When banks and insurance companies digitize their business processes they have to meet various compliance and risk management needs. The Decision Model and Notation (DMN) standard provides an effective vehicle to implement the compliance and risk management requirements that accompany their business processes. Decision management advocate James Taylor explains some of the benefits of the decision modeling standard.
Building DMN models for each of the decisions in the process clearly shows a company's decision making. The graphical representation of risks and decisions is easily understandable and demonstrates compliance to both, internal and external stakeholders.
DMN models transparently show where and how analytics is being used in a decision: What data has driven which analytic models? Where are risk models and fraud models used in the decision? How are black-box analytics consumed in the decision?
DMN combines business and regulatory requirements in one holistic decision model. Compliance and business experts are working together on the same decision model. By using these models as part of the main business processes, companies can ensure compliance.
Compliance professionals, risk analysts and other subject matter experts use DMN to holistically model and define operational decisions. They
collaboratively elicit and document operational decision making
easily understand the graphical decision models
systematically define decisions, requirements and relationships
Besides the requirements level, DMN also specifies how companies implement operational decisions. This allows them to automate operational decisions. Companies
transparently define how decisions are executed
consistently execute decisions based on the DMN industry standard
flexibly adapt decision logic instead of coping with hard-coded logic