Connect with Us

About Us

The Decision Factor offers insightful comments and observations on analytics—from views on new technology approaches and market dynamics to the latest industry trends driving demand for faster, smarter information analysis. This blog contains personal views, thoughts, and opinions from SAP employees, mentors, and friends working in the area of analytics. It’s not endorsed by SAP nor does it constitute an official communication of SAP.

Archives

Everything I Know About Key Risk Indicators I Learned in Middle School

Firefighters on the Job

A number of years ago, while living near Houston, Texas and working for a major oil company as an audit director, I joined the local volunteer fire department in my community.

As a new member, I was assigned the task of carrying out a fire inspection at our local middle school. I was part of a team that included more highly-trained fellow volunteers.

Auditing Fire Risks

Being an experienced auditor, I was certain I was up to the task. I knew all about controls and I thought that knowledge would come in handy. My plans were to meet up …

Does It Matter if a Control is Preventive or Detective?

The traditional answer is an emphatic “Yes!”

But times, they are a-changing.

Until now, detective controls have been based on a review of reports at the end of the day, week, month, etc. They are designed to detect errors that slipped past any controls earlier in the process. Detective controls are often, but not always, cheaper to operate; but the risk is higher that an error (deliberate or otherwise) may not be prevented and its detection may be too late to prevent a loss. Often, a combination of preventive and detective controls is desired, simply because preventive controls are rarely …