Process Mining for Auditing and Compliance

Revolutionizing Risk Management: Achieving Comprehensive Insights with Process Mining

In the ever-evolving landscape of risk management, adaptability becomes a crucial competitive advantage. However, large organizations often grapple with outdated, complex processes that hinder their ability to keep pace with business changes.

This situation puts immense pressure on internal audit teams, tasked with swiftly gaining precise and comprehensive insights into the company’s operations. Traditionally, auditors relied on manually documented reports, interviews, and personal opinions, providing only about 40 percent of the truth, according to Stewart Wallace, Director in Risk Analytics at EY UK.

Enter process mining. Advanced software like QPR ProcessAnalyzer not only ensures 100 percent process coverage but also detects unexpected events overlooked by traditional analytics. This blog explores how process mining facilitates efficient internal control, enabling a proactive approach to identifying errors.

Internal audit and risk management challenges
Navigating Risk Management Challenges: A Process Mining Approach

In the dynamic landscape of evolving threats, disruption, global risks, digital vulnerabilities, and regulatory intricacies, the emphasis on internal auditing and risk management has never been more critical. Organizations must assess the current state of their operations and determine if their intricate processes have kept pace with business transformations to effectively address these challenges.

Improved performance, cost efficiency, enhanced external connectivity, and regulatory compliance stand out as key goals in process evolution. For organizations embarking on this journey, QPR, with over 30 years of process excellence experience, recommends starting with an examination of “as-is” processes. This involves identifying bottlenecks, areas for efficiency improvement, unexpected deviations, instances of over- or under-control, and security or fraud vulnerabilities.

While this task is undoubtedly challenging, process mining emerges as an unparalleled method for such transformative endeavors. The following framework—Discover, Analyze, Mitigate, Engage—utilizing our process mining software, outlines a precise approach to internal control, proactive error management, and adaptability to changes in the risk management landscape.

1. Quickly discover 100% as-is transactions

Unveiling Process Realities with Process Mining

The depicted graph illustrates the stark contrast among three prevalent perceptions of processes. The “textbook” portrayal, encapsulating a mere 20 percent of the actual process, serves as a simplistic demonstration for explanatory purposes. Real-life processes, however, are replete with reworks, variations, and exceptions, substantially deviating from this idealized representation. Further complexity arises from individuals in similar roles adopting diverse work approaches, leading to a comprehension level of approximately 40 percent regarding the true behavior of the end-to-end process.

Process mining, as a transformative tool, transcends these limitations by providing unparalleled access to 100 percent coverage of all processes and transactions, bringing forth the unadulterated realities hidden within organizational workflows.

Efficient Process Discovery with Process Mining

Achieving process discovery can be a gradual collaboration with a data scientist or an expedited journey with the aid of a process mining tool. A notable example is QPR ProcessAnalyzer, which facilitates a comprehensive and automatic analysis of your processes in a single endeavor. The process mining methodology offers an efficient, fact-based perspective of your processes, distinct from traditional analytics, by eliminating the need for extensive inquiries and mitigating inherent biases. This streamlined approach ensures a swift and accurate unveiling of the intricate dynamics within your organizational processes.

2. Analyze and produce high quality audit findings

Swift and Comprehensive Internal Audits with Process Mining

Leveraging process mining expedites the generation of fact-based insights derived from your information systems. Practical applications often involve utilizing tools like QPR ProcessAnalyzer immediately after concluding monthly or quarterly reviews. As soon as the latest data is integrated into the systems, the tool provides standardized or tailored analyses and findings.

Process mining offers a distinctive advantage over traditional analytics in internal audits by enabling the selection of target audits through various dimensions like company codes, transaction types, or specific organizational units. This approach empowers your internal audit team with an efficient and all-encompassing reporting system. Additionally, the flexibility to analyze the entire dataset or segment it further enhances workflow efficiency.

3. Mitigate risks and save millions in costs

Efficient Process Comparison and Root Cause Analysis with Process Mining

A fundamental capability of process mining involves the swift comparison of your existing processes with their design models. This is achieved by generating visualized process flows using data extracted from your company’s IT systems. Rapid identification of non-conforming events becomes possible, and the tool facilitates automatic root cause analyses to trace their origins.

Unlocking Savings and Proactively Eliminating Compliance Costs with Intelligent Process Mining

Revealing concealed bottlenecks and inefficiencies within your processes can result in substantial savings, not only in compliance costs but also in auditing expenses. The innovation of intelligent process mining by QPR takes this a step further. Integrated with machine learning and artificial intelligence algorithms, the QPR process mining software has the capability to predict future risks and propose preemptive corrective actions to process owners and stakeholders. This advanced feature enables you to address potential issues in your processes before they materialize.

4. Engage all business operations for organizational transformation

Enhancing Collaboration through Live KPI Reports with QPR Process Mining

Leveraging the QPR process mining tool, you have the ability to generate and share real-time process Key Performance Indicator (KPI) reports, inclusive of audit findings, with the business stakeholders in your organization. This enables them to identify process issues, pinpoint root causes, and actively participate in refining operations by reanalyzing data. Fostering this collaboration between internal auditors and business operators is pivotal for the triumph of your organization’s process excellence initiatives. Now, both parties can align their efforts towards the common goal of continuous process improvement.

Now is an opportune moment to delve into Process Mining if your company hasn’t already. The capabilities and user-friendliness of Process Mining software are advancing swiftly, and the market is progressing towards maturity, although there is still ongoing development and refinement.

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Get a quick overview so you can spend your time improving your processes.

You can easily define and set up processes according to your own needs using a convenient layout tool. In addition, since all types of workflow processes can be managed, you get all case management in one single system. 

Analyses, statistics and reports give you an unbeatable overview with real-time status and division of responsibility. Nothing has to fall through the cracks anymore and you always have an accurate and up-to-date base for decision-making.

CANEA Process is a tool that allows you to model and share business processes in an easy-to-use graphical web interface.

Seeing is understanding

Visualisation gives all employees an understanding of the organisation’s processes, activities, responsibilities and information flows.

Living processes

Identifying working methods while making it easy to update is the basis for continuous improvement of processes.

Create a complete picture

Linking together documents, information and tools with clickable process maps create an intuitive and comprehensive management system.

CANEA Workflow is an IT solution that automates, quality-assures and speeds up administrative workflow processes.

You can easily define and set up processes according to your own needs using a convenient layout tool. In addition, since all types of workflow processes can be managed, you get all case management in one single system. 

Analyses, statistics and reports give you an unbeatable overview with real-time status and division of responsibility. Nothing has to fall through the cracks anymore and you always have an accurate and up-to-date base for decision-making.

By creating executable processes in CANEA Workflow, you get both better control of the situation and smoother processing.

Streamlining the work

Ensure compliance and that handovers are done correctly and with the right information.

Correct decision support

You get an unbeatable overview of the processes in real time, with both clear reports and clear diagrams.

Improve processes continuously

Our process support can be constantly adapted to changing needs and requirements. In this way, we give you the best possible conditions for your daily work.

A document management system without complicated folder structures.

CANEA Document combines simple and intuitive search features with powerful features for managing documents from a life cycle perspective.

Maximum availability
Search and find information quickly based on what you need, not where it is stored.

High security
Ensure accuracy, changes and access to all information – with high traceability.

Fulfils requirements
Manage information according to standards, legislation and other requirements for document management.

CANEA Document supports everything from production, publication and modification to archiving and deletion – with full traceability and version management.

CANEA Document provides secure management of all types of documents – in one place. Tagging the information with metadata creates a virtual, multidimensional folder structure. This means that a document appears in multiple locations at the same time, with authorisation-controlled access. The right information in the right place for the right users at the right time!

You can usefully add your company’s process-oriented management system to CANEA Document. All production and distribution of documents is quality-assured and streamlined. In addition, your employees always have access to the most up-to-date version of the documents – directly via intranet, tablets and mobile phones.

Improve the performance of your project activities

CANEA Project is a comprehensive project tool with integrated support for all types of projects and parties– such as management, resource owners, clients, project managers and project participants. CANEA Project gives you an excellent overview of your entire project portfolio, including profitability and status, making it easier to prioritize and make decisions.

CANEA Project shares all important project information with both internal and external members.

Let your project manager focus on management rather than administration and distribution of the information.

Gather all project information in one place and make it available to both internal and external members.

Helps you with prioritization of projects, resource management and analysis of portfolios and programs.

Make reality of the strategy

CANEA Strategy makes it possible for organisations of all sizes to create a unique common thread from the strategic work to the daily operations. We do not just provide performance management tools but rather a completely new generation of IT support for strategy activation. The system guarantees and provides support throughout the chain from strategy to execution. You get no results without action. CANEA Strategy makes it possible in practise! 

CANEA Strategy ensures and provides support throughout the entire journey from strategy to execution.

Create a shared understanding of the strategy, the goal to achieve and how.

Gives management an unbeatable overview of what’s happening, how it’s progressing, and why.

Creates a clear common thread from the strategy to project, initiatives and actions.