BPA is designed for reviewing operations where the true risks are hidden or unknown. The BPA takes operational review beyond an audit program, as it takes into consideration several more factors to build a risk profile of the process being reviewed.
The factors that are reviewed in a BPA include the following:
• Risk factors – risks identified, mitigation, controls, etc.
• Governance, Compliance and Ethics – legal and other requirements
• Financial – specifically cost accounting;
• Activities – what happens at the operational level in each part of a process;
• Human factors – morale, attitudes, interest, personality traits;
• Materials usage – parts, raw materials, consumables, etc.
BPA’s are specifically designed to identify specific vulnerabilities associated with a process on a preventive basis. A BPA can also be used to investigate specific losses by reviewing the process where the losses originated, without creating a negative atmosphere with employees having to be involved in an internal investigation. It is also useful in operationally auditing compliance issues where these are relevant to the process being assessed.
The methodology of the BPA is as follows:
• Review any relevant work instructions, operating procedures, process mapping, etc.
• Interview of staff involved in the process. The interviewees must represent all aspects of the process, and include staff at the coalface, foremen, cost accountants and the operational management level;
• Observation of the process’ under different circumstances/shifts;
• Identification and physical mapping of parts/raw materials/consumables usage in the process;
• Extraction of raw accounting data based on activity;
• Conduct of vulnerability and risk analyses;
• Conduct other relevant statistical analyses using data obtained through the preceding;
• Any other actions that will support the review, but are site or process specific.
Typically, the following areas of expertise are required for a successful BPA:
• Gap analysis in the risk environment;
• Identify possible fraud, bribery and corrupt practices, misappropriation and other unauthorized conversions of property of any type;
• Statistics (including but not limited to six sigma and lean manufacturing methods);
• Business management: Corporate governance;
• Operational leadership: including ethics;
• Human behavior;
• Localized language and culture, including business practices/culture.
Forensic Worx works on a teaming concept, where personnel best suited for specific reviews with the right cross-section of skillsets are utilized. Historically, our teams are usually a minimum of three (3) persons, up to a maximum of five (5) but this can be adapted for specific projects.
The time that a BPA takes is dependent on the process being reviewed, as well as the depth of detail that must be considered to achieve results. Our experience includes reviews that take a few weeks, up to a review of an entire factory which took two (2) years.
Dependent on the objectives of the BPA, the customer may receive any or all of the following:
• Full process maps of the activities reviewed;
• Analysis of any anomalous behaviors identified;
• Information on any specific harmful activities identified;
• Identification of vulnerabilities and risks;
• Comparative risk ranking methodology for different operational units within the business;
• Recommendations on treatment of the risks,
• Increased revenue.
Forensic Worx’s unique BPA has proven to be an effective method to identify and treat root causes of risks on an
ongoing basis in situations where other methods have been ineffective.