What Is Bank Risk Management?

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.

Planet Crust’s low-code CRM Suite is equipped with a data-rich dashboard that can help your bank view and analyze potential risks at a glance.

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.

Plane 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.

Tackling Bank Management Risks the Smart Way with Corteza

Planet Crust’s open-source, low-code platform Corteza is the perfect tool to help your bank eliminate potential risks. It is a powerful solution that is also customizable and can be converted into the ideal bank risk management software for you.

Planet 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. Get a free trial so that you can transform your bank risk management.