Having a data analysis capability isn’t enough.

Do you know which data sources to use and the 100s of data points for analysis?

Simple questions to ask.

1. Do you know which data sources to use in fraud analysis?
2. Are you able to collect and analyse your own data sources?
3. Does risk information flow within your organisation?

Let’s explain why these first areas are so important.

Ability to identify and collect your own data sources.

Within your operations, do you know 

• what information your organisation creates
• which data sources are relevant in helping you identify contract fraud and corruption, and 
• do you have access to them?

In the majority of cases, I have found that the answer is No.

Particularly when considering false invoicing, as well as 

procurement and finance data we always look at 

maintenance records, defect reports, 

quality assurance information

as a starting point. 

An insider can create a fictitious requirement or introduce low standard materials.

Are you able to collect and analyse your own data sources.

We’ve seen in a number of organisations where departments 

protect staff personal data and don’t allow risk or 

compliance departments access it for 

proactive analysis?

Answer this question.

Are you able to compare 

1. staff information including home address, telephone number and bank account information against 
2. new supplier executives, shareholders and company formation data?

Matches of this data might indicate a conflict of interest of corruption risk.

Does risk information flow within your organisation.

How do you then use this new information?

In addition to any further investigation there are several ways in which you should use this information.

• Prevention measures
• Detection response
• Risk assessment

Initial prevention considerations should always be, 

• how do I stop this corruption happening in the future
• assessing your control measures, 
• procedures, expertise and capabilities will help determine how the corrupt act was facilitated.

to help determine how the corrupt act was facilitated.

It could simply be a lack of trained procurement staff or lack of finance resources to assess each invoice for accuracy, risk or that the work was even carried out.

Take action now.

Start by comparing staff data against supplier information.

If there is a match, confirm 

• if there is a conflict of interest registered
• does the individual work in a place where they can influence a contract.

How do you use your own information?

Do you know which data sources can be used to analyse fraud and corruption risk?