Risk & Compliance How Analytics Developers Can Game Model Results

Data Modeling
Nov122018

“There are three kinds of lies: lies, damned lies, and statistics” – Attributed to Benjamin Disraeli, British PM (1874-1880) In assessing the predictive value of new scores or new data, significant weight is given to model performance measures.  Examples of these measures — which quantify the effectiveness of a predictive model in distinguishing between the outcomes being predicted — include the Gini coefficient, KS (Kolmogorov-Smirnoff statistic), and ROC Area. These measures are appealing because they allow a straightforward means of comparing the relative effectiveness of two or more models.  Think of them as scoring the scores — the score or data with the highest “score” looks like the best one to buy or use. Score and data vendors often structure their validations in a way that produces a more compelling case for their product. And sometimes their efforts fall into the grey area of gaming — producing misleading results by tweaking... [Read More]

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Risk & Compliance Procure-To-Pay Analytics Make It Easy to Be Correct

Procure-To-Pay Analytics
Oct312018

I recently attended the Society for Collegiate Travel & Expense Management (SCTEM) 2018 Annual Conference.  The conference had over 200 professionals who were sharing new ideas and recent successes.  One of the benefits of working with universities is their emphasis on collaboration.  Sharing ideas and best practices is strongly ingrained in their philosophy. At the conference, I listened to many challenges as well as successful approaches that improved their outcomes.  From these sessions, it was clear to me that the best way to enhance compliance and outcomes is to make the correct procure-to-pay path the one which is easiest to use for both your customers (employees) and suppliers.  If you can make following your processes and using your tools the easiest way to accomplish what they need, then compliance will increase, and risk and costs will decrease. Procure-To-Pay Analytics – Why don’t people follow the rules? While there is always the... [Read More]

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