Introduction
Businesses, governments, educational organizations and other non-profit organizations can benefit from proper excpetion management. This article will look at what exception management is, the value of exception management, common types of exceptions, and tips to improve the management of exceptions in organizations.
What is Exception Management
Exception management is a process of identifying and dealing with exceptions in a systematic and organized way. The process is based on the assumption that exceptions are a normal part of any business process and will occur regularly over time. The goal of exception management is to minimize processing time and cost and ensure that exceptions are dealt with in a timely and effective manner.
The Value of Exception Management
Exception management can provide organizations with several benefits. One of the main benefits of exception management is the ability to identify, track and resolve exceptions in a regular and systematic manner. This allows organizations to anticipate and plan for potential exceptions and work to resolve them in an efficient and cost-effective manner.
In addition, exception management can be an effective way to ensure compliance with applicable regulations and policies. Exception management processes enable organizations to identify situations that may not comply, which helps to reduce the risk of non-compliance.
Finally, exception management can provide organizations with significant cost savings. By reducing the amount of time required to resolve exceptions, organizations can free up resources to focus on core business activities.
Common Types of Exceptions
Exceptions come in many forms and can include bad data, unreasonable scenarios, or unexpected outcomes. Common types of exceptions include:
• System exceptions – errors and other issues related to the software or systems used in an organization.
• Data exceptions – errors related to the structure and/or content of data.
• Business exceptions – inconsistencies and errors related to the organization’s processes, procedures, and/or standards.
• Risk exceptions – potential issues and scenarios that have the potential to harm the organization.
Tips to Improve the Management of Exceptions
Organizations looking to improve the management of exceptions can take the following steps:
• Develop a formal exception-management process. Establish a standard process for resolving exceptions and ensure that all involved personnel understand it.
• Monitor exceptions on a regular basis. Track occurrences and document any resolution actions taken.
• Invest in automation and data analytics. Utilize technology solutions to enable automated tracking and resolution of exceptions.
• Establish a centralized repository for storing exception data. Utilizing a centralized repository will ensure all exceptions are tracked in one location.
Conclusion
Exception management is an important process of identifying and dealing with exceptions in an efficient and cost-effective manner. Organizations looking to improve the management of exceptions should consider developing a formal exception-management process, monitoring exceptions on a regular basis, investing in automation and data analytics, and establishing centralized repositories for storing exception data. Doing so will help ensure organizations are in compliance with applicable regulations and policies and help to minimize processing time and cost.
