Risk Analysis/Selection

Description

With the current level of non-compliance, a revenue authority rarely has the resources to perform all the compliance work it would like to. Therefore it is becoming increasingly important for these authorities to focus their compliance effort. The ESKORT Risk Analysis/Selection System supports this goal.

Prior to making the final selection of candidates for some form of compliance action (typically audit), all potential traders/taxpayers are subjected to risk analysis with a view to determining the potential non-compliance risk (both current and future) represented by the trader/taxpayer. This non-compliance risk is generated in the form of a configurable number of risk profiles, each of which reflects a different aspect of risk, e.g. potential deficiency, potential collectability, expected cost of audit. The traders/taxpayers are then ranked within each of the risk profiles, and thereafter the actual selection of candidates for audit is made in accordance with current operational policy, e.g. which aspect of risk is important at the particular time, which business sectors are in focus, which business types (sole trader, multi-national corporation) are in focus etc. The selection step is supported by a powerful data browsing tool which both enables the user to incorporate supplementary information about the trader/taxpayer (e.g. from a data warehouse) into his/her decision process and then to generate an audit case entry in a case
management system.

Benefits

The key benefits of the ESKORT Risk Analysis/Selection System include:

  • exceptional configurability - which amongst other things enables the system to:
    • analyze risk in a multitude of different dimensions concurrently, providing the user with a variety of risk perspectives from which to make final selection;
    • handle complex, multi-dimensional data sets with, amongst other things, a complex periodic structure;
  • the user has great flexibility in determining which groups of traders/taxpayers to analyze (i.e. in determining the batches for risk analysis), when (the system can be set up to run at particular intervals of time or on an ad-hoc basis) and how (which knowledge set to apply to the analysis of the data);
  • high throughput of processing, being optional available in a multi-processing version;
  • increased organisational efficiency and efficacy in that limited resources are only allocated to cases where they can potentially deliver the maximum benefit in relation the ruling compliance policy and by ensuring that the auditor has the necessary information and guidance to conduct the audit;
  • separates the risk analysis step from the selection step enabling a customer to determine whether selection should be automatic based on pre-determined thresholds for the different risk dimensions or user directed, where the user can factor additional elements into the actual selection, such as policy and operational considerations and ancillary non-structured information;
  • can be integrated with a variety of work-flow or case management systems, enabling the automatic establishment of selected cases in these systems.

For more information please contact us or download the attached Fact Sheet below.

ESKORT Risk Analysis & Selection 2012
ESKORT Risk Analysis & Selection 2012 282 KB