How consumers manage their finances today is vastly different from just a decade ago. As a result, today’s financial institutions and banking organizations are changing how they prevent, identify, and mitigate financial risks. From improved security measures to ethics hotlines, see what your financial organization can be doing to reduce risks and concerns. And these steps might inspire improvements within your business model.
Performing Routine Risk Assessments
One of the first steps your financial institution or bank can take to improve risk mitigation efforts is to perform routine risk assessments. And while you might already have a risk assessment procedure in place, consider making them more frequent. Risks can present and evolve in a matter of days. And data breaches are becoming more frequent. Comprehensive risk assessments will ensure you prioritize focus and diligence in staying ahead of concerns.
Anticipating New Digital Risks
Emerging financial, data, and ethical risks are present almost daily. And the efficacy of your financial services depends on your organization’s ability to navigate and stave off these risks. Moreso today are the risks associated with digital banking and data. With financial apps for money management and employees working remotely, there are increased concerns about money mismanagement, customer data breaches, and more. Banks and institutions today are adopting full suites of software solutions that lay in better encryption and security measures.
Improving the Four Risk Mitigation Strategies
It’s not uncommon for companies to tap into the four pillar risk mitigation methods, seeking new ways to improve each independently. Consider exploring each of these strategies for your financial institution and identify key areas of improvement that might fortify those strategies.
1. Avoidance: These strategies allow you to spot and avoid risk altogether.
2. Reduction: These strategies allow you to address inevitable risks head-on, with steps for reducing the potential impact of those risks.
3. Transference: These strategies seek to pass or transfer risks away from your business model and onto a third party.
4. Acceptance: These strategies recognize certain risks are always present and call for ongoing methods of mitigation.
Adopting the Ethics Hotline
Another growing trend among financial institutions and banking organizations is the adoption of an ethics hotline. Ethics hotlines are incredible resources for risk mitigation. They’re outlets for all staff, customers, and vendors to report suspected or witnessed violations. And the ethics hotline is also effective for digital and online transactions since customers and workers from anywhere can report concerns they experience online. Consider the ethics hotline to be the added layer of risk mitigation your bank needs to stay ahead of emerging risks and issues that could end up costing thousands.
When your banking institution or financial organization is ready to make improvements to risk mitigation efforts, consider the ethics hotline. And when you’re ready to develop the best-fit ethics hotline platform, let Ethical Advocate be your guide. Our team has years of experience working with multiple industry segments, including financial institutions. And we can help you close the gaps in your operations with the help of a robust ethics hotline solution.