Please enable JavaScript.

Coggle requires JavaScript to display documents.

Thesis: Taking an enterprise (Data knows no boundaries, so risk can no…

- - - - Risk groups have data knowledge, resources and capabilities that could greatly benefit other business units. Because of data Risk today is measurable, and as such can be assessed, evaluated and weighed against benefits to make more informed decisions to meet risk appetite.
        
        Consolidated view of balance sheets for risk-return optimization
        Easier to identify gaps, create greater efficiencies, and a more standardized approach
        
        Risk data and analytics can be integrated with other groups to enhance decision making.
        
        Risk-as-a-Service – Share these insights with clients
    - - Access to the data from other groups enhances risk analytics, enables greater insights, more accurate predictions, and gives a broader view of clients.
        Each of the primary risk functions serves to benefit.
        
        Credit
        
        More complete picture of client relationships
        
        Use industry and market research to anticipate loan requests based on borrower industries
        
        More thorough KYC and underwriting
        
        Market
        
        More factors to use to identify correlations when caluclating asset trend and volatility risk
        
        Operational
        
        Process optimization leads to automation which reduces human error and fraud associated with manual work
        
        Trend modelling can identify upcoming surges in unusual activity that Operational Risk/IT teams can use to predict potential system failures and address the problem before catastrophe,
        
        Liquidity/Compliance
        
        Enhanced Trade surveillance, fraud, insider trading, frontrunning, etc. by analyzing internal data and communication monitoring against external market data and news
  - - - Easier communication between data sources through APIs, ETL is vastly improved, greater capabilities to store, access and compute big data – enables a superior data modelling, empowers data scientists of all groups, gets more out of the data being collected. Automation reduces human risk, easier to implement and enforce controls and governance, and improves transparency and data lineage and tracking
      - Realtime Credit Scoring. Don’t wait a year to evaluate counterparty risk. Additional data can help score counterparty credit risk based on industry trends, current events, news, relationships within your network, etc.
      - High Functioning KYC w/ greater automation and accuracy, better customer serice, more robust governance and account maintenance, and a greater pool of data to access for heightened client Insight
      - Fundamentally more transparent, enables greater data control by creating centralized access points – critical to data model accuracy
      - Enhanced data model management
        Whether through microservices, apis, etc, digital architecture gives data models more flexibility and transportability for quicker testing, modifications, and code reuse
  - - - Artificial Intelligence
        
        AI/DS/ML to adapt to AML and counterterrorism
        
        NLG/NLP/ML to process unstructured documents for storage, interpret their intent, and input controls. Removes human risk, digitizes documentation for recall, and improves documentation rpocessing throughput
      - Portals and Front-ends
        
        Client facing means better customer service that also collects client data for additional risk analytics
        
        Data visualization harnasses big data to be more easily interpreted
        
        Create a central access point for data where it can be manipulated without impacting the source
      - Blockchain
        
        Trade Finance
        
        Mortgage Lending (reduce fraud)
        
        Global Payments better management of counterparty credit risk fthrough verification and reduces impact of FX volatility
        
        KYC
        
        Margin Call (reduces credit and liquidity risk)