Rather than continue with manual data analytic procedures, Kraft Heinz internal audit engaged EY to implement a new tool to not only digitalize the existing data analytics onto a global platform but to lay the foundation for more advanced risk analytics, such as predictive abilities to be built in future phases.

Real-time risk analytics powered by transactional data

Previously, the efforts to produce the data risk analytics involved manual efforts (executed by a separate team for data extraction, data analysis, and data visualization) that needed to be performed during each internal audit review. In addition, risk analytics had to be re-run on an ad-hoc basis. This made for an inconsistent process. For example, one audit team might use certain risk indicators, but a different team would use other indicators for the same audit. The results would then be handed off to the auditors who leveraged them to identify outliers and samples to select.

By building Risk Navigator, powered by SAP, directly onto Kraft’s two major SAP ERP system instances, the EY and KH’s Internal Audit team was able to create and automate a more comprehensive and reliable analysis of risk using technology to pull incomplete datasets and analyze the entire business process real-time.

Continuous monitoring to determine the root cause of underperformance

The risk analytics solution was developed with an enterprise-wide mindset so it would be beneficial not only for the KH GIA team but could also be accessed by process and risk owners to regularly monitor risks.

The solution included the implementation of 75 key risk indicators (KRIs) across core business processes and delivered an interactive visualization dashboard that enabled easy monitoring of those indicators. These indicators not only flag breakdowns in process, but also identify where breakdowns repeatedly occur.  The solution provides summarized KRIs, visualization of the results, plus drill-down capabilities that give the KH GIA team better understanding and provides the detailed information the business needs to more effectively monitor the processes.

“The implementation of the Risk Navigator analytics tool at Kraft Heinz is going to enhance our control environment as we operationalize continuous and proactive risk monitoring into the first and second line of defense,” says Vince Garlati, Global Corporate Controller, Kraft Heinz. “We are partnering with internal audit and cross-functional teams within the business to expand our ability to leverage Risk Navigator as it supports our ongoing evaluation of the internal control environment and responds with real-time insights and actions.”

Smart cloud integration allows data insights to be used across the organization

Once Risk Navigator was in place, internal audit set out to train the management team on how to best incorporate the tool’s insights into their business strategy. Smart Data Integration (SDI) enables a seamless connection between back-end systems and the cloud. This means managers can access insights from the tool.

“The implementation of Risk Navigator at Kraft Heinz is a very good example of bringing to life our “digital decisioning” aspiration,” says Corrado Azzarita, Global CIO, Kraft Heinz. “I firmly believe that data-driven decision making can become a reality in several business domains, improving both efficiency and effectiveness. In this case Risk Navigator will help us mitigate risk and improve controls and processes. Risk Navigator effectively implements real-time monitoring of key risk indicators, which will allow process owners and risk owners to proactively look after the areas they are accountable for. ‘Continuous risk monitoring’ is now a reality and will be the best practice going forward.” 

And while the Risk Navigator solution’s initial focus is driving the transformation of Internal Audit, it also provides insights to the business and other compliance functions to transform their process for monitoring and testing risk and controls.

“Risk Navigator serves as a prime example of digital transformation in alignment with our aspiration of becoming a more data-driven, insights-led company,” says Dan Vierneisel, Head of Global Business Services, Kraft Heinz. “By reducing the time required to gather, assess and detect control weaknesses, we deliver capacity for humans to focus more attention on remediating process deficiencies in order to mitigate and prevent recurrence from repeating in the future. By expanding the sample size to include the entire population of data, we ensure a more robust and comprehensive control environment. By automating the process, we gain real-time visibility of potential risks before issues become material. EY Risk Navigator provides the answer to the question before an audit occurs, thereby eliminating surprises whilst ensuring a continuous control monitoring framework.”

By creating a stronger system to monitor risks, EY and Kraft Heinz gave the business the ability to continually track results, harness insight, and make a change for the now, next, and beyond. Since the implementation of Risk Navigator, Kraft Heinz has also gained efficiencies in executing the internal audit work, while providing greater risk insights and value. In addition, the internal audit team now monitors the KRIs on a regular basis and provides feedback to process and risk owners on areas that require their attention.