Maximising risk management: The indispensable role of enterprise-wide risk assessment solutions


The constant evolution and intricacy of today’s risk environment demand robust financial crime risk management tools. As financial crime threats and risks continuously evolve, an Enterprise-Wide Risk Assessment (EWRA) has become essential for regulated businesses.

Arctic Intelligence, an Australian AML compliance and financial crime risk platform, has released a buyer’s guide aims to provide you with a clear understanding of EWRA in the context of financial crime risk management, how it surpasses traditional governance, risk, and compliance (GRC) systems, and why your organisation needs one.

Enterprise Risk Management (ERM) is a systematic approach to managing risks across all facets of an organisation. As companies grow and evolve, either through launching new products or entering new sectors, it’s crucial to have the right systems and processes in place for effective risk management. Arctic Intelligence, a market leader in risk management, has developed Enterprise Risk Models focusing primarily on Financial Crime requirements.

EWRA, as a mandatory requirement, aids organisations in assessing their risk exposure to money laundering and terrorism financing. In addition to these, other financial crime risks such as fraud, sanctions, bribery, corruption, and illicit trafficking of arms, drugs, wildlife, and people are also encompassed within the broader context of ERM.

Choosing the right EWRA solution requires a thorough understanding of its functionalities and unique features that differentiate it from traditional ERM/GRC solutions. It’s crucial for organisations to articulate specific questions to vendors to ensure they achieve the desired outcomes. The key considerations in the selection process and some practical questions are outlined in the third section of this guide.

Before an organisation adopts an EWRA solution, it’s important to build a convincing business case demonstrating its benefits and potential value. The risk and compliance teams, who often become advocates for these solutions, need to champion these to a wider group of stakeholders influencing or making the vendor selection decision.

This buyer’s guide is designed to aid in the evaluation of key requirements and considerations while licensing a risk management platform. Furthermore, it provides a framework for building a strong business case that demonstrates sufficient value to executive decision-makers and influencers.

In today’s challenging landscape, manual approaches to risk management are proving inadequate. With the penalties for compliance failures reaching hundreds of millions or even billions, organisations need to invest in managing their risks effectively. Financial crime risk managers who rely on spreadsheets for their assessments will find themselves falling short of regulatory expectations.

This guide covers an overview of financial crime risk management, ten typical challenges faced during an EWRA, considerations when assessing GRC/EWRA vendors, and tips on building a business case and demonstrating value.

In addition to the Buyer’s Guide, Arctic Intelligence has launched costs and savings calculators to help estimate the current costs of conducting EWRAs manually and potential cost savings that adopting RegTech solutions can deliver.

The cost calculator asks four simple questions and can give users an estimate on their cost designing, implementing, and maintaining business-wide financial crime risk assessments. The savings calculator asks the user six simple questions that break down the typical steps involved in a business-wide financial crime risk assessment process. With this is shows them the potential time and cost savings from using RegTech.

Read the full buyer’s guide here.

To use Arctic Intelligence costs and savings estimator, visit here.

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