What is a critical risk to monitor during business process reengineering?

The elimination of necessary controls during business process reengineering is a critical risk to monitor because it can significantly impact the effectiveness and security of the overall process. When reengineering processes, there is a possibility that existing controls, which are often put in place to ensure compliance, accuracy, and risk management, may be overlooked or removed in the pursuit of improved efficiency.

These necessary controls are vital for safeguarding the integrity of the process, ensuring compliance with regulations, and preventing errors or fraud. Without proper controls, organizations expose themselves to various risks, including operational inefficiencies, financial losses, or regulatory non-compliance. Therefore, monitoring the presence and effectiveness of necessary controls is essential to ensure that the reengineered processes can operate smoothly and securely.

While employee awareness of process changes, feedback mechanisms from stakeholders, and sufficient training of employees involved are all important factors to consider during reengineering efforts, they do not directly address the fundamental framework that ensures the new processes operate effectively and within acceptable risk parameters. Therefore, focusing on maintaining and possibly enhancing necessary controls is paramount during such transformational initiatives.