Proprietary risk management clearinghouse

• US 8,209,246 B2
• Filed: 06/18/2003
• Issued: 06/26/2012
• 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:
  US10/464,601
• Publication Number:
  US 20040024693A1
• Time in Patent Office: 3,296 Days
• Field of Search: 705 35- 39, 235/440
• 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 40/08 Insurance
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

A computerized risk management method and system for facilitating analysis and quantification of risk associated with a risk subject on a proprietary basis. A proprietary risk management system combines gathered information with information received from a source such as an automated risk management clearinghouse system and maintains a database to relate risk variables and calculate a measurement of risk. The measurement, which can be a risk quotient or other rating based upon a weighted algorithm applied to the risk variables, is indicative of risk associated with the risk subject. Actions commensurate with a risk quotient can be presented to a user to facilitate management of risk associated with a particular entity or transaction or other transaction. A stored history can be created to mitigate adverse effects relating to a problematic transaction.

Claims

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

receiving into a computer system informational artifacts with content related to at least one of;

reputational risk, regulatory risk and legal risk transaction including requests involving unaccustomed foreign account activity, requests for secrecy or exceptions to Bank Secrecy Act requirements, requests for routing through a secrecy jurisdiction and unusual fund or transaction activity;

defining within the computer system one or more risk variables generally related to one or more financial transactions;

receiving into the computer system proprietary data descriptive of a particular financial;

identifying by the computer system one or more risk variables with the received proprietary data;

assigning at least one category numerical value to the received proprietary data, wherein the category numerical value is a weight assigned according to a category of the received proprietary data;

associating by the computer system at least one informational artifact with content related to at least one of;

reputational risk, regulatory risk and legal risk, with the risk variables identified;

generating a numerical weighted value, wherein the numerical weighted value is a rating of risk experienced by the risk variable associated with at least one informational artifact with content related to at least one of;

reputational risk, regulatory risk and legal risk;

calculating a risk quotient by multiplying the generated numerical weighting value with the category numerical value;

updating by the computer system the association of the content based on receiving periodic supplemental data associated with reputational risk, regulatory risk and legal risk informational artifacts;

detecting potential violations of law and addressing suitability of the particular financial transaction by creating structured historical data relating to the particular financial transaction based on the calculated risk quotient; and

generating by the computer system a report based on the structured historical data for use within a predefined organization and comprising a description of the informational artifacts associated with the risk variables identified.

2. The method of claim 1 additionally comprising:

wherein the calculated risk quotient is indicative of a quantitative amount of at least one of;

reputational risk, regulatory risk and legal risk, associated with the financial transaction, wherein the risk quotient is based upon the at least one informational artifact associated with the risk variables.

3. The method of claim 2 additionally comprising the step of calculating an average risk quotient for multiple financial transactions associated with a financial institution.

4. The method of claim 1, wherein the data descriptive of informational artifacts with content related to at least one of:

reputational risk, regulatory risk and legal risk is received from a risk management clearinghouse data provider.

5. The method of claim 1 additionally comprising the step of generating a suggested action based upon to informational artifacts associated with the risk variables identified.

6. The method of claim 5 wherein the suggested action is directed towards reducing risk related to a financial transaction with international exposure.

7. The method of claim 5 additionally comprising recalculating the risk quotient based upon implementation of the suggested action.

8. The method of claim 5 wherein the suggested action comprises refusing to perform a transaction.

9. The method of claim 5 wherein the suggested action comprises blocking the opening of an account.

10. The method of claim 5 wherein the suggested action comprises notifying a law enforcement authority.

11. The method of claim 1 wherein the data descriptive of a financial transaction comprises the identity of a secrecy jurisdiction associated with the risk subject.

12. A computer system implemented method of conducting a financial transaction, the method comprising:

transmitting the details descriptive of a particular transaction to a computer system via a communications network, wherein the computer server is operative with executable software to;

receive into the computer system the details descriptive of the particular financial transaction;

receive into the computer system data descriptive of informational artifacts with content related to at least one of;

reputational risk, regulatory risk and legal risk including requests involving unaccustomed foreign account activity, requests for secrecy or exceptions to Bank Secrecy Act requirements, requests for routing through a secrecy jurisdiction and unusual fund or transaction activity;

identify by the computer system one or more risk variables with the received proprietary data;

assigning at least one category numerical value to the received proprietary data, wherein the category numerical value is a weight assigned according to a category of the received proprietary data;

associate by the computer system at least one informational artifact with content related to at least one of;

reputational risk, regulatory risk and legal risk, with the risk variables identified;

transmit by the computer system data descriptive of the content of the at least one informational artifact associated with the risk variables identified;

receiving by the computer system the data descriptive of the content of the at least one informational artifact associated with the risk variables identified;

generating a numerical weighted value, wherein the numerical weighted value is a rating of risk experienced by the risk variable associated with at least one informational artifact with content related to at least one of;

reputational risk, regulatory risk and legal risk;

calculating a risk quotient by multiplying the generated numerical weighting value with the category numerical value;

updating by the computer system the data descriptive of the content based on receiving periodic supplemental data associated with reputational risk, regulatory risk and legal risk informational artifacts;

detecting potential violations of law and addressing suitability of the particular financial transaction by creating structured historical data relating to the particular financial transaction based on the calculated risk quotient; and

determining by the computer system a course of action related to the financial transaction based upon the data descriptive of the content of the at least one informational artifact associated with the risk variables identified and the structured historical data.

13. The method of claim 12 wherein the course of action comprises proceeding with the financial transaction.

14. The method of claim 12 wherein the course of action comprises refusing to proceed with the financial transaction.

15. The method of claim 12 wherein the course of action comprises the additional steps of:

receiving additional information descriptive of at least one of;

a transaction participant, a beneficiary of a transaction, a jurisdiction involved with the transaction, and a person with a legal relation to a transaction participant.

16. A non-transitory computer-readable medium comprising computer-executable instructions for causing a computer system to:

receive into the computer system the proprietary details descriptive of the particular financial transaction;

receive into the computer system data descriptive of informational artifacts with content related to at least one of;

reputational risk, regulatory risk, and legal risk including requests involving unaccustomed foreign account activity, requests for secrecy or exceptions to Bank Secrecy Act requirements, requests for routing through a secrecy jurisdiction and unusual fund or transaction activity;

identify by the computer system one or more risk variables with the received proprietary data;

assign at least one category numerical value to the received proprietary data, wherein the category numerical value is a weight assigned according to a category of the received proprietary data;

associate by the computer system at least one informational artifact with content related to at least one of;

reputational risk, regulatory risk and legal risk, with the risk variables identified;

generate a numerical weighted value, wherein the numerical weighted value is a rating of risk experienced by the risk variable associated with at least one informational artifact with content related to at least one of;

reputational risk, regulatory risk and legal risk;

calculate a risk quotient by multiplying the generated numerical weighting value with the category numerical value;

update the association of the content based on receiving periodic supplemental data associated with reputational risk, regulatory risk and legal risk informational artifacts;

detect potential violations of law and addressing suitability of the particular financial transaction by creating structured historical data relating to the particular financial transaction based on the calculated risk quotient; and

transmit, via the computer system, data descriptive of the content of the at least one informational artifact associated with the risk variables identified and the structured historical data.