Enterprise risk management is an enterprise-related risk management approach. Since its introduction, the approach has been adopted by many industries and sectors as it offers various benefits.
ERM aims to tackle risks strategically and delivers a cohesive picture strategy for the organization's benefit. While it looks identical to governance, risk, and compliance (GRC), the two terms differ very much, with ERM used as a subset of GRC.
The risk management authorities define ERM as a strategic support system that enables organizations to complete their objectives by fulfilling a spectrum of risks and managing the combined effect on the integrated risk portfolio.
Benefits of ERM Implementation
Implementation of enterprise risk management solutions gives financial organizations several benefits, chief among which are:
Better Awareness and Response Rate
An organization has to encompass every risk possible, including financial, operational, reporting, and compliance. ERM benefits an organization by giving better oversight, awareness, and risk response. Whether delivering real-time insights to the team or providing a broad view of risk, ERM dramatically increases the response rate at which the organization faces threats.
Complying with Legal Requirements
Implementing ERM solutions allows organizations to adhere to regulatory requirements and keep all legal requirements in check. ERM ensures that the organization is updated with regulatory changes and provides data to demonstrate compliance, thereby decreasing risks and breaches.
Greater Confidence to Achieve Strategic Goals
Automated ERM solutions bring newfound confidence to organizations to go against the risks that might potentially derail strategic approaches. When all the operations are in place and aligned with regulatory compliance laws, the objectives become clear and achievable. The compliance team is aware of all the upcoming factors and takes steps for early mitigation.
Clear Oversight for Leadership
ERM solutions have a sophisticated reporting system that allows leadership and higher management to oversee every management factor. There is a clear picture in front of leaders through which they can analyze and make their decisions accordingly.
Risk management is necessary to ensure your business has a secure and stable future. Through the 360factors platform, Predict360 Enterprise Risk Management Software ensures that managers always have visibility of enterprise risk on a dashboard. New risks are instantly reflected in all risk metrics and are visible to all authorized stakeholders. Our cloud-based risk management software also ensures that the latest regulatory risks are closely monitored and updated within the system.
Taking a proactive approach enables organizations to increase efficiency, decrease resolution times, collaborate more effectively, and achieve insight into issues and complaints trends.
- Easy and seamless document uploads
- Break down organizational silos that complicate risk management
- Decentralize compliance to make it an organization-wide function
- Give executives organization-wide risk visibility through risk management tools
- Access compliance activities and reports across all functional compliance departments
- Stay up to date with real-time regulatory updates
- Covers regulations such as Dodd Frank, SOX, BSA/AML, HMDA, CFPB, RESPA, FATCA, FINRA 4210, AISMD, fair lending regulations, and much more
- Automated interpretation of the legal language to allow quick parsing of new regulations
- Communicate with and collaborate on Risk Appetite with other users
About 360factors, Inc.
360factors empowers organizations to accelerate profitability, innovation, and productivity by predicting risks and streamlining compliance. Predict360, its flagship software product, is an AI-powered Risk and Compliance Intelligence Platform that anticipates and mitigates risks while facilitating regulatory compliance. Predict360 integrates regulations and obligations, compliance management, risks and controls, audits and assessments, policies and procedures, and training in a single cloud-based SaaS platform based on artificial intelligence to provide predictive analytics and unique insights for predicting risks and streamlining compliance. 360factors is the exclusively endorsed solution provider for compliance management by the American Bankers Association (ABA). Visit www.360factors.comfor more information.