Communication Monitoring and Regulatory Compliance in Fin Serv

Financial services organizations know that failure to effectively monitor trade communications exposes them to a tremendous amount of risk. Whether the risk is driven by the dissemination of sensitive information, inappropriate employee behavior, or a violation of regulatory policies, it’s imperative that firms confidently mitigate these risks so they can protect brand value.This is the reality organizations face and why it’s so important to monitor communications proactively.

New Communication Channels, New Risks

We live in a 7x24x365 business world – active anytime, everywhere, and in many languages. New ways to communicate and share information – emerging social channels, new chat apps --introduce new sources of risk. This environment places great demands on the precision of your monitoring and its ability to efficiently enforce compliance. If it also increases the number of alerts, you will spend even more on forensic review, to avoid violations that could lead to greater regulatory scrutiny.

The False Positive Conundrum

Finding the balance between comprehensive monitoring that surfaces all possible incidents and minimizing time-consuming false positives is tricky. The key to reducing high false positive rates involves using techniques from machine learning and statistics to model and improve rule precision. High rates of false positive alerts is a symptom of incomplete and inflexible compliance management. The choice is stark: address the causes or they will continue to increase the cost and decrease analyst productivity – raising the risks to brand reputation and regulatory injunction.

Communication Monitoring Protects Your Brand

Modern technology helps financial services organizations efficiently implement communication monitoring and get ahead of problems whenever possible. Attivio’s Risk Avoidance solutions:

• Provide a single unified view of all channels and information to monitor.
• Apply new methods of monitoring other than simple keyword matching - capabilities such as predictive analytics, and advanced linguistics can recognize patterns and improve precisions to reduce the number of false positives identified.
• Enable compliance analysts to focus on high-likelihood risk channels, individuals, and patterns.
• Be flexible enough to adapt rules easily to support changing policies and regulations.
• Leverage technologies like machine learning to proactively surface insights continuously, identifying emerging patterns analysts can deal with before they become serious.

Proactive communications monitoring is about reducing costs associated with non-compliance to regulations. But that’s only part of the reason a holistic compliance solution is necessary. It takes years to build a reputation and a single scandal to bring it down to its knees. It doesn’t have to be this way.

Learn more in the ebook: Reduce Risk and Protect Brand Value Through Proactive Monitoring and Compliance.