Proprietary risk management clearinghouse

• US 20040024693A1
• Filed: 06/18/2003
• Published: 02/05/2004
• 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 8,209,246 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 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 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 risk, regulatory risk and legal risk;

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 transaction;

identifying one or more risk variables with the received data descriptive of the particular financial transaction;

associating 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; and

generating a report 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 the step of:

generating in the computer system a risk quotient 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 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.

4. 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.

5. The method of claim 4 wherein the suggested action is directed towards reducing risk related to a financial transaction with international exposure.

6. The method of claim 4 additionally comprising recalculating the risk quotient based upon implementation of the suggested action.

7. The method of claim 3 wherein the suggested action comprises refusing to perform a transaction.

8. The method of claim 4 wherein the suggested action comprises blocking the opening of an account.

9. The method of claim 4 wherein the suggested action comprises notifying a law enforcement authority.

10. 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.

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

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

transmitting the details descriptive of a particular financial transaction to a computer system accessible 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 a computer system data descriptive of informational artifacts with content related to at least one of;

reputational risk, regulatory risk and legal risk;

identify one or more risk variables with the received data descriptive of the particular financial transaction;

associate 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; and

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

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

determining 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.

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. The method of claim 12 the purpose of the cause of action comprises a purpose covered by the Fair Credit Reporting Act.

17. A computerized system for managing risk, 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 system to;

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

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

reputational risk, regulatory risk and legal risk;

identify one or more risk variables with the received data descriptive of the particular financial transaction;

associate 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; and

transmit data descriptive of the content of the at least one informational artifact associated with the risk variables identified.

18. The computerized system of claim 17 wherein the data descriptive of informational artifacts is received via an electronic feed.

19. The computerized system of claim 17 wherein the data descriptive of informational artifacts received is generated by a risk management clearinghouse.

20. The computerized system of claim 17 wherein the system access device is a wireless handheld device.

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

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

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

reputational risk, regulatory risk and legal risk;

identify one or more risk variables with the received data descriptive of the particular financial transaction;

associate 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; and

transmit data descriptive of the content of the at least one informational artifact associated with the risk variables identified.