All companies, regardless of industry, must comply with regulations and standards for proper operation. As failure to do so could have serious negative consequences, tools such as Process Compliance are utilized. Process Compliance was born with the aim of helping organizations comply with established regulations, and maintain the standards and guidelines of the sector or industry.
These regulations, standards and legislations are increasing by the day and are becoming, at times, more difficult to comply with. Even as organizations expand, compliance can become very complex due to different international laws.
Over the years, the rise of ‘compliance‘ has grown. In November 2021, the report ‘Unlocking trust: why global compliance is on the business agenda‘, prepared by Mazars, revealed that 46% of Spanish companies had increased their budget for regulatory compliance in the last year, and 58% of companies globally are expected to do so within the next five years.
What is Process Compliance?
Compliance is a cornerstone of good business practices and an important obligation that must be fulfilled. Non-compliance is not an option due to the high costs and consequences it could incur for organizations. This is why compliance has become a major current concern for all companies in the public and private sectors.
This underlies the importance of implementing Process Compliance, which can be very useful in supporting transparent management decisions that are made in business on a daily basis. It becomes a crucial means of reducing the risk of not complying with regulations established by the industry.
Why is Process Compliance so important?
As previously mentioned, legal requirements are becoming more complex every day. This means that companies operating globally should be aware of and prepare for the compliance requirements of each country in which they do business or have a presence.
As corporate boards and executive leadership teams are forced to grapple with new threats and pressures, Process Compliance continues to evolve, becoming what companies need to quickly and securely comply with regulations, with the minimum impact on revenue and growth.
Benefits of Process Compliance
In addition to enabling a better understanding of the regulatory requirements for business processes, the main benefits of Process Compliance are:
- Having documentation based on standards of processes, including risks.
- Reducing the cost of maintaining processes in the face of changes in regulatory requirements.
- The implementation of regulations throughout the organization.
- A controlled execution and registration of workflows.
- Team-based compliance management across the organization.
When organizations have the correct Process Compliance platform in place, the most challenging compliance projects can be quickly implemented across the organization.
How we can use Process Mining to ensure Process Compliance
In order to ensure Process Compliance and that organizations can comply with established regulations and maintain industry standards and guidelines, we can use Process Mining.
It is essential that organizations continually meet all business obligations with consistent compliance management, and Process Mining helps us to do this. It can compare annual or quarterly audits, focusing only on a sample of executed processes. Process Minding even allows the digitization of highly manual audits.
As it can be challenging to comply with regulations, legislation and policies, the right tools are necessary to ensure your organization is compliant.
This is where Process Mining comes in.
Process mining is a tool that provides a qualitative leap in Compliance analysis.
- The first reason is that it works with complete datasets and not samples. In this way, we avoid statistical error by detecting risk cases that, while appearing very rarely, have a high impact on cost or reputation.
- Secondly, because it is not necessary to wait for audits to detect the compliance problem: the traceability of each process can be done even in real time, generating the corresponding warnings, which allows us to act against the consequences before a complaint becomes evident or is detected by an inspection.
- Third, process mining can compare process models against process models. That is to say (even using BPMN notation) we can compare sequences of activities considering the order in which they have been executed (not if they have been executed) which allows to speed up the analysis: for example, if a control must be carried out prior to a decision (for example, to know the customer’s risk profile before proposing an investment) it is no use if it has not been done in the correct order.
We are therefore faced with a unique tool for control and prevention of regulatory and normative risk.