n the abstract, a rare event is merely a low-likelihood occurrence. In the real world, that dry coinage can translate into significant disruption and far-reaching consequences. A rare event could take the form of a large-scale calamity — a deadly storm, an epidemic, a financial crisis. For a business, the rare event might be a cyber-attack or a significant instance of employee fraud. Alternatively, it could be a product flaw that surfaces in the marketplace, threatening operations, profits, and brand. Even a subcontractor’s misdeeds could create new compliance risks for the organization and others in the supply chain.
Using forensic analytics, some businesses are making breakthroughs against the rare events perpetrated by bad actors, slipshod operations, and regulatory peril. Forensic analytics combines advanced analytics with forensic accounting and investigative techniques to identify potential rare events of consequence — needles in the massive haystacks of data and information that can signal trouble in the making. Enabled by advances in computing power and data management, forensic analytics is a critical capability in the future of investigations.
