Real-time insight into your integrity risks  | Regulatory Risk | Deloitte Netherlands


Real-time insight into your integrity risks

The next leap in systematic integrity risk analysis

The data-driven nature of SIRA provides opportunities to establish structured dashboarding, which can make strategic decision making more accurate and effective. That way, the organization is able to quickly respond to significant fluctuations of data which may affect your organization’s integrity risks.

By Manon van Bakel en Sebastiaan van der Weide

How a dashboard can optimize your risk based SIRA approach

Imagine this: All relevant stakeholders get an automatic notification on their SIRA dashboard when a certain risk indicator (such as the number of clients in high risk countries, clients active in high risk industries, indicators of tax evasion, high volume transactions, or high risk products) has significantly increased. Because of this notification, stakeholders are able to act quickly and take measures before the irregularity actually affects their organization. This contributes to a more risk based and effective first and second line monitoring.

But there’s more: because of this continuous insight into all the relevant data, your organization faces the SIRA with confidence. The yearly reports can be drawn up quickly and adjusted to the appropriate audience (internal, board level or external). By using a real-time monitoring dashboard, SIRA becomes an even more effective strategic tool instead of merely a box-checking exercise, as it becomes more integrated in the day-to-day risk management.

In the first blog in this series, we talked about the essentials for improving the maturity of SIRA. In the second blog, we dove deeper into defining your risk appetite and why that’s important for SIRA. In the third blog, we explained why a data-driven approach is essential if you want to use SIRA as a strategic tool. The logical next step is to talk about processing that data automatically and improving your interpreting capabilities so that they can strengthen your risk management of integrity risks.

Building the monitoring dashboard

You want your dashboard to give relevant stakeholders a comprehensive overview of significant fluctuations in data, residual integrity risks, control effectiveness and possible mitigating measures. But building such a dashboard is not just a technological exercise. In fact, that’s probably the easiest part. On the back end, you need to combine the internal and external data sources that are relevant for SIRA, while on the front end, that data needs to be visualized.

Key to this process is a uniform definition of data, as well as linking the correct data with the risks as defined in the risk taxonomy. Consistent use of data definitions ensures higher data quality which in turn improves the accuracy of your monitoring capabilities. Once the monitoring dashboard is up and running, you can start using it for reporting purposes and strategic decision making.

Using the monitoring dashboard

What’s more complex is interpreting all the incoming data and translating it into possible calls to action. If you want your dashboard to be more than just a receptacle of all the data that might affect your integrity risks, you need to decide at exactly which moment to alert different stakeholders to the fluctuations in the data. Some fluctuations are only relevant for the compliance officer, such as anti-money laundering risks, sanction laws violations or possible bribery signals, while for other fluctuations additional departments need to respond. For example, the security officer needs to be alerted when there’s a possible external fraud risk, or the Privacy Officer when there is a significant fluctuation in data breaches.

Reducing effort while improving insight

As previously mentioned, the dashboard can improve the quality of your periodic reports. Different stakeholders can select the information that is most relevant for their various needs, whether it’s for internal stakeholders, an internal audit, an external audit or a regulator. This reduces the amount of manual labor needed to generate reports, leading to more reliable and standardized output.

Another benefit of using a monitoring dashboard is the ability to use it for trend analyses and for testing different scenarios. This allows the organization to visualize the outcomes of different scenarios and the way they affect the organization in the future. By combining the outcome of the trend analysis with the scenario testing results, organizations are adequately equipped to use SIRA in long-term strategic decision making.

More information?

Deloitte developed a SIRA methodology that can help your organization use SIRA as an effective strategic tool. Want to know more? Please contact Harold, Christiaan or Joes via their contactdetails below.

Did you find this useful?