Many businesses suffered the consequences of not assessing and managing risk before the Great Recession. Over a decade later, have you learned your lesson in anticipation of another recession?

Don’t just react — prepare for a downturn when the market is healthy and stable. Implement or strengthen an already-existing enterprise risk management (ERM) program to help your organization mitigate the financial impact of an economic downturn. Ensure that your risk management staff has the knowledge, expertise and tools to position your institution for success.

Have the Right Knowledge and Tools

 A robust ERM program helps anticipate areas that will be impacted by an economic downturn and to what degree they will be impacted. The right information and tools give an organization and applicable business units time to prepare and adapt to tumultuous economic conditions.

Focus on the entire risk management lifecycle. Consider how an economic decline — temporary or long-term — puts your organization at-risk. What’s the likelihood and probable impact of a recession? You can develop controls to prevent or mitigate the risks and then be able to monitor if the controls are successful. Finally, ensure your stakeholders are kept in the loop.

Compliance should also be a priority. Adopt an integrated governance, risk and compliance (GRC) framework to complement ERM initiatives. Use the GRC framework to meet regulatory requirements. You’ll be able to evaluate compliance control requirements and fulfill related enterprise risk objectives.

However, don’t let the specter of a recession keep you from taking chances. Tying ERM to strategic planning and embedding an enterprise-wide risk culture can reveal cost savings through improved processes and unearth new market opportunities. But be wary. What appears to be an economic opportunity at first glance can also put the organization at risk. Don’t be afraid to innovate, but when you utilize ERM, you’re able to put the tools in place for informed decision-making.

Procipient^® — The Proactive Solution

Procipient^® is your proactive ERM-GRC solution. Utilize a universal evaluation framework to assess your processes, your controls, your department performance and more. Track and monitor urgent issues and ensure your enterprise applies corrective actions and necessary improvements to be prepared for the future.

You can also visualize and report your findings to the C-suite, board, regulators and auditors with a single click. With Procipient^®, you gain access to your enterprise’s entire risk landscape and control the information.

Procipient^® empowers you to link policies and controls to the federal and state laws and guidelines and compliance requirements they satisfy. You’ll be prepared for financial crises with the proper documentation for audits and examinations.

Learn More

Want to be prepared for the next economic downturn? Request a demo of Procipient^® today to see how it has the right tools to ready your organization for any hard times ahead.