Opportunity – The Solution

Opportunity – The Solution

The Difficulty

Imagine there were five people who worked at the same company, each had a similar job.  The company made glass plates, five different sizes, each ¼ inch larger than the next size.  Being very fragile, each had a very specific package that it fit into, to protect the glass during shipment.  The glass came on a conveyer belt, the sizes dispersed throughout, randomly.  The simple task took forever, and the frequency of delivering damaged goods was great.  The buyer couldn’t figure why it was happening so decided to incorporate new rules of engagement with penalties.  Some of these rules cost the company more money in penalties.  Well, the rules didn’t help and the problem persisted, as the workers tried harder but integrating the rules into the manual process caused more problems.  The buyer decided not to take a chance, deciding instead on de-risking, he would move to another company in another location. The first company had an opportunity during their difficulties but kept looking at the problem rather than the solution.  As Albert Einstein said, “In the middle of every difficulty lies an opportunity.”

As the buyer was looking across the globe for a glass company, he came across a company that advertised, with pride, that they were fully automated and their timeliness and quality were rated the highest. He decided that was the company he would buy his glass from.  Why was this company more successful than the first glass company?  Better workers?  No.  Harder working workers?  No.  Rather it was less risk?  Yes.  More efficiencies?  Yes.  Integrated controls?  Yes.  It was an easy decision for the buyer.

The new company had the opportunity to be great because they understood the difficulty and used it as the opportunity to acquire automation. It wasn’t because of character, capability or talent.  Automation is an investment in the future, in a solution for surviving the digital complexities of bad actors, involved in money laundering and financing terrorists.  Without automation, there is no solution, there is no future.  RiskCALM₄ is your opportunity for a solution to de-risking, AML/CTF risk-based programs, IFRS 9 credit modeling, accounting and regulatory issues, policy management, efficiencies and organic growth in revenues.

The Opportunity 

There is much going on within the region concerning the financial marketplace and regulatory issues.  As I have mentioned in previous whitepapers, emails, and various correspondence, RiskCALM is committed to its customers, and when confronted with an opportunity to help with any issues assisting a client, country or region, we look at what we can do to better position all of us for success.  Obviously, what is best for the stability of our customers and the financial stability of the region is good for all of us.  As we did with the recently developed Financial Intelligence Unit (FIU/UAF) module, automating reporting and communications and the exchange of risk-based ideas, in conjunction with our automated risk-based AML/CTF program, resulting in automated policy management and adherence, reporting and reduced labor cost.  With our integrated risk management and all financial institution business process policies, managed automatically throughout our solution, we recognized another issue, correspondent de-risking, that we can assist in resolving.

As a result, we decided that we would create a Correspondent Module that would minimize a respondent’s risk and therefore the correspondent’s concerns.  Our Correspondent Module facilitates communications between correspondent and respondent.  It also allows for automated report verification of risk-based program adherence, on any transactions with the correspondent.  We included the capability of sharing of risk-based program ideas, facilitating the transparency that is needed in these correspondent relationships.

Aside from the Correspondent Module, and the FIU/UAF module, we are in the process of automating the financial investment risk model to completely integrate it into RiskCALM_4.  We will soon begin releasing our other risk engines dealing with institutional risk, such as, Market Risk, Operation Risk, Credit Risk and Respondent Risk, all integrated within a Business Risk Module with dynamic integration with RiskCALM₄.

Conclusion

We believe the opportunity to assist countries and institutions with their correspondents, government task forces, regulators and internal and external audits, etc. and help eliminate the difficulties of de-risking, penalties, black and grey listing, is an opportunity we could not pass up.  As Winston Churchill said, “A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.”

Be an optimist, grab the opportunity, RiskCALM₄.

Please let us know if you have any questions or if you would like a presentation concerning the new features.