Corporate Risk Management Software Tools

Written by Gregg Ruais
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Some companies cannot afford to take certain risks, regardless of how much it costs to eliminate liabilities. Consider the financial services industry as an example. The Securities and Exchange Commission (SEC) has issued fines exceeding $10 million for rules infractions. What makes SEC regulations so scary is that any individual within a large company can break the rules and put the entire business at risk.

A simple email sent by a trading clerk or sales assistant can taint a company's name and cause it to incur exorbitant fines. As a result, many brokerage retail offices hire compliance officers, most of whom earn over six figures, and a major aspect of their jobs includes reading employee emails word for word. This takes up considerable time. Most companies would prefer to use their resources for other purposes.

Email Risks in the Financial Sector

However, the job must be done because the risks associated with not monitoring email are simply too dangerous. If someone did not read all outgoing emails, brokerage firms would definitely end up getting into more trouble than they already do. Insider stock tips, confidential financial information, and intellectual property would all be conveyed to unauthorized people if these companies did not have complete control over their email servers.

Risk management becomes much more efficient with assistance from a quality software program. Rather than reading every word, these compliance officers could search email texts and attachments for certain items that would often be included in illegal emails. Moreover, software programs make it simpler to segregate inter-office emails from external messages.


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