Compliance Analytics
Overview
A leading multinational organization within tourism and hospitality industry sought to strengthen its compliance and risk management framework by leveraging data-driven insights. The company’s Compliance function engaged ARampur CPA to design and implement a customized analytics- driven approach to transaction and vendor risk scoring, focusing on high- risk financial transactions and third-party agents.
Challenge
The client faced challenges in identifying potential compliance risks across its global operations. Key issues included:
- Lack of centralized visibility into high-risk transactions.
- Inconsistent monitoring of port agent activities and vendor relationships.
- Limited automation in compliance testing, resulting in manual inefficiencies.
- Data silos across multiple systems financial systems, making reconciliation complex.
Solution
ARampur CPA developed a Customized Compliance Analytics process to automate transaction scoring and vendor assessments using advanced data analytics. The approach included:
- Data Integration: Mapped and reconciled data from Oracle back to original source systems containing line-item level details (e.g. unit cost, quantity, location, currency, business unit).
- Transaction-Level Testing: Implemented over 30 rule-based transaction-level tests and machine learning algorithms to identify potential anomalies.
- Vendor Risk Scoring: Designed vendor-level risk tests to risk-rank potential compliance risk at the vendor-level.
- Advanced Analytics: Employed SQL for data extraction and Python for reconciliation and query applications.
- Visualization & Reporting: Built Power BI dashboards for real-time monitoring, including:
- Transaction Summary (risk scoring at the line-item level)
- Vendor Summary (risk categorization of suppliers)
- Interactive Search Views (search for specific transactions, vendors, or test results)
Implementation & Execution
- Data Standardization: Normalized multiple data sources for seamless integration.
- Risk Categorization: Leveraged the Corruption Perceptions Index and internal compliance criteria to classify high-risk entities.
- Automated Risk Scoring: Applied a rolling 12 to 15-month transaction scoring window, with dashboard results displaying the most recent 3-6 months.
Conclusion
This engagement demonstrates how a structured, analytics-driven approach can significantly improve compliance monitoring. By automating transaction scoring and vendor risk assessments, organizations can proactively mitigate risks, streamline compliance processes, and enhance operational transparency. ARampur CPA continues to help businesses optimize compliance strategies through data analytics and automation.