Risk management is tough, irrespective of company size. There can be several business units that follow various regulatory compliances. To make all of it come under a centralized risk management system seems next to impossible. In this Risk Management Society article, Tapan Shah and Gayle Woodbury narrate the benefits of using technology in risk management.
Effective Risk Management
When business units work in silos, employees end up wasting their productive hours collecting data and comparing them. Majority of the GRC solutions out there can fulfill only 60 percent of the job and require customization.
But the problems do not end with customization. The vendors might have good products but do not know about your company. The workforce cannot optimally use the solution as they have no training. Some organizations leave the job of risk identification to their end users, which is manual and riskier. Moreover, you need external help to objectively to look at that end-user feedback. These are costly approaches. Besides, the solutions also must help supervise governance, compliance, and efficiency.
However, if you can pick the most effective solution and implement it in phases, it can help the organization to enjoy the following benefits:
- Clarity: The technology solution will increase visibility through better data integration and management as well as risk and compliance management.
- Transparency: Automation can handle the repetitive tasks so that you can focus on something more complex and unstructured.
- Coordination: Your employees can coordinate and share sensitive data over a secure platform.
- Saving Money: All unit can cross-check data, conduct regular meetings, categorize risks, and share reports to avoid working on the same risk. A well-aligned solution will save them from losing their productive hours by fast-forwarding to the next step.
- Increased Response Time: With the solution automating the most mundane tasks, it is easier for the departments to address customers faster.
Best Practices to Make It Work
Nevertheless, technology alone cannot help you address risk management. Following are the best practices you should implement to derive optimal results:
- Identify processes that can share the same solution.
- Find out if you can use the in-house expertise to work on the project.
- Understand what kind of solution will best fit your requirements.
- Channelize the risk and compliance work hierarchy.
- Categorize your products, services, processes, risks, and governance.
- Create a plan with significant deliverables at regular intervals.
- Set up a communication network to help your employees get the timely approval or intervention.
To view the original article in full, visit the following link: http://www.rmmagazine.com/2018/06/18/using-technology-to-streamline-governance-risk-and-compliance/