Designing a framework of risk aware process management in lending process in banking industry of Iran

Articles in Press

Document Type : Article

Authors

1 PhD student in industrial engineering at TMU

2 Tarbiat Modarre University, School of Engineering, Dept. of Industrial Engineering

3 Tarbiat modares University. school of engineering. Dept. of Industrial engineering

Abstract

Business process management (BPM) and risk management (RM) are two essential concepts in the development of large businesses. These are considered key success factors for organizations. Risks are part of every business activity. If a risk occurs it may threaten the organizational goals causing time delays, additional costs, loss of quality, having lower than anticipated profits or experience a loss rather than taking a profit. A business process is a set of activities that are executed according to certain rules to achieve a predefined business goal. Thus, if risk occurs it may threaten the execution of business processes. In the past, these categories were considered separately, and each of them was able to address business problems partially as well. The new approach toward these two branches of science is an integrative approach. Sometimes, the results and outcomes of these two management branches are in conflict with each other. However, integrating these two can also result in unique achievements that cannot be achieved by implementing them separately. In This paper we focus on one of the most important processes in the banking industry in Iran called lending process and uses the concept of risk aware business process management (R-BPM) to present a framework for risk awareness of this process. The framework is presented in the form of a table to raise awareness about the risks of the process (operational risks). The columns of the table represent risk patterns for information systems extracted from the related literature and customized in the present study for the banking industry of Iran. On the other hand, the rows show the main sub-processes of lending in the industry. While the rows of the table can be utilized by people dealing with the sub-processes to raise their awareness about the risks related to each sub-process, the columns are beneficial for people who are not directly dealing with the sub-processes and view the whole banking industry with a risk-oriented approach.

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Sharif Journal of Industrial Engineering & Management

Articles in Press, Accepted Manuscript
Available Online from 21 September 2024

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