Effective risk management is a mandate of the board. Currently, the risk management processes in the bank are manual, which makes the bank manage risks in a reactive instead of a proactive way. The general awareness of risk within the bank is low. This is attributed to poor risk culture, lack of risk education and ad-hoc processes.
Automation of the risk management processes at a cost of US $25,000, one-off and the US $ 4,000 annually will:
- Reduce compliance risks as all staff, including the board will have a username and password to access the system and review the bank’s top risks anytime, anywhere
- Reduce the need for more headcount in the risk department, therefore lower HR and attendant costs
- Position the bank at the center of excellence in risk management, among peers
- Make the bank’s risks process more attractive to partners and government
- Comply with the new provisions in the Public Finance Management and Accountability Act, section 45(2) that requires the need to establish effective risk management processes