One of the most challenging, and often overlooked, aspects of any large scale risk management change initiative is the design and implementation of changes to business processes and organisational structures.
Financial institutions often identify the need for re-engineering business processes and organisational structures to meet the needs of evolving industry practices, regulatory demands or other business driven factors. Equally as commonly, the implementation of technology change typically also facilitates or requires changes to business processes and/or organisational structures.
We recognise the difference between business process definition and organisational definition, but also that changes to each are often inter-dependent and go hand in hand.
Business Process Definition: This defines elements such as what steps and functions will be undertaken in the end-to-end business process; the controls in place at each step; and the efficiencies of the process
Organisational Definition: This defines elements such as which departments have responsibility and ownership for each process step; the appropriate independence of key functions/controls; and ensures departmental skills are appropriately matched to the required processes to be undertaken