Integrated Risk Management (IRM) was developed to address critical challenges faced by organizations, particularly in the financial sector. Let’s delve into why IRM emerged and its significance:
-
Inherited Security Programs: After years of working with many financial institutions as an information security consultant, it became evident that many organizations had inherited security programs from their predecessors. Unfortunately, these programs were often not risk-based and/or aligned with industry standards. As a result, during security audits and examinations, they struggled to defend their programs when faced with findings.
-
Compliance Burden: Financial institutions need to comply with multiple data security standards, including NCUA Examinations, GLBA Audits, PCI Audits, FDIC Audits, Intrex Examinations, FFIEC CAT assessments, NCUA ACET assessments, and CSC CIS assessments. This compliance burden meant that they spent a significant portion of the year either preparing for audits or recovering from them while addressing deficiencies.
-
Automated Approach: To streamline and enhance security practices, the decision was made to develop an integrated, standards-based information security program. This program would cover a wide range of assessments and examinations, ensuring compliance and efficient risk management. By automating processes, institutions could focus on strategic initiatives rather than firefighting audit issues.
Integrated Risk Management bridges the gap between strategic vision and tactical project delivery, allowing organizations to proactively manage risks, seize opportunities, and achieve their business objectives. It provides a comprehensive, end-to-end view of risk across the organization, breaking down silos and improving response time. The benefits of IRM include lower compliance costs, reduced fraud, increased strategic risk insight, and rapid decision-making.
In summary, IRM emerged as a solution to the challenges faced by financial institutions, offering a holistic approach to risk management that aligns with industry standards and enhances overall organizational resilience, providing a comprehensive fully automated Statutory and Regulatory Compliance service tailored exclusively for Credit Unions and Banks.