Risk and compliance management systems must be capable of identifying, investigating, and resolving risk and compliance issues. Enabling intelligent problem management should be a primary objective of any risk and compliance technology implementation. It has enormous efficiency and productivity benefits.

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When we consider third-party / vendor risks, the matter becomes even more significant. Organizations in the financial sector need to have a centralized system for managing and tracking third-party risks using KPIs (Key Performance Indicators) and KRIs (Key Risk Indicators). Centralized systems ensure that management has no blind spot regarding third-party risks. Banks need to quickly determine whether a third party consistently meets quality standards and be aware of the risk connected with each of the vendors and other third parties.

Third-Party Risk Management’s Growing Importance

Vendor integration is a little more challenging in the BFSI sector than it is in other industries. Manufacturers have strict quality controls to guarantee that vendors provide the correct products. However, these controls are more effective with material products. Businesses must exercise far greater caution when it comes to services and the legal duty to maintain compliance. As a result, businesses want a robust vendor risk management system that notifies them of quality deviations and enables them to monitor vendor performance.

Organizations in the financial sector need to have a centralized system for managing and tracking third-party risks using KPIs (Key Performance Indicators) and KRIs (Key Risk Indicators). Click To Tweet

Some organizations continue to rely on general-purpose software applications such as Word, Outlook, and Excel. Basic productivity software solutions do not provide the benefits that modern integrated solutions do.

The functionality of these basic office productivity software solutions was regarded as sufficient a decade ago. However, they can no longer meet the compliance and risk departments’ efficiency and effectiveness requirements. Modern risk and compliance management systems automate the process of resolving issues through intelligent system design. The issue management platform is made available to the entire organization.

Such a centralized issue management system establishes a process flow that maximizes productivity by promptly reducing clutter and notifying designated stakeholders. Any employee who notices a problem can create a task and assign it to the appropriate persons. The allocated individuals receive information, and they may then assess the situation, provide feedback, and monitor the issue resolution process in real-time.

Intelligent Issue Handling

Managing issues intelligently helps businesses generate valuable insights and predictions. Management gains access to data, analysis, forecasts, and insights that inform executive decision-making and identify weaknesses. Companies can perform trend analysis on the data in the system to uncover trends that can aid in identifying and resolving process issues.

These findings contribute to the effectiveness of the second and third lines of defense. Risk and compliance specialists can dive down into the data for in-depth analysis and generate automatic reports concerning concerns with a few clicks. On their executive dashboard, board members can examine high-level data and insights, including all open issues, progress on those issues, and discussions. Executives can use the dashboards in current risk and compliance management systems to maintain a constant perspective of compliance and risk issues.

Things are not so simple without using a risk and compliance platform that helps manage issues. Organizations that use emails as the primary communication method for resolving issues face several obstacles that hamper productivity and efficiency. It is also difficult for auditors or anyone in the future to look back and understand the root cause of the issue. The root cause is hard to find because the issue’s audit trail is split across numerous emails. The case, as well as all the comments, are not being logged methodically.

The entire process changes when a modern risk and compliance platform is being used to manage issues intelligently. There is no reason to build email chains involving numerous individuals. All conversation takes place within a single system. This means that any stakeholder can open an issue and view its current status within the system. Additionally, the case and all related discussions are logged in the system and can be accessed at any time. This means that auditors and management will easily see the audit trail of each issue that the organization has faced.

In short, a contemporary risk and compliance management system offers better issue management not just for a single department or level of personnel but for the entire business. Individuals in the field benefit from reporting issues, middle managers benefit from an easy way to track issue resolutions and senior-level personnel benefit from visibility into organization-wide risk and compliance issues.

Enterprise Risk Management Software

Interested in seeing how your organization can benefit from such a system? Get in touch for a demonstration of what the Predict360 Risk and Compliance Intelligence platform with its Issue Management module can do for your organization.