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European Companies Unable to audit Business Processes
2004-09-13 admin
New research into business process management conducted by the Economist Intelligence
Unit, shows that 47 percent of European companies risk being non-compliant with new
regulations because they are unable to audit their core business processes or manage
the associated risks in a systematic way.
Many new regulations, such as Basel II and Sarbanes Oxley and local FSA regulations, require companies to record both the process by which a decision is made as well as the outcome of that decision. 71 percent of respondents found their inability to manage this process a risk factor.
The survey also showed that 41 percent of companies do not manage effectively the risks associated with changes to core business processes.
Therefore they risk inefficiencies, customer dissatisfaction and operational exposure. Of those that do manage the business process effectively, 41 percent use analytics to predict possible outcomes. Only 29 percent simulate modified processes before they go live. 55 percent of respondents said that they are evaluating Business ProcessManagement
Tools. 16 percent cited compliance or the need to mitigate risk as the primary reason for doing so. Other drivers include reducing cost of operations and improving customer service.
The research was commissioned by Filenet, Content Management Software providers
Stephan Van Herck, senior vice president EMEA, FileNet says, “Companies need to take both a content and a process based approach to compliance. They need to be able to audit the steps involved in a decision - regardless of whether they were automated or manual and regardless of the number of times the associated rules may have changed.
That’s particularly important for ‘case’ based sectors such as insurance, consumer pending or grants. Many such organizations are turning to integrated Enterprise Content
Management and Business Process Management solutions in order to achieve the enterprise-wide visibility and traceability they need.”
The Economist Intelligence Unit explored the views of 118 senior European executives
across more than 14 countries in a survey conducted during May and June 2004. The survey examined how Europe’s corporate leaders view the business processes within their companies, how they manage those processes and the risks associated with them.
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