NAVEX > Case Studies > Fintech Company Strengthens Its Lines of Defense with NAVEX IRM

Fintech Company Strengthens Its Lines of Defense with NAVEX IRM

Company Size

1,000+

Product

NAVEX IRM

Tech Stack

Risk Management Software

Implementation Scale

Enterprise-wide Deployment

Impact Metrics

Cost Savings
Digital Expertise
Productivity Improvements

Technology Category

Application Infrastructure & Middleware - Data Exchange & Integration

Applicable Industries

Finance & Insurance

Applicable Functions

Business Operation

Services

System Integration

About The Customer

The customer is a fintech company looking to expand into consumer-facing technology. They have a strong internal audit program that identifies breakdowns and gaps within the organization. However, these issues were not always getting the attention they deserved across the rest of the organization. The management of risks associated with daily operational activities was weak, leading to low audit ratings. Stakeholders were concerned whether the business could make risk-based decisions necessary to safely implement cutting-edge fintech. The company has over 1,000 employees.

The Challenge

The fintech company was looking to expand into consumer-facing technology, but they had to address their processes for identifying, mitigating, and reducing risk. They had a strong internal audit program, but the issues identified were not getting the necessary attention across the organization. The management of risks associated with daily operational activities was weak, leading to low audit ratings. Stakeholders were concerned whether the business could make risk-based decisions necessary to safely implement cutting-edge fintech. The organization’s management committee charged their risk management function with building a traditional three-lines of defense program. This meant cultivating accountability and ownership at the first line of the business, where risks are introduced to the organization. It required standing up a true second-line defense reporting to the Chief Risk Officer. Most importantly, it necessitated a risk culture in which everyone is responsible for identifying and reporting issues.

The Solution

To meet the mandate of building a traditional three-lines of defense program, the fintech company started by plotting processes and mapping out how they wanted to manage self-identified issues (SII) and risks. They quickly recognized the importance of utilizing a purpose-built solution and selected NAVEX IRM. The key to their decision was NAVEX IRM’s ability to centralize and automate processes. They were able to build records right into NAVEX IRM’s platform, resulting in the capture of additional information for root cause analysis and addressing emergent issues. The organization also developed new workflows that allowed executives to accept some risks when appropriate, and dashboards that helped first-line defense employees take increased ownership.

Operational Impact

Improved internal audit ratings by identifying and remediating issues at the very first line of the business.
First-line employees now own and manage operational risks. They conduct risk assessments, participate in risk roundtables, and receive training on how to use the dashboards and tools available to them.
Implemented second lines of defense, including Ethics and Compliance, Operational Risk Management, Business Continuity, and Privacy Officers, all reporting up to the Chief Risk Officer.
Created a risk-aware culture built around prioritizing and adopting the work they put into their lines of defense.

Quantitative Benefit

Substantial decrease in the number of internal audit findings and issues to remediate.
Decreases in self-reported issues as the organization became better at proactively managing risks.
Reduced the number of resources required to drive success.