January 3, 2012

Compliance must be regulation-driven and risk based. A smart sense of objectivity is needed in designing and implementing the risk formulas to ensure the process looks back to prevent recurrences of known problems as well as it is forward looking to prevent and detect unknown and undesired possibilities. Alerts generated by such regulation-driven and risk-based detection models are a powerful tool in the hands of compliance analysts with the desire and know-how to effectively perform the work.

Evolving business or compliance requirements often necessitate urgent or unique adjustments or enhancements of compliance monitoring system scenarios or detection models. Usually, these types of changes are not quickly delivered as part of normal product release cycle. Custom scenario development expertise helps you "bridge the gap" when your needs cannot be met by your solution's scenario/model tuning capabilities or through planned product enhancements. In order to develop an efficient detection model that satisfies the underlying criteria and regulations one has to consider several factors.

Risk Assessment: Your initial implementation of a compliance or risk monitoring system may have been limited in scope due to three key drivers: data, deadline, and dollars. Now, you may need to introduce additional products, lines of business, geographies, etc., into the system for monitoring. The key is deep understanding of the data and business issues, as well as risk drivers that can help with your assessment and prioritization of new products, accounts, or lines of business to be monitored by the solution. You must weigh the business imperatives and risks against data quality and acquisition challenges, so you can make more informed and supportable decisions.

Pattern Discovery and Scenario Development: You have to use state of the art data mining and behavior detection tools to better understand, organize, manage and explore corporate data. After finding patterns occurring in the data, you develop a variety of analytical models that generate useful alerts. It is always a challenge to discover new or emerging patterns which may be "hidden" in your data, and to align them with your regulatory compliance monitoring with changing business requirements.

Delivered documented analytical models must be driven by business needs. When necessary, they may need to be converted into business logic components that can be embedded into your existing information technology systems. In this way, knowledge discovered from the data is directly incorporated into the existing technology resources to satisfy your business objectives.

Exprentis offers the Rapid Response Custom Scenario Service which includes both the Pattern Discovery and Scenario/Model Development phase and Risk Assessment phase. Read more how this type of service can help to fill your needs.