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TRANSCRIPT
FROM THE BATTLEFIELD TO THE BOTTOM LINE: USING MULTI-NODAL NETWORK ANALYSIS TO DETECT FINANCIAL RISK
Christopher KenlyAveshka, Inc.Vice PresidentInnovative Analytic Solutions
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Bottom Line
We can leverage the lessons learned from the government’s change in the way it is doing business after 9/11 and apply them to managing financial risk.
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Pre-9/11 Threats
Pre-9/11, how did we think about national security threats?
Regional Concerns
Economic Interests
Nation-States
Narcotics
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Post 9/11
We are faced with loosely affiliated groups united by ideology • Not tied to nation-states• Independently funded • Operating globally• Operating clandestinely• Difficult to track/trace
How do we view the new threat environment?
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Post 9/11
What has the battlefield looked like?
• No frontline; attacks throughout the country
• Limited visibility into enemy organization & operations
• Evolving adversary tactics & techniques
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Post 9/11
How to deal with new threats?
• New government agencies and programs to facilitate information sharing
• New efforts to collect and share critical infrastructure information and exploit open-source data sets
• Enhanced analytical techniques throughout government
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Post 9/11 How to deal with new threats?
• Multi-nodal network analysis to provide a 360⁰ view of threat network
• Identifies previously unknown linkages using Dark Network Theory
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Analytics in Action• New tools to identify and analyze threat streams, financial networks,
and communications and conduct targeting and travel screening• New technologies and techniques that allow an analyst to query data
from multiple databases rapidly and comprehensively to provide information awareness and reveal hidden relationships
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Threat Environment
Systemic Risk Money Laundering Rogue Trading
Insider Trading
Leaks or Loss of IP
Accounting Fraud
Pump-&-Dump Schemes
Identity Theft
How did we think about financial threats?
Ponzi Schemes
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Financial “Battlefield”What does the financial “battlefield” look like?
• Globalization of risk
• Company brands at risk
• Millions of transactions
• Non-transactional data
• Social media sources
• Proprietary data sources
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How does it currently work?Without analytics, researching and planning for the mitigation of risk is a cumbersome and intricate task.
Financial Risk and Exposure
Unknown exposure to risks results
misinformed decision making
Sifting through massive data sets, located in disparate databases,
and existing in various formats
Traditional mitigation based on transactional analysis often fails to
identify hidden relationships and latent
risks
Analytical accuracy and speed can vary across
organizational divisions, experience
levels, and subject domains
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Lessons Learned
• Use multi-nodal network analysis and data analytics to help mitigate risk• Multi-nodal network analysis
• Identify conflicts of interest • Identify derogatory information (e.g., bankruptcies)• Map social media relationships• Determine front companies• Identify operational tactics
• Data analytics • Connect the dots • Identify linkages quickly
What lessons can we take from the battlefield and apply to financial risks?
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Analytics in Action
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Analytics in Action
Fraud Detection
Anti-Money Laundering
Intelligence Collection &
Analysis
Competitive Intelligence
Transaction Monitoring
Risk Assessment Due Diligence
Brand & Reputation
Management
How can analytics transform the financial industry?
• If used correctly, it can truly be a game changer.
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Benefits of Analytically Enabled Multi-Nodal Network Analysis
Seamless Single intuitive interface enables access to vast quantities of data from disparate sources
Flexible Cloud-based scalable architecture enables tailored inputs and outputs – analysis and reporting on your terms
Cost-effective Independent of your infrastructure so that it can be accessed anywhere with lower total lifecycle costs
Powerful Customizable visualization tools highlight hidden relationships and new avenues of inquiry
Efficient Automated data collection and prioritization of results shrink the analytic timeline
QUESTIONS?
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Points of Contact
SCOTT SCHNEIDERMANo | 571.814.5737m | 917.209.8829
PRINCIPAL Innovative Analytic
Solutions
ADAM KILLIANo | 571.814.5729m | 571.243.4388
PRINCIPAL Innovative Analytic
Solutions
CHRIS KENLYo | 571.814.5702m | 609.372.5120
VICE PRESIDENT Innovative Analytic
Solutions
KELLI COOPERo | 571.814.5745m | 706.564.2411
ANALYSTInnovative Analytic
Solutions