Robots for Risk Management? Here's what you need to know

23 Jan 2020 1:19 pm by Mark Dunn

Adding up the benefits of RPA for due diligence

Robotic Process Automation (RPA) investment and adoption is gaining ground globally. According to Statista1, 2019 saw investment climb to 49 percent and adoption to 24 percent by large organisations, with medium and smaller businesses lagging well behind. One area of business seeing a jump in investment and adoption is in Compliance and Risk Management. In fact, Nexis® Solutions has just announced a partnership with Blue Prism®  to integrate Blue Prism’s connected-RPA with Nexis Diligence™.

Could virtual robots help you spot third-party risk?

A new partnership between Nexis Solutions and Blue Prism connected-RPA allows organisations to streamline repetitive and prescriptive high-volume due diligence research, allowing them to make confident decisions sooner...in some cases reducing the time spent on due diligence processes by up to 98%.

Find out more

RPA offers measurable advantages

What’s the appeal of RPA?  In a survey on RPA adoption, reports The Enterprisers Project2, respondents realized multiple benefits from implementing RPA:

  • 92 percent cited improved compliance
  • 90 percent cited a boost in quality/accuracy
  • 86 percent cited higher productivity
  • 59 percent cited lowered costs

And while technology adoption usually includes a few false starts, the organisations surveyed reported that their RPA implementations met or exceeded expectations. Yet Harvard Business Review3 says that organisations are missing half of all “automation opportunities.” But some processes are better suited for intelligent automation than others.

What does RPA involve?

Despite the name, RPA looks more like software than a sci-fi android. Leslie Willcocks, professor of technology, work, and globalization at the London School of Economics’ Department of Management, explains in a McKinsey interview4 that “RPA deals with simpler types of task. It takes away mainly physical tasks that don’t need knowledge, understanding, or insight—the tasks that can be done by codifying rules and instructing the computer or the software to act.” Repetitive, high-volume, rules-based … sounds like the definition of due diligence, doesn’t it?

Banks and other financial services organisations have led the way on RPA adoption for good reason. Take the credit application process. RPA enables banks to conduct thorough credit analyses in hours rather than days. “RPA can perform such analyses as much as 15 times faster, with almost no errors,” writes Harvard Business Review5. By using RPA to perform due diligence—whether on customers, business partners, suppliers or other third parties—organisations make important strides toward digital transformation.

Automating the due diligence process, for example, empowers organizations to apply the superior accuracy and speed of RPA to perform basic due diligence—screening third parties, compiling a report on findings, and notifying the risk or compliance analyst of report availability.

Return on investment in implementing RPA varies by application. Professor Willcocks says that analysis of 16 RPA case studies6 revealed ROI ranging from 30 percent to 200 percent in the first year. But RPA has value beyond cost savings.

RPA can also deliver positive impact in terms of employee job satisfaction. Professor Willcocks suggests, “The evidence is that it’s not whole jobs that will be lost but parts of jobs, and you can reassemble work into different types of job.” Rather than spending time on repetitive, manual processes, staff members can focus on more interesting tasks that require emotional intelligence. And as you can imagine, a more efficient, timely process when onboarding new customers or vendors leads to more satisfied clients and business partners.

Are you ready to automate your risk management process?  We’re ready to help.

Take the next steps to RPA:

1. See how Nexis Diligence™ with Blue Prism® connected-RPA can accelerate due diligence. Watch now.

2. Get more details on this powerful pairing. Download the brochure.


Sources:

  1. Robotic process automation (RPA) adoption and investment rates worldwide in 2019, by organization size, Statista.com, April 2019
  2. Robotic Process Automation (RPA) by the numbers: 14 interesting stats, enterprisersproject.com, September 2019
  3. How to Break Down Work into Tasks That Can Be Automated, hbr.org, February 2019
  4. The value of robotic process automation, mckinsey.com, March 2017
  5. How to Break Down Work into Tasks That Can Be Automated, hbr.org, February 2019
  6. The value of robotic process automation, mckinsey.com, March 2017

Could virtual robots help you spot third-party risk?

A new partnership between Nexis Solutions and Blue Prism connected-RPA allows organisations to streamline repetitive and prescriptive high-volume due diligence research, allowing them to make confident decisions sooner...in some cases reducing the time spent on due diligence processes by up to 98%.

Find out more