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

• US 7,958,027 B2
• Filed: 06/11/2003
• Issued: 06/07/2011
• Est. Priority Date: 03/20/2001
• Status: Active Grant

• Current Assignee: Regulatory DataCorp, Inc. (Moody's Corporation)
• Original Assignee: Goldman Sachs & Company (Goldman Sachs Group Incorporated)
• Inventors: Lawrence, David
• Primary Examiner(s): Subramanian, Narayanswamy
• Application Number:
  US10/459,655
• Publication Number:
  US 20040006533A1
• Time in Patent Office: 2,918 Days
• Field of Search: 705 35- 38
• US Class Current: 705/35
• 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;

receiving into the computer system transaction data descriptive of a financial transaction, wherein the transaction data comprises an indication of at least one defined geo-political area associated with the financial transaction;

scrubbing by the computer system the received informational artifacts data and financial transaction data

obtaining information by the computer system regarding one or more geo-political areas;

determining a transactional jurisdiction associated with the scrubbed financial transaction data based on the at least one geo-political area;

retrieving by the computer system a predetermined policy related to the at least one geo-political area associated with the financial transaction data for transmission to an appropriate destination;

associating by the computer system at least one informational artifact related to at least one of reputational and regulatory risk with the at least one geo-political area associated with the financial transaction based at least in part on the determined transactional jurisdiction and the retrieved policy; and

generating by the computer system a report comprising data descriptive of the informational artifacts associated with the at least one geo-political area, the transactional jurisdiction and the retrieved policy 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 defined geo-political areas such that the at least one defined geo-political 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 at least one defined 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 the at least one 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 the at least one 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 the at least one geo-political area comprises a political boundary.

13. The method of claim 1 wherein the indication of at the least one 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;

associating by the computer system 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 geo-political area associated with the financial transaction;

scrubbing by the computer system the received informational artifacts data and financial transaction data;

obtaining information by the computer system regarding one or more geo-political areas from a database;

determining a transactional jurisdiction associated with the scrubbed financial transaction data based on the at least one geo-political area;

retrieving by the computer system a predetermined policy related to the at least one geo-political area associated with the financial transaction data for transmission to an appropriate destination;

associating by the computer system at least one informational artifact related to at least one of reputational and regulatory risk with the at least one defined geo-political area associated with the financial transaction based at least in part on the determined transactional jurisdiction and the retrieved policy; and

generating by the computer system a report comprising data descriptive of the informational artifacts associated with the at least one geo-political area, the transactional jurisdiction and the retrieved policy associated with the financial transaction.

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

a computer server including a processor, accessible with a system access device via a communications network; and

a server-side storage element storing processor-executable instructions, the processor-executable instructions facilitating the computer server to;

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

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

scrub by the computer system the received informational artifacts data and financial transaction data;

obtain information via the computer system regarding multiple geo-political areas from a database;

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

determine a transactional jurisdiction associated with the scrubbed financial transaction data based on the at least one geo-political area;

retrieve via the computer system a predetermined policy related to the at least one geo-political area associated with the financial transaction data for transmission to an appropriate destination;

associate by the computer system at least one informational artifact related to at least one of reputational and regulatory risk with the at least one geo-political area associated with the financial transaction based at least in part on the determined transactional jurisdiction and the retrieved policy; and

generate by the computer system a report comprising data descriptive of the informational artifacts associated with the at least one defined geo-political area, the transactional jurisdiction and the retrieved policy associated with the financial transaction.

17. A tangible computer-readable storage medium storing processor executable program code, the processor executable program code comprising instructions executable to:

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

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

scrub by the computer system the received informational artifacts data and financial transaction data;

obtain information via the computer system regarding multiple geo-political areas from a database;

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

determine a transactional jurisdiction associated with the scrubbed financial transaction data based on the at least one geo-political area;

retrieve via the computer system a predetermined policy related to the at least one geo-political area associated with the financial transaction data for transmission to an appropriate destination;

associate by the computer system at least one informational artifact related to at least one of reputational and regulatory risk with the at least one geo-political area associated with the financial transaction based at least in part on the determined transactional jurisdiction and the retrieved policy; and

generate by the computer system a report comprising data descriptive of the informational artifacts associated with the at least one defined geo-political area, the transactional jurisdiction and the retrieved policy associated with the financial transaction.