Audit Quality and Efficiency with BPM and Decision Management


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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.

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Audit Quality and Efficiency with BPM and Decision Management

  1. 1. Enhancing Audit Quality andEfficiency with BPM, Analyticsand RulesAnant Gupta – Vice President, BPMHanna Aljaliss – Technology Manager, BPM
  2. 2. Agenda • What keeps • Audit as a you awake? Central Function Governance, Awake at Risk and Night? Compliance A Look at Audit Quality Audit Effectiveness • Day in the Life • Why Analytics, • Then and Now BPM and Rules for Audit2
  3. 3. Prolifics at a Glance Who Are We? A Corporate Group of 1000 Employees Worldwide specializing in the expert delivery of end‐to‐end IBM Solutions Over 30 years in business, Prolifics  is an end‐to‐end systems integrator  specializing in IBM technologies New York Orlando Boston San Francisco Philadelphia London Application Testing Washington DC Hamburg Santa Clara, CA  USA Off‐Shore Development Center Hyderabad, India Customer Snapshot Finance Solutions  BUSINESS TRANSFORMATION  PROCESS AUTOMATION  REGULATORY ALIGNMENT  CUSTOMER CARE AND INSIGHT3
  4. 4. What’s Keeping You Up at Night? Do we have adequate regulatory and economic capital ? Is our risk exposure aligned with business objectives ? Can we respond quickly to a risk incidence ? Are we adhering to regulatory compliance ? Are we prepared for an internal or external audit ? Do we understand our Business continuity risk ? Are we adhering to internal policy ? Are our costs for policy and control management bloated ?4
  5. 5. Governance, Risk and Compliance5
  6. 6. What’s Keeping You Up at Night? Governance Risk Compliance Insomnia6
  7. 7. Audit is a Central Function in GRC Ensures Effectiveness of Controls Automates Catches Fraud Compliance Detects Errors Internal Audit Reduces Risk7
  8. 8. Key factors for Audit Effectiveness What are we auditing? Do we have the right and effective process? How are we continuously improving on sampling and process?8
  9. 9. Business Process Decision Improvement Platform vs. Packaged Solutions for Audit Packaged BPDI Solution Solution9
  10. 10. Using Analytics for Effective Sampling Adjusting Sample a priori and post-facto10
  11. 11. 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.11
  12. 12. Quality Audit Current State Pain PointsPrepare the Audit Perform the Audit Post Audit Activities • Access multiple • Access to data for systems to collect • Adjusting/Correction selecting data data evidence. Claims samples. • Gathering & • Managing Audit • Ensuring all selection formatting audit appeals & business rules are evidence escalations. applied when • Reviewing the audit • Calculating Quality selecting data case and all data accuracy (Scoring samples. evidence. Process) • Assigning work to • Ensuring all business • Performance trends auditors (Work procedures and rules and reporting Distribution) are followed. • Archiving & Restoring • Team Collaboration Resource/Time Intensive Cost Intensive Low Value Add
  13. 13. 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.13
  14. 14. Process Improvement Key Drivers Reduce Processing Cost Cutting Cycle time Improve Efficiency14
  15. 15. Solution Components Business Monitoring & Reporting Business Process Orchestration Decision Management Business Services Catalog and Management Integration to Operational Systems
  16. 16. Quality Audit BPM Portal
  17. 17. Quality Audit BPM Portal
  18. 18. Quality Audit BPM Portal
  19. 19. Quality Audit BPM Portal
  20. 20. Quality Audit Dashboard
  21. 21. Quality Audit Dashboard
  22. 22. Quality Audit Dashboard
  23. 23. Quality Audit Dashboard
  24. 24. In Summary Audit is a critical BPM, function and generally Analytics and quite complex rules solution can help A well defined and Generally done as a executed audit function compliance mechanism can yield significant rather than a value add qualitative and quantitative benefits24
  25. 25. For more information: Contact: Anant Gupta Contact: Hanna Aljaliss Email: Email: Phone: +1 646 201 4960 Phone: +1 646 201 4947 And visit these useful links on the Prolifics’ Web site:  Case Studies:  Webcasts:  Podcasts:  Service Brochures:  Technology Blog:  Twitter:  Prolifics TV: