The Current State
Risk management and compliance projects such as Basel II/III and SOX are comprehensive, complex, and costly to implement. Such projects often deliver a new risk-oriented technology platform, but they fail to address how the business is to integrate this new platform into its day-to-day operations. This gap between technology and business creates significant operational risk, which needs to be addressed well before day one of system deployment.
There is a clear lack of effective methods and tools to expose operational gaps in compliance, expedite the implementation of compliance projects and truly enforce compliance rules and regulations.
Regulatory bodies are promoting governance, internal controls, and Enterprise Risk Management as a way to deliver the required degree of compliance, but fail to provide direction for implementation.
Enterprises require a more structured and well-defined risk management framework to monitor the effectiveness of internal control processes and risk exposures. For these organizations, the incremental cost of implementing a compliance program is small compared to the significant risk of not complying with rules and regulations (Basel II/III, SOX, etc.).
There is an immediate opportunity for companies to leverage methods and tools created specifically to drive business-centric implementations of compliance and risk management programs.
The Solution Framework: The Business Atlas Framework
The Business Atlas Solution Framework is a fusion of management consulting and technology that empowers enterprises to design and implement business strategy with full consideration of future risks and events. The Business Atlas Framework is based on principles of sound governance, enterprise risk management and internal controls. While a risk management strategy is being developed, Business Atlas allows management to consider how risk exposure will change and proactively put controls in place.
Business Atlas provides an integrated approach for planning, design, and execution of Enterprise Risk Management. This dramatically reduces the cost and complexity of developing the underlying software systems.
Business Atlas accelerates projects with reusable business and risk models that dramatically simplify the capture of structural and behavioral aspects of an enterprise.
Business Atlas implements the COSO ERM recommendations, guidelines and standards.
Management accountability is built into the solution. Who does what, and when, where, why, and for whom are they doing it? This is captured and/or designed into the internal control process.
Affusion is the business and technology integration partner of Designing Business, Inc., the creators of the Business Atlas suite of tools.
Your Next Move
Regardless of where you are in your journey to achieve compliance or manage operational risk, contact Affusion for an informative consultation on Enterprise Risk Management.