Financial Institutions and Insurance companies are currently facing numerous challenges (rising pressure of new regulations, poor customer loyalty, emergence of new technologies, globalization of operations…).
Despite the implementation of modern management methods and the use of sophisticated tools, the following key questions remain pending:
- Level of operational processes’ control
- Adequacy between results and targeted objectives
- Greater efficiency while ensuring change is under control
- Performance’s optimization with equivalent resources, if not fewer resources.
Managing performance while keeping business under control is today’s key challenge faced by Financial Institutions.
The following can be noticed when looking at Financial Institutions:
- Wide disparities exist in terms of Risk Management and Performance Monitoring practices, within a same organization and between organizations
- Risk Managers might believe they have a strong Risk Management system while key controls do not exist.
Nevertheless, in most organizations, simple measures can be adopted to make sure that risk and uncertainty are viewed as part of the Performance Process Management. That could significantly improve its impact.
To achieve tangible and measurable results during the implementation of an operational efficiency framework, essential actions are to be considered:
- Obtain a broad acceptance of key stakeholders to implement the approach
- Use a cause-and-effect model between management actions (inputs) and the expected results (outputs) while ensuring to integrate uncertainty as a variable
- Define and implement indicators (KPI or KCI) in order to measure and to monitor performance
- Audit and develop indicators over time
- Integrate strategic directions and adopt a continuous improvement attitude
- Encourage early identification of risk and uncertainty in the decision-making process and in the implementation of action plans
- Combine a continuous improvement policy with a permanent control framework.
R2M Partners, a leader in Risk Management, offers innovative solutions to address these key issues via its “Risk Management & Operational Efficiency” practice.
Our recognized expertise and our references allow us to offer personalized answers while ensuring a tailor-made control framework.
Continuous Business Improvement becomes a strategic factor for differentiation and performance. Hence our slogan
« Efficient Business Under Control ».
