Implementing Technological Audit Practices
- 1. IMPLEMENTING TECHNOLOGICAL AUDIT PRACTICES Manuel Coello Senior Director Data Analytics AETNA
- 2. INNOVATION REQUIRES COURAGE AND INTELLIGENCE, BUT NOT PERMISSION BETH COMSTOCK
- 3. OUR JOURNEY
- 4. ANALYTICS PLAYBOOK 1. EXPONENTIAL GROWTH - by creating an ecosystem of collaborative analytics and partnering with machines 2. INCREASED EFFECTIVENESS - by using descriptive analytics on every audit and leveraging risk and predictive models 3. UNPRECEDENTED VALUE - by deploying a suite of analytic capabilities on every audit
- 6. TOOLS USED
- 7. CREATING A CULTURE OF EVERYONE IS A CODER
- 14. VISUALIZATIONS
- 15. VISUALIZATIONS
- 16. VISUALIZATIONS
- 17. NEXTGEN AUDIT REPORTING PLATFORM Audit Summary What were the results of the audit? Audit Report What are the issues? Reporting What open issues are nearly due? Remediation What is the status of the issues? Audit Plan What is the status of all the audits?
- 21. USE OF DESCRIPTIVE ANALYTICS
- 23. RISK SCORING
- 24. RISK SCORING FORMULA Z-score Amount Avg Amount Std Deviation Amount Weightage 1,000 800 720 0.28 450 500 452 (0.11) 58 250 240 (0.80) 37 40 50 (0.06) 200 150 50 1.00 Quantitative Calculation Quantitative Risk Weightage Employee Pass/Fail Test Weight (1-10) Pass/Fail Test Weight (1-10) Pass/Fail Test Weight (1-10) Score 1 Yes 9 Yes 3 Yes 6 18 2 No 0 Yes 3 Yes 6 9 3 Yes 9 No 0 Yes 6 15 4 Yes 9 Yes 3 No 0 12 5 No 0 No 0 Yes 6 6 Test 1 Test 3 Test 3 Qualitative Calculation Org Level Score Category Name Score Business Activity Score Qualitative Risk Weightage GOV Leadership 6 Dinner 9 Agency/Broker Activity 8 23 NA National Accts Ops 7 Entertainment 9 Sales/Prospect 8 24 TER Territories Admin 4 Projects 7 External Meeting 7 18 SPC Specialty Businesses 8 Lunch 7 Internal Meeting 5 20 FIN Internal Audit 5 Travel Transaction Fee 5 Travel-Training/Education 5 15 FORMULA: Risk Score % = ((Quantitative Risk Weightage * ((Amount Avg Category Amt) / Std dev Category Amt) + Qualitative Risk Weighted) / Max Score RiskScore Calculation Employee Quantitative Risk Weightage Amount Weightage Qualitative Risk Weightage Risk Max RiskScore Final Risk 1 18 0.28 23 28 250 11% 2 9 (0.11) 24 23 250 9% 3 15 (0.80) 18 6 250 2% 4 12 (0.06) 20 19 250 8% 5 6 1.00 15 21 250 8%
- 25. RISK MONITORING
- 27. PREDICTION SCORING Case Management Audit Exceptions Predictive Variables Results (Risk Score) Logistic Regression Historical Exceptions Accuracy Check Model
- 29. ANOMALY DETECTION AUTO ENCODER
- 32. STRUCTIRING DATA
- 33. TEXT ANALYTICS
- 36. UNDERSTANDING THE CUSTOMERS Income range Household Size Owners vs Renters Household Composition
- 37. NETWORK ANALYSIS
- 39. CLOSING COMMENTS 1. Plan your journey in 3-year increments 2. Be an Analytics & Technologist advocate 3. Become a marketing master 4. Keep tabs on the wins 5. Lead the disruption movement!
- 40. THANK YOU