With new technologies come great opportunities
New technologies have changed many aspects of the way any business operates today and this change occurred very fast. In today's world, in an ever-evolving commercial and social landscape, Businesses need to anticipate technological change and adapt to it in a very short time. This applies to all areas.
Technology has continued to become a more integrated component of virtually every business process over time, so it is not surprising that its use was a point of reference rather than a point of emphasis in this guidance. This is changing.
A fraud risk assessment is an essential element of an organization’s fight against fraud.
Identifying and monitoring fraud and non-compliance is critical for every organization. In addition to monetary loss, your organization’s reputation and trust are at risk. Data science and machine learning solutions can help companies stay ahead of ever-evolving fraud risks to proactively mitigate active threats.
There are three ways data analytics support the fraud risk assessment:
Identification. Data analytics can be used to look for anomalies or red flags that indicate potential fraud risk schemes and identify high-risk areas for inclusion in the fraud risk assessment.
Validation. Analytics can validate the identification of high-risk schemes, evaluate the accuracy of risk assessment process findings, and indicate the need for additional procedures.
Monitoring. Tests and tools can be developed to continuously monitor high-risk schemes and behaviors, aid in assessing the effectiveness of the fraud action plan, and provide proactive alerts for possible exceptions and violations on an ongoing basis.
(Source: https://www.deloitte.com)
