Task 1: Using a BPMN modeling tool of your choice, model the control flow of the following fragment of a business process for assessing credit risk.
Since banks are required to strictly adhere to their country’s financial regulations, there are a lot of challenges to credit risk management. These include inept data management, a lack of group-wide risk modeling framework, constant rework with efficiency ratio, insufficient risk tools, and inaccurate reporting. Additionally, banks need to follow a rigorous protocol regarding how electronic and printed forms are set up and how resulting documents are presented to customers.
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Processes that can be automated with a BPM platform:
- New Account Opening
- Credit Application
- Credit Analysis and Approval
- Registration and Disbursement
- Request for certificate of debt level
- Spreading and financial analysis
- Risk rating models and scorecards
- End-to-end loan origination
Financial institutions need to find a solution to automate processes across the enterprise by connecting multiple disparate systems. Workflow solutions can streamline the loan/credit process from beginning to end. This includes customer application, analysis, evaluation, approval, and disbursement, as well as approvals by bankers at various steps in the loan/credit processing workstreams. Solid BPMs can generate numerous reports essential to monitoring automated processes, like risk management. Accurate dashboards contain essential information regarding the status and performance of employees and application state, complete with automatic alerts indicating delays or special conditions.
- Adapt with agile, powerful, graphical tools to outline your credit processes and integrate data sources and systems into an end-to-end process, including front and back-office applications and credit bureaus.
- Optimize Process more applications in a consistent and quick manner improving point of sale response, minimizes reworks, errors, and process bottlenecks and leads to increased volume and superior quality and lower costs of ownership.
- Control at your fingertips with online monitoring, traceability and measurement of overall business processing to meet KPI/SLA targets and be compliant-ready to internal policies and country regulations.
- Access to a CRIF team of experts who can help you realize all these benefits through consulting, setup, training, customization, and ongoing support.
Task 2: Using a BPMN modeling tool of your choice, model the control flow of the
following legal process for damage compensation
a) Upon realizing that Damages Compensation Entitlement is to be checked by the Ministry of Justice, the responsible lawyer has to determine the type of liability using 1311 ABGB and Damages Compensation Processing System. After determining the liability of fault, he has to check the requirements using 1295 ABGB, which includes defining the type of damage, defining the type of causing (causality), checking illegality, and checking fault.
b) For defining the type of damage, either a financial loss (material damage) or immaterial damage (ideal damage) is determined by the lawyer.
c) In the case of financial loss (material damage) is determined, he has to further determine the type of financial loss. The lawyer may either detect positive damage or lost profit.
d) If, on the other hand, immaterial damage (ideal damage) is determined, the lawyer has to determine again the type of immaterial damage. This type of damage can either be Pain compensation (bodily harm) or Value of special preference.
e) For defining the type of causing (causality), the lawyer has first to check the equivalence. For checking the equivalence, the following question is raised “Would the damage not have occurred without the behavior of the damaging party?”
f) If the answer is yes, then damages compensation remains intact. If the answer is no, then the compensation of the damage will not be granted.
Task 3: Using a BPMN modeling tool of your choice, model the following fragment of a
business process for assessing loan applications.
Cycle time could be reduced. This is mainly due to the fact that waiting time may be completely eliminated. As soon as a certain process step is finished the case is automatically moved forward by the BPM system using BPEL code.
2. Output per employee could be increased.
All process steps that can be performed by a BPEL machine (without losing quality) will be executed by the IT system. For instance, prior to automation, employees were required to use long checklists for certain processes to ensure the process was carried out correctly. In general, the importance of using simple models to describe, simulate and assess business processes is increasing in the field of financial institutions.
However, the various systems available do not always offer cost-efficient integration mechanisms for BPM systems. Almost every BPM system available has its own reporting and performance measurement concept. Some of them are rather rudimentary whereas other systems are provided with broad and user-friendly analysis functions