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Audit Management Solution (Case Study)

Global Audit Solution

Client Headquartered in the U.S., the client has a large team of lead auditors and guest auditors who perform internal audits for operations and subsidiaries spread across multiple countries and continents. While this audit team previously had an audit management system in place, they struggled with challenges related to ineffective automation, multiple siloes of information, and a lack of collaboration across audit projects and activities.

When the team decided to implement a new audit solution, MetricStream was chosen because of their ability to offer a solution that could not only improve the effectiveness and efficiency of audit programs, but could also be extended to manage other global GRC initiatives. The client would eventually be able to bring together / integrate all GRC processes and systems. This unified approach would provide a host of benefits to the client– most importantly, giving them complete visibility into enterprise risks and the compliance environment which, in turn, would enable stakeholders to make informed strategic decisions.

In the first phase of the project, the client implemented MetricStream’s solution for audit management and compliance assessments. The solution has helped the client unify all global internal audit and compliance assessment processes, entities, and data. This integration has enhanced audit/ compliance coordination and collaboration across business units and geographies, and has also improved top-level visibility into the status and findings of audits and compliance assessments. The Global Audit Solution has also enabled a systematic and automated approach to the audit and compliance assessment lifecycle, helping the client minimize redundancies, accelerate workflows, and improve overall efficiency.

Read More: https://www.metricstream.com/casestudy/CPG-audit-management.htm

IT Audit and Compliance Process

Audit and Compliance Management

IT systems are inextricably linked to the overall financial reporting process and need to be assessed, along with other important processes, for compliance with the Sarbanes-Oxley Act. Today the IT Audit and Compliance process to support the Sarbanes-Oxley Act is chaotic. Most companies have implemented limited bottom-up automation infrastructure for control test automation through point solutions. However, lack of top-down approach to IT Audit and Compliance, along with lack of a single system of record, makes the entire process very disorganized.

MetricStream, a leading provider of Governance, Risk, Compliance and Quality solutions, addresses these issues through its solution, specifically designed to manage the IT Audit and Compliance process at large companies.

Read More: https://www.metricstream.com/insights/stream_it_audit.htm

IT GRC Programs – Build the Business Case for Value

IT Governance, Risk, and Compliance (GRC) management is becoming increasingly integrated across a wide and expanding set of use cases - moving beyond traditional IT security management into IT risk management, IT compliance, policy management, threat and vulnerability management, third-party management, and more. In OCEG’s 2017 GRC Maturity Survey, over 72% of organizations stated that they are executing an integrated GRC vision, and 89% claim that the benefits realized have met or exceeded their expectations.

The core promise of an IT GRC program that integrates needs across all stakeholders is better business performance in the midst of an evolving threat landscape, technological and business developments, and regulatory changes. Since strong performance is a pre-requisite for survival in today’s highly competitive world, leaders across the enterprise are asking for help in setting an IT GRC vision, plotting a course, and implementing integrated programs that deliver real value to all organizational units. While many organizations have seen benefits from their IT GRC investments, it is critical to build a case for the business value of IT GRC, in order to gain enterprise-wide commitment supporting the implementation of a high-value, sustainable IT GRC program

Read More : https://www.metricstream.com/insights/Whitepaper_Business_value_for_IT_GRC.html

GRC Framework

GRC Point Solution

Many organizations find themselves managing their governance, risk and compliance initiatives in silos - each initiative managed separately even if reporting needs overlap. Even though, each of these initiatives individually follow the governance, risk and compliance process outlined above, when they deployed software solutions to enable these processes, the selections were made in a very tactical manner, without a thought for a broader set of requirements. As a result, organizations have ended up with dozens of such systems to manage individual governance, risk and compliance initiatives, each operating in its own silo.

By taking an integrated GRC process approach and deploying a single system to manage the multiple governance, risk, and compliance initiatives across the organization,the issues listed above can be easily addressed.

Such an approach can :

Have a dramatic positive impact on organizational effectiveness by providing a clear, unambiguous process and a single point of reference for the organization

Eliminate all redundant work in various initiatives

Eliminate duplicative software, hardware, training and rollout costs as multiple governance, risk and compliance initiatives can be managed with one software solution

Provide a “single version of the truth” available to employees, management, auditors and regulatory bodies

Read More: https://www.metricstream.com/whitepapers/GRC-framework.htm

Governance, Risk and Compliance (GRC) Framework

GRC Paper

Many organizations find themselves managing their governance, risk and compliance initiatives in silos - each initiative managed separately even if reporting needs overlap. Even though, each of these initiatives individually follow the governance, risk and compliance process outlined above, when they deployed software solutions to enable these processes, the selections were made in a very tactical manner, without a thought for a broader set of requirements. As a result, organizations have ended up with dozens of such systems to manage individual governance, risk and compliance initiatives, each operating in its own silo.

Majority of the Fortune 1000 organizations find themselves in this situation today. However, they are quickly finding that as the multiple risk and compliance initiatives become more intertwined from regulatory and organizational perspectives, multiple systems cause confusion due to duplicative and contradictory processes and documentation. In addition, the redundancy of work, as well as sheer expense of maintaining multiple point software solutions causes the cost of compliance to spiral out of control.

By taking an integrated GRC process approach and deploying a single system to manage the multiple governance, risk, and compliance initiatives across the organization,the issues listed above can be easily addressed.

Such an approach can :

Have a dramatic positive impact on organizational effectiveness by providing a clear, unambiguous process and a single point of reference for the organization

Eliminate all redundant work in various initiatives

Eliminate duplicative software, hardware, training and rollout costs as multiple governance, risk and compliance initiatives can be managed with one software solution

Provide a “single version of the truth” available to employees, management, auditors and regulatory bodies

Read More: https://www.metricstream.com/whitepapers/GRC-framework.htm

#grc

Integrated Risk Management in Financial Services Companies The recent financial upheaval has intensified the concern and attention of companies on financial risk management, emphasizing the need for a strong risk framework to efficiently recognize, evaluate, and manage risks. Companies are focusing more on their risk and reward ratio. Risk management is a field in which a business can distinguish itself from the competition; and is hence, a matter of strategic value.

Integrated Risk Management in Financial Services

Enterprise Risk Management for Financial Institutions

Executing a corporate risk management structure involves risk management to be embedded across the entire business. The approach at the top must define the purpose and appetite for risk of the business, as per the corporate operations and strategy, and put it on paper in the form of a risk policy. A combined operational risk structure offers clear direction on impact tolerance, methodologies, processes, and policies for routine risk management.

Several firms today still depend on ad-hoc methods to manage risks. In today’s age, it is more important to steer your firm towards an integrated approach to managing risk.

There are four key pillars that need to be looked at while building a successful IRM plan

Strategy

Processes

Technology

People

Each pillar relies on the other to build a solid foundation. When coming up with a strategy, you must have people on board. Inculcate a culture within your firm that encourages empowerment and awareness among individuals, executives, and teams.

Read More: https://www.metricstream.com/integrated-risk-management-financial-services-companies

Enterprise Risk Management in Financial Services Industry

Today, the need has developed from controlling compliance risk to managing overall risk. The scope of risk has also evolved, with digital risk moving to the fore. Policies that propel success today, such as market expansion or technology adoption, are generating new prospects while creating more risks.

Here are a few emerging trends shaping risk management in financial services companies:

Vendor and Third-Party Relationships

Digital Transformation

Compliance and Oversight

Rapidly changing geopolitical situation

Changing customer demand

Customer retention and loyalty

Read More: https://www.metricstream.com/integrated-risk-management-financial-services-companies

Enterprise Risk Management for Financial Institutions

Risk Management Financial Services

Successful risk management in financial services these days begins with Governance Risk Compliance (GRC) — but it must not end there. As more companies adopt digital transformation, enterprise risk expands in complexity and scope, and the need to handle it in a nimbler and more receptive manner becomes urgent. GRC in its initial manifestation, a toolkit for overseeing compliance risk, continues to be critical for that particular challenge but is less effective with today’s changing meanings of risk and risk management. The solution is not to leave behind GRC, but to enable it to evolve into a method that fits in with today’s multidimensional challenges through Integrated Risk Management (IRM).

The main reason we need IRM is because of the interconnectedness of risks. Today risks are more complex and their interconnectedness is still unknown. But with the help of IRM, we are able to look at them collectively giving us some insights into their behavior. In addition, risks are evolving and new risks are emerging. Having an integrated approach might give us early warnings to these emerging risks and related trends.

The globalization era, the rise in digital processes, and the trend toward third-party reliance are compelling firms to evolve from a siloed risk management approach to Integrated Risk Management that requires an additional tech to support such complex processes.

Other external pressures on the financial services come from insurers and bank regulators who want to assure customers and policyholders and the whole financial system and shield them from unnecessary risks, even as the industry is liberalized. The internal pressures arise from risks and business conditions unique to this sector, particularly those that appear from operating in a competitive environment.

Read More: https://www.metricstream.com/integrated-risk-management-financial-services-companies

Risk Management in Finance

Financial Risk Management

The recent financial upheaval has intensified the concern and attention of companies on financial risk management, emphasizing the need for a strong risk framework to efficiently recognize, evaluate, and manage risks. Companies are focusing more on their risk and reward ratio. Risk management is a field in which a business can distinguish itself from the competition; and is hence, a matter of strategic value.

Successful risk management in financial services, these days begins with Governance Risk Compliance (GRC) — but it must not end there. As more companies adopt digital transformation, enterprise risk expands in complexity and scope, and the need to handle it in a nimbler and more receptive manner becomes urgent. GRC in its initial manifestation, a toolkit for overseeing compliance risk, continues to be critical for that particular challenge but is less effective with today’s changing meanings of risk and risk management. The solution is not to leave behind GRC, but to enable it to evolve into a method that fits in with today’s multidimensional challenges through Integrated Risk Management (IRM).

Recognizing Constantly Evolving Risk in Financial Services Organizations

GRC emerged as a way of enhancing internal controls and corporate governance to tackle regulatory compliance constraints. Today, the need has developed from controlling compliance risk to managing overall risk. The scope of risk has also evolved, with digital risk moving to the fore. Policies that propel success today, such as market expansion or technology adoption, are generating new prospects while creating more risks.

Read More : https://www.metricstream.com/integrated-risk-management-financial-services-companies

Enterprise Risk Management in Financial Services Industry

Risk Management in Finance

The recent financial upheaval has intensified the concern and attention of companies on financial risk management, emphasizing the need for a strong risk framework to efficiently recognize, evaluate, and manage risks. Companies are focusing more on their risk and reward ratio. Risk management is a field in which a business can distinguish itself from the competition; and is hence, a matter of strategic value.

Successful risk management in financial services these days begins with Governance Risk Compliance (GRC) — but it must not end there. As more companies adopt digital transformation, enterprise risk expands in complexity and scope, and the need to handle it in a nimbler and more receptive manner becomes urgent. GRC in its initial manifestation, a toolkit for overseeing compliance risk, continues to be critical for that particular challenge but is less effective with today’s changing meanings of risk and risk management. The solution is not to leave behind GRC, but to enable it to evolve into a method that fits in with today’s multidimensional challenges through Integrated Risk Management (IRM).

Read More at : https://www.metricstream.com/integrated-risk-management-financial-services-companies

ERM Framework for Banks

There are four key steps involved in risk management in banks:

Risk identification: With risk identification, banks can take stock of where they begin to comprehend and control operational risks.

Risk analysis: This process seeks to identify, assess, and control various operational risk exposures or hazards facing a bank and lets them know if an adverse event may negatively impact their business.

Risk mitigation: Banks must ensure effective controls exist at the various risk-evolution stages. The sooner the controls are put in place in the risk journey, the more robust the risk detection and mitigation mechanism will be.

Continuous monitoring and improvement: Improvements in operational risk management depend a lot on the willingness of senior management to be proactive and prompt while appropriately addressing operational risk managers’ concerns.

Read More at : https://www.metricstream.com/risk-management-banking

#risk management in banks

Enterprise Risk Management framework for Banks

There are four key steps involved in risk management in banks:

Risk identification: With risk identification, banks can take stock of where they begin to comprehend and control operational risks.

Risk analysis: This process seeks to identify, assess, and control various operational risk exposures or hazards facing a bank and lets them know if an adverse event may negatively impact their business.

Risk mitigation: Banks must ensure effective controls exist at the various risk-evolution stages. The sooner the controls are put in place in the risk journey, the more robust the risk detection and mitigation mechanism will be.

Continuous monitoring and improvement: Improvements in operational risk management depend a lot on the willingness of senior management to be proactive and prompt while appropriately addressing operational risk managers’ concerns.

Read More at: https://www.metricstream.com/risk-management-banking

Enterprise Risk Management in Banking

Banks have been responsible for the smooth functioning of economies for decades. However, the credit crisis, global recession and the Covid-19 pandemic have been major setbacks for the banking sector, and it is anticipated that by 2025, risk functions in banks will become more unpredictable. Unless banks act immediately and get ready for these longer-term changes, they will be swamped by new constraints and demands.

Today, risk management is the focal point of extreme regulatory examination and is central to senior management strategy building and decision-making. Risk management within banks is going through many changes and the integration of risk management processes is at the core of this evolution. Integrated risk management is the broad risk-taking approach that involves robust risk identification, dynamic risk assessments, strong control evaluation, key metrics definition and monitoring, loss reporting, issue management, and comprehensive risk reporting . It involves developing larger business strategies, management expertise, capital strength, and general willingness to assume risk approved by the bank’s board.

Read More at : https://www.metricstream.com/risk-management-banking

Risk Management frameworks for Banks

There are four key steps involved in risk management in banks:

Risk identification: With risk identification, banks can take stock of where they begin to comprehend and control operational risks.

Risk analysis: This process seeks to identify, assess, and control various operational risk exposures or hazards facing a bank and lets them know if an adverse event may negatively impact their business.

Risk mitigation: Banks must ensure effective controls exist at the various risk-evolution stages. The sooner the controls are put in place in the risk journey, the more robust the risk detection and mitigation mechanism will be.

Continuous monitoring and improvement: Improvements in operational risk management depend a lot on the willingness of senior management to be proactive and prompt while appropriately addressing operational risk managers’ concerns.

Read More at : https://www.metricstream.com/risk-management-banking

#Risk Management frameworks for Banks #risk management in banks #Operational Risk in Banks

Operational Risk Management in Banking

Operational Risk Management in Banks

The risk of loss as a result of errors, infringements, disruptions, damages, either accidental or intentional caused by internal processes, people, external events, or systems come under the ambit of Operational Risk. Damages from operational risks can be devastating, not just in a financial sense, but in terms of the overall impact on the bank’s business, which could threaten its survival. In the recent past, banks worldwide have been plagued with headline-garnering scandals sparked by an inability to limit operational risk.

Despite being a challenging task, banks need to put all their resources to control Operational Risks. In comparison to financial risk, operational risks are more complicated and tough to limit and manage.

Several banks fail to understand, measure, and manage the interrelated factors that add to operational risk, including administrative processes, IT systems, and human behavior. They struggle to build cultural, management, and administrative structures to control these risks.

Read More At : https://www.metricstream.com/risk-management-banking

Types of Risk in Banks

The risk of loss as a result of errors, infringements, disruptions, damages, either accidental or intentional caused by internal processes, people, external events, or systems come under the ambit of Operational Risk in Banks

Here is a list of some commonly known operational risks in the banking sector:

Internal scam: Losses from swindling activities within a bank can originate from misuse of assets, forgery, bribes, theft, and tax non-compliance.

External scam: Fraudulent acts perpetrated by third parties such as theft, check fraud, breaching system security, data theft, and hacking.

Vendor risk: Progressively, banks are counting on vendors, which implies identifying, evaluating, and controlling vendor risks during the relationship lifecycle with those firms. However, banks also have to recognize and assess risks associated with suppliers and contractors that vendors use.

Read More at: https://www.metricstream.com/risk-management-banking

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