Smart Financial Oversight under Vision 2030: From Ex-Post Auditing to Risk-Based and Data-Driven Proactive Governance
Introduction

In the modern era, financial oversight is no longer a traditional function limited to reviewing accounts after expenditures have been made. Instead, it has evolved into an integrated strategic system that contributes to guiding public decision-making, optimizing resources, and enhancing financial sustainability. In the context of the major transformations taking place in the Kingdom of Saudi Arabia under Vision 2030, developing smart oversight models has become an institutional necessity rather than a mere regulatory option.

The ambitious economic transformation, expanding investment spending, and growing public-private partnerships all demand the establishment of an oversight system capable of predicting risks before they occur, measuring impact during implementation, and correcting course in real time.

1. The Limitations of Traditional Oversight and Reasons for Its Obsolescence

Traditional oversight largely relies on ex-post auditing, which involves reviewing financial operations after execution. While it is important for detecting irregularities and promoting accountability, it suffers from three main limitations:

Reactive rather than preventive: It detects errors after they occur.

Focus on compliance over efficiency: It emphasizes procedural correctness more than the effectiveness of outcomes.

Disconnection from performance systems: It does not link spending levels to the actual developmental impact achieved.

Given the rapid pace of developmental spending and the multiplicity of programs and initiatives, this model is no longer sufficient to ensure maximum added value from public funds.

2. Risk-Based Audit

This model represents a qualitative shift in oversight thinking. Rather than distributing oversight efforts uniformly, it targets activities and sectors most exposed to financial or operational risks.

Key features include:

Analyzing the probability and impact of risks.

Classifying entities or projects according to their risk level.

Allocating oversight resources based on priority.

Continuously updating the risk map.

In the Saudi context, this model can support oversight of:

Large-scale projects with substantial budgets.

Long-term investment partnerships.

Government support and subsidy programs.

Risk-based oversight does not wait for failures to occur; it seeks to reduce their likelihood through proactive monitoring.

3. Data-Driven Smart Oversight

With the digital transformation in government institutions, data has become a strategic resource on par with financial resources.

Modern smart oversight relies on:

Big Data analytics to detect abnormal patterns.

Artificial intelligence to predict irregularities or deviations.

Early warning systems that activate immediately upon detecting financial anomalies.

Real-time dashboards that link expenditures to performance and strategic indicators.

This transformation enables oversight bodies to shift from:

Limited sample reviews
to
Comprehensive, real-time audits of all operations.
Saeed Al-Shahrani