Without enterprise risk management, reporting, responding, and remediating issues is often ineffective and time-consuming. As I previously mentioned, Apple’s reporting process left no options available for Ms. Thompson, who stated “It’s exhausting and exasperating. It’s very poorly set up especially for the average citizen. I feel like I went above and beyond.”
Apple is not the only corporation who has struggled with implementing customer-facing incident management. As a result of the change in “Know Your Customer” laws, it has been a challenge for financial institutions to execute anti-money laundering regulations properly. Citibank recently rolled out a compliance program designed to protect customers and the company from illegal financial activity. However, what was initially designed as a program intended to catch terrorists has left multiple innocent customers with frozen bank accounts and zero notice. Without a customer-facing website to escalate issues, the remediation process is time-consuming with significant barriers to reach the appropriate employees.
Citibank is not unlike other banks, financial institutions, and most companies. While many have internal whistle-blower hotlines to report misdeeds, very few companies have reporting channels accessible to customers. Surprisingly, many financial institutions even require physical mail as a part of their complaint reporting process. These channels primarily serve as a means for customers to feel “their voices have been heard”. Often times, financial institutions do not have the management processes to identify and filter risk, fraud and misdeed reported from outside the organization. As a result, the resolution process is ineffective and complaints are typically aggregated over time serving no real purpose over than for process improvement.
With effective enterprise risk management in place, customer responses for a variety of issues can follow a clear and cost-effective path to resolution. Customer-facing incident management offers customers easily-accessible channels to escalate their incident reports. In the See-Through economy, risk transcends every industry. Regardless of what the incident is, be it a major software bug or innocent customers’ bank accounts being inadvertently frozen, incident management and reporting are essential components of effective risk management.