The global pandemic has certainly accelerated the use of robotic process automation worldwide. While the market for Robotic Process Automation (RPA) witnessed slow, steady growth in recent years, the need to adapt business processes to accommodate the new normal, has moved RPA and Artificial Intelligence (AI) technologies even further into the spotlight. How, then, can these technologies support critical risk management tasks like due diligence ?
Volatile economy increases importance of due diligence
Conducting due diligence has always been a challenging endeavor,demanding comprehensive oversight and the appropriate allocation of resources. But as organisations navigate greatest global economic and social disruption since the Great Depression, due diligence processes face new and unparalleled challenges.
Take supply chain risk. Third-party due diligence has always been a key component of risk management processes, but a wave of reports concerning shortages of everything from personal protective equipment (PPE) to toilet paper have brought the challenges of the just-in-time supply chain model to light. The disruption isn’t just impacting store shelves; the ongoing economic fallout means the risk of financial instability among key suppliers has grown as well.As a result, many organisations are looking for ways to gain greater visibility into potential disruptive events and the elevated risk that comes with them.
Regulatory risk continues to mount too
Governments around the world have introduced temporary amendments to legal regulations and the overall compliance framework to accommodate companies strained by the impact of the pandemic, but the compliance obligations have not disappeared, and in some cases, are actually being expanded to address the rise in financial crimes, bribery, and other corrupt practices by those wanting to take advantage of global health crisis.
The current volatility of markets and uncertainty about when the pandemic will be fully controlled mean entities must look for ways to optimize\ their due diligence processes to help prevent compliance failures and consequent ramifications.
How RPA fits into risk management
Robotic process automation constitutes one of the key technologies capable of reducing the burden of repetitive tasks like third-party due diligence checks. In addition to streamlining and accelerating the process, RPA-enabled due diligence frees up human resources to tackle higher-value tasks, such as risk analysis that drives Although often subject to substantial criticism, the implementation of automation technologies has hit a new high amid decisions. Indeed, the right application of these processes is not about replacing human employees or simply enhancing the human’s capacity. It is about creating a unified workforce that serves as a multiplier for the human employees.
Since the start of the pandemic in early 2020, efforts to increase the possibility of distance-working have been substantially supported by RPA technology. In April, Microsoft CEO Satya Nadella emphasized that the further need to optimize existing processes with the help of RPA has already “done two years’ worth of digital transformation in just two months.”
Implementing RPA for due diligence harmonises and digitises the risk management workflow, reducing the strain on human resources.Ultimately, the success of any RPA technology depends on the quality of the information and the data it receives. Although comprehensive and global datasets are one factor for a fruitful implementation of RPA, the quality and soundness of data has proven to be essential as well.
RPA and other intelligent automation systems will continue to dominate the transformation of businesses around the world. Faced with an always evolving risk landscape, is it time for you to consider intelligence automation for your due diligence process?