There is a popular adage which goes ‘’Fast, Good, or Cheap – Pick Two’’. Well it is often said as a joke there’s a lot of wisdom in this adage. Most of the services, whether they are business to business or business to consumer, follow this pattern. If you select a solution that is fast and inexpensive then it may not be very good. If you select something that’s both fast and good, then it can be very expensive. However, it should be remembered that there is one thing which can break this pattern and that thing is modern technology. Midsize banks that are investigating risk management technologies are best served understanding that today’s advanced risk technology can make risk management faster, better and more affordable that legacy practices.

The Importance of Technology When It Comes to Risk Management

Technology enabling faster, better, and more affordable services is true not just for risk management but for most industries. The construction industry is it good example of technology enabling more affordable, faster and improved solutions. Imagine that there were two different empty tracts of land and two different companies were given the project to make the same building on them. Which construction company has access to the latest tools and technology? This means they have electronic equipment, sensors for accurate measurements, and access to computer modeling and architecture tools. Meanwhile, the other construction company only has access to basic shovels and other manual construction equipment, printed blueprints of the building, and manual measuring tools. Now let’s look at the speed, quality, and cost of both projects.

Midsize banks that are investigating risk management technologies are best served understanding that today’s advanced risk technology can make risk management faster, better and more affordable that legacy practices. Click To Tweet

Higher Productivity

It is obvious that the company that has access to modern construction equipment and computers will be able to construct the building faster. They will be able to break apart things faster, they will be able to build and join different parts faster. In short, they would be faster when it comes to the work every step of the way. The company that only has access to manual tools will take much more time stop leaving the building because they’re still using techniques and technologies from decades ago.

Better Quality

Not only will the company with better technology build the building faster, they will also be able to build a better building that will last longer. Since they have access to sensors and computers, they can use abilities and features which the other team cannot. Many architecture firms now use computers to model the effects that wind and earthquakes will have on the building to make sure that it is safe. The building made with modern tools will also be more aesthetically pleasing. Again, it’s not a mystery why the team with better tools will do a better job.

Lower Costs

Finally let’s look at the costs for both projects. What will surprise many people is that the team with the better equipment will be able to complete the project at a much lower cost than the team using manual tools. The reason for this is very simple – even if the team with the better tools costs more per hour to hire , they will be able to complete the job in fewer hours which means that the total cost of the project will be lower. Another factor which will decrease the costs is the lower chance of mistakes.

Procurement Costs

Usually the argument people make against using better tools is that the cost of procuring the tools is much higher than just using the old tools which we already have access to. Even in the construction example, it is obvious that the measurement tape and the shovel will be much cheaper than any electronic equipment that the construction team uses. The problem is that this argument doesn’t really ring true when it comes to risk management technology. Banks expect that they will have to pay millions of dollars to get access to the latest risk technology while in reality they only need to pay a fraction of that.

In other words, this technology has now become a no brainer for even mid-sized banks. There was a time and this technology was only used in the largest banks in the country because it was so expensive to implement and maintain, but over the past few years technology costs have decrease exponentially and this technology can now easily be procured by smaller organizations . If you’re interested in seeing how such risk technology would perform at your bank organization then get in touch with our experts for a demonstration.