The advantages of digital risk management
Whenever we hear the word digitization there is a positive connotation. We know that digitization helps companies, employees, governments, the planet. And yet, many companies have gone through digital transformation at a slow pace, and others are not in the 12th hour to adopt the digital transformation.
These companies believe that manual processes are still adequate for their purposes and do not want to deal with the costs, business continuity disruptions, or hiring and training needs associated with migrating to a new digital system or process.
Digitalization helps risk management processes
What do you lose? What do you gain if you digitize your company? Many organizations have not updated their risk management processes and rely on manual review processes to monitor risks and ensure compliance with regulatory standards.
This system can be slow, involves duplication and redundancy between teams and departments, and leaves a lot of room for human error. It reduces subject matter experts to “experts” in filling out spreadsheets and answering emails. They are not doing the strategic work that would move the organization forward.
By turning to a digital risk management process, companies eliminate team silos and ensure they can effectively talk to each other. The right digital risk management solution will provide clear visibility into current threats as well as required remediation, shortening the required response time.
Features of digital risk management solutions
Organizations can use one or more software tools to manage and mitigate risk exposure. Some of the important features required of a risk management technology solution include:
1. Automated risk assessment: A digital risk management system must provide ongoing automated risk assessments for the organization’s identified risks based on monitored risk indicators.
2. Risk prioritization: The solution should include the ability to calculate the risk appetite for each foreseeable risk as well as the impact of each risk and then prioritize mitigation plans accordingly.
3. Real-time risk reporting: The solution must integrate with real-time data streams, which could include data such as system outage notifications, risk reports and other industry-specific data.
4. Intuitive interface for all users: A digital risk management solution must be intuitive for all users in all operational functions. Team members must be able to easily set triggers, respond to alerts, and gather relevant analytics data for further evaluation.
In an era of uncertainty, with ever-increasing cyber security threats, implementing the right risk management solution is essential to ensure business sustainability and growth for any company. By carefully choosing a digital risk management solution, the company will be well prepared to take advantage of technology to protect itself from any threat.
Florentina Șușnea este Managing Partner în cadrul companiei PKF Finconta. Experiența ei profesională de peste 26 de ani cuprinde domeniile de audit statutar și IFRS, consultanță fiscală, probleme de rezidență fiscală, restructurare financiară și fiscală, documentație și politici de Transfer Pricing, fuziuni și divizări, M&A, expertize judiciare, contabile și fiscale, due diligence de achiziții. Florentina este membru acreditat al următoarelor organizații profesionale: Camera Consultantilor Fiscali, Camera Auditorilor Financiari din România, Camera Expertilor și Contabililor Autorizați din România si Association of Certified Anti-Money Laundering Specialists. A absolvit Facultatea Finanțe-Contabilitate din cadrul Academiei de Studii Economice, București, Facultatea de Drept din cadrul Universității ”Titu Maiorescu”, programul MBA de la Tiffin University din SUA, este doctor în economie și a urmat numeroase cursuri naționale și internaționale în domeniul fiscal. email@example.com