Financial risk is a well-known threat that CFOs factor into their decision-making.
Trying to mitigate that risk through a manual approach of emails, spreadsheets and binders is an ineffective defense. In today’s banking industry, there continues to be a steady uptick in instances of financial risk that can impact both financial institutions and their customers.
To combat the most visible risk of fraud, regulators have implemented more stringent rules, and banking organizations must be prepared to meet the growing compliance demand—these demands will not be easily met with manual methods. Adapting your manual processes, tools, and strategy with automation is not an easy or necessarily quick process.
Step 1: Assess Your Automation Needs
When you’re consumed with manual methods, so much of your time and energy is focused on simply completing your current pile of tasks; it’s understandable that you haven’t already found time to look beyond the horizon for a way to make the process more efficient and effective. Begin your assessment by reviewing the tools, team, and process you’re currently using to complete your financial close.
Step 2: Build Your Risk Strategy
As mentioned previously, accountants historically established a variety of methods for completing their various projects, but these disjointed methods had one thing in common: they’re manual. These individualized manual methods created inconsistent processes for solving problems.
Step 3: Achieve Standardization and Visibility
After cementing your risk strategy, you will begin to see the two key areas of weakness in your manual processes: standardization and visibility. These hallmarks can only be achieved through a process overhaul.
Step 4: Prepare to be Audited
As with risk, audits are a natural companion to doing business, especially in the world of banking and finance. For nearly two decades, banking institutions have been under increased scrutiny from regulatory authorities. Meeting those frequently changing compliance demands is increasingly difficult with only manual methods at hand.
Implementing a comprehensive risk management framework is no minor feat, but the benefits will be visible throughout your financial institution, not just in your Office of Finance.
This eBook explores the four major steps you should take to implement a solid risk management strategy for your financial institution using financial process automation.Download the eBook