DEFINITION
Risk Analytics
Risk analytics is the application of analytical tests to enterprise transaction and master data in order to identify fraud, error, leakage, and control failure. It differs from business intelligence in purpose: it looks for exceptions rather than reporting performance.
A business intelligence dashboard answers what happened. Risk analytics answers what should not have happened, which requires encoding a control expectation and testing the population against it.
The practical consequence is that risk analytics output is a population of exceptions requiring investigation, not a metric. Its value depends on the exceptions being both accurate and explainable enough to act on.