Regulators are using analytics: Here’s why you should, too: PwC

Regulators are using analytics

February 2017

Regulators are using analytics:
Here’s why you should, too

The SEC, DOJ and other authorities are using advanced data analytics as part of their regulatory toolbox, raising the compliance stakes (already amplified by whistleblower programs) for companies of all sizes. A lack of information is no excuse. If evidence of impropriety exists, you must find it and act on it first.

Fortunately there are advanced data techniques that you can use — with a proper forensic mindset — to stay ahead of the risk.

Don’t get caught flat-footed by fraud

Regulators are already leveraging data analytics, and whistleblowers have an incentive to report incidents before you may be aware of them. So a lack of information is no excuse. If economic crime is occurring in your company, you need to be the first to know — and take action promptly.

The “noise” you need to hear is out there now

Whether your focus is compliance and early detection — or responding to a regulator — stay focused on uncovering and piecing together evidence. Listen for and analyze both structured (internal) and unstructured (open-source, social network) data to pick up warning signs.

Time is of the essence

In a crisis, it’s a race against the clock to respond to regulators, your stakeholders and the press. Preserve your reputation (and your credibility): bring in your analytical firepower swiftly — and map out your investigation and the flow of events, using both structured and unstructured data.