Automating Your Risk Management? How WolfPAC Can Help
What is ERM?
Like many terms, Enterprise Risk Management (ERM) can be interpreted in multiple ways. For banks and credit unions, however, the term generally refers to the discipline of identifying and categorizing risks across a wide range of functional areas.
Unique ERM Adoption Drivers for Banks & Credit Unions
While all businesses must manage operational risks, financial institutions have unique needs based on their critical role in the American economy and their long history of cooperation with government agencies.
Only banks are legally obligated to remain open except in the rarest of circumstances. Few other businesses act as custodians of the assets and personal information of virtually every US household.
The WolfPAC Difference
A strong ERM software platform like WolfPAC allows organizations to compare risks, consider the adequacy of associated controls, and dig deeper into individual risk areas. The software platform must also account for the unique risks faced by financial institutions while allowing users to create the comprehensive reporting required by corporate boards, auditors, and regulators.
In-House Industry Expertise & Continuous Platform Improvement
Having a roster of in-house experts that works with financial institutions every day helps tune WolfPAC into the complex needs of financial institutions. Your ERM software provider should update the platform as new laws and regulations are enacted. They should also be available to discuss the inevitable “grey areas” that arise.
Flexibility & Scalability
The ideal software platform should be tailored to the requirements of your specific institution. The needs of a credit union with 25 employees are obviously very different than those of a Big Four bank. Sometimes simplicity is called for, and other times, you want the ability to manage complex situations. Strong platforms provide flexibility and avoid a one-size-fits-all approach. You want to pick the right software for your current situation. Ideally, that software can grow as your institution grows.
Comprehensive Risk Coverage (beware of the “one-trick ponies”)
Risks lurk in a wide variety of functional areas at a financial institution. The best ERM software covers threats as diverse as cybersecurity, regulatory compliance, reputation risk, and market (i.e., interest rate) risk. Users should be leery of solutions that are strong in one or two areas but provide little or no coverage in others.
Deep Subject Matter Expertise in Key Risk Areas
In addition to providing sufficient breadth, your ERM platform should allow you to go deep into key areas so that your team can perform risk assessments of all vendors and technology partners. It should help you understand your organization’s resilience and plan for recovering from multiple sources of disruption. A cursory review of key areas like cyber security or privacy can lead to a false sense of security or even negative feedback from regulators.
Ability to Simplify Your Risk Management Process
The software platform should streamline the process of identifying threats and documenting the controls that mitigate risks. Flexibility is important, but your software can and should simplify decisions and observations based on common, if not universal, facts.
Technology products that contain neither personally identifiable information (PII) nor enable financial transactions are very unlikely to be categorized as high-risk. Risk assessments for such products should be very quick.
The WolfPAC platform, for example, allows users to assess low–risk technologies by answering three or four simple questions. Our solution also facilitates an in-depth examination of critical technologies and even suggests common controls used by other institutions that use those technologies.
In Conclusion
Anyone considering leveraging an ERM software platform would be wise to prioritize its breadth, depth, and time-saving potential while also considering the provider’s overall level of expertise.
The WolfPAC platform was built for financial institutions and is backed by a leading audit firm that counts hundreds of such institutions as clients.
Are you interested in learning more about how WolfPAC makes the hard work associated with risk management easier for banks and credit unions? Contact us to chat with one of our ERM experts today!
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More About WolfPAC: WolfPAC Integrated Risk Management® is a fully integrated suite of software and expert advisory services designed to make the hard work associated with risk management easier. Our low-friction platform keeps you one step ahead of emerging risks and ensures that regulators and executives are 100% satisfied with your reporting.
