Don’t know where to start with data analytics for risk assessment? Step by step, here’s a basic framework of how you can begin to apply data analytics to assess risk and controls in your organization.
While generic software like spreadsheets can get you started, purpose-built risk and control analytics technology will support more complex and valuable testing, issue management and remediation, and long-term sustainability.
1. Build a profile of potential risks
2. Test data for possible risk indicators
3. Improve the process by implementing continuous analysis
4. Review results
5. Expand the scope and repeat
- Make recommendations on how to tighten controls or change processes to reduce the likelihood of non-compliance.
- Follow up and see if those recommendations have been acted upon and if they have had the desired effect.
- Communicate, communicate, communicate. Impart “tone at the top” to the organization.
- Why? Because unresolved exceptions have a negative impact on the organization.
Use risk and control analytics to assist in assessing risks in your organization; it will help drive increased efficiency into your audit work and identify data-driven indicators of emerging risks.
Don’t Navigate Risky Waters Without Internal Auditors
This eBook gives guidance on leveraging data analytics for risk management, including risk-based audit planning, example analytics for identifying risk, and real customer stories.