Audit Quality and Efficiency with BPM and Decision Management
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Enhancing Audit Quality and Efficiency with BPM, Analytics and Rules Anant Gupta – Vice President, BPM Hanna Aljaliss – Technology Manager, BPM
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http://www.prolifics.com In an evolving market, adhering to regulatory requirements and improving productivity are critical to the success of any financial services organization. Many businesses are turning to BPM process and workflow features to eliminate the time-consuming, manual tasks of generating evidence necessary for auditors to perform their audits. Streamlining and automating auditing processes addresses a common challenge in the industry, where thousands of audits are taking place and little insight is shared on the performance of these audits. This session will include insights on how the automation and accurate mapping of audits ultimately results in higher quality information and, subsequently, reduced audit error rates. BPM and decision management capabilities position organizations to improve internal processes and meet compliance needs.
Transcript of Audit Quality and Efficiency with BPM and Decision Management
Enhancing Audit Quality and Efficiency with BPM, Analytics and Rules
Anant Gupta – Vice President, BPMHanna Aljaliss – Technology Manager, BPM
Agenda
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• Why Analytics, BPM and Rules for Audit
• Day in the Life• Then and Now
• Audit as a Central Function
• What keeps you awake?
Awake at Night?
Awake at Night?
Governance, Risk and
Compliance
Governance, Risk and
Compliance
Audit Effectiveness
Audit Effectiveness
A Look at Quality Audit
A Look at Quality Audit
Prolifics at a Glance
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W h o A r e W e ?
C u s t o m e r S n a p s h o t F i n a n c e S o l u t i o n s
Off‐Shore Development CenterHyderabad, India
Application TestingSanta Clara, CA USA
A Corporate Group of 1000 Employees Worldwide specializing in the expert delivery of end‐to‐end IBM Solutions
New YorkBostonPhiladelphiaWashington DC
OrlandoSan FranciscoLondonHamburg
Over 30 years in business, Prolifics is an end‐to‐end systems integrator specializing in IBM technologies
BUSINESS TRANSFORMATION
PROCESS AUTOMATION
REGULATORY ALIGNMENT
CUSTOMER CARE AND INSIGHT
What’s Keeping You Up at Night?
Do we have adequate regulatory and economic capital ?Do we have adequate regulatory and economic capital ?
Is our risk exposure aligned with business objectives ?Is our risk exposure aligned with business objectives ?
Can we respond quickly to a risk incidence ?Can we respond quickly to a risk incidence ?
Are we adhering to regulatory compliance ?Are we adhering to regulatory compliance ?
Are we prepared for an internal or external audit ?Are we prepared for an internal or external audit ?
Do we understand our Business continuity risk ?Do we understand our Business continuity risk ?
Are we adhering to internal policy ? Are we adhering to internal policy ?
Are our costs for policy and control management bloated ?Are our costs for policy and control management bloated ?
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Governance, Risk and Compliance
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What’s Keeping You Up at Night?
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Insomnia
ComplianceCompliance
RiskRisk
GovernanceGovernance
Audit is a Central Function in GRC
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Internal AuditInternal AuditDetects ErrorsDetects Errors
Catches FraudCatches Fraud
EnsuresEffectiveness of
Controls
EnsuresEffectiveness of
Controls
Automates ComplianceAutomates Compliance
Reduces RiskReduces Risk
Key factors for Audit Effectiveness
How are we continuously improving on sampling and
process?
How are we continuously improving on sampling and
process?
Do we have the right and
effective process?
Do we have the right and
effective process?
What are we auditing?
What are we auditing?
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Business Process Decision Improvement Platform vs. Packaged Solutions for Audit
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Packaged Solution
BPDI Solution
Using Analytics for Effective Sampling
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Adjusting Sample a priori and post-facto
Quality Audit Overview
The Quality Audit business function measures the performance of operation against a defined KPI target to ensure highest quality.
The audit business process is normally very complex and time consuming.
Most organizations strive to achieve the following main goals when it comes to improving the quality audit business process: Increase efficiency and reduce cost of performing quality audit.
Re-engineer existing business process to eliminate non-value added steps Automat lower value steps to allow auditors to focus on high value work. Provide better workload management capabilities to distribute work equally
and based on skills and availability.
Provide real time process visibility monitoring to the management team allowing them to evaluate their team performance, identify top error trends and manage their capacity with more accurate and real time information.
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Quality Audit Current State Pain Points
Prepare the Audit
• Access to data for selecting data samples.
• Ensuring all selection business rules are applied when selecting data samples.
• Assigning work to auditors (Work Distribution)
Perform the Audit
• Access multiple systems to collect data evidence.
• Gathering & formatting audit evidence
• Reviewing the audit case and all data evidence.
• Ensuring all business procedures and rules are followed.
• Team Collaboration
Post Audit Activities
• Adjusting/Correction Claims
• Managing Audit appeals & escalations.
• Calculating Quality accuracy (Scoring Process)
• Performance trends and reporting
• Archiving & Restoring
Resource/Time Intensive Cost Intensive Low Value Add
BPM as a Solution for Audit Pains
Integrate with backend system to provide a virtual view of the item being audited and all the supporting data audit evidence through the business integration component.
Automate the data sampling selection through business rules and decision management.
Managing work distribution and task assignment based on workload and resource availability.
Transform back-end data and format it in a presentable and printable format.
Exposing process metrics and key performance indicators through Business Monitoring & Reporting.
Evaluate gathered data evidence against the audited item to decide and produce audit finding report.
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Process Improvement Key Drivers
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Improve Efficiency
Cutting Cycle time
Reduce Processing
Cost
Solution Components
Process OrchestrationBusiness Decision
Management
Business Monitoring & Reporting
Business Services Catalog and Management
Integration to Operational Systems
Quality Audit BPM Portal
Quality Audit BPM Portal
Quality Audit BPM Portal
Quality Audit BPM Portal
Quality Audit Dashboard
Quality Audit Dashboard
Quality Audit Dashboard
Quality Audit Dashboard
In Summary
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Audit is a critical function and generally
quite complex
Generally done as a compliance mechanism rather than a value add
BPM, Analytics and rules solution
can help
A well defined and executed audit function
can yield significant qualitative and
quantitative benefits
For more information:
Contact: Anant GuptaEmail: [email protected]: +1 646 201 4960
And visit these useful links on the Prolifics’ Web site:
Case Studies: http://www.prolifics.com/case-study-technology.htm Webcasts: http://www.prolifics.com/webcasts.htm Podcasts: http://www.prolifics.com/podcasts.htm Service Brochures: http://www.prolifics.com/service-brochures.htm Technology Blog: http://prolificstech.blogspot.com Twitter: http://www.twitter.com/prolifics Prolifics TV: http://www.youtube.com/prolificstv
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Contact: Hanna AljalissEmail: [email protected]: +1 646 201 4947
