Reduce Audit Risk and Compliance Effort

Recover data where it is, as it is, to increase awareness of existing process and to ensure compliance with an ever-changing list of regulations.

Highly regulated industries around the globe are under immense competitive pressure to not only maintain an advantage in their market, but to manage compliance. Additionally, the penalties for failing to do so are growing and being applied more regularly.

As an example, fines for noncompliance and service level agreement (SLA) breaches associated with anti-money laundering (AML) and know your customer (KYC) hit an all-time high of $10 billion in 2020, an increase of almost 100 percent over 2019. In the financial sector, the SEC issued 715 enforcement actions, totaling fines of $4.68 billion, with the average fine nearly $2 million in 2020. The costs of financial crime compliance alone reached over $213 billion in 2021, and over 50 percent of banks report that they spend 6-10 percent of revenue on compliance. Many of the fines handed down have actually been for process failures.

Bad Process is Expensive

To remain competitive, organizations need methods to increase awareness with regard to existing process and to ensure compliance with an ever-changing list of regulations. However, without reliable visibility into the as-executed processes of their organization, it is nearly impossible to make meaningful change. Often a business will revise a known process without impacting results. The reason for this is not all processes occur as written. Process mining allows teams to recover the data where it is, as it is. With third-party and internal tools, businesses can recover the data in ERP, databases, or files, to retrieve information needed to understand processes and help ensure compliance using event logs, or data on processes in the form of computer traces. For many organizations, computer traces are found in different applications.

This information should contain three characteristics:

• What activity was done?
• When?
• For which system?

With these three pieces of information, which can come from several data sources, the solution will be able to identify the processes and add all the business data related to the process. Data can include the initial action, who or what intervened, which customer, and more. There is no limit to the data that can be processed. This enriches the analysis and allows organizations to gain awareness to their business process.

Mining solutions should take into account that processes are not linear and have many steps that happen concurrently.

Process Mining That Understands Human Behavior

iGrafx, thanks to its functionality across process modeling, discovery, and mining, can obtain critical information across a variety of data sources to deliver not just the “as-intended” view of a process but also the “as-executed” or actual view of the process.

Learn more about iGrafx solutions for risk and compliance management or contact us today to discuss your current audit risk concerns and compliance strategies.

For further reading about how Financial Services Organizations Need to Rethink Their Approach to Business Process Management, download the white paper.