Why technology is key to continuous improvement
Why technology is key to continuous improvement
It’s not only the pace of business that has increased, but also the span of it. The world has become a fundamentally different place than it was just 20 years ago. Businesses now need to be aware of an ever-increasing number of risk areas and competitors across borders—all while trying to keep up with rapidly changing technologies at home. It’s true that technological advances have made some things easier for us, but they’ve also increased our responsibilities as CEOs. To ensure continuity in this new era, you need to invest more time and energy into your risk management processes than ever before—and that means creating a sustainable effort toward complete automation. I’m not saying that all technology initiatives should be done by machines, but any process that can be automated should be.
As more information becomes available, the need to automate increases. With this year’s release of the Dodd-Frank Act stress test results , financial institutions are required to report how they would perform in certain adverse economic scenarios. This will require intense analysis and recalculation by experts at all levels—and might also drive some companies to increase technology investments in risk management. To implement automation processes successfully, it’s important to think beyond just one function or department within your organization. You must find ways to integrate new IT initiatives with existing ones so that each group benefits equally—essentially forming a symbiotic relationship with its adjacent processes.
Technology has changed the landscape for business growth
It’s helpful when making technology decisions to understand the difference between greenfield and brownfield projects. In greenfield projects, new technologies are implemented with little to no disruption in current business operations—for example, by using cloud computing methods. Brownfield projects, on the other hand, require more scrutiny as they involve modifying or rebuilding existing systems that already have users and applications. This latter type of project is especially important for risk management. As part of deploying your risk-management solution , you must identify all currently used systems within your company—including those developed internally—and develop an automated “pipeline” so that data can be integrated without human intervention. It may mean creating a new interface between two applications, along with workflow automation via the method described above; however it’s accomplished, you should always avoid redundant data entry whenever possible.
Technology is merely a tool—one that can be used or misused. If you integrate it with the right strategy and discipline, there’s no limit to what your company can achieve. It’s this kind of approach that has helped established risk management as an undisputed chief concern for CEOs in today’s increasingly uncertain business environment. Don’t miss out on the opportunity to take control of your company’s destiny by exploring how technology can help gather more accurate information faster than ever before—and then act on it with confidence.
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