Pocket Guide On Challenges and Risk Management Solutions For Banks

Pocket Guide On Challenges and Risk Management Solutions For Banks

April 18, 2022 | Bitscape Team, Microsoft 365

Do banks and financial institutions face risks and challenges? It became the central topic of discussion amongst the banks for finding appropriate solutions. Nowadays, banks face multiple risks and challenges of losing capital and financial services.  

So, the latest innovation in technologies helps to overcome the challenges of banks and provide necessary enterprise risk management solutions. 

What Are Primary Challenges That Banks Face Nowadays? 

There are multiple challenges that banks face in today’s digital world. Some of them are mentioned below. 

Risk Management Solution

Primary Challenges That Banks Face Nowadays:

  • Operational Risks
  • Market Risks
  • Non-Financial Technical Banking Risks

Operational Risks:

People and systems often cause operational risks and challenges in the bank. For example, it happens accidentally by the automated teller machines that show invalid transaction amounts. Besides, these types of threats also arise due to malfunctioning financial systems.  

However, these challenges also occur due to disruption in various financial processes. In contrast, banking fraud is another type of operational risk due to manipulating cybersecurity. So, the banking technology consulting company can resolve these financial challenges. 

Market Risks:

Multiple banks and financial institutions undergo market risks. Indeed, market risks and challenges occur when the bank invests some monetary amount in the capital market. Moreover, there are various reasons behind the violation of equity markets.  

For instance, these financial risks arise due to the global political and financial events, changing commodity pricing, variable interest rates, fluctuating rates of foreign currencies, and more. 

Non-Financial Technical Banking Risks:

Banks and financial institutions face numerous non-financial technical banking risks. Besides, technology plays a vital role in non-financial technical challenges. For example, it covers cybersecurity risks, violating data protection regulations, and the risk of operation failure in legacy financial systems.  

Hence, you can utilize risk management apps integrated solutions for the bank to overcome these challenges. 

How Bank Overcome These Challenges with Risk Management Solutions? 

Different IT services for banking are available easily to solve the financial challenges and risks of the bank. For example, the technology solutions from Microsoft like Power BI, Microsoft 365, and Azure cloud computing offer the necessary risk management solutions.

Risk Management Solution

Risk Management Solutions

  • Microsoft Azure
  • Microsoft 365
  • Power BI

Microsoft Azure 

Azure is one of Microsoft’s best cloud computing technologies, offering risk management solutions at affordable prices. Therefore, these cloud solutions in banking are suitable to overcome operational risks and challenges in banks.   

Using its versatile and advanced features like data management, virtual computing, and data visualization functions solve the operational risks in banking. So, banks will eliminate the risks related to data management with all these azure features. 

In this manner, Microsoft technology contributes to empowering bank employees to complete financial services effectively.

Microsoft 365 

Microsoft 365 is an online subscription-based office program with advanced security features. Indeed, it solves the non-financial technical risks of banks. It also includes cloud-based productivity tools and artificial intelligence capabilities.  

Often banks become a victim of viruses, malware, phishing, ransomware attacks, and hacking. For this purpose, the defender function of Microsoft 365 helps protect the bank against all these attacks. Therefore, this technology overcomes cybersecurity risks with multiple features like anti-phishing, safe links, safe attachments, and more security functions to combat financial crime and non-financial technical risks for the bank. 

Power BI 

Power BI is a bundle of software, tools, apps, and functions that convert multiple data into an interactive dashboard and visual insights. However, by utilizing advanced features of Power BI, the bank can overcome market risks and challenges. Also, they can generate insights and visual dashboards of future financial events through the present and past event records.  

Besides, it is helpful to create interactive dashboards of variable commodity pricing and interest rates to make informed financial decisions.  

Final Words 

Banks and financial institutions face risks and challenges with a fear of losing capital with malware and phishing attacks. So, these financial challenges and risks get resolved using specific technologies like Azure, Microsoft 365, and Power BI. Therefore, Bitscape is one such company that provides numerous types of risk management solutions with the help of Microsoft technologies.