Welcome to a multi-part podcast series, Smart Automation for Risk Management, sponsored by Lextegrity Inc. Over the course of this series, we will be visiting with Parth Chanda, Founder and Chief Executive Officer (CEO), Andy Miller, Chief Analytics Officer, and Kara Bonitatibus, Head of Product. We will look at the Lextegrity Product Suite, take a deep dive into continuous risk monitoring, consider pre-approvals and third-party due diligence and integrations and user experience. In a special bonus episode, Chanda and I will discuss the Integrity and Analytics Collective. In Episode 2, I begin a two-part exploration Miller about risk monitoring with data analytics.
We began with a discussion about what a continuous monitoring solution is. Miller said that it “provides compliance and audit teams with a comprehensive way to keep a pulse on transactional spend and revenue risk in their enterprise.” The Lextegrity application “features a library of dozens of prebuilt risk data analytics across a spectrum of focuses. We have risk-based statistical behavioral and policy-based, but really the key to our analytics is they are so configurable and contextual to your specific risks or your lines of business or the historical issues that your organization may have had so that the risk algorithm is actually tailored to your business and your exposure and not, um, some static configuration.” It can connect to a wide variety of EPR systems such as SAP, Oracle, Concur, Workday and others.
The Lextegrity approach is different as it is focused on prioritizing your efforts within this monitoring of spend and revenue data, seeing the full context of the transaction and its risk results altogether, so that you can focus on the risk of that as a whole. It also is more risk focused and less control focus. Miller related that the Lextegrity “scoring algorithm is calculated at an aggregated level across multiple analytics to help you cut on the false positives and the noise as well as to then better prioritize your transactions in line with risk parameters that you set.” The solution connects with our approval workflows, our pre-approval tool, as well as workloads within this specific tool, enabling specific analytics, such as validating your approved amounts, against your actual amounts and those people that you actually said you were going to pay is who you paid.
The Lextegrity solution can also take your third-party due diligence results and increase the risk scores of transactions with “high risk-third parties, as well any low risk third parties which are showing up in high-risk expense categories, beyond transactional risk scoring and highlighting the higher risk transactions for further review.” All of this allows the compliance professional to go “in and actually explore your data with that augmented risk detail and drill into different dimensions of your data, maybe geographic, maybe a subject, or a specific subject type or that spend nature.” All down into the actual transactional level of data.
We next turned to the differences between key performance indicators (KPIs) metrics. Metrics are more generally seen as specific data points, whereas KPIs are really metrics that are closely tied to and tracked against specific goals. Miller explained, “we might have a metric that is number of trainings completed last month. The KPI might be that we have at least 90% of trainings completed at any point in time. With that we can take our measurement manipulated into more of a KPI based on what our goal might be.” The Lextegrity software has a way to look at these KPIs and metrics, all within the compliance scorecard, as well as within the risk insights platform, where you can see a variety of metrics and KPIs.
This allows the compliance professional to literally go beyond the metrics/KPIs and into data analytics. Miller explained, “when we talk about analytics, these are focused on positioning data, to be more valuable to the end user analytics, making it easier to identify something specific or generating actionable ideas and insights from the data.”
Join us tomorrow where I continue my exploration of continuous risk monitoring with Miller.
For more on Lextegrity, check out their website here.
