How do you incorporate process risk analysis into your BPR methodology and framework?

2 Identify the risks

The next step is to identify the risks that may affect your BPR project and the processes that you want to re-engineer. You can use various techniques and tools to generate a comprehensive list of risks, such as brainstorming, interviews, surveys, SWOT analysis, checklists, or risk registers. You should consider both internal and external factors that may influence your processes, such as people, technology, resources, regulations, competitors, customers, or suppliers. You should also categorize the risks according to their sources, types, or impacts, and document them clearly and consistently.

3 Assess the risks

The third step is to assess the risks that you have identified and to prioritize them according to their likelihood and severity. You can use qualitative or quantitative methods to evaluate the probability and consequences of each risk, such as scoring scales, matrices, charts, or models. You should also consider the interdependencies and correlations among the risks, as well as the existing controls and mitigations that you have in place. The output of this step is a risk profile that shows the level of exposure and urgency of each risk.

4 Treat the risks

The fourth step is to treat the risks that you have assessed and to develop appropriate strategies and actions to address them. You can use different options to treat the risks, such as avoiding, reducing, transferring, or accepting them, depending on their nature and impact. You should also consider the costs, benefits, and feasibility of each option, and align them with your BPR objectives and constraints. The output of this step is a risk treatment plan that details the roles, responsibilities, resources, timelines, and indicators for each risk treatment action.

5 Monitor and review the risks

The fifth step is to monitor and review the risks and the risk treatment actions that you have implemented throughout your BPR project and process transformation. You should use various tools and techniques to track the performance and progress of your risk management activities, such as dashboards, reports, audits, or feedback mechanisms. You should also review the effectiveness and efficiency of your risk management process, and identify any changes, issues, or gaps that may require adjustments or improvements.

6 Integrate with BPR phases

The final step is to integrate your process risk analysis with your BPR phases and to ensure that your risk management process is aligned and consistent with your process re-engineering process. You should perform your process risk analysis in parallel with your BPR phases, such as initiation, analysis, design, implementation, and evaluation, and use the outputs and inputs of each phase to inform and support your risk management decisions and actions. You should also ensure that your risk management process is flexible and adaptable to the dynamic and complex nature of your BPR project and process transformation.