Regulatory Mapping & Analysis

The Problem & the Challenge

There is an ongoing critical need for financial institutions to analyze Regulations coming out of various key regulators. Additionally, they have to determine how these regulations require, relate to, and impact various operational procedures and controls – at the corporate and individual business/product/function levels

For each specific regulation, Compliance, Legal, or Risk Management might define Policies; and specific lines of business may implement Procedures and Controls within their respective operations.  Various procedures and controls may reside in disparate business-specific repositories such as local SharePoint drives, Lotus Notes etc.

Currently, significant manual effort is required to locate relevant documents and to identify the controls and procedures that relate to specific regulations; managing changes, queries, searches, and reviews becomes a significant challenge.

Scope of RiskCounts Solution

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    Analyze one or more Regulations
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    Determine how the regulations relate to and impact operational procedures and controls
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    Search for and among applicable policies, procedures and control points from multiple repositories
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    Analyze, and Link a section(s) of a regulation to relevant sections of procedure documents
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    Maintain such search, analyze, and link capabilities across businesses, regulations, and changes thereto

What the Solution does in terms of Outcome

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    Discover and analyze Regulations
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    Discover current procedures and control documents impacted by Regulations
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    Surface and List the specific sections of impacted procedures and control documents, with all the relevant context
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    Maintain and dynamically track changes and impact on an ongoing basis

How is the Outcome achieved

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    Content assimilation and analysis:

    Multi-layer learning process discovers contextual congruities and similarities within the regulatory guidance and internal documents such as policy, procedure and design documents for compliance analysis

    Unsupervised learning process discovers key data elements, components and their contextual relationships

    Compliance analysis workspace assimilates all relevant information in to a single repository and provides 3600 referencing

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    Contextual usage for compliance analysis:

    All pertinent disclosure paragraphs suggesting key financial numbers and policies to be disclosed in notes to financial statements or otherwise reported externally to regulators or shareholders

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    Clustering and component relationship discovery:

    The modeling framework, and approaches to risk, migration rate, loss rate, discounted cash flow approach

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    Compliance workflow:

    The AI driven collaborative workspace refines the output from the initial analysis into tangible compliance requirements

    These requirements then become Tasks that can be assigned and tracked, allowing for full visibility across progress and completion

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    Audit and regulatory review

    All tasks whether in process or completed can be reviewed and audited

    Such reviews can be available for use by compliance, risk, internal audit, and regulatory management/relations purposes

Platform Overview

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    Learning Engine and corpus

    The machine has acquired domain knowledge from over 50 million sentences within more than 500,000 financial risk documents and regulations, which has resulted in the following results

    RDFs containing domain knowledge axioms

    Around 2 million domain terms with semantic orientation

    Hierarchical Semantic clusters of terms

    Domain labelling of term clusters

    Around 250,000 critical data elements

    300 to 500 topic identifications (unsupervised)

    Topic-Domain Context Map (Semi-supervised with over 1500 Contexts)

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    Analysis of firm specific internal documents

    Contextual analysis, Cross document analysis and linkage

    Glossary generation with hierarchical structure

    Document indexing and Content Rationalization

Benefits & Performance Metrics, against current/alternate manual analysis

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    Analysis time per document

    Max # documents processed in a single analysis

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    # of internal documents analyzed correctly (mapped with specific Regulation/s)

    # of sections within internal documents analyzed correctly (mapped with corresponding sections of Regulation/s)

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    Ease of use

    Ease of integration with the firm’s infrastructure (SharePoint, Network folders etc.)

    Ease of configuration and deployment

    Ease of learning and analysis