Replace risk management with process management
Enterprises have to develop a strategy for minimizing and avoiding risks in all forms. Many invest in high-cost risk management solutions to address these issues.
In 2008, the financial system in the U.S. had a meltdown which resulted in massive losses in the financial district and other industries. The enterprise risk management strategies these firms used failed them for a variety of reasons, either because they weren’t up to date, weren’t adequate to the company needs or simple human error. Since then, many regulations have been put in place to avoid a similar situation from occurring again, but that doesn’t prevent the same problems with risk management software from happening should another problem rear its head.
For financial firms looking to improve their operations and, more importantly, eliminate the risks of the 2008 crash, from their operations, process management software may be the answer.
Enterprise risk management solutions fail companies because they work through a chain of command that doesn’t produce immediate results, and if there is ever a time that swift response is needed, it’s during a crisis. Automated BPM software eliminates this problem by streamlining the alert process and leveraging work processes that are already in place to optimize risk management for a firm.
In financial services, swift response is everything. With ever-increasing regulations, new challenges and demanding customers at ever step, it is critical for these firms to have high-quality solutions in place that not only optimize everyday workflow, but minimize risks at the same time. Investing in BPM for financial services companies will enhance their chances of surviving even major meltdowns like the one in 2008, while providing a stronger foundation for regular improvements as well.
In addition to reducing risk, BPM solutions are less costly than risk management software, as many firms will pay an arm and a leg for the promise of protection and the providers are willing to charge it. This will save companies money in the long run while providing increased security and overall growth, killing three birds with one stone. The benefits will continue to add up as well, as firms see profit growth from improved productivity and general enhancements to operations in other, smaller ways. With protected long-term growth as an end goal, no financial business can go wrong with BPM software to support it.
Vice President of Product Marketing