Systems and methods for managing risk associated with a geo-political area

• US 20040006533A1
• Filed: 06/11/2003
• Published: 01/08/2004
• 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: Lawrence, David
• Granted Patent: US 7,958,027 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

Methods and systems are presented for managing Risks, including regulatory and reputational risk. The methods can be implemented in a computer and include receiving data descriptive of informational artifacts with content related to at least one of reputational and regulatory risk into the computer system. The computer system can have one or more geo-political areas defined within it. The computer system can also receive data descriptive of details of a financial transaction, wherein the details include an indication of at least one geopolitical area associated with the financial transaction. At least one informational artifact related to at least one of reputational and regulatory risk can be associated with the at least one geopolitical area associated with the financial transaction and the computer system can generate a report comprising data descriptive of the informational artifacts associated with the at least one geopolitical area associated with the financial transaction.

Claims

1. A computer implemented method for managing regulatory and reputational risk, the method comprising the steps of:

receiving into a computer system data descriptive of informational artifacts with content related to at least one of reputational and regulatory risk;

defining within the computer system one or more geo-political areas;

receiving into the computer system data descriptive of details of a financial transaction, wherein the details comprise an indication of at least one geopolitical area associated with the financial transaction;

associating at least one informational artifact related to at least one of reputational and regulatory risk with the at least one geopolitical area associated with the financial transaction; and

generating a report comprising data descriptive of the informational artifacts associated with the at least one geopolitical area associated with the financial transaction.

2. The method of claim 1 wherein the details of the financial transaction comprise identification data of one or more persons, organizations or entities associated with the transaction and the method additionally comprises the step of associating the one or more persons, organizations or entities with one or more geo-political areas such that the at least one geopolitical area associated with the financial transaction is associated via the one or more persons, organizations or entities.

3. The method of claim 1 additionally comprising the step of:

generating in the computer system a risk quotient indicative of a quantitative amount of at least one of;

reputational risk and regulatory risk, associated with the transaction, wherein the risk quotient is based upon the geo-political area associated with the transaction.

4. The method of claim 3 additionally comprising the step of generating a suggested action based upon at least one of:

the risk quotient and content of informational artifact.

5. The method of claim 4 wherein the suggested action comprises requiring additional details descriptive of the financial transaction.

6. The method of claim 4 wherein the suggested action comprises completing a financial transaction.

7. The method of claim 4 wherein the suggested action comprises filing a suspicious activity report.

8. The method of claim 1 wherein the financial transaction comprises a wire transfer of funds.

9. The method of claim 1 wherein the indication of a geo-political area comprises at least one of:

a street address and a mailing address.

10. The method of claim 1 wherein the indication of a geo-political area comprises at least one of:

a global positioning system designation, a tax map designation, and a latitude and longitude coordinate.

11. The method of claim 1 wherein the indication of a geo-political area comprises a defined proximity surrounding at least one of:

a street address, a global positioning designation and a latitude and longitude coordinate.

12. The method of claim 1 wherein the indication of a geo-political area comprises a political boundary.

13. The method of claim 1 wherein the indication of a geo-political area comprises a national boundary.

14. The method of claim 1 additionally comprising indicating a course of action comprising at least one of:

a) proceed with the financial transaction, b) proceed with the financial transaction and gather additional information regarding the entities involved;

c) do not proceed with the financial transaction until notified pending gathering of additional information; and

d) do not proceed with the financial transaction.

15. A computer implemented method for managing regulatory and reputational risk comprising the steps of:

receiving into a computer system data descriptive of informational artifacts with content related to at least one of reputational and regulatory risk;

defining within the computer system one or more geo-political areas;

associating one or more of the informational artifacts with one or more of the geo-political areas;

receiving into the computer system details of a financial transaction, wherein the details comprise an indication of at least one geopolitical area associated with the financial transaction;

associating at least one informational artifact related to at least one of reputational and regulatory risk with the at least one geopolitical area associated with the financial transaction; and

generating a report comprising data descriptive of the informational artifacts associated with the at least one geopolitical area associated with the financial transaction.

16. A computer implemented method for managing risk associated with a financial transaction, the method comprising the steps of:

defining within a computer system one or more policies, each policy associated with one or more geo-political area;

receiving data descriptive of a financial transaction comprising, at least, data descriptive of one or more geo-political areas associated with the financial transaction; and

transmitting the policy associated with the geo-political area to a person responsible for regulatory compliance of the financial transaction.

17. The method of claim 16 wherein the financial transaction comprises a fund transfer between with a country of origination different from the destination country.

18. The method of claim 16 wherein the financial transaction comprises investment banking.

19. A computerized system for managing risk associated with a correspondent account, the system comprising:

a computer server accessible with a system 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 server to;

receive into a computer system data descriptive of informational artifacts with content related to at least one of reputational and regulatory risk;

define within the computer system multiple geo-political areas;

associate one or more of the informational artifacts with one or more of the geo-political areas;

receive into the computer system details of a financial transaction, wherein the details comprise an indication of at least one geopolitical area associated with the financial transaction;

associate at least one informational artifact related to at least one of reputational and regulatory risk with the at least one geopolitical area associated with the financial transaction; and

generate a report comprising data descriptive of the informational artifacts associated with the at least one geopolitical area associated with the financial transaction.

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

receive into a computer system data descriptive of informational artifacts with content related to at least one of reputational and regulatory risk;

define within the computer system multiple geo-political areas;

associate one or more of the informational artifacts with one or more of the geo-political areas;

receive into the computer system details of a financial transaction, wherein the details comprise an indication of at least one geopolitical area associated with the financial transaction;

associate at least one informational artifact related to at least one of reputational and regulatory risk with the at least one geopolitical area associated with the financial transaction; and

generate a report comprising data descriptive of the informational artifacts associated with the at least one geopolitical area associated with the financial transaction.