The Challenge

A challenge for the for the Pawn Shop Company Board, Executives and Risk, Information, Compliance and Audit Professionals

  • In the pawn shop industry, calculated risks have to be taken every day to run an organization, but most pawn shops fail to monitor and manage risk effectively because they fail to implement systems to get a federated view of the risk. A cavalier and silo approach to risk-taking is a result of a poorly defined leadership and risk culture. It results in disaster, regulatory scrutiny, demise of organization and can potentially become a case study for future generations to come on how poor risk management leads to the demise of pawn shops.
  • Pawn Shops are using multiple platforms in silos which further cements the silo culture. This is driven by either having legacy systems, not being aware of the integrated GRC tools or it could be driven by “egos of resistance to change”. Nonetheless, unless the organization shifts a culture and changes the play book that we are going to break down the silos between Governance, Risk, Information, Compliance, Audit and foster a culture of tighter communication between each functional departments and ensure visibility of risk and compliance metrics across all of the functions through a single platform, it will never achieve optimal efficiency nor enterprise excellence.
  • Gone are the years of simplicity in pawn shop business operations. Keeping the complexity and change in sync is a significant challenge for boards, executives, as well as risk management professionals throughout the business. Pawn Shops need to invest in modernizing and implement an integrated governance, risk, information, compliance and audit systems with bleeding edge artificial technology and architecture to improve operational throughput and minimize non-interest expenses. In order to stay competitive, provide exceptional service and increase quality. Pawn Shops have to balance their focus from growing their portfolio to investing in integrated governance, risk, information, compliance and audit management systems.
  • For some pawn shops, risk management is only an expanded view of routine financial controls and is nothing more than a deeper look into internal controls with some heat maps and that does NOT truly provide an enterprise view of risk. Risk is pervasive throughout the entire organization. There are variety of departments that manage risk and compliance with various tools, models, varying taxonomies, with different frameworks and point of view in how risk should be monitored and measured at a functional level.

The Solution

  • Considering how advanced technology is with artificial intelligence, advance data informatics, and pattern detection, pawn shops can easily implement an integrated Governance, Risk, Information, Compliance and Audit Management (GRICA) system based on artificial intelligence which is a big data approach to GRICA. It can automate several risk and compliance process flows such as:
    • Automate the regulatory change management with alerts and tasks
    • Enable mapping of regulations and standards to internal and financial controls
    • Map risk to company & department goals,
    • Take in external data feeds from other internal systems such as loan processing, credit risk systems and create concept maps between loan processing and credit risk data to operational risk data at the asset level which can give you a view of where all the risks interrelate and provides enterprise risk view through a single platform
    • Automate efficacy and effectiveness of internal controls which is tedious and manual process requiring an army of people.

We offer the following solutions to Pawn Shops:

Value

  • Pawn Shops that switch from disjointed legacy application to advanced technologies by investing in integrated Governance, Risk Information, Compliance and Audit system will undoubtedly gain efficiencies and reduce costs by minimum of 20%.
  • A sophisticated integrated E-GRC system will provide insight into predictive analytics and context around risk management, business strategy, objectives and performance which will enable the pawn shops to make intelligent decisions about acquiring and retaining the best customers as well as safeguard reputation and financial health of your company.

A Case Study

There is no case study of any pawn shop that either asked us or implemented an integrated enterprise governance risk, information, compliance and audit management system
The timing is perfect for your pawn shop to be an early adopter and become our case study of implementing an integrated governance, risk, compliance and audit management system.