Content thumbnail Shifting into High Gear: Mitigating Risks and Demonstrating Returns

Companies want to spend more on FDA to manage today’s risk 2014 Growing organizational demand for greater FDA investment is being driven by awareness of the value it can deliver and emerging risks. We expect this trend to continue into the future 64% as data volumes and varieties continue to expand, more technologies become available and regulatory scrutiny increases. Two years ago, 64% of our respondents felt their investment 2016 in FDA was sufficient; this year, only 55% are confident they are spending enough. Three out of five respondents plan to increase their spend on FDA over the next two years. 55 We see a clear correlation between the respondents’ FDA spend and their perceptions % of risk in the chart below. of respondents think their FDA spend is sufficient. Figure 5: Risk driving spend: correlation between the FDA spend and perceptions of increased level of risk Cyber breach or insider threat 62% 72% Bribery and corruption risk 44% 52% Internal fraud 42% (travel and entertainment abuse, collusion, etc.) 50% Capital projects risk 34% 39% /5 3 Merger and acquisitions risk 28% of respondents plan to spend more on FDA. 33% Financial statement fraud 26% 29% Money laundering 25% 2 32% All respondents Those who expect to increase FDA spend over the next two years �▀ ▀ Q. Over the past two years, how has the level of concern about each risk area changed in your organization? Base: All respondents (665); those who expect to increase FDA spend over the next two years (406) Multiple answers allowed, may exceed 100%. Companies working with data sets that push the limit of traditional spreadsheet tools (i.e., more than 10 million records) are also more likely to be planning significant increases in their FDA spend. In contrast, only 13% of those analyzing fewer than 1 million data records are planning to significantly increase investment in FDA. “ In my opinion, we need to invest more money to get the best forensic data analysis tools that are available in the market.” Head of Internal Audit, Capital Markets, France Global Forensic Data Analytics Survey 2016 | 13

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