Professional Documents
Culture Documents
Agenda
Check in
Check out
8 Bits = 1 Byte
1024 Bytes = 1 Kilobyte
The Man
How it happned
A Junior trader(Jrme) in SocGens Delta One business entered in to significant long positions in
Eurostoxx,DAX & FTSE index futures.
In the normal course of business these long positions would be hedged however the trader did not
take out genuine hedging trades
The trader offset the reported market risk by entering in to fictitious hedge transactions.
To avoid controls he Chose transactions with no cash movements or margin call & which didnt
require immediate confirmation
How it Happened..cont
Used other individuals passwords to cancel certain transaction
Cause/contributory factor
Able to Use/guess other individuals passwords to cancel/conceal certain transactions.
Trader used his experience of working in middle office roles to circumvent control processes .
Diverse application and access control across it not in sync.Old access to apps not removed for the
new role
10
11
- Gartner
12
13
14
15
16
Unstructured Data
Semi Structured Data
Structured Data
Flash Files
Images,
Archives
Privileged and Confidential
PDF Files
Log Files
Text Data
Transaction
Systems,
CRM, ERP,
BI, EPM,
DWH
Websites,
URLs,
Social
Medias,
Forums,
Blogs,
Messengers
News Portals
E-Commerce
17
18
19
BIGDATA
Lets call it as
& How do we TAME it !!!
20
21
Log Analytics
Understanding Risk/Vulnerability patterns
Privileged and Confidential
22
Importance of analytics
Analytics help experts make decisions more accurately, objectively and economically; a rapidly developing
consensus in business, education, law, medicine and even professional sports.
Types of Analytics
Possible Applications
Used to gain deeper insight into critical sub-processes, financial and operational areas
of the business.
Forward-Looking Models
Can be built to predict which areas of the business are likely to evolve into risks,
exceptions, or simply require a greater level of focus.
Can help transform the organization by providing deep analytical insight and actionable
information.
23
24
underscore an unforgiving demand for improved performance and a wake-up call for more disciplined risk
management.
Regulations
Profitable Growth
New Signals
Hidden Sight
25
26
Terminology Trade-up
The data jockeys
Analytics team
Statistical Sampling
Site Visit
Remote auditing
Power Point
Visualization
CAATS
Analytic test
Audit observation
27
Industry Trends
Powerful trends are driving the adoption of new approaches to Internal Audit.
Hindsight
Insight
Foresight
Where is the
problem?
What if these
trends continue?
Why is this
happening?
What happened?
29
Predictive Analytics
Simple schemes and billing errors
Known fraud and abuse patterns
AND
Complex fraud and abuse patterns
Undiscovered schemes
30
varying levels of maturity, independent of industry with few leading the pack.
Inability to break-down
siloed activities
Lack of IT support
Inability to replicate
successes
Lack of strategic
relevance to the
business
31
Productivity/Database
Excel/
Access
SQL
Traditional Audit
ACL
Idea
Statistical/Analytics
SAS
Many of these tools may be available via existing ELAs with key
SPSS
Tableau
BI Platforms
Multiple ways to source the data feeds, secure ftp, read only
Viscovery
Cognos
Microstrategy
Sustainable
Repeatable
Ad-hoc
Tactical
Hindsight
Strategic
Insight
Foresight
33
Multi-year Roadmap
Building a two to three year roadmap that details the way in which your analytics program will be
implemented over time will help stakeholders understand and realize the benefits and objectives. Everyone
will share the same vision and have bought in - Internal Audit, IT, business owners and senior leadership.
The road map should be designed to evolve and will require regular updates and maintenance throughout
the multiyear delivery program.
Governance
Establishing a program governance model is critical to the success of most large, complex initiatives that
span across an organization/years.
The governance structure will determine the escalation path for projects that have significant risks and
have the authority to scope and de-scope each project.
34
Establish a clear understanding of expected benefits from Analytics and ensure linkage to audit planning.
This will translate into clear objectives that drive the strategy, long term vision and surface the near term
opportunities.
Data is the key ingredient. It drives the insights that fuel the benefits from any Analytics program. It
is critical to understand both the data you have and the data you dont have when determining how
and where you should begin. This knowledge also prioritizes efforts to collect whats missing for
future analyses and enhancements to your Analytics program.
Start Simple
There is no need to boil the ocean at the outset. Starting with a targeted, ad hoc analytic program
will yield greater benefits in terms of speed to insights, learning and value. Take the time to learn
first and then deploy necessary capabilities across the enterprise later.
Leverage Existing
Insights
When possible, leverage existing analytics capabilities (look within the business) to jump-start the
program and build consistency with prior initiatives. These insights should also provide clues
related to the risks and business areas to start with.
Make it Actionable
and Measurable
Develop a plan to take action and measure results accurately early in the game. The organization,
systems and process that support execution must be able to take action with the insights that are
generated recommendations.
Be willing to test different approaches and areas of the business. Learn from results and try new
approaches based on what is learned.
35
General
Determining and establishing consensus on objectives and success criteria.
Measuring and demonstrating success of efforts.
Limited resources (financial and human) to execute on a sustained basis.
Change management
Managing impact of data analytics and CA processes on people and other business processes and
overcoming individual auditors biases and preference regarding the use of data analytics in the audit
process.
36
Data analytics
Inability to effectively leverage data analytics in order to efficiently achieve audit objectives.
Identifying, designing and building relevant analytics
Establishing a definition of exception, addressing false positives and false negatives, etc.
37
38
Questions and
Thank You
CA ANAND PRAKASH JANGID
+91 9620233516
anand@quadrisk.com
www.quadrisk.com