Mitigate risk in regulated industries

February 2, 2022
minutes read

Regulated organisations require risk teams to take responsibility for risk management and mitigation. Representatives safeguard and eliminate any known threats and take precautions for any unpredictable threats. The impact of the pandemic (an ultimately unpredictable situation) has elevated risk management further up the list of priorities. 

A survey of banks by the Cambridge Centre for Alternative Finance (CCAF) and the World Economic Forum (WEF) looking to understand how Covid has affected the adoption and use of machine learning and data science found that 85% of respondents already used some form of AI, most commonly in risk management, 64% expected to use AI in three or more business areas within two years, and 77% anticipated that AI would have high or very high overall importance to their business by 2022.

Risk management strategies and mitigation processes are ever evolving in line with the current climate and technological advances and it is crucial to implement  a solid internal strategy that adheres to the latest regulations.  

To fulfil this strategy the latest technology is required. Nivo - an award-winning network that works to mitigate risk for financial services - seamlessly integrates into existing processes, technology, and mobile apps.

Meet KYC / AML obligations

KYC (Know Your Customer) policies require “reasonable due diligence” to know (and retain) the essential facts concerning every customer. 

For many regulated organisations, KYC compliance has a huge impact on how they enable customers to open accounts and perform financial transactions on their preferred device. 

Customers want to transact online, but many regulated industries must contend with AML (Anti Money Laundering) and KYC requirements while also fighting fraud and financial crime and mitigating high-risk transactions.

Nivo enables organisations to fulfil KYC compliance requirements with accurate, real-time online identification and verification. Our solution has helped banks and other regulated organisations replace slow, inefficient manual KYC processes with more automated solutions that can be embedded within the digital account setup and onboarding experience.

Keep information safe with an automatic audit trail 

Many providers are under regulatory obligation and therefore rely on accurate audits to demonstrate their compliance and must provide effective access to data and information upon request.

Automating the audit trail means that every action, including: the creation, amendments  and deletion of every record, is tracked and recorded in real time. When this process is manual, records are subject to modification and human error, which cannot always be trusted. 

Nivo remains abreast of advances in audit trail technology with Nivo software fully compliant and all audit trail data effectively created and maintained.  With leading FinTech technology already built-in, you can start onboarding new customers and servicing existing ones instantly.

Enable remote working 

The pandemic forced businesses to shift to remote working. With only thirty percent of businesses expecting to have their workforce fully back on site before 2023, and two in five employees looking to adopt hybrid working, security of working off-site is paramount. 

With this shift in working practices, regulated industries are rapidly adopting their processes and controls to mitigate digital risks, and ensure remote working employees are secure.

Research has found that 47% of Europeans do not backup their files at least once a day, putting such vital files at risk, while one in ten, have never backed up their files. When data is at the core of your business, remote practices need clear guidelines supported by specialist infrastructure. 

Unsecured emails are too big a risk

Your bank never emails your statement, right? Because email is not secure. Email data can be stolen as it travels un-encrypted over the network and could be stored un-encrypted on mail servers, internet mail relays, and end devices.

It only takes one click to compromise an entire network, and with around 6.4 billion fake emails sent every day it is too big a risk for businesses. 

Nivo’s award-winning network smooths away the frustrations of paper, phone and email-based processes and offers enterprise-grade data protection. 

For risk teams trying to safeguard financial services amid changes created by global events, digital transformation, new regulations, and future unforeseen challenges, it can be a daunting task. 

Find out more about Nivo’s security and compliance and book a demo with the team. 

Receive 'Leaving legacies The digitisation of regulated Industries'

For regulated industries, where risks need to be expertly mitigated, it can be difficult to make the move away from widely adopted legacy systems.In this guide, we’ll run through the benefits and challenges of digital transformation for financial services, with practical steps on how to move away from legacy systems for the betterment of business and customers.

Written by