Business Processes In Finance And Insurance
What is a business process?
A business process is a chain of several activities that are completed in terms of content and want to achieve a very specific combined result. A business process usually takes place on several business levels. That's why it's important that every link in the chain knows what to do and when. Below you will find common examples of business processes in finance and insurance. Business processes represent the basis for efficient and successful business activities. They are extremely important because they determine fundamental structures and processes and therefore, have a direct influence on the productivity and profitability of the company.
Typical areas of application in finance and insurance
- Human resources department: Activities in the areas of recruiting, administration, personnel development and support
- Project management: Processes for approval, release and monitoring of e.g. loan applications, contracts, damage reports and other project-specific documents
- Reporting & Compliance: Automated processes regarding money laundering checks, sustainability reporting, risk monitoring and compliance with PRA and FCA requirements
- IT department: Supporting processes based on information technologies, coordinated with the existing IT infrastructure
Where do business processes occur?
Whenever people work on something, they are usually automatically part of them: business processes. They range from highly to weakly structured processes, can be small and manageable, but can also be highly complex and transcend the company's own boundaries.
Continuous optimisation ensures sustainable effectiveness
Business processes help regulate business actions. The combination of controlled sequences, enable a structured series of steps to be aligned, offering control over activities and dependencies. With the flexibility of modern process workflow solutions, any modifications that are required due to a business rule change, can be modified, tested and automatically applied once fully approved. Full audit control is maintained at all times.
Business processes in companies are divided into three central categories: management, core and supporting processes.
All three are fundamental and work hand in hand to ensure that the end result is a good product or high-quality service.
Management processes
Management processes, including leadership processes, are of a controlling nature. They form the strategic fundementals for a flourishing company that can create value. Management processes only influence the core processes, but do not create any added value themselves.
Core processes
Core processes, including value-adding processes, range from customer acquisition and marketing to the actual completion of the product or the market readiness of the service. The better these processes are coordinated with one another, the more successfully a company can operate on the market.
Supporting processes
Supporting processes are those activities in a company that support the management and core processes. They themselves do not add value, but they are absolutely necessary. This includes human resources, maintenance, purchasing, accounting and IT.
Five reasons to introduce process management in insurance and financial companies:
- Use digitalisation to rethink processes
- Automation and optimisation of processes
- Control and compliance
- Process mapping if specialist procedures are missing
- Holistic document management
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Contact
Colin Dean Regional Vice President United Kingdom info@d-velop.com +44 (0)7808 062181 d-velop.com
Management Board Rainer Hehmann Dr. Stephan Held Nico Bäumer Martin Greiwe (Spokesperson of the Board)
Supervisory Board Chairman Dr. Helmut Bäumer