False Positives/False Negatives

False positives and false negatives are terms used to describe errors in compliance monitoring systems. A false positive occurs when an alert is flagged but is ultimately harmless, while a false negative is when a potential issue goes undetected. Both types of errors can impact the efficiency and effectiveness of compliance efforts.

Balancing false positives and negatives is key to optimizing compliance processes, ensuring real risks are flagged without overwhelming teams with inaccurate alerts.