62% of organizations have experienced a significant risk event within the past three years. Banks face a variety of risks daily related to credit, liquidity, market, and general operations. These risks can be potentially disastrous for banks as well as their stakeholders. Therefore, banks need to manage these potential risks before they result in major financial losses.
Bank Risk Management is defined as preventing and managing potential risks that can impact a bank’s finances and overall operations. Risk Management Systems can help banks collect and track important data related to potential risks. Also, they can analyze and evaluate these risks and perform corrective action against these risks.
Features every bank risk management system should have
1) Data tracking
One of the most important aspects of bank risk management is tracking all relevant data and information indicating a credit, market, or operational risk. The risk management system that your business uses should be able to track, record, and present data effectively and in an organized manner.
2) Cause identification
The bank risk management system that your organization chooses should not only be able to identify potential credit, market, or operational risks; but also identify the root causes of said risks. This software should also be able to create event time charts and cycles suggesting where the risks originated from. In this way, your bank can address risks and mitigate the possibility of risk in the future.
Crust’s chart-making and graphic visualization features are the perfect tools to help your business create customizable cause identification and reporting charts.
3) Time-sensitive notifications
The most crucial aspect of the bank risk management process is identifying potential risks before disaster strikes. There is no point in identifying risk if it has already begun to affect your bank’s operations. Once your risk management software’s previously determined risk threshold has been crossed, automated timely notifications should be immediately delivered.
4) Tailored information
Each bank and organizational sub-department will have its specific risk concerns and management process. Therefore, your bank’s risk management software should be personalizable and customizable to your needs and preferences. It should also categorize and deliver information depending on when it is required so that investors and employees are not bombarded with unnecessary information.
Crust – Tackling Bank Management Risks the Smart Way
Crust’s open-source, low-code software is the perfect tool to help your bank eliminate potential risks. The low-code customer relationship management software is so powerful and customizable that it can be converted into the ideal bank risk management software for you.
Crust’s CRM suite is highly flexible, scalable, and modifiable and is equipped with chart-making tools that can make risk management easier than ever before. Furthermore, it can also be customized to fit your specific bank’s needs and preferences. Try a demo so that you can transform your bank risk management.