Last updated on Sep 17, 2024

What are the main benefits of BPR for risk management?

Business process re-engineering (BPR) is a radical approach to redesigning and improving the core activities of an organization. BPR aims to achieve significant gains in efficiency, quality, customer satisfaction, and innovation by eliminating waste, streamlining workflows, and aligning processes with strategic goals. But BPR can also have a positive impact on risk management, which is the process of identifying, assessing, and controlling the uncertainties and threats that may affect an organization's performance and objectives. In this article, we will explore some of the main benefits of BPR for risk management and how you can apply them to your own business.

1 Simplify and standardize processes

One of the benefits of BPR for risk management is that it can simplify and standardize the processes that are essential for delivering value to customers and stakeholders. By reducing the complexity, variability, and redundancy of processes, BPR can eliminate the sources of errors, delays, and inefficiencies that increase the risk of poor quality, customer dissatisfaction, and non-compliance. Simplifying and standardizing processes can also make them easier to monitor, measure, and improve, which can enhance the transparency, accountability, and feedback mechanisms that are crucial for effective risk management.

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Paul Eder, PhD

I Lead You to New Insights | Strategy Consulting, Artificial Intelligence, & Data Innovation | Author of FIRESTARTERS
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Projects without risk monitoring fail. Projects with poor risk monitoring fail. Establish procedures to evaluate how well you monitor risk.

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John Columbus, PMP, CISA (both inactive)

Retired.
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One area that can really benefit is evaluating various metrics and are they measuring the right thing. In one example the software measured the mean average of generating reports. The average looked good but customers were upset. Examine the data showed reports running 0.01 seconds and 36 hours. The mean average was useless and did not measure customer experience. They fixed the software and now run a monthly report of any reports taking more than 5 minutes.

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Jennifer Lim

Banking & Consulting - BCM, GRC, Proj Mgmt, Tech, Training, Transformation
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BPR that eliminates / reduces hands-off can help to improve risk management. The analysis of the processes during BPR may also help to tighten / improve controls e.g., ensure segregation of duties, lack of reconciliation, etc. Tightening / addressing these control weaknesses will help to improve risk management.

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2 Enhance collaboration and communication

Another benefit of BPR for risk management is that it can enhance the collaboration and communication among the people and teams involved in different processes. BPR can break down the silos and barriers that prevent the sharing of information, knowledge, and best practices across the organization. By fostering a culture of collaboration and communication, BPR can improve the coordination, alignment, and integration of processes, which can reduce the risk of conflicts, gaps, and overlaps that may compromise the quality, consistency, and reliability of the outcomes. Collaboration and communication can also enable the identification and mitigation of potential risks, as well as the learning and adaptation from past experiences and lessons.

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John Columbus, PMP, CISA (both inactive)

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One area that can be significantly improved is on handing off work between processes. For one help desk, we created a two page list of customers’ most common questions, what information to gather and what team to forward the ticket to. This greatly reduced tickets going to the wrong team and needing to get the right information to complete the customer request.

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3 Align processes with strategy and goals

A third benefit of BPR for risk management is that it can align the processes with the strategy and goals of the organization. BPR can help to ensure that the processes are designed and executed in a way that supports the vision, mission, and values of the organization, as well as the needs and expectations of the customers and stakeholders. By aligning the processes with the strategy and goals, BPR can reduce the risk of misalignment, divergence, and obsolescence that may undermine the relevance, competitiveness, and sustainability of the organization. Aligning the processes with the strategy and goals can also help to prioritize and balance the risks and opportunities that may arise in a dynamic and uncertain environment.

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John Columbus, PMP, CISA (both inactive)

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Processes can have steps that are no longer needed or the goals have changed. We need to question why we do steps and even entire processes to confirm that they provide value to the company or customer.

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4 Foster innovation and agility

A fourth benefit of BPR for risk management is that it can foster innovation and agility in the organization. BPR can enable the organization to adopt new technologies, methods, and practices that can improve the efficiency, effectiveness, and flexibility of the processes. By fostering innovation and agility, BPR can reduce the risk of stagnation, complacency, and resistance that may hinder the improvement and transformation of the organization. Innovation and agility can also help the organization to anticipate, respond, and adapt to the changing needs and preferences of the customers and stakeholders, as well as the emerging trends and challenges in the market and industry.

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John Columbus, PMP, CISA (both inactive)

Retired.
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One of the key values IT offers is in automating work. By examining processes we can ask if a person really needs to do this or can we automate some of it? Robotic Process Automation (RPA) can take data from an Excel spreadsheet and type it into an application like a person would. Another one is Business Process Automation (BPA) which allows you to create process software without writing code. This allows business units the ability to automate without waiting for IT.

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Fiona L.

Strategy and Proposition Design /Transformation / WE EMEA (Women In ETF's) Mentor 2020-2021
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These are all very insightful generic thoughts/ concepts but the real value is in their application to a specific entity as they need to become ‘real’ in an organisation’s thinking, to be owned in BAU. it’s only then, that business process re-engineering becomes truly powerful, because teams can ‘see’ it.

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5 Improve performance and outcomes

A fifth benefit of BPR for risk management is that it can improve the performance and outcomes of the organization. By applying the principles and techniques of BPR, the organization can achieve significant improvements in the quality, speed, cost, and value of the processes, which can translate into higher customer satisfaction, loyalty, and retention, as well as increased revenue, profitability, and growth. By improving the performance and outcomes, BPR can reduce the risk of losing customers, market share, and competitive advantage, as well as the risk of facing legal, regulatory, or reputational issues. Improving the performance and outcomes can also increase the confidence, morale, and engagement of the employees and stakeholders, which can foster a positive culture of risk management.

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Oluwatobi Yusuf

Microsoft MVP || LinkedIn Top Voice || Team Lead || Low-Code Advocate || Microsoft Power Platform Developer || RPA Developer || Microsoft Certified Trainer || Proudly a Kingdom Citizen
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In today’s world, customers are after reliable and seamless solutions and services. If your process seems technical and tedious, then you are at risk of losing customers

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Morad Mziout

Highly skilled Consultant, Mentor & Trainer in Ent. Business Architecture & Analysis 𝗹𝗹 CBA®, TOGAF®, ArchiMate®, BIAN®, CBAP™, PMI-PBA®, CGEIT®, CBCP®, PMP®, LSSGB™, Prosci® & PMI-ACP®
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BPR can significantly contribute to effective risk management by enabling organizations to optimize processes, enhance control and compliance, identify risks more comprehensively, adapt to changing circumstances, improve data integrity and security, and promote a risk-aware culture.

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John Columbus, PMP, CISA (both inactive)

Retired.
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One last concept is based on Lean process improvement which is reducing waste. Finding tasks that we can stop doing or can automate saves money. Reviewing processes regularly can keep costs down.

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Business Process Re-engineering

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What are the main benefits of BPR for risk management?

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1 Simplify and standardize processes

2 Enhance collaboration and communication

3 Align processes with strategy and goals

4 Foster innovation and agility

5 Improve performance and outcomes

6 Here’s what else to consider

Business Process Re-engineering

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