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Competitive and regulatory drivers including BSA, Patriot Act,
Basel II and Sarbanes-Oxley have increased pressure on executives to understand and manage
risks more effectively. Top level executive mandates include:
- Protect corporate reputation and brand integrity
- Meet current and future regulatory requirements
- Provide visibility into possible risks and limit actual losses
- Achieve a fast response and recovery from actual negative events
- Maintain / improve customer satisfaction
- Increase quality and productivity of risk management processes
But, satisfying these mandates presents three core challenges to risk and compliance officers:
- Detecting risks is not sufficient; how will you manage and respond to them?
- In the face of changing regulations and cross-departmental systems, how will you govern the process?
- With so many point solutions, how will you justify the redundant investment and effort to deliver each one?
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Responding to anti-money laundering or fraud alerts is a “compositing”
problem that requires integration across multiple sources of information such as: structured and unstructured data;
investigation tools; workflow models; business rules; auditing systems; and dashboards. The frame of reference is
not just data entry in a workflow, but rather integration and investigation. This frame of reference is important
for two reasons:
- Investigation is essential to manage risk.
Traditional case management tools focus on workflow. Instead of considering alerts as “work items to be processed”,
leading financial institutions are treating them as “threats to be investigated”.
- Rapid integration makes investigation practical.
Integrated data is required in order to perform effective investigations, but from an information technology standpoint,
most integration projects take months. This makes it impractical to integrate all the required data for each type of case
(AML, multiple fraud, corporate security, broker surveillance and related functions).
The requirements are common across functional areas:
“Companies that select individual solutions for
each regulatory challenge they face will spend 10 times more on IT portion of compliance projects
than companies that take on a proactive and more integrated approach.” -Gartner
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| The Solution |
Digital Harbor leverages financial institutions’ investments in point solutions that detect possible risks, with holistic solutions to help investigate,
manage and respond.
The solution includes integration of all related data, documents, images, email and web-based
content, and it provides case management and investigation, forensics, regulatory reporting and
monitoring dashboards.
The purpose of the solution is to more effectively and efficiently manage risks by seamlessly
linking real-time information from many places into a single, contextual view that can be shared
and acted upon. Digital Harbor solves the problem uniquely because our technology was built to
respond to alerts by: investigating across multiple sources; composing a case; taking action;
and it leverages best practices from defense intelligence organizations, financial institutions, examiners and thought leaders such as IBM.
- Dashboarding (monitor risks)
- Work queues for activity monitoring (operational)
- Compliance scorecards (tactical)
- Key risk indicators (strategic)
- Investigation and case management (understand risks)
- Deliver all information on one screen
- Achieve efficiencies by replacing manual steps with automated steps
- Implement controls by automating process and collaboration
- Manage regulatory pressure with effective investigations
- Comply with auditing requirements
- Regulatory reporting and action (respond to risks)
- SAR filing
- Enforcement action
- Tune detection software
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| The Benefits |
The top-level benefits of a composite approach to case management for risk and compliance include:
- Efficiency
Achieve deeper risk coverage with the same resources and reduce the cycle time to process the alert queue by fifty percent
- Effectiveness
Rreduce risk of fines and reputational damage by investigating to eliminate false positives and negatives
- Governance & Controls
Process fragmentation enables the opportunity to control deficiencies
- Performance Management
Uunderstanding risk and compliance performance requires a composite picture
- Organizational Utilization
Enable the same people to accomplish more tasks in less time through efficient management of their workload
- Total Cost of Ownership (TCO)
Eliminate redundant effort and redundant data by maintaining logical mappings rather than physcial data replication and synchronization
- Convergence
Leverage the same data and functionality across silos to improve overall efficiency and effectiveness
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