Automation is the key buzzword used in many industries. Over 90% of workers report that automation solutions increase productivity, and 85% say these tools boost team collaboration. That level of operational improvement is crucial to overcoming trending challenges and competitive markets.
The issue is when your systems are not adequately prepared to manage these automations. Without pristine automation in operational risk management, you open the door to cyber threats, regulatory changes, and financial losses that could have been easily prevented.
Most traditional ORM (operational risk management) processes involve human oversight, taking time, and causing more errors. Through the advancements of technology, automation tools ensure you can enhance risk assessment, efficiency, accuracy, and responsiveness.
Automation in operational risk means using cutting-edge tech to streamline and enhance processes traditionally used to manage risks. These could involve:
The more a business embraces automation in operational risk, the easier it will be to proactively manage potential harm to systems, human assets, and processes, all while remaining compliant with local, regional, and federal regulations. Considering how dynamic a business environment can be, having automation offers a powerful solution for operational resilience.
Implementing automation is another task entirely. You have to look at the equation from a systematic approach. There are so many potential pathways for risk that you want whatever automation you integrate to fill in any missing gaps.
Utilize automated tools to gather information from all your diverse resources (internal systems, external databases, IoT, human input, and more). You want comprehensive data collection with the most recent information possible.
When you bring in ML (machine learning) algorithms, they can sift through massive mountains of datasets. The result is a quicker, more reliable detection of potential issues, patterns, or anomalies. That should trigger predefined action plans and notifications.
Data is useless without a way to evaluate how it will impact your business or organization. Automation can identify these risks for faster decision-making. Instead of being “lost in the weeds” with the information in front of key stakeholders, a quick review better predicts potential outcomes.
As part of this analysis, you can also prioritize and rank different types of risk based on predefined factors. That ensures your organization can target the most critical need with appropriate resources.
Automation allows dynamic dashboards and visualization. Clear insights are provided, enhancing communication, all with the continuous monitoring and updates needed to remain vigilant of emerging threats.
Considering how many organizations need help with regulatory compliance, visualization goes a long way to ensure adherence to strict standards like ISO 31000 and COSO ERM, reducing potential penalties.
The problem automation in operational risk solves is keeping your company resilient against sophisticated threats. It is next to impossible for the human eye to recognize unusual patterns or behaviors. People get tired and errors occur. AI and ML automation help uncover cyberthreats or fraud without ever getting overwhelmed.
Take a look at cybersecurity alone. A recent cyber attack at Western New Mexico University brought to light a fatal flaw in its digital shield against unwanted outside intrusions. The risk of employee and student private data, like social security numbers and driver’s licenses, is high due to the ransomware-as-a-service (RaaS) operations.
While details are still emerging, the university could have benefited from automated control scoring in cybersecurity that eliminates inefficiencies, reduces the chance of human error, and enables real-time monitoring and compliance management. Furthermore, having a system that integrates with Security Information and Event Management (SIEM) would allow for real-time auditing.
There are countless examples of comparative attacks on all kinds of businesses and organizations. It all comes down to staying updated and prepared against emerging threats that are evolving faster than most anticipate. The best way to move forward is with Information Security Management Software like Pirani to assess, manage, and improve security risks.
Western New Mexico University is not alone. Plenty of groups and industries run into threats. Automation in operational risk covers a wide range of applications and real-world scenarios.
Despite all the numerous benefits of moving forward with automation in operational risk, there are some “growing pains” you’ll have to overcome. For one, automated tools are only as good as the data being fed into them. You must have high data quality or risk false positives and missed threats.
The upfront costs are not small. The more customized the automation, the higher the price tag. However, the long-term savings and risk prevention will more than pay dividends against the initial investment.
When considering costs, you should consider how challenging it will be to upgrade IT infrastructure or legacy systems. Working with a provider with experience integrating your unique systems is crucial to long-term success.
Finally, there will be a training and “onboarding” timeframe. You want employees and stakeholders to be fully prepared to manage any automation tools, so there is a seamless transition that doesn’t open your organization to greater risk in the meantime.
Even with a perfect system, don’t overlook the power of human oversight. Automation needs a little direction every now and then to best fit the intended parameters of a given organization.
The more risk environments diversify and grow in complexity, the greater the need for automation. It is no longer a “nice benefit” of an advanced company. Automation in operational risk management is crucial to assessing, targeting, detecting, and improving processes.
Fraud, cyber threats, internal issues, and process management all require real-time risk assessment. Aligning your automation tools with clearly defined objectives and expert oversight ensures you can move forward confidently – lowering operational costs and boosting workflow efficiency.
Pirani provides software to automate and simplify your risk management. You’ll receive a customized and unified dashboard that helps key stakeholders make decisions faster while improving your company culture and receiving all the positive results you could want. Learn more about requesting a demo today and experience the power of automation in operational risk.
Want to learn more about automation in operationla risk management? Check out these related resources 👇