What is process risk and why should you care?

September 5, 2016

Many people in industry believe that all SAI Global's Property Division does is shuffle paper and turn up for settlements. In reality, what we actually complete every day, just like most businesses, is the execution of set processes.

Each process has a reason for being and often has been put in place to manage a risk.
  
When it comes to property settlements, you should ask how much risk there is to your business if a task is not completed or not completed accurately.

Not completing a proper check on a document, or failing to order correct cheques, are examples of high process risks because the consequences of getting them wrong are extremely serious. In a worst-case scenario they can result in a settlement falling over. Other process risks, such as when a clerk fails to order a final search, may be less serious because they don't necessarily affect the final settlement outcome and because they can be quickly corrected - but identifying them and correcting them can be stressful and expensive.
 
Understanding the processes in your business is really about understanding your cost base. Just the act of documenting and understanding the processes completed by staff can lead to improvements, such as reduction in risk, reduction in cost, and opportunities for automation, technology benefits and better training. 

At SAI Global's Property Division we practice what we preach. To complete 600,000 settlements per annum for numerous different clients with very different process requirements and risk appetites means our focus on processes and the associated risks allow us to run a successful, profitable business. Just  automating the ordering of final searches on the day of settlement has saved us time, money and resources and allows our highly skilled staff to focus on specialist tasks of greater value to the clients we are serving.
 
What opportunities are lying around as easy dollars in your business? If you could, would you access process risk consultancy for your business?

For more information on how SAI Global can help you manage process risk, get in touch with us. 

About Amanda Baker

Amanda is Head of Industry Developments for SAI Global's Property Division. A lending professional by trade, Amanda has lent her considerable experience in the mortgage origination, processing and property settlement arena to help grow the SAI Global Property business to the considerable size that it is today.

Amanda draws on her understanding of the market, exploration and analysis of the external industry environment and other influences such as digital disruptions and legislative change associated with electronic conveyancing. To find out more about Amanda Baker, click here.