At one time, risk management was a function that was generally handled by members of the financial or accounting department. While many of these efforts are still deeply rooted in a company’s financial processes, overall risk management has become increasingly critical for executives and department heads across the board.
The expanding scope of risk management
As Computer Weekly contributor Cath Jennings pointed out, there are an array of different instances that are making risk management a more pressing priority for all business stakeholders, including within IT.
“Risk management is a more pressing priority for all business stakeholders.”
“Although most large organizations have had registries dealing with financial risk for some time, many are starting to realize that potential information security risks should also be included, not least because external auditors are increasingly requiring it,” Jennings wrote. “Organizations are also beginning to find that more of their customers are demanding a risk-based approach to security.”
What’s more, several key industry guidelines now require that risk management processes are made a central enterprise focus. This includes ISO 27001 for information security management, as well as the specific enforcement within the Basel 2 accord.
In addition, the 2004 Civil Contingencies Act calls for robust business continuity plans, making risk management a necessarily prominent process.
There is also the BS 25999 standard in connection with disaster recovery planning, which includes specific requirements for both risk and business impact analysis.
Finally, as organizations look to abide by the new standards of ISO 31000, put in place this year, risk management will also be an important part of financial and overall security considerations.
Creating a unified front
As risk management efforts become a more central part of business security, it’s imperative that companies are able to centralize and unify their processes. As McKinsey contributors Philipp Harle, Adras Havas and Hamid Samandari pointed out, there have been “dramatic changes” to this business function in recent years, and the shifts will only continue in the future.
“Today, about 50 percent of the function’s staff are dedicated to risk-related operational processes such as credit administration, while 15 percent work in analytics,” Harle, Havas and Samandari wrote. “McKinsey research suggests that by 2025, these numbers will be closer to 25 and 40 percent, respectively.”
Leveraging an advanced risk management platform
One of the best ways to centralize and support risk management while elevating its importance as a key process within the enterprise is to deploy a solution that includes dedicated risk management features. There are several critical benefits for businesses that adopt this type of innovative software, including:
- Protecting paper checks: A risk management platform enables unattended, yet completely secure file transfers to safeguard paper checks from fraud.
- Overall file security: In addition, digital files should have their own robust protection, including during creation, transmission and storage. This ensures that sensitive data relating to internal company finances, as well as customer and vendor information, is fully protected.
- Payment automation: This feature doesn’t just speed up the approval and payment process, but also helps safeguard against common forms of fraud. The most advanced platforms will include automation for customer and vendor payments.
- Secure credit card processing: Risk management solutions should also support card processing within a framework aligned with PCI standards.
- Direct 1:1 connection with banks: A direct channel with banks and financial solutions means businesses don’t need to utilize third-party services for the transmission of financial data, and can ensure the full security of this sensitive information.
As risk management continues to become a priority across all departments, it’s imperative that enterprises have the tools they need to support this critical pursuit. SK Global Software’s Treasury Automation Suite provides everything your organizations needs for effective risk management, including:
- Secure, unattended file transfers for printed checks.
- Protection for data transmission and storage.
- PCI-compliant framework supporting credit card payment processing.
- Payment automation and other layers of security to guard against internal fraud.
Connect with SK Global Software today to learn more.