Ineffective Policy Management Can Stall Your Business

Audi, Volkswagen’s luxury brand, is recalling more than 576,000 vehicles in the U.S. for two separate defects, according to an AP Wire Report.

Audi says 2013-2017 model year A5, A5 Cabriolet and Q5 SUVs with 2.0-liter turbocharged engines may have an electric coolant pump that can get blocked with debris. If that happens, the pump can overheat and cause a fire. The recall affects 342,867 vehicles.

Audi also is recalling 2011-2017 Q5 SUVs because the sunroof drainage system can allow water to soak into the foam surrounding the side air bag inflators. If that happens, the inflator could rupture and spew metal fragments into the vehicle. The recall affects 234,054 vehicles.

Audi and Volkswagen clearly have myriad policies, regulations and testing in place to prevent recalls and safety issues. So how did this recall happen?

I don’t have any particular insight into this specific situation, but unfortunately it is still common across business verticals and organizations for reasonable policies and regulations to be implemented with gaps, overlaps and/or conflicts that negatively impact processes, business outcomes and, in some cases, people’s lives.

The reality is that policies have a human element and our intellect is only so good at tracking all the dependencies, inter-relationships and consequences of a policy or regulation. Is there a better way to handle the ambiguity that is often inherent in policies?

The answer is an unequivocal “yes!” Technology significantly improves our ability to address ambiguous directives and decrees, by applying basic principles to address gaps, conflicts and/or overlaps in the policy and regulatory logic.

These capabilities are based on simple principles described in The Decision Model, which was conceived by Barbara von Halle and Larry Goldberg.

Our organization, Sapiens DECISION, is seeing clients achieve risk reductions of up to 60 percent, due to the clarity and normalization that results from validating regulations and policies before the code is generated and handed off for UAT.

One of the benefits of combining a decision management software platform with decision management principles is that the business is in the driver’s seat relatively early on in the process. During the discovery, modeling and validation phase, business users are driving the implementation of the policies and regulations, and the software helps guide them to uncover overlaps and gaps.

Once the model is rigorously defined, auto-code generation results in IT receiving the regulation in a validated state, which they can implement in an accelerated fashion.

The bigger picture with policies and regulations require business leaders and policymakers to embrace logic and guidance. Technology, when deployed in an integrated fashion with a robust set of principles, can help remove the ambiguities that create confusion and slow down, disrupt and in some cases, harm us.

To learn more about how Sapiens DECISION has helped many tier-1 institutions capitalize on a better way to implement policy and regulatory business logic, please download our whitepaper: How Decision Management Presents a New Way to Look at Regulatory Change. You can also contact us for a free consultation and demo.

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Kramer Reeves

Kramer Reeves

Kramer Reeves has 20 years of experience in the enterprise software industry leading global product, marketing, strategy and channel organizations. He is currently Vice President of Product Marketing at Sapiens DECISION where he sets the vision, portfolio strategy and go-to-market plans for the company. Previously, he held numerous executive and management positions at IBM, including Director of Product Management for Enterprise Social Solutions, and Director of Global Marketing for IBM's Business Process Solutions portfolio.

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