Better insight means making better decisions.
If you're a part of the team handling enterprise risk management (ERM) risk for your organization, you already know it's important. Risk management is essential to conducting business in the financial industry. It's not just about following the rules and regulations - managing risk helps you protect your organization and keep it functioning.
But how do you transmit that message to the rest of your organization, so you can get the tools and resources you need to manage risk effectively?
What's the ROI of risk management? Find out →
For financial institutions, files are at the heart of managing risk. Files create a trail of data, actions, and authorizations so you have documentation that helps you understand and manage your risk.
The only problem is...not everyone in an organization has the same understanding of how to manage the files.
One department uses spreadsheets, which clog everyone's inboxes whenever there's an update.
Another department has a centralized drive, but only the manager has the password.
And the accounting team still swears by their stacks of color-coded binders. Sound familiar? Read about how file management can impact risk.
A key part of risk management is continuously monitoring and analyzing your risk.
When you look at your organization's risk management as a whole, ask yourself this question:
Does my financial institution measure up?
If the answer is no, start with the basics. Creating reliable risk assessments is the first step to understanding and mitigating your risk. These resources will get you going!
Say it with us:
Spreadsheets aren't free.
Many financial institutions are still using spreadsheets to manage risk. Seems like a good idea, right? After all, everyone has access to spreadsheets, so there’s no additional cost to maintain these processes.
Or is there?
Risk management through spreadsheets has many hidden costs. Lack of consistent systems not only waste valuable time and resources, they also leave your organization vulnerable to enforcement actions that carry heavy fines and penalties.
Siloed risk management creates redundancies, inefficiencies, and discrepancies. If you’re still managing risk by department, with everyone using their own special system, you are not only increasing your work — you’re also increasing your organization’s risk.
The past few years have seen a significant increase in overlap between different areas of risk management. Risk touches everything. So it’s no longer feasible for departments to operate independently.
Are silos stunting your risk management process? Find out
More resources on risk management
Looking to learn more about risk management? We’re here to help! Check out the resources below:
We also have lots of fun ways to find new perspectives on risk management concepts and trends. Take a quiz below to see risk management in a new light!