Effectively Enforcing Compliance and Risk Management Needs with DMN

Watch the video and learn from the leading Decision Management advocate James Taylor.

Compliance & Risk Management with DMN

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.

Clear Decision Making

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.

Transparent Use of Analytics

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?

Compliant Business Processes

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.

DMN in a Nutshell

Decision Modeling with DMN

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

Decision Requirements Diagram

Modeling level: Decision Requirements Diagram (DRD)

Decision Table

Implementation level: DMN Decision Table

Decision Implementation with DMN

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

What is your compliance or risk management challenge?

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