Predictive Risk Analytics: The Internal Auditor’s Guide to Complexity Management

Written By: Philip Wilson

The world of Predictive Risk Analytics (PRA) is an exciting one. PRA software applications have incredible power. The applications are extraordinarily good at finding patterns in large data sets that exist around the enterprise. For instance if a prospective PRA software solution can assist us in determining where potential enterprise issues exist or where they may arise, that’s a huge opportunity. One typical area of enterprise risk are those business processes that are considered to be “brittle”. A brittle process is one that is prone to failure for reasons such as poor technology integration, “single points of (legacy system) failure”, inadequate training, etc. A brittle process may be likely to break under an unforeseen stress load. PRA software applications leverage sophisticated business rule logic on the order of “expert systems” to diagnose brittle processes and apply simila machine logic to many other types of business challenges. But, of all of these software application types, this article will home in one area that holds the most promise for enhancing Enterprise Risk Management programs. This is area of complexity management analytics that is being applied to common business challenges using newly cultivated human skills and new software based services, in tandem.

Continue reading here: Understanding Predictive…Management Oct 2014