The Benefits of Enterprise Risk Management Software for Banks

Risk management is a complicated field, so it is not a surprise that most people do not understand it very well unless they work in the field. However, once we look at what risk management does for businesses it becomes easy to understand why it is so important and why so many businesses are now looking at software solutions which can help them manage risk better and faster. Let us look at some of the benefits which this enterprise risk management software can deliver for banking institutions.

Automated risk monitoring

Automated risk when you drink is one of the biggest benefits that a risk assessment and prediction tool can provide for businesses. Without a software in place the risk management team of the bank responsible for rejecting any risk related issue within the whole organization. It is possible for a small bank with just a few branches to monitor everything but then you look at the bigger banks which have hundreds of branches with thousands of employees and hundreds of thousands of customers you can see by manually monitoring everything will never work. Software solutions have no limit to how much they can monitor a bank and 100 or even 1000 branches and the software will be able to perform just as effectively as ever.

Another advantage of automated risk monitoring is that it costs much less than hiring someone just to monitor risks. Software solutions can run 24 hours a day and Seven days a week without requiring any rest or vacation days. Apart from lowering costs, this also increases the effectiveness of risk monitoring exponentially. Instead of a percent monitoring risks 9 hours a day for five days a week, businesses can have a software solution monitor risk 24 hours a day and seven days a week.

Streamlined risk workflows

Automation is not the only benefit which enterprise risk management software has for banks. Not everything in risk management can be automated. However, we can streamline the workflows which are being followed in risk management processes across organization. In the absence of a software solution everything must be handled manually by the risk management team. However once the software solution is implemented it takes over the administrative duties and then ensures that everyone connects with each other in the right way.

Here is an example of how everything is streamlined once a risk management solution is implemented in the bank. When a risk is added to the risk registry within the risk management solution the solution asks about the people responsible for that risk. This means that every single dress which the bank is managing will have different people assigned to it. If the risk monitoring tool detects that a risk is increasing or decreasing it will automatically notify the person who is responsible for that risk. It will also show the new issue on the dashboards of the executive managers of the bank. Instead of the risk manager having to manually unearth the problem and then report it to the board, everything is streamlined and flows smoothly.

Enterprise risk management software for banks also lowers costs

The best part of implementing risk management solutions in a bank is that instead of increasing costs it decreases costs. This means that you get much better risk monitoring while spending much less money on risk management. There are many factors which contribute to these lower costs. Most people do not realize how expensive it is to create a large risk management team in a bank. Risk management is a very critical domain and you need to make sure that you hire the best employees would not only have the right qualifications but also have the right attitude towards risk management. The cost to employ a risk manager is so high that a bank can implement a risk management software solution which will operate for multiple branches across multiple states for less money than they will have to spend to hire one risk manager for one bank location.

This means that risk management software solutions deliver an unbelievable amount of value for banks and this is also why these solutions have become so common in banks across the world. The return on investment on these solutions was not always this good. There was a time when the only way a bank could get access to risk management technology wants to spend millions of dollars per year. The biggest banks in the world were able to spend these millions of dollars but smaller banks were left behind. Things work differently now. Cloud based risk management solutions can be procured on a monthly subscription basis at very low rates.

There are some solutions available in the market which operate from the cloud and can be implemented in a bank within a few days. This is very important because the implementation period can be very disruptive for a bank. Installing a new banking solution means that some of the current banking processes will have to be paused as they are shifted into the new system. Solutions that can be implemented quickly ensure that this option are minimized, and all banking processes can continue operating normally. Cloud based solutions also cost nothing to maintain; the software solution is on the cloud and thus everything about it is managed by the software solution provider.

360factors provides SaaS based AI enabled platform for Grc (Governance, Risk and Compliance)