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Risk-Management : Technology : Big Data Analytics :  

Big Data Takes a Bite Out of Corporate Crime




Tony DeSantis
Principal, Deloitte Transactions and Business Analytics LLP
Data Analytics Practice
Deloitte

As uses of big data and analytics proliferate, 21 percent of respondents say their organizations have no plans to use big data to manage the risk of financial crimes including bribery, corruption and money laundering, according to a new Deloitte survey. 

“For years, many organizations treated prevention and detection of financial crimes as one-off efforts,” said Tony DeSantis, principal, Deloitte Transactions and Business Analytics LLP in the Data Analytics practice.  “Today, regulators expect organizations to have holistic, enterprise fraud and misuse management programs spanning all business units and international borders.  However, many organizations are unsure where to begin and how to effectively apply analytics.  Those out in front are honing early efforts on specific schemes or problematic regions by focused, risk-based approaches and methodologies.”

About half (49 percent) of respondents’ organizations train all employees on the risks of financial crime, as well as their role in its prevention.  Seventeen percent offer no such training.

“Many organizations have well-written anti-corruption and anti-money laundering policies in place,” said Joseph Hanvey, senior manager, Deloitte Transactions and Business Analytics LLP in the Anti-money Laundering Consulting practice.  “But, leadership continues to be key in establishing a culture of compliance—particularly during times of change.  Financial crime risk may spike when corporate structure, compliance controls and personnel changes take place.” 

Leaders who manage enterprise-wide financial crime remediation strategies are typically chief compliance officer (24 percent), CFO (23 percent) or general counsel (15 percent).  However, 13 percent of respondents’ organizations have others leading those efforts and two percent have no one doing so. 

About the online poll

More than 2,100 professionals from industries including consumer and industrial products; technology, media and telecommunications; and, financial services responded to polling questions during a Jan. 30, 2014 webcast, titled “Managing the Risks of Financial Crime: An Integrated Approach.Click here to listen to the webcast.

SURVEY RESULTS

 


 

Event Title: Managing the Risks of Financial Crime: An Integrated Approach

 

Event Date: 1/30/14

Has your enterprise conducted a review of its policies to mitigate the risk of financial crime (e.g., anti-fraud policy, code of conduct, etc.) in the last three years?

Votes Received: 2,322

Yes

57.1%

No

14.3%

Don't know / not applicable

28.6%

Who in your organization has overall responsibility for financial crime remediation strategies across the entity?

Votes Received: 2,434

Chief Compliance Officer

23.7%

Chief Financial Officer

22.9%

Don't know / not applicable

22.8%

General Counsel

15.2%

No one

2.2%

Other

13.3%

How often do employees at all levels in your organization receive training regarding the risks of financial crime and their role in its prevention?

Votes Received: 2,427

At least annually

49.4%

At least bi-annually

7.3%

Less than bi-annually

8.8%

Not at all

17.2%

Don't know / not applicable

17.3%

Are you using Big Data to help manage the risk of financial crimes?

Votes Received: 2,350

Yes, we've been using Big Data for a while

10.7%

Yes, just getting started

10.4%

No, but we're looking into how to begin

16.8%

No, we have no plans to use Big Data

21.1%

Don't know / not applicable

41.0%

In your organization, projects tend to fail because of:

Votes Received: 2,163

Resistance by employees

8.4%

Inadequate sponsorship

15.3%

Lack of subject matter expertise

9.0%

Reluctance to accept change

15.8%

Infrequent communications from leadership

9.9%

All of the above

41.6%

 

As used in this document, “Deloitte” means Deloitte Financial Advisory Services LLP, and its affiliate, Deloitte Transactions and Business Analytics LLP.  Deloitte Transactions and Business Analytics LLP is not a certified public accounting firm.








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