Process innovation is about doing things a better way; either through developing new processes and delivery methods or finding radically different ways of doing business. It can be as simple as redefining one step of a manufacturing function, or as complex as a full organisational restructure.

This interactive tool sets out a framework for management accountants to work through, identifying the key risk questions which must be asked and answered before implementing process change. There is no doubt that innovation is exciting and has great potential for increasing competitive advantage – but as CGMAs we need to understand both sides of the story and, crucially, ask the right questions.

We are all familiar with risk questions relating to impact and probability, but this tool adds value by bringing in the operational, practical and resource considerations which are too often overlooked. Through process maps and the ‘TARA’ (Transfer, Accept, Reduce, Abandon) risk response measures, this tool helps identify the key questions which will help enable your organisation to innovate while effectively managing the associated risk. Although risk is a subjective area, heavily influenced by organisational risk appetite and culture, this approach will help CGMAs map risk and identify broad risk response areas, before developing a more specific response using internal business knowledge.