The people you employ are critical to your business. Ensuring that you have the right people, in the right positions throughout your organization is critically important to its success and sustainability. Maximizing the effectiveness of the tools you use to ensure you select the right people is just as essential.
In other blog posts, we have spoken about the framework we use to detect and prevent corruption from damaging your business. Built into this framework, is a customizable decision-making model that helps identify the likelihood of an individual’s future behaviour, which will fall within a range of acceptable performances based on their past performance in several areas.
In the world of science and technology, this is known as using predictive analytics to statistically model future performance.
Here are five ways that risk-scoring models help your business.
- Increasing Productivity and Profitability
One of the most significant advantages to using decision-making models is to exponentially improve productivity and profitability. Processing hundreds of thousands of applications in an hour is nothing for a decision-making model, whereas only a handful of applications could be properly processed by a human being.
- Decisions Are More Consistent
By automating the decision-making process, you can be sure that the same methodology is used each time an application is processed.
The decision-making model can even consider factors like your definition of an acceptable criminal past, if any (for example non-violent misdemeanours involving speeding), the position (accounting department, factory floor or elder/childcare), the place you are considering putting a person (locations that have been identified as risk hot spots etc), or even the Types of claims that have been filed against an individual (eviction notices, tax liens, bankruptcies)
- Impartial Decisions
Decision making becomes largely objective and impartial when using a decision-making model. Unintended discrimination based on subjective or unwanted factors such as race, ethnicity, age or gender can be reduced to significantly or even be wholly eliminated. We do not collect or report in our solution upon race, ethnicity, religious or political affiliation for example.
- Customizing Your Decision-Making Model
While scoring models are certainly not unique (we are all accustomed to looking at our credit score to ascertain whether we can afford a new house) client customizable decision-making models are certainly less discussed and less understood.
With a client-designed decision-model, a multitude of factors can be built into the decision and those factors can be adjusted to the risk comfort and the business model of your organization.
- Quality Reporting
The final valuable differentiator is the way that we report the results to you. You do not simply see one final “numeric score” and recommendation. Rather, you see the results of each input that goes into the decision so that you can understand what gave rise to the output of the decision-making model – the score and the recommendation. This empowers your organization to explain the results to the executive team or even to contextualise the results where your business model allows for it.
Enhance your risk score and profile further by setting priorities for the various risks by position. So, for example, if you feel an employee in your financial department should have a minimum threshold of 4 on the financial component of your framework, as opposed to an administrative role that does not, you can make the adjustments.
You company should not have a one-sized fits all approach to its scoring and this is something we identified as a weakness in companies we interviewed.
By customizing your framework to the way that you work, you can highlight areas you want to focus on and improve. You can apply a higher level of scrutiny on these areas, which will further benefit your business in the future.
Making the data work for you
By collecting the data at an employee level, you are able to aggregate the data by department, by position and by company. We use a range of comparative measures to help you analyse data. You will be able to build dashboards that display the level of improvements you have made to risk of employees throughout the organisation. You will then be able to serve up the data by department, by internal process, or by company as a whole, for the board to evaluate.
As we are undertaking data collection on an on-going basis; you can track and quantitatively measure improvements on a monthly, quarterly, half-annually or annual basis. Whilst you will be able to update your board on improvements you have made and , as a result of the on-going monitoring, you will also be in a position to detect, identify and prevent harm as a result of risks of corruption by employees before they impact which allows your organisation to take action to prevent loss.
The framework explained
Putting together a working detection and prevention framework is the first step in safeguarding your business against corruption. We have previously provided a summary of our framework model, which has been used by organisations in South Africa. This should help you better understand how it can help simplify your task in preventing corruption from damaging your business. To revisit this article, click HERE.
Corporate Insights has developed a one-of-a-kind modular system that combines TransUnion’s big data universe with our own artificial intelligence and smart logic algorithms. It enables you to continually monitor, detect, act on, and prevent critical risks, both internally and externally.
The Corporate Insights system will allow you to protect your business from succumbing to the typical pitfalls that lead to corruption. It also comes with a host of additional benefits to ensure your company continues to operate optimally, free of the threat of corruption.
Click here to book a demonstration or call us today to find out how you can transform your business.