Risk and compliance are often at the top of the list when it comes to headaches for community financial institutions. Yet, an underperforming risk and compliance management program can be a dire threat. What factors separate high-performing programs from underachievers?
A recent Aberdeen Research study showed that institutions using data management, data integration, and analytics tools for risk and compliance evaluation reported far greater improvement in this area compared to peers who did not use such technology.
Aberdeen’s analysis of these findings suggested an effective a risk and compliance strategy is greatly enhanced by tools that:
- Handle large volumes of data so risk managers can access historical data to allow deeper insights into risk analysis
- Integrate multiple data “silos” to provide a balanced and comprehensive view of the institution’s risk profile
- Powerful analytical and reporting tools that allow the most current data to be considered in risk and compliance decisions.
By using these technology tools, community financial institutions can handle risk and compliance issues more effectively. Those that don’t do so at their own risk.