Insights from OpsDog

For many banks, commercial lending is the backbone of their lending portfolios. But since commercial loans can be complex and for large dollar amounts, these loans require specialized underwriting and a high degree of monitoring to make sure they are not at risk of default. Commercial loan key performance indicators alert the bank to any potential issues that can make these loans more risky and less profitable. What are Commercial Loans? While consumer loans are for personal items such as a home, car, or boat, commercial loans are loans made…

Every industry relies on technology. But when the technology doesn’t cooperate—either due to hardware or software failure, human error, or nefarious acts by hackers and criminals—businesses face a variety of risks such as lawsuits, compliance fines, and lost sales. The price of technology failure is high: 86% of businesses say that the cost for one hour of downtime is $300,000 or higher. One in three businesses report that the cost of a single hour of downtime can reach $1 million to $5 million. How Benchmarking and Key Risk Indicators Help…

Claims is where the rubber meets the road. For auto insurers, paying legitimate claims while minimizing the costs to process those claims is critical to profitability. Learn to benchmark auto insurance metrics to boost claims productivity and streamline operations. Auto insurance metrics enable insurers to determine how to control claims costs without negatively impacting customer satisfaction. What are Auto Insurance Benchmarks? To benchmark auto insurance, first you will need to pick metrics to measure. Insurers can use both key performance indicators (KPI) and key risk indicators (KRI) for claims benchmarking.…

Key risk indicators for information technology can be utilized for a wide variety of industries, but for this post we will be focusing on KRIs for IT departments within the banking industry. Banks today are heavily integrated with technology to connect with their customers and because of this, privacy breaches are a very real risk. For financial services organizations, a technology failure due to a cybersecurity breach or a service outage can have a devastating impact on the business and its customers. A failure can cause reputational damage, legal liability,…

Operational risk is defined as the risk bank’s face of monetary losses resulting from failures within their own processes, people and systems. Unlike external risk due to events such as market volatility, geopolitical risk, or systemic risk, operational risk is internal—meaning that banks have quite a bit of control over these risks. An operational risk dashboard for banks measures these internal risks and give banks the data they need to create measurable objectives to minimize those risks. Why is Operational Risk so Challenging for Banks?    Operational risk is complex…