IBM automation systems, such as e-discovery and auto-classification, help financial firms achieve transparency and meet compliance requirements while maximizing the value of your existing content management architecture.
2. Today’s Panelists
Greg MacSweeney Rodney Nelsestuen
Editor-in-Chief, Senior Research Director
Wall Street & Technology Financial Strategies & IT Investments
Tower Group
(RiskTech Blogger)
Gary Rylander Damian Trzebunia
Associate Partner Enterprise Content Management
IBM Global Business Services Compliance Product Marketing
Risk & Compliance Practice IBM Information Management Software
(RiskTech Blogger)
3. Financial Services
IBM’s Integrated Risk Management offerings and capabilities
are organized around a holistic view of risk
Integrated Risk Management
Financial Financial Operational & Governance &
Risk Crimes IT Risk Compliance
Risk Area Industry Requirement
Understand market and credit risk exposure across multiple silos to make
Financial Risk
financial and risk decisions consistent with business objectives
Secure all transactions and forms of interaction, proactively prevent
Financial Crimes increasingly sophisticated internal and external prohibited activities and
effectively manage detected events
Operational & Proactively manage potential risks, both internal and external, business and
IT Risk IT, resulting from events impacting operations, processes and applications
Understand and manage compliance across a dynamic set of voluntary and
Governance &
mandatory requirements imposed by multiple regulatory bodies, across
Compliance
operating jurisdictions, at an optimal cost for value
4. TowerGroup – Opening Comments
Regulation of electronic content complicates the IT
architecture
New demands for visibility and transparency in
financial services have the benefit of delivering business
value
On‐demand intelligence will have a growing role in
holistic risk management
Electronification of business processes brings new
demands to the IT group and redesigns business flows
Source: TowerGroup
5. Financial Services
Is this transparent?
• >50% over
retention
• >75% unclassified
or misclassified
• >20:1 duplication
...
6. Financial Services
The Information Lifecycle
Frequency of
Access and Use
Born Digital Expiration
Over 90% of information is Roughly 95% has a
born digital … and the rest retention policy … very little
should become digital should be kept forever
85%
of enterprise information
is unstructured
Time
7. Basics of regulatory content management
–E-discovery refers to any process in which electronically stored information
(ESI) is sought out, secured, and searched for use in civil or criminal legal
cases.
–By year end 2008, 28 states had or were planning e-discovery provisions in
their general civil procedure codes or modified specialized rules for business
courts
–Data classification is the categorization of data, an approach to storing
computer data
•Data can be classified according to its value to the business or how often
it needs to be accessed
•Goal is to optimize the use of storage for many purposes:
economic, technical, legal, and administrative
9. Financial Services
The proposed regulatory framework increases the importance of
transparency, operational risk management and the underlying
dependency on records and systems management
1. If its securitized or traded, it will require transparent,
dynamic record keeping throughout its lifecycle
2. If its reported, be prepared to report it with XBRL tags
3. If its an operational risk, be prepared to do quantitative
risk reporting
4. If you are a Tier 1 FHC, expect more scrutiny
5. Harmonization among agencies and international bodies
will result in less variability among regulatory regimes
6. Greater reliance on prudential instead of rules based
regimes will increase the value of being able to prove
http://graphics8.nytimes.com/packages/images/nytint/doc
effective operational risk management
s/obama-s-plan-for-financial-regulatory-
reform/original.pdf
10. Business value of electronic content
management in action
Connect with core processing, loan origination, or
lending systems to complete transaction
Obtain Approval, Index,
Create Digitize Communicate Authenticate, and Execute Archive,
Document Document and Distribute Authorize Transaction and Store
User Roles, Business Rules
Regulatory Requirements and Audit Trail
Disaster Recovery
Source: TowerGroup
12. Financial Services
Agile Enterprise Content Management
IBM agile ECM helps companies
make better decisions faster by:
● Managing all forms of
content
● Delivering content
intelligence
● Optimizing associated
business processes
● Enabling compliance
through an integrated
information infrastructure
Unified platform for content,
process, discovery and compliance
14. Financial Services
Enterprise Compliance is Invisible to Line-of-Business
Active Governance (GRC)
Security policies, controls and risks
are enforced, tested, monitored,
audited and reported “in-process”
Records automatically
retained and Classified
Content / E-mail is collected, Proactive eDiscovery
enhanced and managed in context Search and Analytics
with Content Collection and are enabled
Advanced Classification ECM Platform
15. Financial Services
The business case for transparency
Key Benefit buckets Insurance
Savings
Process
Savings
Infrastructure
Savings
Records Litigation
Management Support
&
Compliance
Labor
ts
Be nef i
16. Case Study: A national bank develops
e-discovery capability – Current state
– $75 billion dollar asset regional US bank operating under a national charter in 10 states.
– No formal policy to delete or otherwise reduce the amount of data held across the
institution. Some kept, some discarded, no discipline.
– No metadata or tagging process to identify data and its value
– Email archiving done via an automated tool but no classification system
– A data warehouse exists which is under separate governance and policy must address
all data in the institution that is kept in the enterprise data warehouse.
– Coordination with governance resources over the data warehouse is recognized as a
fundamental need.
– While bank has not outsourced significant business processes, it is evaluating several
BPO/ITO options. Policy should provide for this potential
• Include unstructured electronic data including credit files, loan documents, legal documents
and vendor contracts
• Back up vendor has all servers in a storage area network (SAN) – need to extend policy to
vendor.
17. Case study: a national bank’s
compliance with e-discovery policy
– Developed an e‐discovery policy with a process and IT roadmap
– Prior to policy setting, the bank established a means to decide its
retention goals
• The value of information to the bank – with a classification
system
• Risk assessment of keeping information of different types –
with amelioration strategies
E‐discovery policy must coordinate with policies on physical assets
as well as electronic assets – but won’t day one.
18. Financial Services
Outsourcing can be another ally
• Make it someone else’s
responsibility too
• Make your KPI’s their SLA’s
• Reduce your costs
• Leverage community
“learning” and assets
– Best practices
– Someone else’s SAS 70
– Analytics as a Service trained
on a global sample
19. Financial Services
ROI of Compliant Information Management
Automate
Enforce records
decisions, clean
retention to reduce
up legacy data –
save up to 17 2 3 eDiscovery and
storage costs by
cents per
50-80%
document
Leveraging a
common
infrastructure
accelerates cost 4
1 reduction
Control Growth, Optimize
remove duplicate eDiscovery
data – reduce decisions to
storage costs by reduce costs by
50%-80% up to 80%
20. Financial Services
The No Paper Weight Program
Save money. Risk less. Know more. Go green.
• IBM Assessment Expertise
– New: Free No Paper Weight ½ Day Checkup
at no obligation
• Register here:
https://www.informationmanagementrequest.com/mk/g
et/npw0509rp
– In‐depth No Paper Weight Prescriptive Assessments now
available from the IBM Centre of Excellence for Compliant
Information Management
• IBM Solutions
– Agile ECM solutions for Content, Process, Compliance and
Discovery
– Information Infrastructure solutions
21. Financial Services
Get Connected with IBM and our Risk Community
Websites enabling you to engage with our Subject Matter Experts
IBM Offerings & Capabilities Educational Videos, White Papers and Blogs
http://www.ibm.com/banking/risk by Risk Subject Matter Experts
http://www.risktech.financetech.com
Social Network Groups for Financial Services where risk isn’t the only topic
http://www.linkedin.com/groups?gid=1946782 http://www.linkedin.com/groups?gid=1894930
23. Resources
To View This or Other Events On‐Demand Please Visit:
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For more information on this topic please visit:
IBM Offerings & Capabilities RiskTech for Educational Videos, White Papers
http://www.ibm.com/banking/risk and Blogs by Risk Subject Matter Experts
http://www.risktech.financetech.com
Social Network Groups for Financial Services where risk isn’t the only topic
http://www.linkedin.com/groups?gid=1946782 http://www.linkedin.com/groups?gid=1894930