In a new report, we examine whether digitalization help financial firms mitigate their risk and better prepare them for future crises
The COVID-19 pandemic has tested financial firms in ways that even the most innovative of business continuity managers could not have dreamed. Firms have risen, at speed, to the myriad risks that have been presented to them. And whether it is cybersecurity, fraud, or data management, firms have looked for effective ways of managing those risks, often through digital solutions.
In a newly published report, How digitalization can protect firms from the next crisis, by Thomson Reuters Regulatory Intelligence in conjunction with OpenText, we consider how organizations have used digitalization and technology to manage common key risks, and explore the corporate and information governance challenges of digitalization and whether these measures prepare organizations for any future crises.
You can download the How digitalization can protect firms from the next crisis report, by Thomson Reuters Regulatory Intelligence and OpenText here.
As the report illustrates, successful organizations are built on strategic objectives that set a commonly understood purpose that cover products, services, and customers. Increasingly over recent years, these strategic objectives are being operationalized using digital solutions. But this digital transformation is not only about how an organization can use technology to better inform its customers or improve its standing in the market, it also covers how these digital solutions can help manage the risk that organizations are exposed to when pursuing their core strategies.
The relationship between risk management and digitalization is twofold. First, organizations can use digital solutions can help mitigate risk; and second, organizations need to manage digital projects appropriately to ensure a smooth deployment. The one goes hand-in-hand with the other, with governance as the key to success in both.
As the report shows, digital solutions have been, and will continue to be, developed to address key operational risk areas — whether it’s deploying identify-access management systems to reduce security risk or leveraging customer vetting and due diligence applications to reduce third-party risks — digital solutions are being used across an organization’s entire risk universe. The scope of development is exciting for operational and risk managers alike, but organizations still need to be disciplined during deployment and apply appropriate risk, compliance, and governance protocols to ensure objectives are achieved successfully.
The COVID-19 pandemic will not be the last crisis organizations will face, but the lessons learned on how digital transformation can reduce the risks should help organizations be better prepared for the next challenge.
You can find further information on Thomson Reuters Regulatory Intelligence here.