Building the right technology and data architectures and the corresponding processes, tools and applications are key enablers for risk transformation, with the most cost effective transformation measures being simplification, standardisation and digitisation. In terms of the risk value shop model, the main role of technology is to deliver the right information to the right people in a timely manner to identify and resolve risk-related issues, and distil information in ways that help them predict, prevent, detect, manage and report the risk associated with decisions.

 

 

Most risk reference architectures focus on the risk data flows and not the complete set of Business Activity Management (BAM), Business Intelligence (BI), Business Process Management (BPM), and Governance Risk and Compliance (GRC) capabilities needed for risk transformation.

We developed and have been working with the above reference architecture for the past decade.

The architecture addresses the BPM and GRC “reactive” capabilities needed for the “execute” and “evaluation” value shop activities as well as the well architected BAM and BI “proactive” capabilities needed for “problem finding”, “problem solving” and “choice” activities.