Risk monitoring is crucial for the financial sector. For example, non compliance with Anti money laundering regulations can expose a company to steep fines, reputation loss, and loss of clients. Concordia Legal delivers a fully configurable Risk Module that generates a complete web application to quantify risk and compliance in your company. The Risk Module is used to monitor the complete clientbase, client due diligence, with the latest available data to ensure that risk monitoring is applied across the board and actions/transactions are validated within the bounds of the company policies and legal regulations.The underlying technology has already been applied to monitor 10+ Million clients for Customer Due Diligence (CDD).

Full automation of the Concordia Legal Risk Module allows a client to configure, test, and deploy a risk or calculation model and deploy the web application. With the full environment, our customers can switch from using complex Excel in their business operations to well-maintained web applications that help their consultants process the right inputs and delivers documented and auditable pdf reports.

Here is an example for a model with several indicators/risk categories for a CDD calculation. The interview is generated from the configuration of the model, descriptive texts, and configured images. The business is in control and in natural language can specify the rules, indicators, questions, risk calculations and classifications and from those inputs the application is fully generated. The application is used to monitor the complete client-base with the latest known data to ensure, for example, that the client remains compliant with policies for anti-money laundering and fraud detections and only does business with clients determined to be safe.

In the light version of the Risk Module, the configuration is maintained in Excel for ease of use. For more complex applications with large and complex evolving lists of monitored countries, products, industries, etc.. these are maintained externally in integrated databases. Concordia Legal supports full integration of the Risk Module into the client environment for seamless look-and-feel and data integration.

Concordia Legal is able to quickly launch customers in the financial sector and build an enduring relation as the model is deployed, enhanced with the customer’s wishes, and integrated into their complex IT landscape, and operations. The delivery of the new application is done together with the client in weeks rather than months due to the configurable framework.

The Risk Module includes the following components at a summary level:

  • Business rules modelled in Natural Language (Microsoft Word and Excel) for easy translation of existing Risk calculations and transparency in use.
  • A risk model where questions are configured and grouped by indicators/categories.
  • Questions in the Risk Module are defined as free format, country lists, or product risk. Client specific lists of answer options are tailored to their domain. The risk model determined by the business is fully incorporated and kept up to date. Version management of the risk model is supported, and calculations can be made time-bound.
  • A basic prebuilt risk model suggested as a starting point for modelling by [The Wolfsberg Group2015]. This mature model encompasses examples and tests for the standard business rule patterns needed.
  • A number of pre-built interview screens
    • A configurable introduction screen where the specific context, client branding, is added (Logo, instructions, etc..).
    • A pre-built screen which in run-time processes the configured risk model, with the relevant questions grouped by indicator/categories.
    • A summary screen with an overview of the results of the Risk Model and an audit trail with the used data.
    • A summary report (pdf) of the Risk Model, with the audit trail, and used data. 
  • A starter automated test suite of test cases at the indicator and overall model level.
  • Webservices ready for use in applications to on the fly calculate the added risk of, for example, use of a new product.
  • Based on customer need integration, UX tailoring, dashboard functionality, etc… is delivered.

Fully integrated, the Generated Risk application is ready to process, report, and document the current status for the whole clientbase. Concordia Legal is committed to help their clients turn their complex risk analysis and domain into elegant applications that meet their needs and effectively allows to manage risk.

    Please get in touch for a demonstration or if you have questions. If we have a connection we can implement a first prototype of your own risk scenario or calculations. We can then quickly give you a quote and timeline for you to start using your new application to put you in control.

    [TheWolfsberg Group2015] The Wolfsberg Group, Frequently Asked Questions on Risk Assessments for Money Laundering, Sanctions and Bribery & Corruption. The Wolfsberg Group is an association of thirteen global banks which aims to develop frameworks and guidance for the management of financial crime risks, particularly with respect to Know Your Customer, Anti-Money Laundering and Counter Terrorist Financing policies. Members:  Banco Santander, Bank of America, Barclays, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, J.P. Morgan Chase, MUFG Bank, Société Générale, Standard Chartered Bank, UBS.