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As your organization grows, so does its risk landscape—and managing that risk becomes increasingly complex. This is especially true if you're relying on traditional risk management workflows, which often involve manual, time-consuming processes that drain valuable resources.
This waste doesn’t only come from inefficiencies but also from lost partnerships. Our 2024 State of Trust Report showed that 50% of businesses had terminated a vendor relationship due to security concerns, underscoring the value of effective security and risk management.
In this guide, you’ll learn how to avoid such scenarios through risk management automation. We’ll cover:
- The definition of risk management automation
- Use cases and benefits
- Five steps to automating risk management processes
What is risk management automation?
Risk management automation is the process of using automation-enabled software to identify, monitor, and manage organizational risks within governance, risk, and compliance (GRC) programs. Such software uses data-driven risk analysis to uncover risk areas often missed by manual processes, providing continuous insight at any scale with minimal human involvement.
The main goal of automation in risk management is to help risk executives identify and assess potential threats, which makes risk prioritization easier and faster. The right software acts as a centralized risk management hub that enables easier analysis and reporting, freeing up time to focus on data-driven risk mitigation strategies.
Ideally, you’ll leverage a comprehensive solution that automates risk, compliance, and security workflows in a single platform. This allows you to maximize efficiency across your entire program.
Common use cases of automated risk management
Automation can be used across risk management processes, such as:
- Risk assessment and action planning: By automating security risk assessments and generating risk snapshots, your team can brainstorm mitigation strategies faster. Some tools also allow you to automatically assign and track tasks, either directly within the risk management platform or outside a risk tool, via integrations with systems like Jira, enabling seamless syncing and visibility across teams.
- Regulatory and compliance reporting: Automating compliance management tasks, such as evidence collection and security reviews, helps you stay on top of your regulatory obligations and implement voluntary standards like ISO 27001, ISO 42001, ISO 27701, and SOC 2, as well as regulatory frameworks such as HIPAA. These frameworks often include risk management as an explicit requirement or control, making a well-functioning risk program essential for demonstrating compliance.
- Threat detection and investigation: Software with threat detection and monitoring functionality can extract context-rich data for your entire threat landscape and automatically maintain documentation for unidentified risks.
- Incident management: Tools with incident management functionalities gather relevant data in the background, letting your risk team get real-time reports and event updates without direct human involvement. When integrated with your risk management platform, these tools can automatically update risk assessments, flag new threats, and help prioritize mitigation efforts based on incident severity.
- Supply chain management: Third-party risk management automation provides detailed insights into supply chain risks without extensive manual questionnaires. As a result, you can protect your organization from external threats as your third-party network grows.
{{cta_withimage4="/cta-blocks"}} | How to manage risk with Vanta
Why should you automate risk management?
Automating risk management removes manual processes and offers real-time insights into your risk landscape to help you manage threats more effectively. Your organization becomes more resilient and can respond to threats before they disrupt your operations.
Additional benefits of risk management automation include:
- True continuous monitoring: Risk management automation solutions give you a clear dashboard for monitoring risks, controls, and action plans, which means you don’t have to hunt for the relevant data across spreadsheets and email chains. They remove communication silos and align stakeholders on any changes in real time.
- Better visibility of anomalies and errors: Robust risk management automation tools can perform automated rule checks, which helps you identify any anomalies more swiftly than you could with a manual process. This lowers the chances of potentially harmful threats flying under the radar.
- Enhanced reporting: Automation can ensure you’re alerted of any issues as they’re detected, which shortens the response time for effective remediation strategies.
- Improved risk prediction: Predictive risk modeling in automation tools leverages historical data to help you identify risks more accurately, adding more certainty to your operations.
- Faster onboarding and vendor analysis: Automated vendor risk management solutions collect, analyze, and track vendor information to streamline due diligence and make the onboarding process fast and effortless.
- Efficient incident prevention: With the help of an automated ticketing system and continuous monitoring, quick remediation reduces organizational delays or failure to promptly address risks.
How to automate risk management: Steps and best practices
There’s no one-size-fits-all strategy for effective risk management automation. Your automation coverage will depend on several factors, such as:
- Your industry’s risk landscape
- Repetitive value of current processes
- Scale of your risk management program
- Your organization’s risk appetite
Still, there are a few universal steps you should take to streamline your risk management strategy:
- Automate risk data collection
- Use risk assessment tools
- Automate vendor risk scoring and assessments
- Create an incident response system
- Set up continuous monitoring
Below, we’ll outline these steps in more detail to cover the key action items.
Step 1: Automate risk data collection
As a particularly time-consuming process, data collection offers plenty of automation potential. Some of the key reasons for this include:
- Tedious documentation process: Risk professionals often sift through countless emails, screenshots, and spreadsheets when collecting the necessary data.
- Risk of human error: Laborious data gathering causes fatigue, increasing the likelihood of errors.
- Ineffective collaboration: Coordinating data collection can be challenging when dealing with manual and disparate systems, which hinders your overall productivity and makes it harder to maintain a single source of truth. Centralizing information in a risk register improves visibility and ensures all stakeholders are working with the same dataset.
You can avoid these setbacks by automating data gathering through a platform that pulls information from various sources, such as financial reports, internal databases, and external market and industry reports.
With ready-to-access historical, current, and predictive modeling data, you’ll have a unified approach to documentation. This not only saves your team time and energy but also reduces manual errors.
When choosing a data automation platform, make sure it integrates seamlessly with your existing software stack so data imports are smooth and reliable.
Step 2: Use risk assessment tools
A process as complex as risk assessment is easily one of the most promising areas for implementing automation. With the right tools, you can automate steps to identify, measure, and analyze risk, as well as highlight the most pressing ones. Here’s how:
- Risk identification: A centralized risk management platform helps identify risks more easily using collected data
- Risk analysis: Enables risk organizations to leverage additional facets and customized formulas to score their risk
- Risk prioritization: After risks are analyzed, actions that hit a particular risk score are prioritized and can then be forwarded to an assigned response team or individual
While automation allows for a comfortable, hands-off approach to risk assessment, you still need to choose the right exposure points according to your risk appetite. You may want to consider the best risk assessment methodologies for different scenarios and manually define three key factors:
- Data coverage for a given risk scenario
- Scope and purpose of the assessment
- Specific compliance programs or risk management frameworks you’re implementing
{{cta_withimage25="/cta-blocks"}} | How to choose the right continuous compliance solution
Step 3: Automate vendor risk scoring and assessments
Vendor risk assessments can be complex due to the unique risk profiles of each vendor and the ever-expanding supply chain. That’s why automating this process is practically unavoidable at some point in your organization’s growth.
The good news is that you can use various capable solutions to assess and score vendor risk for data-driven decision-making. Such platforms use predefined risk criteria to automatically score risks, allowing you to focus on higher-priority risks and vendors.
AI takes such solutions even further through automated data collection and analysis. Organizations can use AI to predict future risks they should consider and to increase the speed at which those risks are identified.
While vendor risk assessments are typically conducted during procurement, it’s important to also perform them regularly throughout the vendor relationship to avoid undetected threats. To streamline the process, use a platform that enables continuous monitoring and risk scoring.
Step 4: Create an incident response system
An automated incident response system uses machine learning and artificial intelligence to streamline various incident management tasks, such as:
- Monitoring, detecting, and classifying security events and incidents
- Creating incident tickets for identified events
- Assigning tasks to incident response team members
- Centralizing updates on incident resolution
A well-implemented system significantly reduces cybersecurity risks by giving you thorough insights into your threat landscape.
When implementing an incident response system, make sure it has all the following necessary components:
- Event correlation: The tool automatically correlates events across your tech stack/workstations to identify signals that might indicate a threat
- Well-configured prioritization and response procedures: The system can prioritize genuine threats and initiate adequate responses to prevent alert fatigue
- Automated reports with priority data points: The platform should automatically generate incident reports to free up your team’s time
- Custom feedback loops: As your system learns from incidents, it should be able to adjust the detection algorithms and responses accordingly
Step 5: Set up continuous monitoring
According to the National Institute of Standards and Technology (NIST SP 800-137, Information Security Continuous Monitoring (ISCM) for Federal Information Systems and Organizations), continuous monitoring is an “ongoing awareness of information security, vulnerabilities, and threats to facilitate risk-based decision-making.”
This publication provides the official framework for implementing ISCM, which is foundational to federal risk management strategies, particularly under FISMA. It also complements NIST’s broader risk management framework (RMF) in SP 800-37, which emphasizes continuous monitoring as the final step in the RMF lifecycle.
Effective continuous monitoring involves regular risk assessments assisted by automation-friendly tools. Intelligent automation of risk management should include a monitoring system that automatically updates as new data surfaces, enabling reliable assessments that account for the changes in your risk posture.
Additional best practices for effective automated continuous monitoring include the following:
- Setting up key risk indicators (KRIs)
- Establishing a real-time alert system
- Limiting damage in the event of materialized risks by automating tasks like blocking malicious communications
You may need multiple tools to fully automate your monitoring ecosystem. It's also important to periodically revisit and fine-tune your configuration to maintain accuracy and relevance.
{{cta_withimage28="/cta-blocks"}} | Vanta’s AI Security Assessment
Key challenges of risk management automation
You might encounter several operational obstacles when adding automation to your risk management program, such as:
- Distortion of risk: Automated risk management systems require abundant data from numerous sources. Limited data or data inconsistencies (e.g., a lot of data from one IT team but not much from the other teams) can paint a distorted image of your risk posture, defeating the purpose of using an automated system.
- Complex risk scenarios: Many risks aren’t easily quantifiable, and some might have several dimensions that require human input. You need to strike a balance between the tasks you can fully automate and those that require your team’s expertise.
- Employee training: Some organizations may need to extensively train their risk teams to navigate automation. Defining roles and responsibilities, then conducting training for the different roles, can help teams handle risks identified through automated processes more effectively.
- Cost: Investment in automated systems pays off in the long run, but it could be difficult to justify the business case and cost to senior leadership.
- Process overhauls: Implementing automation software requires revision and updates of processes, which might impact various teams across your business. You should introduce automation gradually to avoid significant operational disruptions.
The good news is that a solid automation toolkit can help you avoid these challenges to a great extent, and there are various cost-effective platforms you can add to your stack.
Automate key risk management processes with Vanta
Vanta is a robust trust and compliance management platform with a strong focus on workflow automation. Its dedicated Risk Management suite offers powerful features that eliminate manual tasks throughout your program, most notably:
- Robust risk library with a built-in assessment workflow based on ISO 27005 and several pre-built risk scenarios
- A centralized risk register with automated scoring and prioritization capabilities
- Risk assessment customization according to different criteria
- Questionnaire automation and auto-scoring for vendors
- Custom tests to monitor compliance of controls with your security programs
- A comprehensive dashboard with a unified view of risk scenarios and actions
- 375+ integrations to streamline disparate workflows
- Automated snapshots of the risk register that can be reused during audits
Vanta helps remediate risk up to 45% faster by automating risk management workflows and centralizing your risk tracking. It facilitates running efficient risk management programs and complying with security frameworks like ISO 27001, SOC 2, and 30+ others. You can also leverage Vanta AI to create comprehensive Q&A libraries based on historical data and your security policies and consolidate responses from various sources efficiently.
Schedule a custom demo of Vanta’s Risk Management product to learn more about its features and see how it can transform your workflows with automation.
{{cta_simple28="/cta-blocks"}} | Risk management product page
Risk
Risk management automation: How it works and how to achieve it
Looking to upgrade to continuous, automated GRC and get visibility across your entire program?
As your organization grows, so does its risk landscape—and managing that risk becomes increasingly complex. This is especially true if you're relying on traditional risk management workflows, which often involve manual, time-consuming processes that drain valuable resources.
This waste doesn’t only come from inefficiencies but also from lost partnerships. Our 2024 State of Trust Report showed that 50% of businesses had terminated a vendor relationship due to security concerns, underscoring the value of effective security and risk management.
In this guide, you’ll learn how to avoid such scenarios through risk management automation. We’ll cover:
- The definition of risk management automation
- Use cases and benefits
- Five steps to automating risk management processes
What is risk management automation?
Risk management automation is the process of using automation-enabled software to identify, monitor, and manage organizational risks within governance, risk, and compliance (GRC) programs. Such software uses data-driven risk analysis to uncover risk areas often missed by manual processes, providing continuous insight at any scale with minimal human involvement.
The main goal of automation in risk management is to help risk executives identify and assess potential threats, which makes risk prioritization easier and faster. The right software acts as a centralized risk management hub that enables easier analysis and reporting, freeing up time to focus on data-driven risk mitigation strategies.
Ideally, you’ll leverage a comprehensive solution that automates risk, compliance, and security workflows in a single platform. This allows you to maximize efficiency across your entire program.
Common use cases of automated risk management
Automation can be used across risk management processes, such as:
- Risk assessment and action planning: By automating security risk assessments and generating risk snapshots, your team can brainstorm mitigation strategies faster. Some tools also allow you to automatically assign and track tasks, either directly within the risk management platform or outside a risk tool, via integrations with systems like Jira, enabling seamless syncing and visibility across teams.
- Regulatory and compliance reporting: Automating compliance management tasks, such as evidence collection and security reviews, helps you stay on top of your regulatory obligations and implement voluntary standards like ISO 27001, ISO 42001, ISO 27701, and SOC 2, as well as regulatory frameworks such as HIPAA. These frameworks often include risk management as an explicit requirement or control, making a well-functioning risk program essential for demonstrating compliance.
- Threat detection and investigation: Software with threat detection and monitoring functionality can extract context-rich data for your entire threat landscape and automatically maintain documentation for unidentified risks.
- Incident management: Tools with incident management functionalities gather relevant data in the background, letting your risk team get real-time reports and event updates without direct human involvement. When integrated with your risk management platform, these tools can automatically update risk assessments, flag new threats, and help prioritize mitigation efforts based on incident severity.
- Supply chain management: Third-party risk management automation provides detailed insights into supply chain risks without extensive manual questionnaires. As a result, you can protect your organization from external threats as your third-party network grows.
{{cta_withimage4="/cta-blocks"}} | How to manage risk with Vanta
Why should you automate risk management?
Automating risk management removes manual processes and offers real-time insights into your risk landscape to help you manage threats more effectively. Your organization becomes more resilient and can respond to threats before they disrupt your operations.
Additional benefits of risk management automation include:
- True continuous monitoring: Risk management automation solutions give you a clear dashboard for monitoring risks, controls, and action plans, which means you don’t have to hunt for the relevant data across spreadsheets and email chains. They remove communication silos and align stakeholders on any changes in real time.
- Better visibility of anomalies and errors: Robust risk management automation tools can perform automated rule checks, which helps you identify any anomalies more swiftly than you could with a manual process. This lowers the chances of potentially harmful threats flying under the radar.
- Enhanced reporting: Automation can ensure you’re alerted of any issues as they’re detected, which shortens the response time for effective remediation strategies.
- Improved risk prediction: Predictive risk modeling in automation tools leverages historical data to help you identify risks more accurately, adding more certainty to your operations.
- Faster onboarding and vendor analysis: Automated vendor risk management solutions collect, analyze, and track vendor information to streamline due diligence and make the onboarding process fast and effortless.
- Efficient incident prevention: With the help of an automated ticketing system and continuous monitoring, quick remediation reduces organizational delays or failure to promptly address risks.
How to automate risk management: Steps and best practices
There’s no one-size-fits-all strategy for effective risk management automation. Your automation coverage will depend on several factors, such as:
- Your industry’s risk landscape
- Repetitive value of current processes
- Scale of your risk management program
- Your organization’s risk appetite
Still, there are a few universal steps you should take to streamline your risk management strategy:
- Automate risk data collection
- Use risk assessment tools
- Automate vendor risk scoring and assessments
- Create an incident response system
- Set up continuous monitoring
Below, we’ll outline these steps in more detail to cover the key action items.
Step 1: Automate risk data collection
As a particularly time-consuming process, data collection offers plenty of automation potential. Some of the key reasons for this include:
- Tedious documentation process: Risk professionals often sift through countless emails, screenshots, and spreadsheets when collecting the necessary data.
- Risk of human error: Laborious data gathering causes fatigue, increasing the likelihood of errors.
- Ineffective collaboration: Coordinating data collection can be challenging when dealing with manual and disparate systems, which hinders your overall productivity and makes it harder to maintain a single source of truth. Centralizing information in a risk register improves visibility and ensures all stakeholders are working with the same dataset.
You can avoid these setbacks by automating data gathering through a platform that pulls information from various sources, such as financial reports, internal databases, and external market and industry reports.
With ready-to-access historical, current, and predictive modeling data, you’ll have a unified approach to documentation. This not only saves your team time and energy but also reduces manual errors.
When choosing a data automation platform, make sure it integrates seamlessly with your existing software stack so data imports are smooth and reliable.
Step 2: Use risk assessment tools
A process as complex as risk assessment is easily one of the most promising areas for implementing automation. With the right tools, you can automate steps to identify, measure, and analyze risk, as well as highlight the most pressing ones. Here’s how:
- Risk identification: A centralized risk management platform helps identify risks more easily using collected data
- Risk analysis: Enables risk organizations to leverage additional facets and customized formulas to score their risk
- Risk prioritization: After risks are analyzed, actions that hit a particular risk score are prioritized and can then be forwarded to an assigned response team or individual
While automation allows for a comfortable, hands-off approach to risk assessment, you still need to choose the right exposure points according to your risk appetite. You may want to consider the best risk assessment methodologies for different scenarios and manually define three key factors:
- Data coverage for a given risk scenario
- Scope and purpose of the assessment
- Specific compliance programs or risk management frameworks you’re implementing
{{cta_withimage25="/cta-blocks"}} | How to choose the right continuous compliance solution
Step 3: Automate vendor risk scoring and assessments
Vendor risk assessments can be complex due to the unique risk profiles of each vendor and the ever-expanding supply chain. That’s why automating this process is practically unavoidable at some point in your organization’s growth.
The good news is that you can use various capable solutions to assess and score vendor risk for data-driven decision-making. Such platforms use predefined risk criteria to automatically score risks, allowing you to focus on higher-priority risks and vendors.
AI takes such solutions even further through automated data collection and analysis. Organizations can use AI to predict future risks they should consider and to increase the speed at which those risks are identified.
While vendor risk assessments are typically conducted during procurement, it’s important to also perform them regularly throughout the vendor relationship to avoid undetected threats. To streamline the process, use a platform that enables continuous monitoring and risk scoring.
Step 4: Create an incident response system
An automated incident response system uses machine learning and artificial intelligence to streamline various incident management tasks, such as:
- Monitoring, detecting, and classifying security events and incidents
- Creating incident tickets for identified events
- Assigning tasks to incident response team members
- Centralizing updates on incident resolution
A well-implemented system significantly reduces cybersecurity risks by giving you thorough insights into your threat landscape.
When implementing an incident response system, make sure it has all the following necessary components:
- Event correlation: The tool automatically correlates events across your tech stack/workstations to identify signals that might indicate a threat
- Well-configured prioritization and response procedures: The system can prioritize genuine threats and initiate adequate responses to prevent alert fatigue
- Automated reports with priority data points: The platform should automatically generate incident reports to free up your team’s time
- Custom feedback loops: As your system learns from incidents, it should be able to adjust the detection algorithms and responses accordingly
Step 5: Set up continuous monitoring
According to the National Institute of Standards and Technology (NIST SP 800-137, Information Security Continuous Monitoring (ISCM) for Federal Information Systems and Organizations), continuous monitoring is an “ongoing awareness of information security, vulnerabilities, and threats to facilitate risk-based decision-making.”
This publication provides the official framework for implementing ISCM, which is foundational to federal risk management strategies, particularly under FISMA. It also complements NIST’s broader risk management framework (RMF) in SP 800-37, which emphasizes continuous monitoring as the final step in the RMF lifecycle.
Effective continuous monitoring involves regular risk assessments assisted by automation-friendly tools. Intelligent automation of risk management should include a monitoring system that automatically updates as new data surfaces, enabling reliable assessments that account for the changes in your risk posture.
Additional best practices for effective automated continuous monitoring include the following:
- Setting up key risk indicators (KRIs)
- Establishing a real-time alert system
- Limiting damage in the event of materialized risks by automating tasks like blocking malicious communications
You may need multiple tools to fully automate your monitoring ecosystem. It's also important to periodically revisit and fine-tune your configuration to maintain accuracy and relevance.
{{cta_withimage28="/cta-blocks"}} | Vanta’s AI Security Assessment
Key challenges of risk management automation
You might encounter several operational obstacles when adding automation to your risk management program, such as:
- Distortion of risk: Automated risk management systems require abundant data from numerous sources. Limited data or data inconsistencies (e.g., a lot of data from one IT team but not much from the other teams) can paint a distorted image of your risk posture, defeating the purpose of using an automated system.
- Complex risk scenarios: Many risks aren’t easily quantifiable, and some might have several dimensions that require human input. You need to strike a balance between the tasks you can fully automate and those that require your team’s expertise.
- Employee training: Some organizations may need to extensively train their risk teams to navigate automation. Defining roles and responsibilities, then conducting training for the different roles, can help teams handle risks identified through automated processes more effectively.
- Cost: Investment in automated systems pays off in the long run, but it could be difficult to justify the business case and cost to senior leadership.
- Process overhauls: Implementing automation software requires revision and updates of processes, which might impact various teams across your business. You should introduce automation gradually to avoid significant operational disruptions.
The good news is that a solid automation toolkit can help you avoid these challenges to a great extent, and there are various cost-effective platforms you can add to your stack.
Automate key risk management processes with Vanta
Vanta is a robust trust and compliance management platform with a strong focus on workflow automation. Its dedicated Risk Management suite offers powerful features that eliminate manual tasks throughout your program, most notably:
- Robust risk library with a built-in assessment workflow based on ISO 27005 and several pre-built risk scenarios
- A centralized risk register with automated scoring and prioritization capabilities
- Risk assessment customization according to different criteria
- Questionnaire automation and auto-scoring for vendors
- Custom tests to monitor compliance of controls with your security programs
- A comprehensive dashboard with a unified view of risk scenarios and actions
- 375+ integrations to streamline disparate workflows
- Automated snapshots of the risk register that can be reused during audits
Vanta helps remediate risk up to 45% faster by automating risk management workflows and centralizing your risk tracking. It facilitates running efficient risk management programs and complying with security frameworks like ISO 27001, SOC 2, and 30+ others. You can also leverage Vanta AI to create comprehensive Q&A libraries based on historical data and your security policies and consolidate responses from various sources efficiently.
Schedule a custom demo of Vanta’s Risk Management product to learn more about its features and see how it can transform your workflows with automation.
{{cta_simple28="/cta-blocks"}} | Risk management product page
| Role: | GRC responsibilities: |
|---|---|
| Board of directors | Central to the overarching GRC strategy, this group sets the direction for the compliance strategy. They determine which standards and regulations are necessary for compliance and align the GRC strategy with business objectives. |
| Chief financial officer | Primary responsibility for the success of the GRC program and for reporting results to the board. |
| Operations managers from relevant departments | This group owns processes. They are responsible for the success and direction of risk management and compliance within their departments. |
| Representatives from relevant departments | These are the activity owners. These team members are responsible for carrying out specific compliance and risk management tasks within their departments and for integrating these tasks into their workflows. |
| Contract managers from relevant department | These team members are responsible for managing interactions with vendors and other third parties in their department to ensure all risk management and compliance measures are being taken. |
| Chief information security officer (CISO) | Defines the organization’s information security policy, designs risk and vulnerability assessments, and develops information security policies. |
| Data protection officer (DPO) or legal counsel | Develops goals for data privacy based on legal regulations and other compliance needs, designs and implements privacy policies and practices, and assesses these practices for effectiveness. |
| GRC lead | Responsible for overseeing the execution of the GRC program in collaboration with the executive team as well as maintaining the organization’s library of security controls. |
| Cybersecurity analyst(s) | Implements and monitors cybersecurity measures that are in line with the GRC program and business objectives. |
| Compliance analyst(s) | Monitors the organization’s compliance with all regulations and standards necessary, identifies any compliance gaps, and works to mitigate them. |
| Risk analyst(s) | Carries out the risk management program for the organization and serves as a resource for risk management across various departments, including identifying, mitigating, and monitoring risks. |
| IT security specialist(s) | Implements security controls within the IT system in coordination with the cybersecurity analyst(s). |
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