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How to Find the Best Risk Management Advisory Services

Do you want to know how to find the best risk management advisory services provider? How do you find someone you can trust? When comparing options, there are several things to consider to make sure you hire a reputable company that will prioritize your best interests.

  1. Is the solution proposed by the provider comprehensive and practical based on the size of your financial institution, the scope of activities, and complexity?
  2. Is their solution one that’s cost-effective for your firm?
  3. Is the provider a good culture fit?

If you fail to find out the answers to these questions upfront, you can end up wasting lots of time, energy, and capital. Let us help you avoid this type of detrimental situation by providing you with four steps to take when comparing providers.

How to Find the Best Risk Management Advisory Services

Before we dive into the four steps you need to take to find the best risk management advisory services, let’s talk about the types of services you can choose from.

When comparing options, you’ll notice that there are two types of services out there.

  1. Small advisory teams that offer tailored, customized solutions.
  2. Large advisory teams with out-of-the-box solutions.

In some cases, you might find an individual might be a better fit if your firm is small or medium size. Compliance Core offers regulatory risk consulting services and customizable software to help you meet regulatory guidelines, as well as monitor and optimize your workflow processes to reduce the unique risks a financial institution such as yours face.

A small advisory firm like Compliance Core works with increased agility, giving your organization the flexibility to focus on mission-critical objectives, while closely monitoring risk management and compliance programs with precision. Unfortunately, large advisory firms fail to deliver the unique attention that your organization deserves. Large firms create massive, complicated solutions that are too difficult to implement and too bulky to manage. In some instances, the solutions introduced by large advisory firms may introduce additional risks and may require organizations to make additional hires just to manage systems and processes effectively.

Now that you have a better idea of what type of firm would be a better fit, let’s dive into the steps you need to take when comparing providers.

1. Identify Risk Management Roadblocks

Identifying risk management roadblocks within your financial institution starts by performing a gap analysis and a risk assessment of your financial institution.

The provider you choose should be able to perform these two types of analysis to adequately discover areas for improvement and areas of risk that need to be addressed or monitored. The difference between a gap analysis and a risk assessment is that a gap analysis is looking for the areas where your firm falls short of best practices or standards. It doesn't tell you which problems can occur or which controls to implement.

It’s true that you can discover potential risks this way — but only ones that are directly related to following those standards. With a risk assessment, you’re specifically looking for every potential risk surrounding your organization — from the inside out. A knowledgeable provider should have a firm grasp of this difference, and they should include both of these analyses in their proposed solution.

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2. Create a Shortlist

Once you know more about what to look for in a provider and what questions you should ask, you can start creating a shortlist of providers to choose from.

You’ll want to receive quotes and proposed solutions from each provider on your shortlist and compare them to ensure the one you choose checks all the boxes. To get you started, here’s a list of the qualities every reputable and trustworthy provider should have:

  • A documented track record of their expertise, understanding of regulatory compliance, risk, and auditing functions
  • Demonstrated experience in process design and execution
  • A team of knowledgeable staff with access to intellectual property and technology to better protect your institution from risk and ensure compliance
  • A good reputation within the industry
  • A list of references

Use this list of qualities to look for as a guide to narrow down your potential providers' shortlist.

3. Interview Top Candidates

Now that you have a shortlist of the providers you want to compare, it’s time to interview them, get a quote, and see how their proposed solutions line up with what your financial institution needs. Use the following list of questions to help guide you through the interview, so you ensure all the important questions are asked:

  • What experience do you have with preparing and presenting gap analysis and risk assessment reports?
  • What have you done in the past that’s gotten your clients to take risk assessment more seriously?
  • Has your attention to detail ever solved a critical problem for a client that could have been costly or detrimental to their organization?
  • Do you continually self-educate to stay updated on the latest developments and trends within your industry?
  • How do you determine what source information you gather is relevant?
  • What process do you use for risk management, and what have you learned to improve that process?
  • Have you ever had to work with someone who you considered their behavior to be difficult to handle? What did you do in this situation, and what was the outcome?
  • Have you ever been in a situation where you have to make unpopular recommendations? What did you do, and what were the results?
  • How do you think risk management impacts an organization negatively and positively?
  • What kind of experience do you have with risk modeling?

4. Ask for Risk Blueprint

The final step you need to take when it comes to finding the best risk management advisory services is to ask to see their risk blueprint. A risk blueprint is the detailed, actionable plan a provider follows when assessing risk and performing gap analysis for your organization. Make sure to ask for the provider approach to prioritization right from the start when discussing their risk blueprint.

Every risk blueprint should include the following:

  • A risk log
  • A detailed risk analysis with risks organized and categorized by level of severity and priority of mitigation action
  • A detailed response plan for how each risk needs handling
  • Assigned owners for each risk, so the right people know what roles they play in your risk mitigation plan

At Compliance Core, we understand just how important it is to your firm’s success to hire the best risk management advisory services provider possible. That’s why we go out of our way to answer every question you have and show you everything we can do for your firm right from the start.

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Published by Jacqueline Maduneme October 1, 2020