Process Audits

A process audit is an examination of results to determine whether the activities, resources and behaviors that cause them are being managed efficiently and effectively. A process audit is not simply following a trail through a department from input to output - this is a transaction audit

What is an effectively managed process?

An effective process is one that achieves the results that are intended – i.e. the objectives. An effectively managed process is a process in which the activities, resources and behaviors are planned, organized and controlled in a way that the outcomes meet specified objectives as illustrated right.

Auditing by Process

Auditing a process or system using process techniques verifies conformance to the required sequential steps from input to output. Process auditors use models and tools such as simple flowcharts, process maps or process flow diagrams.

Flowcharts typically identify inputs, people, activities or steps, measures and outputs. The auditor normally gets this information from a procedure or flowcharts provided by the audited organization.

During the first part of the audit, auditors should record current customer names, order numbers, routing numbers and project numbers so they can link and verify process steps during the audit.

HR Service Management

A human resources department is a critical component of employee well-being in any business, no matter how small. HR responsibilities include payroll, benefits, hiring, firing, and keeping up to date with state and federal tax laws.

HR service management uses service management principles to help automate standardized human resources (HR) processes within your organization. HR service management manages the service relationships between HR and employees through an HR service catalog.

HR service management allows:

§  All employees to use the HR catalog to submit requests to your organization's HR department.

§  HR staff to create, manages, and view HR cases to process staff requests.

§  HR managers to run reports and view overview information to track and manage work done by the HR department.

Categories

Business Process Outsourcing (BPO) is a broad term referring to outsourcing in all fields, not just HR. A BPO differentiates itself by either putting in new technology or applying existing technology in a new way to improve a process. Specifically in HR, a BPO would make sure a company's HR system is supported by the latest technologies, such as self-access and HR data warehousing.

E-services are those HR services that are web-based. Both BPOs and ASPs are often referred to as e-services.

Risk Management Support

Risk management is the identification, assessment, and prioritization of risks (defined in ISO 31000 as the effect of uncertainty on objectives) followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities. Risk management’s objective is to assure uncertainty does not deflect the endeavor from the business goals.

When an entity makes an investment decision, it exposes itself to a number of financial risks. The quantum of such risks depends on the type of financial instrument. These financial risks might be in the form of high inflation, volatility in capital markets, recession, bankruptcy, etc.
So, in order to minimize and control the exposure of investment to such risks, fund managers and investors practice risk management. Not giving due importance to risk management while making investment decisions might wreak havoc on investment in times of financial turmoil in an economy. Different levels of risk come attached with different categories of asset classes.

Principles of risk management

The International Organization for Standardization (ISO) identifies the following principles of risk management and it should:

· create value – resources expended to mitigate risk should be less than the consequence of  inaction, or (as in value engineering), the gain should exceed the pain

· be an integral part of organizational processes

· be part of decision making process

· explicitly address uncertainty and assumptions

· be a systematic and structured process

· be based on the best available information

· be tailor-able

· take human factors into account

· be transparent and inclusive

· be dynamic, iterative and responsive to change

· be capable of continual improvement and enhancement

· be continually or periodically re-assessed

Outsourcing

 
Outsourcing is an effective cost-saving strategy when used properly. It is sometimes more affordable to purchase a good from companies with comparative advantages than it is to produce the good internally.

In business, outsourcing involves the contracting out of a business process to another party (compare business process outsourcing). 

Two organizations may enter into a contractual agreement involving an exchange of services and payments. Outsourcing is said to help firms to perform well in their core competencies and mitigate shortage of skill or expertise in the areas where they want to outsource.

Outsourcing can offer greater budget flexibility and control. Outsourcing lets organizations pay for only the services they need, when they need them. It also reduces the need to hire and train specialized staff, brings in fresh engineering expertise, and reduces capital and operating expenses.

How to Build a Better Business with Outsourcing

By outsourcing the day to day back-office tasks, the business owner has more time to focus on generating income

Entrepreneurs have long seen outsourcing as a strategy reserved for big business, but technology has made it a more accessible tool for small businesses--and for some small firms, outsourcing has made a powerful impact on their growth, productivity and bottom lines.

When to Outsource
For every company, the right time to outsource is different. Some businesses have in-house staff to handle daily activities, but may need outside help to undertake new projects that don't warrant another full-time employee. When you and your current employees are unable to manage the day-to-day business of your company and build the business satisfactorily, it may be time to consider outsourcing. 

What to Outsource
Chances are you're already outsourcing some business tasks, such as payroll administration or background and criminal checks for employment. And these days, almost any task can be outsourced, with so many qualified professionals leaving the corporate world to work as freelancers or contractors. However, just because you can outsource a task doesn't mean you should.