Automated global risk management

• US 20020138407A1
• Filed: 03/20/2001
• Published: 09/26/2002
• Est. Priority Date: 03/20/2001
• Status: Active Grant

• Current Assignee: Regulatory DataCorp, Inc. (Moody's Corporation)
• Original Assignee: Regulatory DataCorp, Inc. (Moody's Corporation)
• Inventors: Junnarkar, Ajay, Lawrence, David
• Granted Patent: US 8,140,415 B2
• Time in Patent Office: Days
• US Class Current: 705/38
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/08 Insurance
• CPC Class Codes: G06Q 40/10 Tax strategies

Abstract

A computerized risk management method and system for facilitating analysis and quantification of risk associated with a financial transaction. An automated global risk management system maintains a database relating risk variables including world events government advisories, and other information sources with potential risk for a financial institution. The system generates a risk quotient or other rating based upon a weighted algorithm applied to the criteria, wherein the risk quotient is indicative of risk associated with a financial transaction or account. The quotient can be monitored on a periodic basis, during the course of a transaction, or on demand. Actions commensurate with a risk quotient can be presented to a financial institution to help the institution properly manage risk associated with a particular entity or transaction. A log or other stored history can be created such that utilization of the system can mitigate adverse effects relating to a problematic account.

Claims

1. A computer-implemented method for managing risk related to a financial transaction, the method comprising:

gathering data related to risk variables for a financial transaction;

receiving information relating to details of a financial transaction;

structuring the information received according to risk quotient criteria; and

calculating a risk quotient referencing the structured information and the gathered data.

2. The method of claim 1 additionally comprising the step of generating a suggested action responsive to the risk quotient.

3. The method of claim 2 additionally comprising the steps of:

storing the information received, the risk quotient and the suggested action; and

generating a diligence report referencing the stored information.

4. The method of claim 3 wherein the diligence report comprises the information received relating to details of the financial transaction and actions taken responsive to the risk quotient.

5. The method of claim 2 wherein the suggested action is additionally responsive to the information received.

6. The method of claim 2 wherein the suggested actions are directed towards reducing risk related to a financial transaction with international exposure.

7. The method of claim 2 wherein the suggested action comprises refusing to perform a transaction.

8. The method of claim 2 wherein the suggested action comprises blocking acceptance of an account.

9. The method of claim 2 wherein the suggested action comprises notifying an authority.

10. The method of claim 1 wherein the information received comprises the identity of a high risk entity and the high risk entity'"'"'s relationship to an account holder.

11. The method of claim 1 wherein the information received comprises the identity of a secrecy jurisdiction.

12. The method of claim 1 wherein the information received is gathered electronically.

13. The method of claim 1 additionally comprising the step of aggregating risk quotients relating to a financial institution to assess a level of identified risk to which the financial institution is exposed.

14. The method of claim 1 additionally comprising the step of calculating an average risk quotient associated with a transaction.

15. The method of claim 1 wherein the financial transaction comprises opening a financial account.

17. The computerized system of claim 16 wherein the information is received via an electronic feed.

18. The computerized system of claim 16 wherein the information received is generated by a government agency.

19. The computerized system of claim 16 wherein the network access device is a personal computer.

20. The computerized system of claim 16 wherein the network access device is a wireless handheld device.

16. A computerized system for managing risk associated with a financial account, the system comprising:

a computer server accessible with a network access device via a communications network; and

executable software stored on the server and executable on demand, the software operative with the server to cause the system to;

gather data related to risk variables for a financial transaction receive information relating to details of a financial transaction;

structure the information received according to risk quotient criteria; and

calculate a risk quotient referencing the structured information and the gathered data.

21. Computer executable program code residing on a computer-readable medium, the program code comprising instructions for causing the computer to:

gather data related to risk variables for a financial transaction

receive information relating to details of a financial transaction;

structure the information received according to risk quotient criteria; and

calculate a risk quotient referencing the structured information and the gathered data.

22. A computer data signal embodied in a digital data stream comprising data relating to risk management, wherein the computer data signal is generated by a method comprising the steps of:

gathering data related to risk variables for a financial transaction;

receiving information relating to details of a financial transaction;

structuring the information received according to risk quotient criteria; and

calculating a risk quotient referencing the structured information and the gathered data.

24. The method of claim 23 wherein the risk quotient is a numerical value.

25. The method of claim 23 additionally comprising the step of receiving a description of suggested action that can be taken to mitigate a level of risk associated with the transaction.

23. A method of interacting with a network access device so as to manage risk relating to a financial transaction, the method comprising the steps of:

initiating interaction with a risk management server via a communications network;

inputting information relating to details of a financial transaction via a graphical user interface; and

and receiving a risk quotient indicative of a level of risk associated with the transaction.