Financial services organizations (e.g. banks, investment banks, insurance companies, credit card companies and stock brokerages) should look beyond end-point solutions and investment in individual functional areas and instead build an effective and comprehensive Financial Crime Risk Management (FCRM) program that espouses the following characteristics:
Holistic: Gaining transparency and a greater view of risk by connecting data and systems across disparate groups, channels, and silos is essential to identifying potential risks and ongoing threats to the institution. Shrinking such gaps directly translates into reduced risk to your organization and customers and in time will deter criminals looking for easy targets.
End-To-End: Preventing, detecting, and investigating incidents before they affect your business and your customers is as important as initially identifying the threat. But the process should not end at resolution alone; learning from incidents as they are resolved enables your organization to iteratively improve all elements of the financial crime risk lifecycle by including speedier resolution and detection of similar incidents in the future.
Customer-Centric: Increasing the accuracy of detection, lowering the number of false positives, and reducing unnecessary disruptions to customer activity are all crucial to ensuring customer satisfaction and to creating a more effective prevention program. With increased context of an individual customer, the financial services organization (e.g. banks, investment banks, insurance companies, credit card companies and stock brokerages) can fine-tune profiles and continuously improve results, eliminating wasted time for analysts and investigators.
Automated: Lessening the amount of human capital and infrastructure needed to maintain effective risk and compliance controls is a top priority. Automation enables organizations to focus human investigators on the areas that need them most and to thereby leave manual and mundane tasks to systems that perform them in a fraction of the time that a human being would. Beyond prioritization, using technology to pull together related information and incidents increases the time an institution has to react to a given event.
Adaptive: Ensuring agility and responsiveness as risks, regulations, and business needs change and evolve over time is a necessity for today’s ever-evolving regulatory and threat environment. The ability to grow and adapt provides financial services organizations (e.g. banks, investment banks, insurance companies, credit card companies and stock brokerages) with greater coverage against risks and the ability to enter markets quicker and more confidently to keep pace with the competition.
