Assessing risk as part of a client’s financial portfolio is a task that wealth managers are used to completing on a daily basis. However, recent studies reveal that risk management for wealth and asset managers is starting to take a new turn towards the protection, accessibility, and transparency of data. In fact, satisfying the demand for safeguarding, accessing, supporting, collecting, and presenting data is now an essential task for wealth and asset managers.

Managing Data And Documents To Reduce Risk

In the past few years the majority of wealth and asset managers have entered into a tenuous struggle between the push for regulatory transparency and their clients’ pull for security and privacy. This push and pull has become even more pronounced as wealth managers seek to provide mobile, or on the go, solutions to their clients. As a direct result, document management systems that collect, store, and improve the accessibility of records have become the new “golden standard” for successfully improving the risk management capabilities of wealth and asset managers.

Managing documents and data is no longer a physical job; instead, it is a digital entity that is quickly becoming the lifeblood of innovation for wealth managers across the globe. If wealth managers want to implement best practice risk management tactics, then they should look for the following characteristics within their chosen document management solution:

  • A secure system that safeguards digital documents and records;
  • Increased accessibility to client documents from both inside of the office and at remote locations;
  • Proven cybersecurity protocols that leverage best practice approaches, while simultaneously allowing for the “on-demand” retrieval of documents;
  • Versatile channels that can easily carry the appropriate information to financial clients; and
  • The ability to reference data, as well as the streamlined capability to easily filter non-relevant data and delete outdated data records.

The Bottom Line: Risk Management Can Be Improved With The Right Document Management Technology

Through a document management system, such as Treeno’s proven solution, wealth managers will be able to more easily manage the tension between data protection, regulatory-based transparency, and the maintenance of client privacy. Wealth and asset managers will also be able to more easily build relationships and create trust with clients when they leverage the power of a document management solution that is designed to not only streamline communications, but to also improve risk management.