Focusing solely on cutting costs can actually cost more, recent research found, as banks open themselves to greater risk exposure by focusing process automation strategies primarily on reducing expense and avoiding the ire of regulators rather than developing a view of risk across the enterprise.

A paper from the Economist Intelligence Unit, sponsored by SAP, says this conservative approach has actually increased enterprise level risk even as risk management practices improve in specific silos. It’s a phenomenon that in the future will likely lead to greater deployment of SaaS-enabled technology, as well as more traditional end-to-end middleware solutions that can improve integration of risk management across an entire bank and clean up where prior automation strategies fell short.

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