1. Mission Risk & Internal Control The New Normal
November 18, 2015
Derek Davison
Tashu Trivedi

2. Introductions Tashu Trivedi, President and CEO, TFC Consulting, Inc.
Over 23 years of Federal audit and financial management experience
Former KPMG senior audit manager
Extensive knowledge of OMB and GAO internal control requirements
Chair of AGA’s CPAG Small Business Committee
Derek Davison, Owner, DLD Consulting, Inc.
15 years of Federal and commercial financial modeling and risk analytics experience
Modeled and analyzed over $2.5 Trillion in Federal assets and guarantees
Regularly works in highly scrutinized environments
Former Director of Development of FI Consulting

3. Session Objectives
Discuss overall trends in risk management & internal control
Demonstrate and improve awareness of analysis techniques
Demonstrate tools and data that could become part of the solution

4. Current Trends in Internal Control
Shift from financial risk to mission risk
Emphasis on ERM approach
More emphasis on fraud, waste, and abuse
More data analytics and continuous monitoring required
Democratization of data
Downward budget pressures (Do more with less)

5. Overall Movement Towards Mission Risk
COSO
1992: Internal Control–Integrated Framework
Leading internal controls framework
Periodically updated (most recently in 2013)
(Likely) OMB A-123 Revisions
Based on COSO and the UK Orange Book
Require ERM approach
Emphasize portfolio of risks that effect mission not just financial risk
State and Local Governments
Many state and local governments have already adopted COSO or implemented similar ERM solutions

6. What is Mission Risk?
Financial Risk
Credit Risk
Operations Risk
Reputation Risk
Cyber Security Risk
Privacy Risk
Fraud, Waste, Abuse Risk
Program Risk
Market Risk
Technology Risk
Disaster Risk
All Other Risks
Consists of all risks, both positive or negative, that effects the ability of an entity to achieve its objectives.
Should be viewed as a portfolio of risks
Better understand interconnectedness between risks

7. COSO Framework Control Environment Risk Assessment Control Activities
Information & Communication
Monitoring Activities

8. Analytical Techniques
Continuous Monitoring/Dashboards
Heat Maps
Geospatial & Multiple Data Forms
Time Maps
Network Visualizations
Sentiment Analysis

9. Analysis Tools MS Excel 2013 R Software R Studio Google MyMaps
Analytics and data capabilities significantly enhanced
PowerMaps
R Software
Open source software environment for statistical computing and graphics
Thousands of free analytical and data visualization packages
R Studio
Open source Integrated Development Environment (IDE)
Makes it easy to develop, share, and scale R projects
Google MyMaps
Open source custom google maps

10. Analysis Data Data.gov Open Baltimore
Goal is to improve public access to high value, machine readable public datasets
188,952 distinct datasets
Many apps use this data
Open Baltimore
Goal is to provide the public access to city data in an effort that supports transparency, openness, and innovation.
110 distinct datasets

11. Open Source Software
Widely used software made available with a public license
Often developed in a collaborative public manner
Same security concerns as proprietary software
18F - Analytical use in Federal Government

12. Open Source Software

13. What is Continuous Monitoring?
There is no standard definition of Continuous Controls Monitoring; The following includes the common themes among the definitions… “Continuous controls monitoring is a set of technologies and processes to detect risk and compliance issues through continuous monitoring and reduce the cost of audits through continuous auditing of the controls in financial and other transactional applications.”
Dashboards!

14. What is Continuous Monitoring?

15. What is Continuous Monitoring?

16. What is Continuous Monitoring?

17. What are Heat Maps?
A heat map is a graphical representation of data where the individual values are represented as colors.
Quickly Analyze Data
Facilitates Communication
Risk Analysis
Continuous Monitoring
Others?

18. What is Geospatial Analysis?
MAPS! MAPS! MAPS!
Tabular geospatial data typically has no meaning
Plotting on a map can yield valuable insights

19. What are Time Maps?
Data visualizations that allows the analysis of discrete events

20. What are Time Maps? Credit Card Data Transactional Data Timesheet Data
Badging Data
IP Data
Access Data
Social Media Data
Program Data
Others?

21. What are Network Visualizations?
A network is any collection of items in which pairs of these items are connected in some manner. Homophily (pronounced HOME-ah-filly) is the propensity of network members to select connections with other members who have similar characteristics
Program Data
Vendor Data
IP Data
People Relationships

22. What is Sentiment Analysis?
Sentiment analysis (also known as opinion mining) refers to the use of natural language processing, text analysis and computational linguistics to identify and extract subjective information in source materials.

23. Session Objectives - Wrapup
Discuss overall trends in internal controls
Demonstrate and improve awareness of analysis techniques
Demonstrate tools and data that could become part of the solution

24. Questions

25. Useful Links Presentation Data and Tools
Search over 185,000 data.gov datasets:
Search data.gov apps:
Open Baltimore datasets:
Download R Software:
Download R Studio:
Take Free Online R Training:
Open custom google maps:
Quickly search GSA rates across multiple firms, schedules, and labor categories. 18F GSA Calc Tool:
Continuous Monitoring Examples
Real-time statistics and visualizations on popular R package downloads:
Real-time statistics on Federal website usage:
Heat, Geospatial, and Time Map Examples
Treasury’s Financial Stability Monitor:
Baltimore towing (all towing, holiday towing, stolen-car towing:
Baltimore Murals (includes photos):
Time maps of Baltimore towing company behavior:
Network Visualizations and Cluster Analysis Examples
Network Visualizations of Baltimore City Agencies and Vendors:
Sentiment Analysis and Text Mining Examples
Government Fraud, Waste, and Abuse News Story search and analysis: