How Process Mapping Helps Business Compliance

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Process Mapping

Business process mapping (BPM) is a visual method of planning which identifies data, activities, and materials involved in a process. It defines the actions happening in a business, who does what, the tools used, the standard for completing processes, and how to determine success. The importance of business process mapping in an entity is to increase effectiveness.  It can also play a role in your business compliance.

 

With a pictorial representation of business processes, you can pinpoint the areas that need adjustment to increase productivity. You can also compare the objectives you’re chasing against the overall business goal to see if they rhyme.

 

Let’s discuss the importance of BPM in more detail.

 

1. It Helps To Maintain Business Compliance

By streamlining and standardizing processes in an organization, business process mapping helps to keep your business compliant. Business owners can better understand the standards to follow and tell who takes responsibility for which process. Business compliance requirements depend on the nature of your industry and how you do business. Examples of business compliance standards include:

 

Payment Card Industry Data Security Standard (PCI DSS)

PCI DSS is a compliance requirement for businesses that accept payments through Visa or Mastercard. It applies to companies that process, store, or transmit cardholder data.

Below are the goals of PCI DSS:

    • Creating and maintaining a secure network
    • Testing and monitoring networks
    • Protecting cardholder data
    • Maintaining a vulnerability management program
    • Implementing reliable access control measures

To achieve these objectives, PCI DSS requires businesses to install a properly configured firewall to keep cardholder data safe. Updated antivirus software also helps to avert cyber-attacks. Cardholder information includes the owner’s name, primary account number (PAN), card expiry date, and service code.

Businesses that collect sensitive authentication data should also comply with PCI DSS. Such information comprises of track data from card chips or magnetic stripes, PINs, PIN blocks, validation codes, and so on.

Companies must also apply data security mechanisms to secure stored cardholder data. They shouldn’t use default passwords supplied by equipment vendors. After installing a new POS, for instance, you should change the password set by the technician.

PCI DSS recommends restricting cardholder information by the business’s need to know. If you have to transmit such data, you need to encrypt it. Tracking network resources and testing security systems is also necessary to identify and seal vulnerabilities.

 

Sarbanes-Oxley Act of 2002

The federal law requires all publicly traded companies to demonstrate proper disclosure and transparency in their operations. Auditors serving in public companies must register with the Public Company Accounting Oversight Board.

The PCAOB scrutinizes, investigates, end enforces compliance in the affected firms. Under the Sarbanes-Oxley Act of 2002, accounting firms cannot do business consulting with any organizations they are auditing.

 

General Data Protection Regulation (GDPR)

GDPR is a European Union standard that streamlines the protection of consumer data in the business arena. It applies to organizations in the EU and foreign entities that do business with parties in the EU.

Businesses subject to GDPR should seek the consent of owners before processing their data. They must also make collected data anonymous to safeguard the privacy of owners.

GDPR also demands safe data transfer across borders. Companies must also appoint a data protection professional to maintain compliance with GDPR.

Documentation is key in proving adherence to different standards. Companies can take advantage of business process mapping to maintain compliance.

 

2. BPM Smoothens Onboarding

Business process mapping plays a role in smoothening the onboarding process of new employees. The business has a set of procedures for every worker to follow. For this reason, work commences immediately after filling a job opening.

Instead of wasting time on everything every bit of job description, training can narrow down to the areas where the employee needs assistance. This ultimately speeds up the onboarding and smoothens the transition between hires.

 

3. Mapping Improves Problem Solving

Business process mapping is an ideal tool for solving hurdles in your organization. The visual representation of processes allows you to discover conflicts easier. If there is a bottleneck, the map will reveal it and help you to figure out the solution.

 

4. Communication Improves

BPM provides a convenient way of communicating complex information inside and outside your business. The map enables different parties to visualize processes and digest concepts better than in the case of reading handouts.

 

5. Audits Become Easier

Another importance of business process mapping is increased efficiency in internal audits. With BPM, activities in an organization follow business standards and practices. You can pinpoint irregularities at a glance.

Similarly, you can improve processes by developing a process map. After documenting and understanding a process, you can review and find ways to improve it.

 

Final Thoughts on Business Compliance

Business process mapping has a vital role in maintaining business compliance and improving communication, onboarding, audits, and problem-solving. BPM tools and software give managers an upper hand in controlling all business processes.

Therefore, organizations can document and implement internal policies and controls easily. By so doing, companies meet the standards that touch their line of business.

BPM makes organizations more organized, reliable, and safe. Use business mapping strategies to improve transparency and avoid the penalties that come with non-compliance.

 

 

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