Improve your Risk Management Assessment and Conformance Checking mining every step of your process
Let’s face the facts. Companies are measured by two fundamental dimensions: return on investment and risk.
Process mining can help companies in all these dimensions. On the return side, it can both unveil new streams of revenue, when applied to customer journeys, and reduce the cost to deliver, when applied to operations, resulting in higher profits/return.
On the risk side, it helps organizations comply with best practices and regulations in every step of its process. More often than not, conformance checking is a very tedious and manual task. It usually requires manually inspecting evidences looking for the execution (or absence) of activities, and then verifying their logical organization over time. Putting in practical terms, one would like to know if higher management did approve a specific purchase, and if the approval happened before the purchase was executed (and not after). If you feel you can relate to this example, you are not alone!
Any mid-size to enterprise level company will probably have more process steps than a team of compliance would analyze in reasonable time. No need to say more, conformance checking is usually done by sampling some cases out of the entire process spectrum. The overall resulting scenario is: conformance checking is costly, takes time, is error prone and covers part of the process execution steps, not its entirety. What can one assert about the overall risk, when all these underpinning variables are in place?
Conformance Checking Automation through Process Mining
Conformance checking is one of the pillars of process mining. It allows users to contrast a process model (usually stated in BPMN) with the logs of execution provided by the supporting systems. When correctly applied, it will allow companies to check every single process step, in real time, with no human intervention. That means a broader coverage, with more assertiveness at a lower cost. No brainer, hum?!
But here comes the icing on the cake: conformance checking can be done in real time, and process execution could be corrected while it is still time to do so. That is a whole new level of conformance checking; it is conformance monitoring!
Next time you are challenged by regulators, laws or even your own company best practices, consider applying process mining in your journey. Auditing firms are already doing it!