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Procurement Risk Identification and Savings Management (PRISM)
See it in Action
The App helps auditors to spot
risky procurements
Preventive measures
Checking risky procurements preemptively to make corrective action in due time
Automatic red flags identification
Focusing the attention of auditors on riskiest procurements
planned procurements
savings, $
The Financial Impact of Procurement Fraud
Key Findings
from the ACFE Report to the Nations 2022
Annual Revenue Loss
organizations lose an estimated
5%
of their annual
revenues to fraud
Corruption Schemes *
are prevalent in procurement with median loss per case
$133,000
Anti-Fraud Controls
*bribery, kickbacks and other forms of influence-peddling
the presence of anti-fraud controls can reduce by
47%
the median loss
per case
Without Red Flags Management
Time-consuming manual analysis
Fragmented data sources
Reactive approach
With Red Flags Management
Large volumes of procurement data make it challenging to identify red flags manually.
Procurement data stored across various internal and external systems and it can be challenging to consolidate and analyze it.
Organizations often focus on dealing with the consequences of procurement issues rather than proactively addressing red flags.
Efficient, automated analysis
Advanced analytics
AI-driven analytics enables rapid detection of red flags through auto-matic analysis of vast amounts of data.
Leverage data-driven insights to identify patterns and trends associated with procurement fraud and corruption.
Consolidated data
Proactive approach
Unified data management facilitates easier analysis and identification of red flags and comprehensive monitoring of the procurement process across stakeholders.
Focus on early detection and mitigation of red flags, promoting timely corrective actions and improved compliance.
How We Make a Difference
Results Delivered
by Red Flags Management
Experience the Impact of Our Award-winning Solution
Extensive Data Analysis
Annually, Red Flags Management analyzes procurement data worth
22 billion USD
enabling comprehensive risk
assessment and oversight
Significant Savings
Our customers
have collectively saved
86 million USD
by utilizing Red Flags Management to identify and mitigate procurement risks
How It Works

Procurement Red Flags Management solution works by leveraging data analytics, business intelligence, and artificial intelligence (AI) to streamline the identification and evaluation of risky procurements. Here's an overview of how it works:

  • Data Collection and Integration
    The system efficiently gathers and consolidates data from multiple sources to enhance the detection of procurement fraud and corruption. Key sources include:

    Internal ERP systems. Seamless integration with your organization's ERP system ensures access to crucial procurement data, such as contracts, purchase orders, and supplier information.
    External data sources. The solution connects with external platforms like e-Bidding and public procurement databases, providing a comprehensive view of material pricing and trends.
    Supplier data: Red Flags Management can be integrated with data providers like LexisNexis or Dun & Bradstreet to collect and analyzes supplier performance data, financial information, and other relevant metrics to identify potential risks and assess supplier reliability.
  • Data processing and normalization
    The collected data is cleaned, structured, and normalized to ensure consistency and accuracy, enabling effective analysis and comparison.
  • Red flag identification
    The solution employs advanced algorithms and AI techniques to automatically identify red flags in procurement processes. These red flags could indicate potential fraud, corruption, or inefficiencies in the process. Examples of red flags include overpricing, single-source contracts, unusual bid patterns, conflicts of interest, unusually high or low bids, change orders or contract amendments
  • Risk scoring and prioritization
    The system calculates risk scores for each procurement based on the identified red flags, taking into account factors such as the value of the contract, the complexity of the procurement, and the potential impact of the risk. This risk scoring enables the prioritization of procurements for further investigation or audit
  • Focusing the attention of auditors
    on the riskiest procurements. Automatic red flags identification enables auditors to prioritize their efforts on high-risk procurements, ensuring that resources are allocated efficiently and high-priority cases receive the necessary attention. Identifying and addressing high-risk procurements proactively enables organizations to mitigate potential financial, legal, and reputational risks associated with procurement fraud and corruption
  • Corrective actions recommendation
    Based on the red flags detected, the system can generate prescription documents based on Word templates. These documents provide procuring entities and stakeholders with suggested corrective actions to address identified red flags. This help to save time and effort while ensuring that stakeholders receive timely and accurate information about identified red flags and recommended corrective actions
  • Outcome Tracking
    The system enables organizations to assign responsible users for handling identified red flags, track the status of their resolution, mark red flags as false positives if necessary, and monitor outcomes for future savings reporting. These features improve accountability, communication, and overall management of the procurement oversight process
  • Reporting and visualization
    The solution provides user-friendly dashboards, reports, and visualizations to help auditors and procurement professionals easily review and analyze the identified risks, prioritize actions, and track progress
Case studies
Resources
Using Big Data for Detecting Economic and Corruption Crimes by Vitaliy Trenkenshu
Join Vitaliy Trenkenshu, Chief Executive Officer of redflags.ai and Enterprise Big Data Framework Alliance Ambassador, as he delves into the challenges and innovations in detecting economic and corruption crimes using big data.
How Active Intelligence approach helps to save taxpayers’ money
Governmental auditors of Kazakhstan are equipped with a powerful award-winning tool that boosts their efficiency and helps them prevent losses in procuring entities from purchasing overpriced products, saving taxpayers money. As a result, over US$ 86 million of taxpayer's money has been saved in 2021
OCP Red flags global webinar
Open Contracting Partnership red flags global webinar worked through the methodology and how to use the indicators to detect suspicious behaviour. Joining up theory with practice, you get to hear from our partners who are successfully using these methodologies in the field. We hope to provide actionable and approachable steps that practitioners from across the globe, from researchers to procurement agencies to fellow data dorks, can take to begin analyzing their procurement data through the lens of integrity
Awards
Begin Your Journey with Our Solution
The certified professionals at redflags.ai are here to assist you with tailored solutions that cater to your unique requirements. Let us help you with:
  • Custom Data Sources
    Seamlessly integrate and upload data from your organization's ERP, e-Bidding and other enterprise data sources to enrich your procurement analysis
    01
  • Unique Set of Risk Indicators and Red Flags
    Customized set of risk indicators and red flags, tailored to address the specific challenges and risks in your organization's procurement processes. This bespoke approach allows for more accurate and relevant risk identification and mitigation
    02
  • Tailored Reports
    Receive reports that cater to your specific requirements, forms, or templates, ensuring insights are aligned with your organization's objectives
    03
  • Interactive Dashboards
    Enhance your data visualization experience with custom interactive dashboards based on your preferred layouts or slides
    04
  • Custom Alerts and Notifications
    Configure custom alerts and notifications to focus on your organization's specific risk areas and priorities, ensuring that your team stays informed and ready to act on critical issues
    05
See the advantages of using our platform for your procurement
See our award-winning solutions in Action
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