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

Top challenges faced by those currently Notably, a large percentage of companies are also seeking outside help for FDA, either considering outsourcing: on a project-by-project basis or through managed service arrangements. Twenty-four Challenges in combining data sources percent of respondents are already outsourcing either as projects or as a managed service; another 9% are considering it. In these circumstances, the benefits of outsourcing Lack of budget and resources outweigh the large capital investment required to build in-house FDA technologies and skill Lack of expertise sets. Outsourcing enables the companies to quickly ramp up their FDA capabilities and focus on the analytics consumption and interpretation. The finding is consistent with IDC’s Inadequate technologies currently market forecast for business analytics process outsourcing services, which estimates a in place 2 14.2% compound annual growth rate through 2019. Organizations are not recognizing the full spectrum of value FDA can deliver Despite the risk universe evolving, the main perceived benefits of FDA have not changed to keep pace. In line with our survey’s findings two years ago, respondents continue to identify the top three perceived benefits of using FDA in their anti-fraud programs as “ability to detect fraud that we couldn’t detect before,” “early fraud detection” and “faster response in investigations.” Figure 8: Main benefits of FDA — not fully realized Ability to detect fraud that we couldn’t detect before 79% Early fraud detection 78% Faster response in investigations 71% Increased business transparency 66% Getting the business to take more responsibility 64% for managing the company's anti-fraud program Reduced costs of anti-fraud program 42% Q. What do you think are the main benefits of using FDA in your anti-fraud program? Base: All respondents (665) The “Other” percentages have been omitted to allow better comparison among the responses given. Multiple answers allowed, may exceed 100%. As indicated in Figure 8, although the top three selected benefits of using FDA are clearly important, both from risk mitigation and cost avoidance perspectives, it is surprising to see how few respondents selected “reduced costs of anti-fraud program.” Only two in five see the potential for FDA to reduce the costs of their anti-fraud programs as a main benefit. By using current technology capabilities and leading analytics to help focus investigative and compliance monitoring efforts, FDA can be an important enabler of cost reduction. 2 IDC Worldwide Business Analytics Services Forecast, 2015–2019, November 2015. 16 | Global Forensic Data Analytics Survey 2016

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