Benefits of Automating Risk Management
While many CFOs and CEOs are focusing on new revenue paths and growth opportunities rather than ways to limit risk and constrict new deployments, the C-suite is still very much concerned with risk management. In fact, over the past five years, CFOs say their companies have taken great leaps in improving risk awareness, clarifying responsibility, and planning for risk events.
That’s because when it comes to complex credit decisions, the margin for error shrinks as the repercussions of a single mistake expand. After all, the viability of your company hinges upon your ability to fine-tune your company’s financial performance.
While sales and marketing departments don’t think twice about using automation platforms to facilitate lead nurturing and generation, all too often senior executives fail to consider just how beneficial such software can be for making risk management and credit decisions. With the right software, mundane tasks become simplified and a company’s financial performance remains strong.
Let’s take a look at the chief benefits of automation software:
Access to Previous Interactions
Portfolio management is no easy task. To facilitate it, 71% of firms have a project portfolio management (PPM) process in place, up from 64% in 2003, according to PM Solutions’ benchmark study onThe State of the Project Portfolio Management (PPM) 2013. One of the chief reasons companies rely on PPM software is because they can archive previous interactions with customers. Therefore, the next time you consider doing business with a company, you can access detailed reports of previous conversations to determine whether it will prove profitable or result in delinquent payments.
Ability to Assess Credit Risk
Risk management is a key to the profitability of any business. As such, determining whether a potential customer is a good or bad credit risk is imperative.With the right automation software, businesses can check the credit of potential buyers before deciding to trade with them or agree to credit terms. Also, companies can review detailed reports of a prospect’s monthly payment performance and keep tabs on news and alerts for vital financial updates.
Facilitates Application Processing
Once you’ve determined a prospective customer is worth pursuing, you can begin the application process. While handwritten applications and manual processing are prone to errors, automation software considerably eliminates the risk for human error while allowing you to streamline the process and improve customer service. The right software can enable users to quickly identify and compare credit worthiness and customize applications to improve the applicant experience.
Track Daily Accounting
Once you’ve decided to do business with a new company, it’s time to focus on everyday administrative tasks to make sure you’re not just supporting the client’s needs but also profiting. Software can automate routine tasks such as daily accounting, financial alerting, and reviews. For example, instead of manually checking individual accounts to see whether payments are being made on time, robust platforms can send regular updates alerting you to which accounts require attention and which are humming along. By automating regular tasks your billing and financial departments can spend more time identifying new sources of revenue.