Watson for FSS Risk and Compliance_EXTERNAL

Watson for FSS Risk and Compliance_EXTERNAL

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  Watson for Banking Risk& Compliance © 2015 International Business Machines Corporation
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  Growing risk &compliance regulations have put increasing stress on the Financial Services Sector • Fragmented & conflicting regulatory environments The world’s most prominent banks operate globally and within several lines of business, requiring the institutions to comply with multiple regulatory bodies 2 • Fragmented solutions provider landscape has caused inefficient industry response Current solutions in the marketplace focus on a niche market, i.e. customer on-boarding and not continued counterparty risk assessments • Fragmented and inefficient industry response Financial institutions have yet to develop an effective and efficient approach to compliance activities. Today, industry spend on compliance averages at 10% of operating expenses. © 2015 International Business Machines Corporation
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  3 The Cognitive FinancialSolution “Cognitive Business” is IBM’s strategy and point of view on how the world will change with systems that can now understand, reason, and learn. Applying this strategy to the Risk and Compliance space creates value across the enterprise. Automate Activities Employ Watson to reduce the manual effort required for risk and compliance by leveraging unstructured data extraction and analysis and shift focus of employees back to high-value add activities. Evidence Decisions Utilize Watson to provide full evidence trail for data leveraged and logic employed to make decisions and track decision making to identify and scale best practices. Simplify the Environment Use Watson to manage by exception – identify and map core regulatory requirements. Leverage supplementary management-level dashboards that summarize issues and prioritize remediation. Understand Reason LearnWatson will to further… © 2015 International Business Machines Corporation
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  4 Create a holisticregulatory environment and provide an enterprise-wide view into compliance. Watson is being used to parse regulations into obligations, map obligations to the internal regulatory framework, and test the controls of the environment. Reduce the manual effort involved in its customer on- boarding and monitoring processes. Watson is being used to crawl external and proprietary sources, pre- populate KYC records, and provide alerts for adverse media related to clients. REGULATORY CHANGE MANAGEMENT KNOW YOUR CUSTOMER © 2015 International Business Machines Corporation OPERATIONAL RISK Understand and analyze the operational risks that are present within the bank. Watson is being used to provide audit and findings analysis, visualize risk across the enterprise, and assist in activity compliance. Watson for Financial Services Risk & Compliance