Risk management for risky times

ohad.samet@klarna.com

http://fraudbackstage.blogspot.com

@ohadsamet

RISK MANAGEMENT FOR RISKY TIMES

ABOUT

The Challenge

Solutions That W

orkThe M

arket

1. Who’s Out There?

2. The Payments Market Beyond eCommerce

3. Disruption, the Next Generation

4. Risk Management is Not What it Used to Be

5. Consumer Risk is a Solved Problem. Or is it?

6. …But Seller Risk Definitely Isn’t

7. (Some Popular Risk Equations)

8. Data Overload

9. The Single Source of Truth

10. Iterate, Iterate, Iterate

WHO’S OUT THERE?

Why don’t you become a payments provider?

THE PAYMENTS MARKET BEYOND ECOMMERCE

DIGITAL

MARKETPLACES

LOCAL-MOBILE-OFFLINE

DISRUPTION NEXT-GEN

THE METHOD: SHORT TERM CREDIT

THE WALLET: PAYROLL

RISK MANAGEMENTIS NOT WHAT IT USED TO BE

Technology Challenge

Core Part of the Product

The Factory Approach *

CONSUMER RISK IS A SOLVED PROBLEM

I can pay!

I’m that Guy!

?

OR IT IS?

Fake IdentitiesStolen IdentitiesAccount Take Over

Hacked MachinesReturning

FraudstersCrime Rings

Device Fingerprinting

BlacklistsLimits

THE INITIAL ENCOUNTER

TRUST ME

MERCHANT RISK ISN’T SOLVED

RISK “EQUATIONS”

P[LOSS] * [EXPOSURE] = RISK

DATA + DOMAIN EXPERT + ITERATIONS= QUALITY DECISION

DATA OVERLOAD

CONTEXT IS EVERYTHING

.edu.edu

.edu .edu

.edu

Citi CITIBANK SOUTH DAKOTACitybank

BofA BOAAmerica BankBANK OF

AMERICA

KNOW YOUR CUSTOMERS

DON’T USE BLACKLISTS

THE SINGLE SOURCE OF TRUTH *

THE BASIC CAPABILITY: TXN REVIEW

FOCUS ON THE WHY, FOCUS ON PEOPLE

GENERALIZE

ANALYTIC STORYTELLING

ITERATE, ITERATE, ITERATE

Instrumentation and Tracking

Gap Analysis

Stories

Feature Engineering

Modeling

QUESTIONS?

OHAD.SAMET@KLARNA.COM@OHADSAMET

HTTP://FRAUDBACKSTAGE.BLOGSPOT.COM