Risk Insights: Data Mining

Your company has lots of information, but is it mining all that data? 

Data mining processes sift through massive amounts of data, looking for patterns and inconsistencies that deviate from those patterns. The results allow managers to develop a better picture of what is happening within the company and provide the intelligence needed to make more informed decisions.

Data mining can be applied to virtually any collection of information stored in an electronic format. Viewing the files through the lens of a data mining examination can give the company’s leaders valuable insight to more fully understand the activities and processes represented by the data. In turn, the higher level of understanding enables managers to recognize the impact those daily events have on the overall performance of the organization.

Data mining can also support a variety of internal evaluation functions, such as financial auditing, data integrity monitoring, IT control, system log reviews and fraud detection. Data mining can greatly reduce inefficiencies in an organization by identifying and illustrating opportunities for process improvement.

On the auditing front, data mining can make it easier to follow audit trails back to supporting transaction details. Auditors can also use the data to compare corresponding forms of documentation, including purchase orders and invoices.

For further information on the useful applications of data mining, check out Weaver’s Risk Insights document, Data Mining, or for a discussion specific to your organization, please contact Alyssa Martin or Jody Allred, Weaver partners in risk advisory services.