Can on-demand staffing reduce banking risk management costs?

Jill M. Czerwinski, Clayton J. Mitchell
Can on-demand staffing reduce banking risk management costs

The question posed in the headline is a common one these days. Many banks and financial services companies have created internal risk and compliance departments only to find that internal staffing is a slow and expensive way to meet ever-increasing – and changing – regulatory requirements.

As a result, on-demand staffing is gaining traction as organizations seek a more effective model. Outsourcing risk management and compliance services or augmenting staff with on-demand support can be advantageous.

Outsourcing risk management with on-demand staffing models can provide dividends

Outsourcing risk management with on-demand staffing models can provide dividends

Banks and other financial services companies are considering outsourcing their risk management services with on-demand staffing to capture benefits such as:

  • Variable costs. Organizations might have the opportunity to scale the amount of support they need based on the volume of demands, which could potentially save money.
  • Flexibility. With an on-demand staffing model, both the right level of support and the appropriate skills needed to meet current requirements and capabilities can be put in place.
  • Third-party assessments. Outsourcing these specialized tests can help organizations identify and address risk related to their partners and vendors.
  • Deep specialization. Collaborating with specialists who have industry experience and expertise can help uncover ways to improve risk and compliance processes and quickly adjust to new regulations.

Cosourcing risk and compliance activities can be complex, but including key stakeholders from multiple departments can help align the process with organizational goals and strategies.

On-demand staffing can extend your internal team

On-demand staffing can extend your internal team

A measure of risk accompanies outsourcing risk management services.

To help get the most out of the on-demand model, banks and financial services companies should ask these critical questions before moving forward:

  • How will we manage on-demand staffing?
  • What will our oversight system look like?
  • Does on-demand staffing support our risk assessment priorities?
  • How can we get internal and external resources on the same page?

The answers to these questions can help clearly define the tasks that need to be performed by on-demand staffing to produce strong outcomes. Additionally, setting expectations internally can help support this model.

Above all, when incorporating on-demand staffing, communication is critical. Consistent and transparent communication can help build trust between internal and external teams. If on-demand staffing resources don’t have access to the same information contained in calendars, emails, reports, and systems that internal employees do, confusion could ensue – and that confusion is avoidable.

Crowe IRM-as-a-Service helps manage on-demand staffing

If your organization is planning to move toward on-demand staffing for risk and compliance activities, consider using a risk and compliance system that is accessible by both internal and external resources.

We created Crowe IRM-as-a-Service to serve as a scalable, streamlined technology solution that offers affordable components to help outsource risk management and compliance activities, including issues management, risk assessments, third-party risk management, and complaints and disputes management.

But we didn’t stop at the technology. If you’re looking for resources to help execute on processes and want to maximize your risk management investment, you can easily engage Crowe risk specialists with just a few clicks in the system.

To learn more or schedule a demo, visit the webpage for Crowe IRM-as-a-Service.

Let's talk

Want to learn more about outsourcing your risk management services for on-demand staffing? We would be happy to chat with you about your specific needs and discuss how to help streamline your banking risk management and compliance efforts.
Jill Czerwinski
Jill M. Czerwinski
Principal, Third-Party Risk Leader
Clayton J. Mitchell
Clayton J. Mitchell
Managing Principal, Fintech