There’s no doubt that systems and software play a crucial role in gathering and analyzing data to enable risk executives to make well-informed decisions. The growing ability to analyze terabytes of data and continuously update executives on internal and external trends makes it possible, in theory, to gain an enterprise-wide view of risk.
Technology is particularly important in helping to integrate risk information across the risk and control oversight functions. This enhances convergence between them and enables them to operate more efficiently and effectively.
Given the importance of human talent, it is a matter of concern that 42 percent of survey respondents said that a lack of skills is the main obstacle to the convergence of risk and control functions in their organization. This was seen as the biggest barrier, well ahead of process complexity, with 36 percent of respondents. This perceived weakness may make companies unwilling to launch a convergence program. Given the pressure to become more efficient while managing risk more effectively, companies may have no choice, but to hire the right talent or bring in external resources.
As is so often the case in risk management, the technology and processes are only as good as the people who run them.