Monitoring of Third-Party Agents and Distributors

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  1. A clever and thorough use of analytics can uncover questionable activity by any actor including a third party. But we’re not talking about something you can do in Excel, this is the domain of data scientists and the techniques being developed in the Big Data world. First you have to look for multiple pieces of evidence which means assembling data from a range of sources including internal and external – that’s the thorough part. The clever part comes from applying rich statistical models that can be used to evaluate specific subpopulations – i.e. agents in Algeria that distribute product X – so the analytics can separate the unusual from the normal and customary. At Oversight we originally developed these capabilities to identify financial reporting fraud by identifying unusual journal entries. In those cases you had to consider the account pairs, the amounts, the time of the entry, the person doing the entry, the normal method of creating the entry (manual versus automated), etc. The final piece is actually the human – what we want to do is tee up something interesting for the insightful mind to evaluate. Done well this can actually be more efficient from a labor perspective. Your team can spend their time evaluating “high quality” issues as opposed to spending time digging up things to evaluate. – Patrick Taylor, CEO, http://www.oversightsystems.com