Lee Phillips - Attivio

©2016 Attivio, Inc. | Proprietary and Confidential

ACHIEVING EFFICIENCY IN THE ERA OF COMPLIANCE

CDO Forum

1 ©2016 Attivio, Inc. | Proprietary and Confidential

TODAY’S TOPICS

THE ERA OF COMPLIANCE

• Measuring the Challenge

• Categories of Risk

• The impact on R&C data

PINPOINTING CHALLENGES

• Initial Conditions as

Challenges

• Responses to Challenge

FABRICATING SOLUTIONS

• Defining new solutions

• Where data “fits”

• An example

• Focusing on value


COMPLIANCE IN THE THE REGULATORY CYCLE

Legislate

Rule-making

Compliance Audit/Review

Assessment


THE ERA OF COMPLIANCE

PENALTIES ACTIONS ACTIVITY

FINCEN Form 111 SAR Filings


CATEGORIES OF RISK

PENALTY REPUTATION EXISTENCE


CHALLENGES – “FIGHTING THE LAST WAR”

GROWTH INTEGRATION CONSISTENCY

Can you scale efficiently? Can you minimize evidence

gathering and preparation?

Can you improve accuracy

with consistency?


AND…WILL YOU BE?

AUDIT-READY

Do narratives provide transparent support

for staff, systems, and procedures?


DIMENSIONS FOR RESPONSE

SCALABILITY

• Scaling by hiring – inefficient

• Scaling by analytics – fragile

• Scaling by ‘the division of

labor’ – proven, adaptable

INTEGRATION CONSISTENCY

• Consistency through training

– inefficient to keep current

• Consistency by published

procedure – ‘memory drift’

creates variance

• Consistency by embedded

procedure – minimizes

variance

• Integrate by centralization –

access is the issue

• Integrate by application –

custom development

• Integrate by virtualization –

machine-driven federation


AN EIGHT-FOLD SOLUTION FRAMEWORK

Human Machine

Scalability

‘Ad Hoc’

Procedure

Consistency

Silos

‘Fabric’

Integration


A MATURITY LEVEL PERSPECTIVE

COMPLIANT I

• (Human, Procedure, Silo)

COMPLIANT II

• (Human, Procedure, Fabric)

OPTIMIZED

• (Machine, Procedure, Fabric)


AML CASE STUDY: GLOBAL BANKING LEADER

Challenges

• Court-monitored settlement required higher staffing or significantly enhanced analyst

productivity to break growing backlog

• Preparing consistent, audit-worthy documentation on each case absorbed valuable

analyst time

• Cost and resource burdens created by ‘false positive alerts’ from its existing AML

transaction monitoring processes were growing ‘out of control’

Solution: Attivio

• A single platform to aggregate structured and unstructured information essential to

determine and document AML case disposition from existing systems and sources

• Automated generation of case narratives , creating an aggregated multi-source fact-

base

• ‘Low-friction’ addition of AML-relevant information– e.g. KYC, CDD/EDD, News, PEP

• Scales as an enterprise, global capability – leveraging machines, not humans

Outcomes

• Automatic Narrative assembly from over 140 facts for over 20K cases per month

• Transformed AML analyst productivity – cut average resolution time by 75%

• Eliminated review backlog – increased case review throughput by 285%

• Investigator Evidence solution went ‘live’ in just four (4) months

11 ©2016 Attivio, Inc. | Proprietary and Confidential 11

Sample Narrative

Single-screen with auto-

generated Narrative

AML INVESTIGATOR

SOLUTION

Sample Case

Single-screen for

all Case

information


Achieve Global Impact

Quench insatiable business demand for

explosively growing data

Increase Certainty

Confidently seize opportunities and mitigate

risks by considering the

right information, in context

Efficient Operation

Unify and enrich all information silos with an

agile catalog of context

and relevance

Constant Agility

Immediately discover and provision any

information, when needed, for critical business

insight

SELECTING THE BEST FOCUS

Technology

Lee Phillips - Attivio