The Benefits of Implementing an Enterprise Risk Management Approach into an Organization

Many organizations are currently suffering from the inadequacies a traditional silod approach presents. Implementation of an Enterprise Risk Management approach, in conjunction with a Financial Intelligence Unit, will drastically change the way organizations currently monitor risk. By changing the way an organization monitors risk, organizations will gain a better reputation, spend less on software tools, and will keep their customers personal identification safer. Siloing departments hampers the ability of an organization to properly investigate crimes, which in turn, could lead to fraud going undetected. Other inadequacies include: duplicated investigations, unconvincing employees, and large unexpected expenses.;By switching to an Enterprise Risk Management approach and or, a Financial Intelligence Unit, efficiencies will be gained and departments will have the ability to work together to ensure that fraud is not going undetected and crimes are being investigated properly. If organizations continue to utilize the traditional silod approach, eventually, the organization will suffer. Organizations need one centralized area that encompasses all their risk related departments to ensure that individuals have the ability to report crimes or suspicious activity that have occurred or are occurring within their organization. The Enterprise Risk Management approach, and or, Financial Intelligence Unit, would work to ensure adherence to laws pertaining to financial crimes seen throughout the financial institution. Such laws include the Bank Secrecy Act, the USA Patriot Act, OFAC Regulations, and the Bank Protection Act. Switching from a siloed approach to an Enterprise Risk Management Approach would greatly benefit any organization monitoring fraud and risk.