enterprise: BioCatch markets itself primarily to enterprises and as a result is more suited to their needs – as well as their financial capacity.
Specific information on BioCatch pricing is not available at this time without speaking to the sales team.
Kount: Ideal for Set-and-Forget Functionality
Once a startup, Kount now belongs to the product roster of financial services powerhouse Equifax, after a February 2021 acquisition. 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.
Tailoring its AI-powered end-to-end fraud risk 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 extra functionality related to customer disputes.
- Automated solution: Kount Command is an automated solution 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.
- Dispute management: Conveniently for online merchants, Kount provides chargeback, refund and dispute management assistance.
- Blackbox risk management: Companies which 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: Safer Transactions & Signups with Biometry
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), catering to banks, and 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.
- Banking expertise: 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.
- Whitebox AI: Because ThreatMark is a whitebox solution, customers can know exactly how and why decisions can be reached, which is immensely helpful in both supporting customers and adjusting risk.
- No free trial: Though a demo is available, ThreatMark offers no free trial to potential customers, which is a convenient way to decide if a solution is for you.
Unfortunately, ThreatMark has not made public the pricing for AFS. Clair plans start from $250/month or $0.1/loan.
TruValidate (Iovation): Homing In on ID Verification Risk
Iovation has been a popular name in the fraud fighting world for customers in the iGaming sector. In 2018, it was acquired by TransUnion and rebranded – now serving customers using the moniker TruValidate.
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.
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.
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.
- Compliance partner: Addresses fraud and ID scams, but also allows for compliance risk mitigation by satisfying KYC, AML and other mandates.
- Long history of fighting risk: Founded in 2004 and eventually bought by TransUnion, this vendor boasts extensive industry experience.
- Less-than-ideal risk stack integration: As 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.
Cybersource: A Reliable Option by Visa
Cybersource was originally founded all the way back in 1994, as an online payment platform and fraud management solution – indeed, one of the pioneers of such services. The company was acquired by Visa in 2010, allowing it to utilize the data pool provided by all 141 billion VisaNet historical transactions.
Cybersouce’s risk management offering is Decision Manager, a machine-learning-based risk-measuring software. With a focus on automation, Decision Manager runs incoming traffic through risk rules and constantly updates to optimize the success rate.
As expected with the backing of the Visa company, Cybersource is able to leverage massive amounts of transactional data and processing power in its risk management solution.
Alongside the fraud mitigation capabilities, Cybersource’s payment security module can reduce exposure to risk by making your customer data harder to attack.
Solutions for safe payment acceptance reference these same databases, and there are modules for omnichannel management and a proprietary 3-D Secure application to minimize noncompliance risk.
- Fast scoring: The software employs multiple machine learning algorithms, choosing the best one for each transaction and then returning a score in less than 1 second.
- Access to huge databases: Integrating Cybersource into a security stack means the risk rules are informed by over 141 billion transactions, and are customized to the customer’s particular vertical.
- Dated UI: Some reviewers have mentioned their dislike of the user interface of this solution, which they found to be on the unattractive side.
Not currently published online, but has specialized structures for medium-sized businesses as well as enterprise.
ArkOwl: A Robust, Highly Specialized Risk Tool
Based in the Great Lakes region, ArkOwl was founded in 2012 by Rob Daline to do just one thing, but exceptionally well.
ArkOwl’s primary focus is email and phone verification and additional enrichment. As the software does not utilize blackbox algorithms or mathematical suggestions, all of its inferences are fully explainable. In turn, these findings can be fed into other software for automated decisioning.
ArkOwl takes privacy very seriously. As the product starts with a data point – email address or phone number – and enriches it with information from specific secure outside databases, no customer data is ever stored by the company, so it can’t be leaked. At the time of requests, the data also goes through an anonymization process so any vulnerabilities in those databases can’t lead back to your customers.
- Real-time data enrichment: All lookups conducted by the software reference real-time data, so there is no chance of stale information on incoming traffic, while it can deliver results in large batch queries.
- Anonymous and secure: One of ArkOwl’s primary concerns is keeping user data secure, minimizing risk exposure by making your reputation less likely to be damaged in the event of a data breach.
- Very narrow focus: ArkOwl is not a standalone risk management tool but can boost the efficacy of an existing risk analysis stack by providing reliable, insightful email and phone number verification and analysis.
Though it does not publish specifics online, the website does list flexible pricing plans designed for a range of customer budgets.
Feedzai: Customer Risk Assessment Powerhouse
With headquarters in both Portugal and Silicon Valley and now in its round D funding stage, Feedzai has a reputation for strong risk management capabilities. Its customers include four out of the five largest banks in North America, with Citibank being one of the largest – as well as one of its financial backers.
The company’s powerful risk management tool, RiskOps is a platform combining every layer of customer risk assessment, from onboarding screening to hardened KYC. The RiskOps suite has modules for seemingly every potential application within ecommerce and fintech risk management, including for identity verification, account opening, account takeovers, AML, KYC/CDD, transaction fraud, and watchlist screening.
Each customer is assigned a trust rating that updates itself dynamically as they interact more with the service. This way, anomalous behavior that might indicate an account takeover can be scanned for at every data point, then flagged for review.
- Visual link analysis: Genome by Feedzai gives fraud analysts and managers a quicker, more efficient way to visualize results that has been lauded by industry insiders.
- AML screening: As it caters to banking, Feedzai can check sanctions lists, PEP lists, and other key sources to satisfy its customers’ anti-money laundering compliance obligations.
- Steep learning curve: The sheer level of detail in Feedzai can be daunting to more junior fraud analysts, while even experienced professionals will have to dedicate time to learn it.
Feedzai does not currently list its pricing structure online, so you’ll have to contact its sales team for a quote.
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.
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.
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.
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.
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.
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.
- PR Newswire: Risk Management Market to Garner $28.87 Bn, Globally, by 2027 at 18.7% CAGR: Allied Market Research