Improving risk management - and what effective process automation has to do with it
Minimizing risk is at the top of the to-do list for managers: this is particularly true for companies operating in highly regulated sectors such as financial services, the public sector or healthcare. In these sectors, even the smallest mistake can have considerable financial and legal consequences.
Experience shows that an important component of successful risk management strategies is process automation and process management. Both lead to greater consistency, efficiency and accountability across the organization. "Essentially, automation ensures that processes are carried out in accordance with established policies and regulations, reducing legal risk. Automation enables real-time monitoring and reporting of operational activities, allowing businesses to identify and address risks immediately. Important points when you consider that the new NIS2 directive is also coming into force soon," clarifies Cosima von Kries from Nintex, a provider of process intelligence and automation solutions.
Many companies fail
However, many companies fail to introduce these technologies or do not exploit their full potential. This leads to uncertainties, disagreements among management and employees and can ultimately also cause security-related difficulties. Any technology is only as good as the user who operates it and the database that is used. "If companies are fit in the area of process automation and processing the right database, they can also implement the NIS2 directive or ISO 27001 very well. They then know, for example, how security incidents are reported digitally or how emergency plans are immediately initiated automatically depending on the security incident that has occurred. However, many companies are not aware of this and only think of pure security measures and tools when it comes to guidelines relating to information security or cyber security. But it goes much deeper and further. Only the right process automation helps companies to create holistic structures in which security guidelines can work effectively," Cosima von Kries goes into further detail.
5 tips on how companies can improve their risk management
It therefore recommends that companies take the following five steps to successfully implement a process automation project and thus significantly improve risk management:
- Start step by step
Even though all the goals of the project are important, it is crucial to start small. Rather than trying to automate an entire process, it's best to narrow the focus of the implementation team. First, identify the areas in cybersecurity and information security infrastructure where process automation makes the most sense. The identified processes are evaluated according to their complexity, frequency and the potential risk associated with their manual execution. These can be, for example, recurring tasks such as patch management, log analysis, threat prevention, incident reporting or compliance monitoring.
Smaller, incremental changes can be reviewed and adapted more quickly. Successes encourage managers and employees to take the next step. Customers also benefit from the positive effects. A gradual changeover creates a culture of continuous improvement towards leaner processes and improved risk management.
- Communicate benefits clearly
Managers should involve employees in the change process at an early stage. They should inform their teams comprehensively about the benefits, procedures and change steps, as well as why information and cybersecurity are of the utmost importance in the company and why the implementation of various guidelines is a top priority. Employees who are aware of the benefits for the company and for their own way of working are more motivated to participate in the change. They also feel involved in the cultural change, valued in their work and supported by the new software.
The first step is to document all processes in detail and then evaluate which processes can be automated and how effectively. It provides comprehensive information on how tasks are carried out, which roles and responsibilities are involved and what the overall workflow looks like. Based on this information, the second step is to identify opportunities for improvement, streamline processes and reduce risks by reducing procedural deviations.
- Stay human-centered
Effective risk management in companies focuses on the people who work there and remains so, no matter what stage of implementation and change the process automation project is at. Through targeted training and a culture of open exchange, companies can empower their employees to recognize potential risks at an early stage and act proactively. Involving all team members in decision-making processes and valuing their perspectives not only promotes trust, but also the company's innovative strength. A strong, informed and committed workforce thus forms the backbone of successful risk management that can react flexibly and resiliently to challenges.
- Introducing technology even in highly regulated sectors
Companies operating in highly regulated sectors, such as financial services, healthcare or the public sector, are generally reluctant to introduce new technologies. However, the potential benefits of process automation can be even greater here than in other business sectors. Process automation is particularly beneficial here, as it helps to meet compliance requirements, ensure data integrity and security, minimize errors, increase efficiency, improve transparency and traceability, and increase adaptability to regulatory changes.
These benefits help to reduce the business risk, time and effort normally associated with adapting manual processes to new regulatory requirements and lead to cost savings as well as better resource utilization by significantly reducing redundant or manual tasks.
- Avoid unintended risks
Used correctly, process automation significantly reduces business risk. Used incorrectly, on the other hand, process automation can sometimes unintentionally introduce risk in the form of data breaches, privacy concerns and non-compliance. Therefore, it is critical that organizations implement governance mechanisms and data hygiene practices to identify and assess risks, implement controls to mitigate risks and ensure compliance with industry standards and regulations.
Automating complex, error-prone process steps ensures that they are carried out correctly every time. This reduces the risk of human error and costly consequences or reputational damage. Automated monitoring helps with regular checks and adjustments, e.g. to new guidelines such as NIS2, as well as quickly implementing improvements where necessary.
Source and more information about the Nintex Process Platform: https://www.nintex.de/prozessplattform/
