We use cookies and other similar technologies (Cookies) to enhance your experience and to provide you with relevant content and ads. By using our website, you are agreeing to the use of Cookies. You can change your settings at any time. Cookie Policy.

The diverse firms that make up the fiercely competitive mortgage banking industry are united in a common mission to fulfill the American dream of homeownership. They share a common enemy as well, battling to fight what one Enterprise Rule Steward called “insidious rules and workflow errors,” that can send operational risk through the roof.

At the National Technology in Mortgage Banking Conference held recently in Orlando, senior level executives came together to explore the latest technology. In public sessions and one-on-one conversations, these professionals consistently identified operational risk as a top priority.

Operational risk -- direct or indirect losses resulting from inadequate or failed internal processes, people, and systems or from external events – is a fact of life for every company, in every industry. It may surface as human errors, process inefficiencies, fraud, or even a company’s difficultly to respond quickly to hot new trends or opportunities. At the core, however, operational risk has its roots in business logic and process errors that are lurking within IT systems, policy manuals and minds of a company’s operations staff.

Business rules and workflow technology can offer relief by increasing process efficiency and systematically mitigating risk. In the banking industry, for instance, a typical application uses business rules and workflows to automate the manual processes used to resolve a single delinquency on an individual account. In addition increasing efficiency, the company has the added benefit of using business rules to check all existing accounts for similar problems and using workflow to take action to prevent future delinquencies.

The cost of errors

A recent study of enterprise businesses by the Delphi Group explored how errors in business requirements capture can impact operations and business performance. The majority of respondents cited significant problems gathering business requirements, with 69 percent calling it “difficult and painful” and 94 percent reporting their belief that their requirements are incomplete or wrong. To contain this risk, mortgage banks are looking to their risk management teams, led by the Chief Risk Officer, to go beyond their initial charter and become instrumental in providing services and solutions to problems at every level of the organization.

"The legal and regulatory environment practically mandates that all companies – big and small – develop a risk management strategy,” said David Matthews, Senior Vice President, CIO at Federal Home Loan Bank of Chicago. “Your new best friend ought to be the Chief Risk Officer."


1  2  3  4  

   Next Page

Explore Our Topics

  • Virtual Conferences
  • Webinars
  • Roundtables

BPM in Action

March 10, 2011

The sixth annual BPM in Action 2011 Virtual Conference will explore cutting-edge market developments in BPM and describe how to leverage them for improved business operation and performance. More

View All Virtual Conferences

Smart Case Management: Why It's So Smart.

Date:Nov 05, 2009
Time:12:00 PM ET- (17:00 GMT)


Date:Oct 29, 2009
Time:15:00 PM ET- (19:00 GMT)

View All Roundtables
  • Research Library
  • Podcasts
  • News

Joe McKendrick: Part II of II: Designing Evolve-ability into SOA and IT Systems

In part two of Joe McKendrick's recent podcast with Miko Matsumura, chief strategist for Software AG, they talk about how SOA and IT systems need to change and grow and adapt with the organization around it.

Listen Now

Phil Wainewright: Helping Brands Engage with Social Media

Phil Wainewright interviews David Vap, VP of products at RightNow Technologies, and finds out how sharing best practices can help businesses understand how best to engage with online communities.

Listen Now

Peter Schooff: Making Every IT Dollar Result in a Desired Business Outcome: Scott Hebner of IBM Rati

Scott Hebner, Vice President of Marketing and Strategy for IBM Rational, discusses a topic on the top of every company's mind today: getting the most from IT investments.

Listen Now

Jessica Ann Mola: Where Will BI Fit In? Lyndsay Wise Explains

In BI, this tough economy and the increasing role of Web 2.0 and MDM are certainly topics on people's minds today. WiseAnalytics' Lyndsay Wise addresses each of them in this informative podcast.

Listen Now

Dennis Byron: Talking with...Deepak Singh of BPM Provider Adeptia

Deepak Singh, President and CTO of Adeptia, joins ebizQ's Dennis Byron in a podcast that gets its hand around the trend of industry-specific BPM.

Listen Now
More Podcasts
  • Most Popular
  • Quick Guide
  • Most Discussed

Quick Guide: What is BPM?

Learn More

Quick Guide: What is Event Processing?

Smart event processing can help your company run smarter and faster. This comprehensive guide helps you research the basics of complex event processing (CEP) and learn how to get started on the right foot with your CEP project using EDA, RFID, SOA, SCADA and other relevant technologies. Learn More

Quick Guide: What is Enterprise 2.0?

A lot of people are talking about Enterprise 2.0 as being the business application of Web 2.0 technology. However, there's still some debate on exactly what this technology entails, how it applies to today's business models, and which components bring true value. Some use the term Enterprise 2.0 exclusively to describe the use of social networking technologies in the enterprise, while others use it to describe a web economy platform, or the technological framework behind such a platform. Still others say that Enterprise 2.0 is all of these things. Learn More