Enterprise-Wide Risk Assessment

Red I Software’s latest product addresses the industry’s toughest challenges to-date:  an uncertain economy; loan defaults; IT security threats, etc.  With the call from government for greater regulatory oversight, it has become apparent that all financial institutions need to understand what risks they face on a daily basis and how to properly mitigate those risks.  The message is clear:

 

“That every area of the institution must be involved in managing the risk of noncompliance of some aspect of the regulations applicable to the business of the bank is clear. An institution-wide, comprehensive plan is necessary to ensure that the policies, processes and controls are in place and followed. The revised examiner guidance and procedures issued by the FDIC also confirms that the agency is placing a high priority on the compliance management system.”

 

Source:

Community Banker - FDIC Issues Revised Risk-Based Examination Procedures for Compliance

Charlotte Bahn

August 2006

 

With the industry going to a “risk based examination” emphasis, Red I Software has developed an enterprise-wide risk management system that provides the institution the following capabilities:

 

•           Effective Process of Risk Identification and Evaluation

•           Automated System for Risk Tracking and Mitigation Efforts

•           Integrated Policies and Procedures

•           Comprehensive Risk Aggregation Reporting

•           Structured Methodology for Risk Management

•           Policy & Procedures Testing

•           Reduction in future audit expense

 

Unlike most programs (methods) or consulting services available on the market, Red I’s Enterprise-Wide Risk Assessment System takes these processes out of a three ring binder and forces them to become a “living” part of the banks daily operations.  By centralizing and coordinating pre-defined risk areas like credit, reputation, liquidity, compliance, strategic, interest rate and operations to the banks policies and procedures the institution can modify its’ policy just one time and have it effect multiple areas.  The system also allows the bank to risk assess on more focused areas such as vendor assessment, IT, information security, GLBA, BSA Compliance, etc.  Each department is then notified through e-mail of any changes to the policy, procedural testing and policy review times on a year round basis. 

 

Let’s face it, living with risk has become part of our daily operating procedures.  Having a “living” risk assessment system is critical to managing that risk with up-to-date policy and procedures that have been tested to ensure the institution can mitigate any challenge that it faces.  Red I Software’s Enterprise-Wide Risk Assessment System delivers once again!!!