What is Business Process Improvement?
Business Process Improvement (BPI) is a systematic improvement approach that critically examines, rethinks, redesigns and implements better processes to achieve improvements in performance in areas important to customers and other stakeholders. The term can be applied to incremental process improvement effort or dramatic overhauls of existing business processes.
What is a stakeholder?
Stakeholders are normally shareholders plus anyone or any organisation with an interest in the activities of the business. For example, employees, suppliers, customers, government, community etc.
What is Corporate Governance?
Corporate Governance is the system by which an organisation is directed and controlled to ensure proper accountability, probity and openness in the conduct of its business. Corporate Governance will ensure that an organisation can:
- Mitigate against adverse risks that could damage its reputation
- Manage operational risks
- Ensure that its employees act responsibly
What does risk management involve?
Risk management involves the identification of risks and appropriate strategies to mitigate them.
Why do you need to set clear objectives?
To minimise risk, it is important that your business identifies the objectives for each of its stakeholders. Doing so allows you to understand the inter-relationships between each group and the consequences of not addressing their interests.
The challenge for businesses today is to pursue their objectives and enhance shareholder value whilst managing the upside and downside of risk.
Why should you have an internal control system?
Quality financial risk management software must be supported by an internal control system which:
- Is embedded in day-to-day processes
- Responds to significant risk
- Is capable of responding to internal and external changes
- Immediately reports major control weaknesses
- A sound internal control system will enable your business to manage the risks that may impact on objectives.