Continuous Compliance using Calculated Event Log Layers

TL;DR

This paper introduces a process mining model that leverages calculated event log layers to enable real-time, continuous compliance monitoring and management, improving responsiveness and risk visibility.

Contribution

It presents a novel approach using calculated event log layers for continuous compliance, integrating real-time data analysis into compliance management processes.

Findings

Real-time compliance risk detection is feasible with calculated event logs.

The model enables prompt feedback and preventive actions for compliance officers.

Case study demonstrates practical application in Trade Compliance.

Abstract

Compliance has traditionally been a reactive activity, where directives and guidelines have been formally documented and, to a large extent, been assumed to be followed. This traditional approach does not always work, and failure to be compliant has various consequences for many companies, ranging from penalties and fines to lockout of business opportunities and markets. Continuous compliance using calculated event log layers brings compliance into a continuous mode, where risk vectors become visible in real-time data and actions are taken continuously and proficiently. Our model of process mining utilizes calculated events to implement this continuous form of compliance management. Continuous compliance refers to observing possible compliance violations and also includes the ability to provide real-time and prompt feedback to the responsible Compliance officers who will take the preventive actions in parallel. Continuous compliance is also explored from the viewpoint of Trade Compliance with a case study.