By: Amy Downey & Amy Fields
Many banks still manage risks—compliance, operational and financial—separately in silos throughout various departments and operating entities across their organization. In doing so, upper management is not only left open to unforeseen threats and potential catastrophes but is also missing the opportunity to embrace and capitalize on risk. By managing all risks at the enterprise-level, an institution can achieve a complete and timely view of all threats and opportunities.
One New York bank succeeded in implementing an automated software system to establish consistent processes and methodologies, breaking through the organizational silos and facilitating enterprise-wide risk assessments. Besides protecting the institution from risk, they can now leverage their risk assessments to seize opportunities; to bring better products and services to market faster; invest resources in business areas where they have the greatest opportunities; and ultimately better position themselves against the competition.
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