5 Smart Implementations Of Business Intelligence That Your Enterprise Could Consider

smart-implementations-of-business-intelligence

Business Intelligence isn’t just a term but one of the highly trending ones. If you have given a read to the top technologies bubbling in the digital world, you might definitely have come across BI.

Before delving deeper, let me introduce you to some mind-blowing facts about BI.

 
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Business Intelligence Facts & Figures

 
 
Market worth

The global market of business intelligence is expected to reach $29.48 billion by the end of 2022, projecting a net CAGR of 11.1%. (source)

 
Adoption Rate

Around 46% of SMEs deploy BI tools as one of their important business strategy. (source)

The cloud adoption rate has doubled in a two-year span. (source)

 
Impact

112% increase in ROI within five years. (source)

23% of early BI adopters opine on the fast response time of their business. (source)

 

BI definitely helps organizations attain an onus over other non-compliant organizations. But only when implemented right. All the facts and figures stand undeterred if an organization manages to successfully implement Business Intelligence solutions within their workforce.

Keeping this as the base of our discussion, let’s move ahead with what is BI and how can you implement solutions.

 

What is Business Intelligence?

 

Business Intelligence is an amalgamation of tools and smart software with the proven ability to turn data into meaningful information. The fact that millions worth data is produced by organizations every day, data scientists have come up with solutions that can extract influential information from these unordered data.

Business Intelligence as a technology combines data analytics, data tools, data mining, and business visualization, all under a single roof. Business Intelligence tools have the capacity to organize and structure raw data, study them, and then represent it in a suitable form. This visual data is further used to make smart and intelligent business decisions.

In case you are wondering how and when to implement Business Intelligence, here are five smart ways to adopt BI within your business.

 

Five Ways Your Organisation Leverages BI

 
 

1. Embedded BI

 

Suppose that your organization is running an application say CRM. Embedded BI gives the flexibility to augment reports and dashboards within the application to extract data and use it to render significant information. All of this data is reflected over the BI platform and shared directly with the user interface.

Put simply, embedded BI allows you to fuse your enterprise software with the BI platform. Data analysts no longer need to switch between platforms to drive actionable insights. Instead, access all under a single roof.

Advantages

  1. Enhance & Optimize Visualisation
  2. Reduce the time and efforts needed to gather data and generate reports
  3. Have all the BI reports and KPIs displayed on the application itself.
  4. Accelerates the time taken to make decisions
  5. Customize reports and personalize results by dragging different data within the application software.
 

2. Data Discovery

 

As a user-directed process, Data Discovery entitles them with the task of locating patterns within unused and unknown data. What happens here is that all of the data (from silos and databases) are gathered and stored in a centralized location. The entire suite of data can then be easily studied and analyzed to detect patterns and values.

Automated tools are used to discover trends within a given set of data. For instance, consider a particular group of people withdrawing all of their money from their bank accounts. Using their data, one can come up with insights as to why such a trend persists. It could be anything from their age to the profession that binds them in a group. With data discovery tools, drawing conclusions become easier and isn’t something that guessed.

Advantages

  1. Fact-based real-time consumer information
  2. Faster delivery of results
  3. Find patterns in siloed data
  4. Visualization tools used to integrate maps, geographical locations, etc.
 

3. Self-service Analytics

 

Imagine a big fat organization with around 1000 employees. Generating reports on their day to day tasks is definitely a daunting task. Had there been a single report per year, your IT team could effectively pull the plug. However, when there are so many employees and you require a weekly report, if not daily, self-service analytics come to rescue.

These are tools that give your organizational employees to build their own reports on an ad-hoc basis and use it to drive actionable insights. The end users can efficiently modify their reports by changing data and customizing it as per their needs.

Advantages

  1. Eliminate the need to hire a dedicated department for analytics
  2. Allow customization of reports and information based on data
  3. Enable extraction of maximum information in real-time
  4. Empower employees with the ability to control their data.
 

4. Augmented Analytics

 

Another authentic way of implementing business intelligence is through augmented analytics. This is probably an advanced form of BI integration and allows you to embed automation in the overall process of data analysis. It leverages the power of machine learning and NLP algorithms to trigger data analysis. With this, one can pace up the job of gathering, manipulating, and assessing data for insights.

It helps you surpass the manly limitations and embrace a whole new infrastructure, one that enables real-time decision making. For organizations that ramble with data generation and analysis, augmented analytics is the ideal solution.

Advantages

  1. Eliminates dependency on data scientists
  2. It guarantees accurate and precise information.
  3. Speeds up the time taken to gather, study and assess raw data
  4. Enhances the overall productivity and efficiency of an enterprise to make decisions
 

5. Hiring an Expert

 

Lastly, when everything seems to go out of hand or if you aren’t in a state to spare time on data, the best way to implement BI is by consulting an expert. They are a plethora of organizations that extend support towards integration and implementation of business intelligence tools. They are equipped with knowledge and expertise that makes it easier for you to benefit from the solution.

Advantages

  1. Steer up growth and success
  2. Be sure that your business is in safe hands
  3. Eliminate the need to train your staff on BI tools and strategies
 

Conclusion

 

Having said all of the above, it is clear that BI holds tremendous potential in terms of facilitating growth and empowering organizations with success. In case you are looking for an expert to consult with, consider collaborating with Claptek. They are a reliable support partner and has been entrusted with accuracy and precision.

With a team of skilled consultants and data experts, they pledge to provide the best in industry data analytics services. What makes them one of the best choices is the fact that they never fail to apprise their customers. Their job needs no description and surprisingly, their name resonates with all of the success they have attained so far.

Not so long ago, business success was reliant on the manpower and the technologies embedded within. Today, the time has changed and power lies in many other things. Data being one of these demands a stringent approach towards analysis and implementation and that’s why we recommend partnering with industry experts.

Claptek being a major contributor to the segment offers Revenue Assurance and audit services to help you find the gaps within the enterprise and help you deploy BI services with greater ease. They are not just a BI partner but will stay along to make sure your business remains up and active throughout the journey.  Connect with them to know more.

Improve Business Performance With These 10 Tips

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Just like learning has no end, the extent up to which you can improve your business performance too stands undeterred. Even though you hitched a market share higher than the last fiscal year or may, your revenue figures have oozed up a bit, the job of performance enhancement never comes to a stop. Consistent improvements are key to a business’s success and value.

 
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At times, you might find it hard to locate gaps within your existing infrastructure and seek external support. Surprisingly, there is a multitude of consultants and growth hackers that help organizations optimize their business operations to improve their efficiency. Reaching out to either of these would help you meet the needs and align your business with ongoing trends.

Though fascinating, it isn’t the only solution. For organizational leaders that consider themselves responsible for their company’s everyday undertakings, structuring business performance would be an in-house job. If you are looking for different methods to testify your business and adopt significant measures to optimize performance, we have 10 tips to keep you moving.

 

Business Performance Enhancement: 10 Things to Focus On

 
 
1. Start with Automation

Given the ongoing digital trends and corresponding phenomenon, automation is the key to an organization’s success. It is argued that half of the time spent by employees is on tasks that are mundane and repetitive. Whether it is about replacing orders or monitoring stock, segmenting inventory, or pitching an email, each of these can be perfectly automated to free your employees. This way they can utilize their time doing productive and other important tasks, accelerating business performance.

 
2. Assess Business Goals and Prioritize Tasks
 

True that work no matter big or small is important. However, this doesn’t sound good when it reduces the value of a business. Your organizational employees must be smart enough to pick the right job. But before doing that, it is imperative that an in-depth assessment of the business goals is done. When you and your employees are well versed in the ultimate aim of the organization, they can schedule their work in a way that maps with organizational objectives.

 
3. Enter To Real-time Communication Practices
 

Whether an in-house collaboration or a remote interaction, motivate your employees to be part of real-time interaction. It could be a face to face communication when everyone is within the same. In case, your organization has more remote workers at different locations, video calling or live meetings can be used as a medium to facilitate conversation amidst all of them. When employees openly communicate with each other, the flow of communication is faster and better. It also promotes the sharing of ideas and analogies to complete a project in the best possible way.

 
4. Company Meetings
 

Assign 10 minutes of every day to schedule a company meeting. This could be an open session where employees can talk about what they are working on, the work culture, and even lay suggestions to better the attitude and approach towards work. Keeping short meetings is always beneficial as employees would know exactly what to share.

 
5. Promote The Culture of One Task at a Time
 

While some of you might reckon multitasking to be your secret to success, reality has a different tale. Multitasking isn’t for everyone and most of the time it leads to a mess. Though doing one task at a time could add extra hours to your everyday work, it guarantees quality. Business performance isn’t always about doing more tasks in a shorter time period, it is about doing a task efficiently in the shortest possible time.

 
6. Train Your Staff
 

Sticking to the same old technology tends to reduce the pace at which a job is done. It is suggestive that constant improvements are done so as to stay up and ahead of your competitors. And even before transforming your business, you would need to train your staff. No matter how efficient a new tool appears to be, if your employees cannot implement it right, it’s futile. Business is all about manifesting technology so as to aid human efforts and it is only your workforce that has the potential to make or break your brand. So, investing in them is ideal.

 
7. Bet on Your Customer Service
 

Post employees comes your customers. Without them, you won’t survive. So, the next thing to do is work towards improving your customer service. It is seen that customers would happily pay more if they are served better. Integrating CRM tools and then using it to generate significant insights about the buyer’s persona as well as their journey is one way to offer them personalized services rendering excellent customer experience.

 
8. Outline Best Practices
 

You might have done everything best till date and it might have been exceptionally good. But that’s past and to assure you stick to the legacy is important to have your future undertakings planned beforehand. Definitely, it needs to be flexible to adapt itself to the dynamically changing needs of the business. Yet, having significant practices outlined and shared with your team makes it easier for all to keep up with the business operations.

 
9. Assess Your Performance
 

Ok, so we have done a lot so far. Everything associated with business performance and corresponding enhancement. One thing that every business needs to do is assess their performance. Set bar and targets for every employee and then keep track of how each of them performs. Also, track the progress of your organization and see how well it performs under significant situations. This helps you know better about the company and further, improve the skills so as to increase the overall performance.

 
10. Know What Not To Automate
 

Remember the first point we mentioned, embed automation. But that doesn’t mean you will automate each and every business process. There has to be a demarcation set as when to stop and what not to automate. Imagine a surrounding where there isn’t any human intervention, everything would be a mess. Focusing too much on automation would reduce the overall efficiency of the business processes, let alone the performance.

 

Conclusion

 

Business performance enhancement is one thing that every organization needs to embed within their workforce. Above were the top 10 tips given by the industrial experts on how to optimize your business performance. In case you aren’t on ideally suitable for the job and looking to outsource your requirements or may hire an expert, connect with Claptek.

One of the reliable software solutions companies and support partners, they excel in providing the best in industry services for performance enhancement and optimization. Starting with an assessment of maintenance and monitoring, they encompass all.

Equipped with a team of dedicated staff and skilled business development executives, they offer round the clock support and assistance to track errors within the existing infrastructure and then outline measures to deal with the same. They foster two-way communication with their clients to exchange ideas and get into the day to day operations of the business.

If you are in search of one such organization that strikes innovation with business performance, Claptek is the best place to be at. For them, customers are of paramount importance and they do all to meet their expectations.

Board’s Role In Corporate Compliance – The Need, Scope & More

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Part of the corporate world, you might have realized one thing: Every business is fragile and things might not work the way you want it to, right?

While the external issues are subject to changes, internal scandals need to be controlled and monitored. There have been instances where corporate compliance is compromised and it is the board that it put to question. No matter what happens and how it is expected that the board is well versed in everything that’s happening within the enterprise as they are the ones who remain answerable to the outside world.

 
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What does The Law state?

 

Legally, every member individually as part of the team of board of directors has fiduciary duties that concern the organization’s compliance and ethics. It is believed that if the board isn’t aware of the duty, they themselves aren’t complying by the law (fiduciary duty). Starting with the duty of care, the duty of obedience, and the duty of loyalty, the board needs to be aware of all.

Stringent policies have been laid that states it is the responsibility of the board to be aware of rules and further, have oversight on whether the organization complies with the same.

As per the law by the Delaware Chancery Court, it is expected that every board must put in efforts (good faith) to embed compliance measures and further, ensure that these are duly exercised within the organization.

 

The Fiduciary Duty: What This Includes?

 

Both under the state and the common law, members of the board along with the directors are expected to follow the fiduciary duty. This includes three major hallmarks of governance as:

  1. Duty of loyalty
  2. Duty of care
  3. Duty of obedience

These responsibilities surpass the investment, monitoring, administration and property distribution that are part of the company’s public assets. Further, the duty extends to the intangible assets of the organizations, as the reputation and value of the company.

Failing to abide by the above, the law can righteously punish the board and even charge them for criminal acts.

 

The Role Played By the Board

 

It is unquestionably evident that the board has an important role when it comes to corporate compliance. As a matter of fact, it is considered a critical role. The cases, mentioned by Delaware, opine that corporate compliance is effective in managing and monitoring risks. And the manner in which the board adheres to the compliance law and significant rules implies the future course of the company.

What’s important for the board is to accept that they need significant tools and programs to keep their corporate compliance in place. While this cannot be infallible what we expect is this to be reasonable. Consider a company that has been suffering from major setbacks, thanks to their poor compliance. It is expected that the board has significantly more oversight. Corporate compliance isn’t something that the board sets and then forgets. Instead, it is something that needs to be visited time after time and requires strict vigilance.

With this, we don’t suggest the board to bring in the topic in every meeting or arrangements. The board needs to be reasonable enough to ignite discussion. Also, a strategic approach has to be adopted to assure effective oversight of corporate compliance.

In case you are not sure where to start and how to get your organization back on track, you need not work on everything at the same time. There are four core areas that the board must focus on and have a detailed outlook.

 
1. Compliance and Ethics
 

The first area that needs to be strengthened is ethics. Strict measures must be taken to assess and evaluate the total scope of the policies that adhere to corporate compliance and ethics. Meetings and surveys need to be conducted to make sure all of the members of the board, the managers as well the employees comply with the organizational policies and laws, enterprise-wide.

 
2. Key Policies and Procedures
 

Post the ethics, comes core policies and business procedures. Rules must be laid down to scrutinize the policy statement of the organization. The same must be evaluated to see whether or not, these have been penned down clearly. Such a method must be adopted by the board and then followed consistently.

 
3. Aligns Incentives
 

Organizational incentives must be aligned by the board in a way that maps the goals of the same. The board must take measures to ensure that rewards given do not conflict with the organizational goals. This implies that incentives must adhere to the core of the business.

 
4. Obtain Reports
 

Finally, the board must lay out a notice seeking regular reports that would outline the metrics associated with organizational ethics and compliance.

 

Compliance Management Software: Your Compliance Partner

 

While we expect the board to remain at the forefront and have oversight over corporate compliance, manual systems fail to map the quality of laws. Several organizations have board calendars that are used to detest the work done by the company, perform audits and conduct training courses annually.

Even though things are better here, the manual system tends to overlook important aspects while focusing on less important factors. Until and unless, there are multiple members overseeing the board, it is totally irrefutable.

One way to facilitate smart compliance is by adopting compliance management tools. These would be created keeping in mind the rules and important protocols of corporate compliance. As so it appears, the corporate compliance duties are cyclical in nature, the tool is designed to have separate dashboards, each focusing on a single duty. System alerts are initiated within the software so as to make sure the board never overlooks any activity.

Also, the tool can document communications and even record them to better deal with customer issues and complaints. Reports can then be automatically generated on the performance of the company aiding audits. In addition to the above, the software has precoded risk management portals that would have all the rules and policies hardcoded. Failure to follow the same, the board and all others having access to the portal would receive notifications and alerts. This way everyone can actively contribute to corporate compliance and risk management.

 

The Conclusion

 

It is pretty obvious that the board has a crucial role in corporate compliance and must abide by the same. However, the board need not carry the load alone. Even though the management tools in place, considering an external opinion is always a smarter way to assess risk and mitigate them.

Claptek is one of the agencies that might be of interest. We have been serving the sector for years and consider ourselves to be fit for the job. In case, you have been looking for some company or expert to help you rather assist in monitoring risks associated with corporate compliance, we are happy to serve.

Staffed with some of the best risk managers and officers, we guarantee quality service backed by comprehensive strategies. Our team excels in collaboration and teamwork and would do all that’s needed to aid better operation within your enterprise. What’s more? 

Claptek hails as one of the leading risk management company and our clients consider us to be the best. Let us connect to know each other better!

How AI And Machine Learning Help in Comprehensive IRM (Integrated Risk Management)?

ai-ml-helping-in-integrated-risk-management

Have you ever given a thought about the technologies that surfaced on the digital spectrum in the last few years?

Starting with automation laden AI and ML to the connectivity drawing IoT, the life simplifying on-demand apps and the speed fueling 5G, everything seems to bring out the best. From the top firms to the smallest business ventures, everyone across the globe is inching towards the adoption and integration of such technologies.

 
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But are you sure that none of these would be detrimental? Do all come with benefits and only benefits? Let us narrow down our research to the top two in the spectrum, AI and ML.

As far as researches go, the two have been imposing huge success on industries worldwide. Apart from the fact that 37% of the organizations have already implemented the duo, it is anticipated that by 2021, nearly 80% of technologies would have AI/ML in some form or the other.

Fascinating, right? Let’s hear this.

According to a report published by Swiss Think Tank, it is predicted that 75M jobs would be replaced by machines. One industry to be a direct victim of the above is the insurance sector. In an interview with Warren Buffett, the leaders believed that as the world migrates to the culture of autonomous driving, the auto insurance sector would face a serious disruption with the business shrinking by 60% in the upcoming times (25 years on an average).

Now, accepting that the auto industry conjures 40% of the entire insurance sector, such a decline is likely to affect the economy and the operations of the same. It’s high time that the chief leaders spent some time restructuring their business strategy and take measures to deal with the situation.

On the other hand, a major question that arises is how would these technologies impact or affect the risk managers, or put simply, how AI and ML drive IRM?

 

AI and ML in Integrated Risk Management

 

Even though AI seems to have a diverse impact on the workers, it also embodies a series of benefits. With technology, comes smarter tools and solutions that help risk managers better assess the infrastructure to detect potential risks. Both, the AI and ML have proven to be the table turner. The finance sector has always been under the benefit of the doubt but not today.

Both the credit unions and banks now have access to modern software solutions that are efficient in identifying fraud long before if inflicts the system.

Earlier the bankers and the financial risk managers had to do things manually. The customer crediting system relied on simple heuristics which weren’t reliable. Survey groups and other forms of customer interaction, part of assessment failed to map the ideal reality. Everything done was based on assumptions with little or no consensus.

The entire infrastructure was outdated and siloed. Today, as more and more technologies evolve, the industry and nearly every corporate business enterprise have a better way to detect, manage and monitor risks. With smarter digital tools, the risk managers and the operational officers have access to actual customer information in real-time which can be used to make decisions and drive significant operations.

AI emerges to be the catalyst triggering operations and business activities to be conducted at a faster pace and with better efficiency. For organizations that have been looking to work on credits, the risk assessment tools powered by AI and ML seem to be beneficial. Algorithm-based software is now put to use as these can effectively assess the consumer profile and render insights on their credit score. Cognitive technologies such as these not only increase the speed at which work is done but at the same time, improves the quality.

Risk managers can now have better hold over the user’s profiles and enter into information-based decision making for better results.

Another advantage of the technology in risk management has been the structuring of uncluttered data. Organizations, irrespective of the domain, have a pool of raw data nowadays. When left untouched, they are of no use. However, with the onset of AI and ML tools, these data can be effectively processed, structured and analyzed to come up with insights. This real-time information is used by chief risk officers to make better and smarter decisions.

It is proven that AI and ML help organizations to detect and prevent risk, rather than spending time battling with identifying and curbing the loss. This implies that enterprises today are well prepared to fight with risks long before the fatalities hit the system.

 

Application of Al & ML – Different Ways the Technology Help Risk Management

 
 
Application on Credit Risk
 

With time, the complexities associated with the calculations of credit risk have risen beyond boundaries. It is evident that the traditional method of risk assessment is no longer effective rather futile. Adhering to the above, the managers and organizational leaders have now taken up ML models to detect risk and make better lending decisions. Till date, ML models have proven to outsmart the existing tools with accurate results and 25% cost reduction.

 
Application on Market Risk
 

Trading and investment is something that every organization does and aims to incentivize. However, to unleash the true value, it is important that risks are managed and monitored efficiently. Trading involves predictions and when done manually, they are prone to be inefficient. Organizations and financial experts are now advancing towards the adoption of ML and AI models, designed to smartly assess market conditions and come up with insights predicting the most favorable outcomes.

 
Application on Operational Risk
 

Industries are always at the risk of losing assets or facing financial loss emanating from a breakdown. Risk managers have the duty to continuously monitor the enterprise operations to prevent the onset of such a situation. With an increase in the system, operations, and variety, managers have been grappling to meet the requirements and this is where AI and ML pop in. AI tools have been successful in assisting managers at various levels of management. Starting with the identification of risk, to the extent of exposure, migration, and mitigation, AI tools aid all.

As seen, AI embeds automation which can reduce human error, study data samples, and outline thefts beforehand. They help identify fraud and further embed measures to mitigate its impact.

 

The Final Word

 

Summarizing, the onset of artificial intelligence and machine learning has been a game-changer. Not just for the financial institutions or the credit unions, but organizations worldwide are putting the technology to use. In case, you have been on the lookout of such a solution but failed to find one, reach out to Claptek.

We are a team of skilled professionals and dedicated enthusiasts working tirelessly to help organizations make the most out of their arrangements while minimizing exposure to risk. Our team is a reliable solution partner and offers integrated management solutions to organizations across the globe.

Having years of experience, Claptek has served multiple clients and are proud of our IRM offerings. Our name resonates with the quality of work rendered and the appreciation received in return. We don’t expect you to believe without giving it a try. Let’s connect and collaborate before you set any opinion for us.

COVID-19: Managing Risks & Sedating Impacts

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Causing devastation and destruction all across the globe, the deadly pandemic has struck the entire world and is rising at a fatal pace. Though it originated from the Wuhan city of China, there isn’t a single nation that is free from the virus today. Spreading like an uncontrolled fire, novel Coronavirus is everywhere.

Not only lives but also the economy is under serious threat. The need to completely shut down everyday activities has put the entire world in a state of morose. It’s pretty woeful to see such a situation, but how do we help?

covid-19-managing-risks-and-sedating-impacts
True that we are no doctors, health workers or the medical staff. We like the rest, belong to the common population. So, what is that we can do to sustain the situation and even make it better?
Our role in COVID-19 Scare
Being responsible citizens, we are all staying indoors to prevent the spread. But that’s not enough. The virus has had a detrimental impact on the business world and our organization is no less.
Facing severe jetlag, we have now come up with a set of novel guidelines that would help us and all our employees to fight and manage the COVID-19 risk. Even though the situation is totally new, we are all set to face it and adapt to the changing times. Tested tools and dedicated solutions are now the crucial parts of our enterprise.
This COVID-19 motivated guideline is for all our risk managers, professionals, staff and the organization leaders who would then under its influence, prevent or mitigate risks to restore the business operations during such a critical event.
Focusing On Core Principles: Our Approach to Fight Novel Coronavirus
Our entire organization is together in such tough times and has taken measures to ensure the safety of all.
First: Workforce Health
Worried, or let’s say concerned about the health of our workforce, we have taken stringent steps to ensure work safety and employee security.
As the entire nation is doomed to stay at home, we too are bound to follow the same. Under no circumstances, do our employees have to step out for work. We have ensured remote working for all, providing them with all relevant tools and technologies, needed to function effectively. We have equipped their home devices with all the necessary hardware and software followed by dedicated platforms to initiate updates and reports.
Second: Remote Productivity
Even though work from home isn’t something new and our employees have been in the habit of staying away from offices and working remotely. What makes this different is that our entire work is now remote. Previously, our 5-10% workforce used to work from remote, that too – changeably. Each and everyone needs to collaborate remotely to ensure work efficiency and adhere to the projected timelines.
Thankfully, we are happy to see an active collaboration of all across the enterprise. Even though work from home isn’t easy given the current situation, the panic and the havoc created, our employees have done a commendable job. We have daily meetings where everyone is seen to contribute their share and it’s great to see that everyone has adjusted to this new culture.
Third: Customer-First
Even though all our business operations have been disrupted, we continue to adhere to the needs and requests of our customers. We, at Claptek, have taken measures to reconnect to all our customers and have notified them about the fact that they can continue using our services. Even though the business has slowed down a bit, our employees are trying their best to get things aligned and back to track. We are working day and night to answer all the support tickets.
The business has definitely been gloomy but we are expecting some new projects in the upcoming times.
Fourth: Collaboration with Third-Party Vendors
It is not just the employees and the customers but we also have deep connectivity with software vendors. And in tough times such as these, we expect total support and collaboration from them. We are well versed in the fact that the supply chain has faced tremendous repercussions of the virus, yet we are continuous communication with our partners, helping them mitigate risks and face challenges better.
As a humane gesture, we have extended our support towards them.
Fifth: Contingency Plans
True that the aftermath of the disease isn’t predictable as of now. However, one thing is for sure: many small-sized organizations, maybe even the MSMEs might face serious financial issues in the long run. Keeping this in mind, our financial experts are scrutinizing the situation to see if we can close some major deals.
We are sure the falling revenues would bounce back but the timeline is blurred. To keep our cash-flow steady, we are into the process of drafting contingency plans.
Sixth: Uninterrupted Communication
Whether it is the day to day work, employee meet-ups or customer collaboration, communication is the key. To aid frictionless interaction and undisputed communication within and outside the organization, we have embedded C-SUITE software, virtual rooms, and other platforms to keep everyone on the same page.
Both internal and external communication is kept open and we facilitate every interaction and updates from all our departments. As far as the customer support team is concerned, we have hosted solutions to adhere to all our customer’s requests and responses. Our partners are also kept informed about the weekly progress ensuring nothing is left behind. In a way, we have everything aligned riding on the work from home culture.
Seventh: Security is atop
Setting up communication lines, business software and facilitating remote work, our organization has done all. What’s kept aside till now was security. Unlike our office environment, not everyone’s home network is secured and protected. Even if it is, it would not map the scale of encryption embedded in our organizational infrastructure.
To deal with this, we have employed strict protocols and anything accessed from the office infrastructure is done via virtual networks to abide by the security norms. Routine checks are conducted to detect any plausible threat when it comes to our personnel with a visible health issue and measures are adopted at the earliest. For us, privacy stands uncompromised and we are doing all that’s needed to shield our business.
Eight: Plan B in Hand
And at the end, we have meticulously studied the current situation and are in the process of having a plan B in hand, so if anything goes wrong, we would not find ourselves muddled in the sea.
Even though we have taken all possible measures to keep our business afloat, things might change and for the bad. We are trying our best to keep our customers, employees and partners aligned. We have been open to all conversations, reacting and responding at the earliest, yet we know our limits and hence are prepared to face all.
The Final Word
In the end, we simply wish that everyone who is part of our organization stays safe. Things might go bad, work might get delayed but there isn’t anything above and beyond the health. We prioritize everybody’s safety and pledge to remain connected in such critical situations. Members of our organization aren’t just workers but we are a family and we stand by the needs of all.
Stay home, stay safe!
How Data Analytics Facilitate Fraud Detection And Prevention?
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Even though fraud isn’t a new concept, recently a lot of buzzes have been created pertaining to fraud detection and prevention. It could be due to the profusely rising data and the unfettered access to the same that the intensity and frequency of fraudulent acts have increased. 
According to the survey, it is seen that organizations lose nearly 5% of their profit share to fraud every year. And this number is rising at a huge pace. 
From where the industry stands today, it is not tough to ascertain that technology is the key here. Owing to the rise in technological trends, more and more organizations, move to the cloud. They generate an enormous amount of data. For once it helps businesses improve their line of operations and further, enhances their productivity. 
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However, the power of technology isn’t confined and is used by criminals to better their take over fraudulent acts. No more are such criminals reliant on old school methods for theft, instead, they too make use of sophisticated tools and technologies to manipulate the system and commit fraud. 
Owing to the above, organizations need to develop a defense mechanism to circumvent the impact of such fraudulent situations. It is the dire need of the hour to improve the detection and fraud prevention techniques to deal with the same. 
Data Analytics – Preventing Fraud 
According to a report by the Association of Certified Fraud Examiners’ 2016 Report to the Nations, around 54% of the organizations that put their data to use, are more successful in combating fraud and getting rid of them. 
Data is produced at an incredibly higher rate. Detecting loopholes and security gaps in this pool of data is nothing less than finding a needle in a haystack. 
Where the traditional fraud detection techniques fail to detect smarter frauds, the tools and software built using present-day technology are far more competent. They deploy a mechanism known as Fraud Detection Analytics. Employing the method of data analytics, scouring over terabytes of data is no longer a daunting task. 
The fact that analytics comes with a tinge of intelligence, comparing data, the existing one from the older version help detect anomalies which might indicate fraud. Also, such a process is largely automated and eliminates the need for manual search and pry. 
Fascinating, right?
What Does Traditional Methods Lack? 
Knowing that data analytics holds tremendous potential in terms of detecting threats and mitigating them, it is worth outlining what the conventional system lacks. As we know, the entire system is tested against attacks and fraud activities. However, the age-old method used isn’t capable of detecting patterns, loops, and anomalies in data, which today are the most common reason behind a fraud. 
In order to ensure a comprehensive and fully sophisticated approach, organizations need to invest in data analytics techniques. 
How does Data Analytics help? 
Where the traditional systems stop, the modern ones arise. Equipped in examining loads of data, finding patterns, uncovering relationships and anomalies, data analytics is best suited for preventing fraud. The major components include: 
Fraud Pattern Detection
The first of this kind was used by the US SEC to detect frauds and thefts. A computerized program named, Robocop was designed to scan through devices and locate potential threats. The program was based on the techniques of data analytics and was capable of scrutinizing an enormous amount of data. Once through the system, the program automatically identified malicious activities that needed an inspection. 
Also, such a system can successfully trace the system to find thefts holding a similar pattern. It could follow a similar route or originate from the same source. This information is extremely helpful when it comes to organizations that lose billions in fraud acts. 
Track Anomalies
Besides detecting a pattern, data analytics is used to find anomalies is data. What this suggests is that at times, there could be an event that occurred abnormally or the path traced isn’t the expected one. This showcases an anomaly and requires attention. Where the conventional systems often fail to scan inch by inch, missing some information, data analytics is hardcoded to perform rigorous testing. 
These tests when conducted shed light on the prevalence of suspicious acts and the organization, can then move ahead to deal with the problem. 
One instance could be the placement of an order every day at 1400 HRS. This could be a coincidence once or twice but not every day. Data analytics can sense an anomaly here and notify the department about the same. They can further verify the legitimacy of the transaction to see if it’s true or not. 
Apart from the above, data analytics can be applied to merge data from across all departments before performing a scan. These systems are largely efficient and have 100% accuracy. They not only detect fraud and save your organization from losing a huge amount of money but also frees up your manual workforce to emphasize important tasks. 
In case, you are worried about your organization’s data and plan to prevent fraud, you can reach out to Claptek. They are one of the successful risk assessment companies that help an organization detect and prevent fraud. 
Ways to Detect Fraud 
It is obvious that data analytics help in the prevention of fraud but the question remains how? 
How do these tools detect patterns of anomalies? 
The answer to this is testing. As a matter of fact, there are two different tests conducted to detect fraud. 
Ad-hoc Testing
Ad-hoc testing is done on a need to need basis. What this means is that only when there arises a problem related to the business, will experts perform ad-hoc testing. These are primarily related to the solutions posed in response to an existing issue. 
After the tests are executed safely, they come up with reports and insights on the data in question to further, propose potential threats. One drawback of such testing is the fact that it requires human assistance and would consume a lot of time. 
Continuous Testing
An alternative for the above, continuous testing is automated scripts that run through the system in continuum and have the potential to detect threats. They occur in the loop and perform an in-depth scanning, to locate data anomalies. It is proven that automated testing not only saves the time and effort needed to detect fraud but also increases the efficiency and productivity of the organization. 
Also, the fact that the system is being scanned repeatedly followed by detailed monitoring, ensures that an anomaly never misses the eye of the system. It further enables the timely execution of measures to mitigate the impact of fraud. 
Conclusive Summary
Suggesting data analytics for fraud detection and prevention is not a vague approach. Instead, it has been tested and verified. Traditionally, the time taken to detect fraud could extend up to eighteen months. Today, this scenario has changed. Organizations have proactively invested in data analytics tools and methods to detect the occurrence of fraud activities which is then treated to prevent the reoccurrence. 
How The Digital Transformation Is Impacting The Manufacturing Industry
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Digital transformation, aka digitization, is one term that has been both, a topic of discussion and a focal of debates, in the last decade. Thanks to industrialization 4.0, every sector has been the victim of the technology gap and the manufacturing sector is no exception.
Gone are the days when the industry dealt with 2D drawings, paper schematics, punch cards, and spec sheets. Today, the sector demands digital processes. Starting with 3D models to digital twins and all-round connectivity, the manufacturing industry is all set to go paperless.
But how? How is digital transformation influencing the end to end operations in the manufacturing sector? Before that, let’s spare time to see what actually the word digitization mean?
 
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Digital Transformation
 
In simple terms, digital transformation refers to the digitization of processes and activities that are part of the day to day business process. Put simply, it is about augmenting technology to take over mundane tasks with the sole aim of increasing productivity and enhancing efficiency.
Consider the following:
  • Mails to emails
  • Excels to CRM software
  • Faxes to online reports
And, the list is exhaustive. What ideally means is that the industry is about to undergo a revolution, one that would alter the way the business operates.
Having said that, the major question that arises here is how this transformation would impact the manufacturing sector. This is what we are about to highlight.
 
5 Ways Digital Transformation Disrupts the Manufacturing Industry
 
Accelerate the speed of operations
One of the important and factually evident impacts of digitization is the increased speed of operation. It is no doubt that the basic norm of production has changed, in a manner that is consumer-driven. Consumer preferences tend to change constantly and it is important for organizations to adhere to the changes in order to map the requirements and remain at the forefront.
Manifesting digital tools and technologies allow manufacturers to speed up the process of production giving a boost to the entire phase. Not only do they map their deadlines but they also experience better returns.
Considering the existing face, switching between the design phase and the floor is tedious and is one of the reasons that cause delayed delivery. Further, the fact that the above tasks are done manually, they are prone to errors.
With the onset of digital transformation, all of the above would be automated eliminating the possibility of errors while meticulously improving the rate of production.
 
Unites All Processes
Imagine that an organization has five different offices at five different locations. Collaboration here is a task difficult to execute. Also, sharing information to and fro each of these branches is prone to errors and mistakes. In fact, organizations grapple to maintain a balance between operations across all locations.
On the brighter side, the evolution of digital tools helps deal with the situation better. For one, data storage and sharing no longer remain a concern, thanks to the prevalence of cloud-based databases. Even though organizations have made the switch, turning to emails and scanned documents, cloud applications allow professionals from across all departments to access and store data in a single repository.
 
Foster Follow the sun manufacturing idea 
Earlier organizations and manufacturing enterprises planned to adopt something that we call to follow the sun. What happens here is that when organizations have multiple offices, both offshore and near seas, they share their work. This implies that as one of the offices is about to close, the branch that has the time zone above would take over the job to resume it. In a way, there would not be downtime and the enterprise can function at all hours of the day.
Though an exclusive idea, it suffered from multiple drawbacks. For one, data sharing was tough and at times, delayed. And the second reason being, people were not given access to data at all points of the day. Surprisingly, digital transformation seems to support the ideology of following the sun. It fosters data sharing followed by ubiquitous access to the same, allowing professionals to work without any obstruction.
 
Embed Automation
Most of the backend processes executed in the manufacturing industry are repetitive and mundane. True that these are important given the need to keep track of the inventory, they are time-consuming and energy-draining.
But not after the onset of digitization. Today, manufacturing industries can effectively implement and adopt bots and automated software to take over the boring physical task. This relives the employees who can then focus on other important things. Not to mention that automating everyday tasks eliminates the possibility of errors while enhancing efficiency and improving the productivity of the organization.
 
Safety 
Another impact and probably excellent one is the creation of a safer work environment. Working with machines expose employees to extremely high temperatures and conditions fatal for their health. Earlier, masks and locally prepared safety equipment were the only resort.
The inception of digital tools allows managers to replace manual workforce with autonomous robots. Also, sensors are embedded across the entire manufacturing units to detect threats. This saves the manual workforce preventing them to work under hazardous conditions.
No doubt worker safety is one of the important considerations. Every year thousands of workers die working in such extreme environments. It is believed that employing bots to perform such tasks would improve accuracy and also enable managers to deal better with risk.
 
The Final Word 
 
It is pretty obvious that the onset of digital transformation would enforce newer means of business operations. And this would only benefit the enterprise. In case, you have been wondering whether to hail on the journey of transformation, now is the time to make the call. Time travel five years from now, the industry would have newer concepts and if you stick to the old norms, the only thing you would attain is business failure.
So, all set to digitize your workforce?
One thing that every enterprise needs to take care of is risk management. Shifting their entire ecosystem to digital platforms, you expose your organization’s data to risk. Also, adopting a cloud-based platform to store data turns your business vulnerable to hacks and attacks. Not that, you should give up on the idea of transforming your business, but that you should do it carefully and meticulously.
 
And how do you do that? 
Integrated Risk Management is one way to keep track of all the activities that take place within the organization and you need an expert to take care of it. Always choose a reliable partner that offers Integrated Risk Management services for effective business operations.
Claptek is a reliable support partner that helps organizations and enterprises manage risks and monitor threats. Equipped with some of the best engineers and domain experts, the organization also has the provision of automated software that owns the responsibility to regularly track the infrastructure against the presence of thefts and cyber attacks.
Reach out to us for better assistance.
Startups And Small Sized Industries, Battling Against IT Risks
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Big firms being attacked by cybercriminals is something that all of us are aware of. It is on the front page of the newspaper the next morning: XXX industries lost millions in a cyberattack. And the news follows.
What we mean to say is that it is no surprise that successful industries get hacked or attacked by intruders. What comes as a shock is a security breach in the coffee shop down the lane or the grocery shop three blocks from your house. Why would someone hack their system and what is there to lose?
Well, that’s a nasty question. Businesses, no matter how small have something that worth the attack. Imagine, there’s a breach in the vendor system and all the data has been hacked. Now, this data is more than the stock present in the store. It has all of the customer’s information, credit details, and other confidential data. Once a customer realizes that his/her privacy has been evaded, they are no longer purchasing stuff from that store.
 
startups-small-industries-battling-against-it-risk
 
 
So, the business lost a potential customer or it could be an array of customers. And if there spreads a word, that business is bound to suffer. In fact, several studies reveal that 60% of SMEs have to shut down their business post a cyberattack in a matter of six months. (Source)
That’s a pretty huge figure and so, it is obvious that small scale business suffers as much as the big fat enterprises (if not more) owing to a cyberattack.  And, for a broad context, we can blame it on the irresponsible or non-existing IT Risk Management arrangements.
 
The Impact of Lack of IT Risk Management on Small Businesses
 
As mentioned earlier, the mindset of an attacker isn’t dependent on the size of the business. Or it is not that if your business is small, you can trick the eyes of an attacker. In fact, attackers pry more on small businesses because:
  • They lack competent safety measures and have a poor defense mechanism
  • Store data loosely – No focus on Data integrity
  • Doesn’t perform regular backups
  • Not anticipating the possibility of cyberattacks, or not correcting measuring the intensity of attack once it happens.
  • Ignoring IT compliances
  • Having no data security or cybersecurity plan in place
  • No data management
 
A recent report by Cisco outlines that of the interviewed 1377 CEOs, 62% accepted that their organization doesn’t have a cybersecurity strategy. So, you see it becomes so much easier for an intruder to break in the system.
 
Talking about impact, damages caused owing to no Integrated Risk Management are huge. Some of these include:
 
Loss of Data 
Intruding the system, hackers gain access to all the confidential data and steal potential information which is fatal for your organization and corresponding customers. While you can restore the information, if you had a backup, but you cannot reinstate the trust your customers had.
 
Additional Expenses
It might so happen that the hackers gained control of your devices and infected them with viruses. Fixing the damage caused due to the above enlists an array of expenses you are bound to make.
 
Money Loss
The ransomware attacks are fatal for organizations no matter small or big. Imagine, the hackers locking your system and seeking thousands of dollars in return. Not to mention the loss incurred while your business wasn’t functioning.
 
Lawsuits
As long as the data stolen belonged to your firm, it was not a matter of privacy breach. However, if the data belongs to a service provider or another firm, there might be a lawsuit filed against you and your organization. You may be asked to shut down the business or pay a huge amount in return for negotiation.
 
In addition to all of the above, cyber risks and attacks disrupt all the trust you had built in these many years. Your brand reputation suffers and even though the business resumes, organizations find it hard to survive. Neither do customers entrust your services nor third party companies consider your business to be worth an arrangement?
All in all, small businesses really need to fight their way out, once the system has been comprised and data hacked.
 
Why Are Small Sized Business Struggling With IT Risks?
 
For one – Ventures do not consider IT Risk Management as their priority. This results in the lack of a strong strategy for detecting & mitigating attacks, thus, making the whole organization vulnerable, and hence, an easy target.  
Well, there are two different reasons to explain the above –
 
The *we are not a target* mentality
Now, there could be multiple reasons that outline why small businesses are suffering. Of all, the first and the most important one is the lack of awareness. Or, it could be stated as downsizing the possibility of being attacked. Nearly, half of the small enterprises are convinced of the idea that they are not the target and there is no way someone would hack there system. The statement in itself is a cliché. There are not many organizations that have never been attacked or fallen prey to hackers.
And even if an enterprise hasn’t yet been the target, having a defense mechanism is a must.
 
It is a costly affair 
Another reason why small-sized enterprises experience jet lag is the fact that their leaders deem IT Risk Management to be something complex and highly expensive. They are under the impression that the measures undertaken to combat cyberattacks would drain their resources and cost them huge. And it is only meant for big enterprises as they can afford to implement such colossal solutions.
 
These two are the prime reasons that prevent an organization from adopting measures of cyber defense.  And hence, they have a deal with the repercussions of an attack.
 
But is the above true? 
 
For the first, the statement is totally vague and irrespective of the size, businesses are always prone to hacks and attacks.
Secondly, we won’t say that defense solutions are cheap, let alone the expenses incurred in hiring a security expert. However, the fact that a single attack could be the reason for total shut down, the preliminary expenses of safeguarding security seem worth it.
With that being said, one thing worth mentioning here is the fact that even though large businesses are more successful in implementing IT Risk Management strategies, small businesses have leverage.
  1. For one, small businesses have a limited workforce. So, inducing a change or modifying any of the software would not take much time. Imagine that your organization planned to alter the email platform. Now, making this change within an organization with 20,000 employees would take. Not to forget the efforts needed to train such a huge lot of employees to use the new solution. Quite the contrary, small businesses have a limited workforce and inducing this change is pretty quick. They can quickly restore and adapt to modern solutions.
  2. Further, there are lesser number of systems within the small organizations and releasing an update or migrating to a different deck is again faster and better. With more systems, the complexity increases and so does the extremity.
  3. Small businesses have interconnectedness within their institution and any small change is notified at the, earliest. Righteously said, everything starts at home. The need to secure the environment also begins with the team.
In case, you are looking for a company that would help your strength your defense mechanism, Claptek offers a hand. With dedicated experts and business-specific IT Risk Management solutions, we help your business remain secure. Contact us to know more!
Integrated Risk Management – Need, Importance, And Benefits Of IRM
integrated-risk-management-importance-need-benefits
Conventionally, all segments of businesses used to work as if they are separate entities. The list of such components may include its employees, branches, departments, blocks that were separately geographically, management and so on. Such an approach obviously had an adverse impact on the business’s productivity, data consistency, data security, and workflow.
With the improvement in operations and technological deployments, the whole setup has changed significantly. While things are very different now, many businesses still are not ‘well-connected’.
You sure, you are? Well, we will get to know it in a while.
 
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Your Checklist – Is the Organization Well-Connected?
 
Before we move ahead and address the need for Integrated Risk Management in your organization, it is essential to check a few things. Here is what you need to verify right away –
 
1. A Visible Communication Gap
There are times when different team members complain that the information was not conveyed to them on time, and hence, the flaw or delayed work. Similarly, you may find that people working on the same project does not have the information about what their peers are doing.
In such a case, you should understand that the enterprise needs to adopt better ways and tools of communication, in order to fill this gap.
 
2. Inconsistency or Lack of Data Integrity, everywhere.
There are many things that might be affecting your business currently, such as –
  • The prominent use of legacy Excel Sheets or bad communication cycle is resulting in inaccurate data for different segments of your business.
  • Managers of diverse levels have different information about the same thing because of frequent amendments.
  • Multiple people are making efforts to completing the same thing because things are not being conveyed properly within the organization.
  • Repeated or stretched processes are taking over to slow down your progress.
Remember, the lack of data integrity may result in major issues. Inaccuracy may take over your projects and operations, both. So, this needs to be resolved as soon as possible.
 
3. The Isolation 
If your business has multiple departments, or it is sprawled in multiple locations, there is enough technological help available to make it work as an atomic entity. Each organization/branch should acknowledge and communicate with another organization/branch in order to make things smooth.
Not happening? Well, you should worry.
 
4. Frequent Loss of Business
You may lose a confirmed or almost-confirmed business deal if your business is not well-connected. So, beware, if it is happening frequently. It not only affects your revenue but also damages your brand’s image in the market.
Clearly, you need a separate wing to take care of Integrated Risk Management (IRM). Oh, not sure about what it is and how will it help you? Let us explain. 
 
What is Integrated Risk Management?
 
The goal of integrated risk management is to reduce operations cost through insightful & comprehensive risk assessment while acknowledging the issues that were never addressed before. Enterprise-level implementations, decision-making and risk mitigation – all can be improvised by utilizing IRM.
Overall, the organization’s abilities to mitigate risks, and operate the business. Breaking down siloes, IRM professionals tackle each and every risk very carefully. The process has a positive impact on the performance of involved enterprise entities.
 
How it helps you in Overcoming Enterprise Challenges?
 
Meeting regulatory demands, mitigating risks, collaboration within the organization, matching expectations of your stakeholders, ensuring employee satisfaction, preventing future risks and so on – Enterprises has a never-ending list of challenges. IRM, in a way, is your cure for most of these complexities.
IRM systems combine data, tools, and technologies to automate risk management and provide smart solutions in multiple ways. Its focal areas are –
Internal Audit Management
Auditing your business thoroughly and identifying the areas of improvement can prove of utter importance, isn’t it?
Operational Risk Management
Checking whether your operations are risk-free and well-optimized so that their efficiency could be improved, is another important task where IRM comes in handy.
IT Risk Management
With technologies upgrading, outdating and arriving every day, IT risk management is definitely something your enterprise should not avoid. Utilizing the IT resources optimally and smartly can do wonders for your business, after all.
Corporate Compliance Management
A lot many standards are being modified or introduced very frequently. When your organization won’t comply with it immediately, you may feel outdated and troubled all the time. With IRM, this is not the case.
Business Continuity Management
Business continuity may rely upon vendors, but that’s not it. In totality, this field is too vast. Integrated Risk Management takes care of all these unforeseen or predictable conditions to improve your business’s capabilities and revenue.
Vendor Risk Management
Managing vendors, verifying their authenticity, preventing breaches, keeping up with new standards & their compliance and tracking agreements are a few parts of IRM. With these things done efficiently, your business operations’ continuity can be maintained well.
 
Benefits of Integrated Risk Management in the long-term
 
A full-featured set of Integrated Risk Management programs, practices and tools comes up unlimited benefits for enterprises. It, foremost, ensures that your risk assessment, reporting, and analysis process are efficient enough. Through this, IRM promotes better decision-making, processes, operations, protocols, and strategies are assured.
Integrated Risk Management may, or may not, yield immediate results, depending upon the nature of business and operations. However, in the long term, its advantages are commendable. A few benefits of IRM for your enterprise areas enlisted –
  • Strategic upliftment and better decision-making
  • Improved communication and collaboration processes
  • Efficient exchange of information i.e. untamed data integrity
  • Insightful and Accurate Analytics data & reports
  • Quick resolution of approaching risks
  • Better quality of processes
  • Optimal utilization of resources
  • Well-maintained vendor contracts
  • Updated IT infrastructure and compliance assurance
Alongside these benefits, IRM proves a nice indirect way to improve business revenue, reduce costs, increase the employee satisfaction level and promote team bonding. All these aspects result in a smoother workflow, better results, and more business in the future.
Do you still think your enterprise can function resistance-freely without IRM?
Obviously, not. It is very much of as essentiality for all businesses – irrespective of their size. Or, the competitors will gain a lead in your industry in no time. Having said that, integrated risk management should be the top priority of your business, if you are a large-scaled business or enterprise.
 
The Final Word
 
An isolated organization, or the enterprise that is not well-connected, is surely out of scope in present times. Thinking of digitally-equipped rivals, frustrated employees, poor communication, redundancy in operations, vendor-related risks and high expectations of clients, you cannot keep operating the same way anymore.
IRM is definitely a potent way of overcoming organizational risks of all kinds. No deploying it in its holistic capacity will be a big mistake for any organization that expects faster growth and frictionless workflow. Claptek is one of the best and most skilled resources you can hire to make IRM work well for your business.
How Can Insurance Companies Benefit From Risk Management
benefits-of-risk-management-for-insurance-companies
Ever wondered if insurance companies require risk management? Like on one hand, they are the ones that promise you a theft-free life. From your cars to your homes, your life to your wife, everything can be insured but what about the risk associated with the company themselves? Do they face possibilities of risk themselves and if they, what are the measures taken to combat the same?
Well, that’s what this article is all about.
 
benefits-of-risk-management-for-insurance-companies
 
 
 
Challenges faced by the Insurance Companies
 
To put it this way, an insurance company, no matter how efficient it is, does not cover all the aspects of a business. Even though they can self insure or indulge in the buy-in of coverage from a reinsurer, not every risk is guaranteed covered. Also, a major challenge faced by the company is to abide by their customers’ expectations.
Poor quality customer service is one of the most infectious aspects. A single customer holds the potential to tarnish the image of a company, causing tremendous trouble. Imagine a customer just claimed for an incident. It’s been more than a month and even today, not much has been done by the company to reimburse their claim.
Secondly, the rising threat of cyberattacks is another big challenge for insurance companies. When customers sign up for insurance policies, they share their vital information with them, expecting all of it to be safe and well-protected. A single breach is enough to shatter the trust customers have in the company.
Thirdly, the GDPR compliance is a major issue. Why would a customer invest in an organization, that itself isn’t secured, right?
Owing to all of the above, it is pretty obvious that insurance companies are on the cusp of a major breakthrough. Given the series of cyber incidents, opting for risk management isn’t just an option but a necessity for all insurance companies.
In case, if you are still skeptical about the advantage of risk management in the insurance industry, here we have outlined some of the major ways in which insurance companies benefit from risk management.
 
Benefits of Risk Management
 
Improved Risk Assessment
One of the most significant reasons why risk management is a must for insurance companies is its enhanced risk assessment techniques. Risk Management comes with a series of steps with the first one being rigorous risk assessment. When your company opts for the inception of the risk management strategy, you will have a frequent and extensive assessment of the entire system within the organization. The tests performed are done with the core idea of detecting gaps and finding peaks within data.
This information is vital considering the fact that having knowledge about what’s going wrong helps risk management managers to proactively employ measures to deal with them and mitigate the effects of the risk. In fact, risk assessment helps keep the organizational system free from theft and threats.
 
Ensures Compliance 
The inability to comply with the rules and regulations posed by the government with respect to security is one reason why insurance companies fail to grab user attention. When opting for risk management strategies, their infrastructure is then modified to be under intense scrutiny.
Also, all of the companies are expected to be totally aware of changes occurring at the federal and state level that might have a direct or indirect impact on the organization. The risk managers then need to align their business operations in terms of the rules, turning 100% compliant.
Certain organizations mandate risk managers to assess their system and find all possible risks that might occur in the foreseeable future. In case, these affect the ability of the insurer to map the policyholder obligations, the company needs to take certain steps to curb the same.
There are Risk Maturity Models powered by the NAIC, which determines how well the company is managing risks. These models generate report’s highlighting what are the weak areas that are prone to thefts so that the managers could then optimize it for better infrastructure.
 
Prioritize Risks 
In simple terms, risk management is nothing but assessing and identifying areas within the organization that might be vulnerable to hacks. A well-drafted risk management strategy uses standardizes risk assessment programs. These programs are designed to highlight the top potential areas of risk and further sort them based on their relevancy.
This helps risk managers know which of the risks have the most destructive impact on the business and then take certain steps to deal with the same.
For instance, be it insurance or any other company, customer service is of paramount importance. In the absence of risk management methodology, it might so happen that certain customer complaints go unnoticed. This is fatal for the organization as customers can make or break a brand.
When organizations use risk management strategies, the programs detect all possible areas of risk and surface the ones that are most important at the top. Here, customer complaints would lead to the charts. So, the managers can identify them and take measures to deal with the issue at the earliest.
 
How to Deploy Risk Management Techniques? 
 
Well, there are multiple ways to start implementing risk management methods within the insurance industry. Here is an example flowchart –
  1. To start with, the first thing to do is to perform a risk assessment on a regular basis. Also, this should be an internal program where every member works actively to assure that their system is threat free.
  2. Next, there should a standardized framework to identify threats from both internal and external of the organization. These frameworks should testify how and when can they be attacked or face risk. Similar to the process where insurance companies determine the possibility of a user applying for a policy, they need to find the likelihood of a breach.
  3. Scan through the existing IT system and find gaps or loopholes within the same.
  4. Finally, have a risk mitigation plan in hand. So, no matter what the type of risk is or when does it occur, the organization is always ready to face and deal with it.
 
Conclusion
 
It is without a doubt evident that risk management tactics are the need of the hour for insurance agencies. In case, you are wondering where to get started, contact Claptek. No, we aren’t any cyber management company, instead, we are a group of skilled chartered accountants who work tirelessly to scan and scrutinize the data within your enterprise to find any leaks.
With us, you will never have to worry about your GDPR compliant needs. Our experts will help you remain compliant with all the government-laden security rules. We also conduct in-depth audits and assessments to notify you of any fishy activity, so that you can be prepared to deal with them and mitigate any possibility of risk.
Remember, your organization isn’t just a way to secure or insure services but it is one that is built on the base of audience trusts. One wrong step and you might lose all that you have earned in the past few years. Hence, the best way to manage risks or mitigate thefts long before they indict your system is by adopting risk management techniques, the faster, the better.