Forward Process integration (FPI) of Compliance Activities
At a time when profits are down, and budgets are being cut the compliance risk professional is faced with ever increasing regulatory demands to comply. There are real resource implications, therefore, essential that all stakeholders join forces so that all processes, transactions, and controls are screened and monitored. Forward integration can help achieve compliance competence without diluting and weakening the compliance risk function.
There are various types of integration activities to that are needed to facilitate lean and efficient business. There is the lateral or vertical integration of processes or applications. Sometimes two companies will have a horizontal integration to join and try and make better profits as a pair. (On a macro level of vertical integration an oligopoly is created)
All integration that involves cooperation
Utilizing different organization and structural approaches to coordinate all processes and transactions, the organisations operation often uses horizontal integration that requires cooperation with entities that function on a similar level.
However the level of fiscal and regulatory sanction for Governance, Risk Management, Compliance or IT security (GRC) breaches continues to increase substantially. The oversight regulators and law enforcement have targeted both corporates and individuals, including owners and senior managers to make them accountable and responsible for their actions.
Design an enterprise FBI operating & Compliance model
Therefore, it is evident that to comply, a structured methodology of forward integration of all new processes is in place. Forward Process Integration (FPI) can stimulate the thinking and provoke greater engagement in the integration of GRC management processes. It requires a documented and auditable process for scrutiny and challenge so that moving forward the process is integrated with all connecting transactions and processes to avoid duplication and risk gaps.
The FBI process after initial manual process integration will allow for a well-managed, properly converted, blended and indexed application data to generate regulatory approval of all disclosures and reports.
Forward Process Integration (FPI) is required when piecemeal compliance is no longer a valid option. The current overreach of regulatory compliance requires that companies design an enterprise operating & compliance model that can provide speed, agility, data size, availability, and security for all disclosures and reporting.
Address the future operational cost issue just to stay alive
As enterprises are investing in product & technological innovations to manage the compliance collection with additional resources to reform the enterprise IT & data architecture, but not much attention is given to FPI after implementation.
With the right FPI first you address and scan the compliance landscape for overlaps, duplication, models, transactions, reporting and record retention issues so that FPI is treated in a cohesive, timely and structured manner.
FPI is necessary for businesses processes as they move along the timeline and accomplishments to connect systems, data, procedures and processes efficiently. By scanning and mapping all related activities, FPI related to any single process, allows for automation of business processes. With FBI of systems and services, with secure sharing of data across numerous processes and applications across the selected areas of the organisation, real integration, and reduced duplication is achieved.
Single reports across multiple processes
Overcoming FPI challenges enables organizations to connect systems internally and externally as the process moves along. Moreover, FPI permits the automation of management, operational, and supporting operations as the oversights requirement for single reports on multiple processes and management need for disclosure simplification arises.
FPI then gives businesses an edge over competitors as they can spend less time concerned about the challenges of constant integration and devote more time and energy to driving the company forward.
Enterprises of all sizes need an efficient FBI solution first to streamline processes between compliance and operation, sales, customer service, and supply chain. Later FPI can be enlarged to administrative and support processes to increase productivity by simplifying regular enterprise processes and functions.
FBI demands reliance upon stakeholders, systems and processes with ideal solutions with the primary focus to automate the incorporated technology, with blended data for adequate screening and audit functionality. During the early stages of FBI implementation, it is critical that firms have in place the resources to deal with the output from the testing. Additionally a program that reacts quickly and dynamically to changing threats, new challenges to ensure total FBI. During implementation, it is vital to avoid false positives on compliance, client nd transaction data to avoid sanctions, cost, time and money.
FBI will have a positive impact on resource costs and allocation. FBI is capable of monitoring the compliance developments and making the necessary enhancements and adjustments to lists, which will safeguard the firm against potential sanction breaches.
FBI reduces compliance concern when you have full confidence in an integrated compliance risk management program as the process and company moved forward with structured data, efficient technology controlled and monitored by people with integrity and commitment.
