Accenture has found that a combination of advanced analytics techniques like data mining, predictive modeling and network analysis provide alternate approaches to identifying risk. These techniques can uncover the characteristics of high-risk procurements and develop models that capture the relative risk related to them.
Scoring models can then be built that “grade” the risk associated with each procurement. Once graded, the high-risk procurement information can be incorporated back into the procurement process, enabling further review that can reduce high-risk procurement exposure.
This advanced analytic approach counters the problems found in a traditional “business rules only” approach to identifying high-risk procurements. By using multiple risk factors through this hybrid approach, agencies move beyond simple business rules related to individual procurement dollar value and consider other factors for better visibility, control and decisions.
Further, these analytic solutions can be integrated with the organization’s procurement system, thus eliminating the need for “swivel-seat” procurement research.