The Risk Mitigation section in PEAT’s ERM helps determine if a specific risk mitigation strategy or technique is working, at least statistically speaking (Figure 2.16). Risk managers can collect data from before and after a risk mitigation strategy is implemented and determine if there is a statistically significant difference between the two. The utility allows for the valuation and statistical computation of the effectiveness of risk mitigation programs through various hypothesis testing methods. For example, in the risk event of check deposit errors, the bank could potentially invest in high-resolution check scanners with smart optical character recognition software with embedded algorithms to check for any potential human errors. If the number of check errors is tracked before the new scanner system was implemented and compared with after the implementation, risk analysts can determine the efficacy and effectiveness of said scanner, if it was worth the money invested, and if additional scanners should be implemented across other bank branches.

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