Automated controls based on behavioral analytics are key to mitigating risk, NetGuardians recently told a Zurich audience of professional internal auditors. Hosted in May by the Institute of Internal Auditing Switzerland (IIAS), the even was titled “Importance of soft skills in internal audit”.
NetGuardians CEO Joël Winteregg presented jointly with IT risk and internal control consultant Cédric Frésard. They explained that risk is a continually-evolving challenge for financial institutions, with a current picture including a shift from external to internal threats, emerging risks and fraud patterns, and new and incoming regulations. While much information that can help detect fraud and errors is available, the volume of data makes it very difficult to sort out. On top of that, a key gap in most fraud mitigation strategies is to focus only on transactions – what happens at the technological level – not on the humans behind the transactions.
That’s where automated controls based on behavioral analytics come in. Behavioral analytics correlates actions based on policy rules and predictive analytics. In this way, it is able to bring the focus beyond transactions to spot human behavior patterns that could indicate fraud, policy violation or error. Clear vision of this activity enables preventive action, intervention, audit and forensics.
The talk sparked great interest from the participants, a number of whom approached NetGuardians for further discussion.