Financial institutions have a lot on their plates regarding compliance, fraud detection, data protection and privacy. All that comes on top of their usual scope of work. How do they handle it?
More and more risk management software tools are out there that promise financial institutions to keep an eye on the risks and warn them long in advance if something fishy is happening.
But the more of them appear on the market, the harder it becomes to choose the right one. Do you even need risk management software? What does it do? Which one is the best out there?
To simplify your search, we've compiled a short but super specific list of popular risk management software tools, so you can easily create a side-by-side comparison on the most critical factors.
What is risk management software?
How can a piece of software help you minimize risk, and what types of risk are included in their surveillance skills?
Most risk management software for financial institutions is set up to help you identify and assess risks to your organization—and preferably, they also help with taking care of the risks with a plan of action.
The software can focus on different aspects, such as compliance, and assess a potential customer's risk. It can look at historical data and give estimates for the future, for instance, about bear markets, so you get a heads up on price changes.
The strength of risk management software is that it has an eagle-eye view and automatically keeps you updated on potential risks. Having someone in your organization take care of risk management manually is nearly impossible, especially if you're trying to keep up with ever-changing compliance and use many third-party tools.
Why you should have risk management software in place
No business comes without risk—and that definitely goes for financial institutions.
Nowadays, a big part of running a business is highly technical and complex. Still, you don't necessarily have technical or legal experts on board. That doesn't mean you can't waterproof compliance and other risky aspects of your business.
Financial decisions should be taken based on confidence and research, not FOMO. Risk management software will ultimately save you a lot of time and sleepless nights because you can rely on their systems instead of having to hope for the best when it comes to human employees.
Moreover, many risk management tools can keep track of changes in specific industry regulations, so you never miss an update.
What to look for in risk management software
How do you know if you can trust your risk management software? It's a pretty big deal to rely on a tool to keep essential parts of your business safe, so you must make a well-calculated decision.
We'd recommend you do your research—which by reading this, you are!—and speak to sales reps to find out if it's a good match. Ask plenty of questions and be critical.
On top of that, here are some things to take into account when selecting your risk management software.
Usability and user interface
The whole idea behind using risk management software is that you're trying to make it easier to keep track of risks—not more complicated.
Usability and UI are essential for that. A tool might look good on the screen, but if you can't find your way into it, you risk having incomplete assessments or missing important information.
So, could you test it out? There's a free trial. Get a feel of what working with the tool is like before making a costly commitment.
Does the reporting seem applicable to the way you do business? How easy is it to get the analytics you need? Find this out first, and let the right people in your organization test this out.
As a financial institution, you have many regulations and rules to follow. Not every risk management software tool meets said regulations. Some are perfect for eCommerce and others for medical institutions. Find one designed for a business like yours and covers all the aspects of compliance relevant to you.
An important factor in deciding which risk management tool is right for you is checking whether it integrates with your already using tools. Tool integration is crucial because a lot of information can get lost if you connect devices and transfer data manually. Be mindful of the gap and make sure your current tools fit seamlessly into your risk management software.
3 tools we would consider for financial institutions
Are you getting lost in the jungle of risk software management tools? We're here to narrow it down for you.
We've summarized what we can find out about tools that check many boxes for financial institutions below. Remember that we have not tested every tool personally, but we encourage you to do so!
SEON, founded in 2015, has been the go-to anti-fraud platform for many businesses, including financial institutions. This tool helps protect transactions and revenue with intelligent technology. One of its highlights is its data enrichment module. This module scours openly available sources online (OSINT). It gives you a customer's digital footprint to fuel your decision-making process with actual data.
SEON checks all the boxes and then some: it has a great UI, is customizable for compliance, and makes work more accessible thanks to its integrations.
SEON has doubled down on creating a great UX because they believe that a better user experience translates directly into better ways to identify risks, and it shows.
When it comes to compliance, SEON is highly customizable. You can tailor it to your needs to comply with AML and geo- compliance, and more.
Last but not least are neat features like their Google Chrome extension that make the tool unique. Moreover, SEON prides itself on how fast it can integrate into your platform. According to its website, "SEON is designed to integrate with your current platform within hours".
How much does SEON cost?
Pricing for SEON varies depending on the tool you choose. Their Intelligence Tool starts at €99 per month, and their end-to-end, fraud-fighting Sense platform costs €0.06 per check.
When it comes to mitigating risk for companies, Resolver is an expert tool. They want you to grow your business by making well-informed decisions, and they have just the right tools for that.
They monitor risk, but they also keep an eye on your compliance costs, so you don't waste money on fitting into regulations that don't apply to you.
To ensure you pass every audit, the tool lets you perform a gap analysis against industry standards, so you immediately see what you need to work on.
Their tool comes with a list of risk management services, such as Vendor Risk Management, Compliance and Ethics Management, and IT Risk Management, which cover all essential aspects of risk management.
How much does the Resolver cost?
There are no fixed prices on their website, so get in touch with their team to find the pricing package that fits your needs.
Fusion Framework System: Best for simplifying complex risk management tasks in your business
Compliance in online and physical spaces, super-secure cloud storage and real-time insights into your data centre assets: FusionFrameWork System covers it all.
They are the world's most trusted security cloud company and have several awards to show for it. Their speciality is simplifying the many complex risk management tasks when running a business.
Thanks to the continuous risk monitoring efforts, you get a grip on your vulnerabilities.
This helps your business become more resilient and minimizes risk exposure. At the same time, you stay focused on running your day-to-day business.
How much does Fusion Framework System cost?
Fusion Framework System does not provide fixed prices on their website, but you can contact them for a custom quote.
Find your risk management tool
Get started with some free trials, read up on reviews and protect your business as soon as possible. Remember that taking risks is part of growth, but you can take calculated risks thanks to these tools.