Future of Control | Control Automation: D.MAC

Compliance is an intrinsic need and an important guarantee for long-term stable development of enterprises, as well as a key factor in risk anticipation and control. With the advent of the digital wave, the impact of compliance on the daily operations and decisions of enterprises is increasing.

In business operations and daily management, the transformation of business models brings about escalating compliance risk points. The expansion of business scale, the updating of policies and regulations, and the exponential growth of data volumes have also placed higher demands on the compliance department's risk monitoring work.

In order to help companies analyze and monitor risks more efficiently, comprehensively and accurately, and improve the overall compliance level of enterprises, Deloitte China Risk Advisory team has developed a mature intelligent compliance platform based on our experience with clients. This article will briefly introduce Deloitte's D.MAC services to help you quickly understand our services and how it can help organizations embrace the Future of Control.

I. Service Introduction

Deloitte Management and Compliance Service ("D.MAC") aims to apply Deloitte Risk Advisory's industry knowledge and internal control compliance experience to provide pharmaceuticals, financial and other companies with high compliance requirements with an integrated, digital compliance platform that provides intelligent monitoring and early warning of the entire process across multiple business components of corporate operations.

D.MAC docks to multiple systems such as internal ERP, CRM, etc. and crawls external data such as forums and news sites, covering a full range of internal and external multi-dimensional and multi-source data for compliance analysis.

Based on enterprise business processes, we build a configurable compliance risk indicator database to conduct behavioral analysis from employee, customer, and supplier dimensions, and identify risk events such as employee reimbursement violations, employee fictitious transactions, customer credit rating issues, overdue customer paybacks, inadequate supplier qualifications, and affiliated relationships between suppliers and employees.

D.MAC's intelligent case management can push high-risk cases by intelligently mining potential risk features through a self-feedback learning model based on the results of case investigations fed back by users.

II. Cases sharing

Take an enterprise's D.MAC platform project in China as an example, we successfully helped the customer to complete the digital transformation of compliance work through D.MAC services：
1. Determination and measurement of risk indicators
2. Construction of configurable risk indicator database
3. Real-time monitoring of risk indicator hits
4. Visual presentation of multi-dimensional risk index
5. Intelligent push of potential risk events

The implementation focused on compliance for three groups as follows:

Compliance issues for supplier groups

1．D.MAC obtains information on suppliers' industrial and commercial taxation and legal litigation by capturing external data and gives corresponding risk ratings, blocks high-risk suppliers in a timely manner before entering the database.

2. By capturing ERP full procurement process data, D.MAC conducts periodic monitoring after entering the database, and freezes high-risk suppliers in a timely manner to help enterprises avoid risks and reduce losses.

Compliance issues for customer groups

1. D.MAC monitors and analyzes sales and marketing activities, quickly responds to the risk of suspending transactions and notifies the relevant responsible person.

2. D.MAC assists users in long-term risk monitoring and early warning by building a customer profile and database of suspicious cases.

Compliance issues for employee groups

1. D.MAC is concerned about the phenomenon of false expenses by employees, using modern digital technology to verify claims and invoices to achieve integrated and intelligent identification of fictitious transactions, false expenses and fraudulent transactions.

2．D.MAC intelligently identifies suspicious and abnormal correlations through correlation analysis of employees, customers and suppliers.

This was all displayed for the client within an easy to use dashboard:

As an important part of business management and a key part of risk control, compliance should be able to respond to corporate trends in an accurate and timely manner. Through our long experience in the direction of digital compliance, we hope to help companies perform their compliance work better and more efficiently.