As the compliance field evolves, auditors should take heed of the power of data analytics and predictive models. The area of program evaluation is one that is ripe for opportunity to apply such techniques for both assessing compliance effectiveness and for nudging employee behavior toward supporting an ethical workplace. But keep in mind predictive models yield benefits only if appropriately acted upon.
Behavioral science provides a powerful set of tools for acting on data analytic indications when behavior change is the order of the day. Specifically, “behavioral economics” combines elements from economics and psychology to understand human behavior—even when it’s irrational.
