Optimising IRM Processes for Financial Institutions using ServiceNow

GRC (Governance, Risk, and Compliance) processes in financial institutions are complex, involving multiple stakeholders, stringent regulatory requirements, and inherent risks.

Optimising IRM Processes for Financial Institutions using ServiceNow

Written by Oana Sarlea, project delivery lead at Accesa.

We recognise the complexity of GRC processes, and with our expertise, we understand the involvement of diverse stakeholders, strict regulatory standards, and inherent risks. We understand that effective risk management is essential to ensure compliance, mitigate threats, and safeguard the institution's reputation and financial stability.

This article explores how ServiceNow can optimise GRC processes, focusing on Integrated Risk Management (IRM) in procurement for financial institutions. We will delve into examples, technical solutions, and the creation of a centralised Risk and Control Framework to enhance procurement risk management.

Integrated Risk Management in the Financial Industry

Procurement activities in financial institutions involve multifaceted risks, including regulatory non-compliance, vendor-related risks, and operational disruptions.

Our expertise has helped financial institutions understand that the Integrated Risk Management (IRM) approach enables them to proactively identify, assess, mitigate, and monitor risks across the procurement lifecycle. Integrating Risk Management into procurement processes allows financial institutions to foster resilience, enhance decision-making, and safeguard stakeholder interests.

We provide tailored solutions to optimise IRM processes in procurement for financial institutions. To improve transparency, agility, and accountability, we seamlessly integrate risk management into procurement workflows using ServiceNow's platform capabilities. Continuously monitoring activities, ServiceNow's AI-powered experiences improve decision-making and increase performance through automation.

Key modules such as Third-party Risk Management, Risk Assessment, and Incident Management empower financial institutions to systematically identify and mitigate risks associated with procurement activities.

ServiceNow's IRM platform

To ensure comprehensive GRC coverage across the entire financial institution, we utilise ServiceNow IRM to facilitate effortless risk management throughout operations, ensuring business continuity. Moreover, ServiceNow's centralised dashboard was used to provide real-time insights into risk exposure and facilitate informed decision-making and strategic risk mitigation efforts tailored to the procurement process.

Consider, for instance, the procurement procedure of onboarding a new vendor for IT services. Normally, the process starts with due diligence assessments to gather essential information about the potential vendor before entering a business relationship.

With our expertise and integration of ServiceNow's IRM platform, utilising the Vendor Risk Management module and Integrated Risk Control Self-Assessment (IRCS) functionality, comprehensive due diligence assessments of third-party vendors are conducted to evaluate the vendor's cybersecurity posture, regulatory compliance, and financial stability. This helps in early risk detection and implementing necessary actions like adding contractual clauses for data security and regular vendor audits.

We seamlessly integrate the ServiceNow platform with specialised third-party providers in various areas like financial systems to provide insights into vendors' financial stability (e.g. SAP Ariba, Oracle Procurement Cloud), and cybersecurity platforms to enable real-time monitoring of vendors' cybersecurity for potential vulnerabilities (e.g. Palo Alto Networks, Cisco Security). This integration streamlines contract management and enhances reporting capabilities by consolidating data from diverse sources such as risk assessments and compliance reports. Stakeholders can then make informed decisions and monitor performance effectively.

When onboarding a new vendor for IT services, the financial institution can leverage IRCS to assess the vendor's cybersecurity posture and regulatory compliance, while simultaneously utilising the TPRM module to evaluate financial stability and contractual obligations. This integrated approach, combined with third-party integrations, ensures comprehensive risk assessment and mitigation, safeguarding the financial institutions' interests and maintaining operational resilience.

The value of IRM processes optimisation

In conclusion, at our company, we recognise the importance of integrating ServiceNow's IRM module to enhance visibility and enable informed risk-related decisions through real-time intelligence. Implementing automated workflows across the organisation increases productivity while reducing costs, supporting a comprehensive governance, risk, and compliance (GRC) strategy.

We empower financial institutions to streamline operations, mitigate risks effectively, and uphold regulatory compliance standards in a dynamic and ever-evolving business landscape.

Learn more about how Accesa creates value for financial institutions.