Innovation Update

‘Profit & Loss-of-One’

Preventing fraud, enhancing compliance using digital twins

Fraud examination thought leaders are working to innovate anti-fraud processes. In this column, editor Vincent M. Walden, CFE, CPA, in conjunction with other professionals, will report original concepts that help you do your job better. EY Fraud Investigation & Dispute Services (FIDS) and GE executives contributed to this column.* — ed

Fraud examiners and compliance professionals have a great responsibility to develop effective training and communication programs that engage the hearts and minds of business leaders and employees and prevent and deter fraud. However, they face many challenges including a constantly shrinking share of employees’ time plus technology that makes it difficult to: 1) isolate target audiences, 2) deliver messages that are tailored for individual roles and risk profiles and 3) assess the effectiveness of training or delivery of communication. Recently, GE and EY Fraud Investigation & Dispute Services (FIDS) professionals collaborated to address these perennial challenges with a new strategy they’re calling the “P&L-of-One” (Profit & Loss-of-One).

Compliance professionals’ ultimate objective is a world in which employees receive only trainings and communications that are relevant to their roles, at exactly the right time (before they encounter compliance issues that require their attention) and in the right amount.

These compliance professionals work with fraud examiners to keep employees from crossing the line and committing fraud. All work together at that nexus of fraud prevention and compliance. However, their aspirations are constrained by the reality of addressing the compliance needs of thousands of employees — each with a different role and risk profile. Compliance teams usually resort to massive online curriculums, which they hope will lead to trained workforces.

GE’s internal research into adult learning revealed that the traditional approach to training doesn’t usually lead to knowledge retention — in fact, just the opposite. It’s a reality that frustrates employees and compliance gatekeepers and results in training fatigue. It can come with a hefty price tag and has the potential to tarnish the reputation of the compliance function internally.

But what if there are better ways? Recently, EY’s Global FIDS professionals helped GE improve compliance by using forensic data analytics to provide behavioral insights to their compliance program.


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