Regardless of asset size or geographic footprint the digital transformation impacting financial services is a touch of reality. The days of spread sheets, manual processes and binder-based analysis are gone. In all honesty, those days should have faded away five years ago. Unfortunately, there are still many organizations that have not \u201cmade the move\u201d, especially regarding risk management. That is one reason there has been so much movement forward in risk management approaches, processes and education. This movement aligns perfectly with digital transformation.<\/p>\n\n\n\n
So what exactly is digital transformation? Simply stated it is the movement of old process to new. For example, mobile banking \u2013 digital transformation: Cloud computing \u2013 digital transformation: social media \u2013 yep, that too is digital transformation. Remote working \u2013 that is also digital transformation. As you can see, we have been in the transformation for a long time.<\/p>\n\n\n\n
Unfortunately, not every company has progressed. There are still those companies caught in the same old way of doing things. While some companies are into 3-D printing, advanced robotics and mastering the Internet there are still those that use excel spreadsheets, manually aggregate information and shun the value social media.<\/p>\n\n\n\n
It is important to know that living digital transformation does not necessarily change the risk profile of an organization. Certainly technology speeds up the transaction flow and recognition of errors. The basic risks though remain the same. While a credit application may be approved via credit score and in less time than before, the risks associated with credit, i.e., can I collect the money back, remain the same.<\/p>\n\n\n\n
So what is the biggest difference with the digital transformation occurring? Presently, organizations have to be able to recognize, react and resolve more quickly than ever in the past. Competitors that move quickly to take advantage of market opportunities do so because they recognize, react and resolve quickly. Limiting losses during crises is accomplished because of rapid recognition, quick reaction and timely resolution.<\/p>\n\n\n\n
Risk management often drives ability to recognition, react and resolve. A risk management function that is digitalized provides a strategic advantage to any financial institution, regardless of size or geographic footprint. That is why ERM is a must, GRC a necessity and risk education a key foundation stone for future success.<\/p>\n","protected":false},"excerpt":{"rendered":"
Regardless of asset size or geographic footprint the digital transformation impacting financial services is a touch of reality. The days of spread sheets, manual processes and binder-based analysis are gone. In all honesty, those days should have faded away five […]<\/p>\n","protected":false},"author":4,"featured_media":10264,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[48],"tags":[],"class_list":["post-10517","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-risk-management"],"yoast_head":"\n