Banks and financial institutions confront serious risks on a daily basis, with many of these threats being unavoidable due to the very nature of the banking industry. This underscores the importance of developing a comprehensive risk management strategy that works to mitigate and largely neutralizes threats, bringing them down to a more reasonable and manageable level. But time is a critical factor to consider, leaving many to wonder how they can expedite their risk management efforts. Enter technology such as risk management software systems which can be used to streamline and speed up your risk mitigation activities.
Developing a Risk Management Strategy that Considers Timeframe
With the Silicon Valley Bank collapse making headlines, an increasing number of business leaders are pursuing risk mitigation with the development (or re-development) of a risk management strategy. Risk management has evolved into a hot-button topic on the heels of the SVC collapse, prompting more and more bank leaders to aggressively pursue risk mitigation efforts. This is especially important in the realm of legal and regulatory compliance because a single incident involving non-compliance can lead to millions of dollars in fines. In the case of regulatory compliance, timing is a major factor to consider because the longer an issue exists, the greater your chances of seeing fines and penalties.
The reality is that many risk management efforts go askew because business leaders fail to consider timing. The company needs to consider the time frame for remediation, determining how long it will take to address and fully resolve imminent threats and conditions that have already led to non-compliance. This information is essential when assessing and prioritizing threats and vulnerabilities as part of a company’s risk management strategy development.
The Role of Risk Management Software Dashboard
Risk management software brings many benefits to a company that is striving to manage threats and vulnerabilities in a more effective and streamlined manner. Risk management software platforms allow a business to centralize its efforts by providing a dashboard with data and insights that are related to the company’s risk management landscape. These dashboards link out to various tools that empower companies as they work to achieve and maintain legal and regulatory compliance. The dashboards contained within these software systems can be integrated with other enterprise software systems for an eagle’s eye view of operational risk factors, regulatory compliance risk, and industry-specific risk factors, such as data on financial market volatility in the case of a financial institution.
The best risk management software systems feature a comprehensive project management-type of interface where users can identify problem areas, evaluate and prioritize those risks, and plan out the steps for neutralizing a threat, neutralizing a vulnerability, or becoming compliant with applicable laws and regulations. Key metrics and updates are typically displayed on the platform’s dashboard, providing business leaders with the insights they need to focus their attention in the proper area.
Once a game plan is developed for addressing an incidence of non-compliance, you can use the software system to assign various tasks that are required to become compliant. The software platform can then be used to monitor progress toward a resolution, allowing you to ensure that efforts remain on track. The ability to track and manage risk mitigation activities is essential if you are going to resolve non-compliance issues in a quick, expedient way. The collaboration capabilities that are usually found in these risk management software systems are ideal for advancing mitigation efforts and if you encounter a roadblock, you will be well-positioned to act immediately. Agility and adaptability make for a much faster and more efficient operation for handling regulatory compliance risk factors. Updates and highlights can be automatically extracted from other areas of the platform and displayed on the dashboard, providing an accurate sense of how various regulatory risk management efforts are progressing. Urgent issues are typically highlighted on the dashboard in a prominent manner — a feature that can speed up resolution.
The Role of Regulatory Compliance Risk Management Software
The best risk management software platforms will also include a regulatory compliance module, with dashboards, tools, and functionalities that are designed specifically for identifying and assessing threats, managing risk mitigation activities, and monitoring for new areas of non-compliance.
These regulatory compliance software systems can be especially advantageous for companies that are subject to strict regulatory oversight, such as the banking industry, the health care sector, and the insurance space, among others. Aggressive regulatory oversight frequently necessitates the creation of a regulatory compliance risk management task force that can oversee the company’s compliance burdens and address incidences of non-compliance before the business is hit with fines, penalties, and even legal action. These purpose-built software platforms allow a company to centralize and organize its efforts, leading to faster, more efficient mitigation.
Using Risk Management Dashboards to Spot Compliance Issues Quickly
To drive your regulatory risk management efforts toward a speedy resolution, your software platform and dashboard need the right configuration.
- Problem areas and issues that are in need of urgent attention must be featured prominently. The sooner you’re aware of a problem, the sooner you can take action. Many systems can also be configured to send alerts by SMS or email in the event that a serious threat is identified. .
- Dashboard news feeds should be active so you receive relevant, industry-specific regulatory compliance-related updates.
- Integrations should be established between your risk management software dashboard and your enterprise software platforms. This lets you view data that may be impacting regulatory compliance (or lack thereof.)
- Activate real-time alerts and notifications so business leaders are alerted as soon as a problem arises. This way, you can act quickly and decisively.
Risk management dashboards provide companies with a centralized pool of data which, in turn, can be used to drive data-based decision-making. Data-driven decisions position business leaders to act quickly and with confidence as the company works to become fully compliant.
Using Risk Management Software to Solve Compliance Issues
The regulatory compliance landscape is constantly evolving and changing. This makes risk management very challenging. Yet prompt action is essential due to the seriousness of non-compliance and the consequences that may follow. The right software platform can dramatically improve the speed and overall efficacy of your risk management efforts, but many software systems fall short. This is especially true for organizations with unique or complex risk management needs.
Many companies can benefit from the development of a custom risk management software platform, complete with a data-rich dashboard and tools that are designed specifically for achieving and maintaining regulatory compliance in a highly-regulated industry.
At iTech, we help companies to make the most of their data and there are few methods more effective than a well-designed risk management dashboard. A purpose-built dashboard gives you the information you need to address non-compliance issues quickly and efficiently. We work with the client to gain a complete understanding of their regulatory burdens and risk management challenges. Then, our innovative developers get to work on architecting a solution with a dashboard and toolset that will supercharge the client’s risk management efforts. Reach out to the iTech team today and let’s discuss how we can help you to identify compliance issues quickly with a custom risk management software system.