A Signal Theory Model for Continuous Monitoring and Intelligence Systems

Abstract

Continuous monitoring and intelligence systems analyze data and text from various sources and use that information to monitor risk, controls, reputations, companies, people, opportunities, competition, and other concerns. We summarize some of the previous literature for such systems and the capabilities of existing continuous monitoring systems. Unfortunately, there has been limited theoretical development for such systems. We view the monitored information sources as providing information signals relating to events, activities, issues, etc. Systems must choose which information sources to monitor and gather information from. Unfortunately, choice of such source systems is not a straightforward problem, but must account for time, cost, redundancy, reliability, relevance, information asymmetries, weak signals, and other issues. Further, analytics must be generated to monitor signals created from the information sources to gather the information needed for the system. Accordingly, this paper generates and applies a signal theory model to address these issues. This allows us to elicit several issues of potential importance associated with the design and implementation of such systems.

Keywords: signal theory, continuous monitoring, continuous auditing, continuous intelligence

JEL Classification: m42, m15