Transcript Risk & Compliance - Complex event processing

Risk & Compliance Panel
Event Processing Symposium
March 15, 2006
Risk & Compliance
• CEP is about incrementally building pre-built domain knowledge and
adding a learning model (e.g., key indicators and analytics).
– The context is events that occur in time and space and are linked by
analytics, data and process models in order to convert data to
information
• "Complex Event" Processing versus Complex "Event Processing"
• CEP is not about low latency.
– We need to focus people/users on the issues and what they should do
• Katrina: “Sense” is not the issue; respond is
• Fraud: “Sense” is the issue; response is not
• Best phrases of the session:
– "Looking at the forest to provide feedback to the trees“
– “Reducing entropy”
– “Events without business knowledge have no meaning”
• Panel Mantras: "It is all about domain knowledge" "Top down not
bottom up"
Financial services: an interlocking system of
risk management
Control
evaluation
(SOX)
Operational Risk
(Basel II)
Business Continuity
Planning
Active risk assessment
& management
Privacy
Security
Outsourcing
IBM: Resiliency
The ability of an enterprise to
sense and respond
to any
internal or external adverse, fast changing or
unexpected condition,
as well as opportunities,
in order to maintain continuous business
operations,
be a more trusted partner, and enable
growth.
The Aleri Liquidity Management System
(ALM)
• 30+ different
systems
• Streaming and
static
• Real-time position
management
• Actual and forecast
positions with drill-down
• Payment flow control
• Highly customizable
Accounting
Systems
Authoring Environment
RTGS
Gateway
SWIFT
Gateway
Lending
Systems
INPUT STREAMS
Payment
Systems
Aleri Streaming
Platform
Streaming Output
On-Demand Queries
Data Migration
OLAP
Database
Settlement
Systems
Clearing
Data
• Real-time OLAP
• Queries across operational
and historic data
FRS: Modeling and Maintaining Context
P1
Current Data
SP1
•
•
•
•
•
•
BASEL
Governance
Process
G/L accounts
Taxonomies
Policies
Root
Org
Process
/Sub-Process
SP2
SP3
BU1
SPn
D1
BU3
D2
Financial Line#1
Financial Line#2
Financial Line#3
Import infrastructure
Objectives
O1
R1
• Risk/Control
Matrix
• Testing
procedures
BU2
Business
Unit
Hierarchy
Import
documentation
& assessments
C1
R2
C2
Risks
Controls
Action#1
Action#2
Action#3
Once the institutional framework is established,
roles are assigned to users that limits their access to either
processes, business units or to risks and controls
R3
Actions
COSO Best
Practices
O2
R1’
C1’
R4
C3
Action#4
Action#5
Action#6
R5
Online Fraud Prevention
– Business problem: Online Fraud Losses increase, Confidence
declines
Sample clients:
– Solution: Monitor transactions, detect ~90% of fraud attempts,
provide risk scores and fraud alerts in real-time before the
money goes away
– Key features: Pre-built knowledge of Bill-Pay, ACH, ICT, Wires,
Trading, ETC; Passive device fingerprinting, IP Geo-location and
Velocity
– Benefits: Best catch-rate with lowest false-positive rate
Actimize combines Technology with Industry Knowledge
TM
Digital Harbor
Event Detection: Compression is the basis for value
An event provides
the starting frame of reference
An event could be anything:
•Request for intelligence on a
target
•Alert on compliance
•Power outage
•Customer calls with complaint
•Advisor places a trade
•A settlement throws
an exception
A person needs auxiliary information
about the event
People think in
Business terms:
•Who
•What
•When
•Where
•Why
•How
First level
(3-5 direct links)
Second level
(3-5 indirect links)
Knowledge Work is Hard to Repeat and even hard to Replicate
TM
Digital Harbor
Event Processing: Expansion is the basis for value
Customer
Patient
Product
Project
Outage
Asset
Target
Compliance Event
Cost
When done
Who approved
Who serviced
What project
What munitions
Master Controller
Detail View
Cust Service Req
Patient Record
Product Parts
Equipment Out
Billing Info
Nearby Planes
Relevant Metrics
Industry Adoption
FT Adoption
Attached Documents
Drag an Email
Attach Excel, PPT,
Word
Text Details with
Annotation/Attachments
Chart
Parts by supplier, cost
Patients by ins co
Drug interaction history
This circuit board design requires
a special type of
transistor.
Geospatial Visualization
Misc (e.g. Live Status Updates)
Could
Could
Could
Could
Could
Could
Could
Industry Adoption
When is the truck
scheduled,
Initiate new process
Assign new actor,
ASK on a process
step. Get live update
of status
Action
Map
CAD
MRI
Satellite
Toolkit
Submit
Approve
Escalate
Industry Adoption
Save
Task
Schedule
Order
be
be
be
be
be
be
be
a CAD + Map
GANTT
an Image
historical chart
a search comp
their app
a portlet
TM
Digital Harbor
The Lifecycle for Knowledge Work
Detection:
Filtering &
Recognition
Event
Resolution:
Decision &
Action
(Composite Apps)
Collaboration &
Communication
(Composite Reports)
Understanding
&
Investigation
(Composite Dashboards)
Composite Case
Management
Attendees
• Bill Hobbib, Streambase Systems
[email protected];
• (P) Ed Shea, FRS [email protected]
• (P) Jerry Baulier, Aleri Labs [email protected]
• Tim Bass, Tibco [email protected]
• (P) Rohit Agarwal, Digital Harbor [email protected]
• Asaf Adi, IBM [email protected]
• (P) Ido Ophir, Actimize [email protected]
• Susan Malaika, IBM [email protected]
• (P) Jonathan Rosenoer, IBM [email protected]
• Gunther Rotherwiel, SAP [email protected]