• Tile1 CRIME

    Protecting the Financial Institution, its customers, and wider society from the impacts of crime.

  • Tile2 FRAUD

    Detecting and deterring internal or external fraud, be that towards the Financial Institution or towards its customers.

  • Tile3 CONDUCT

    Monitoring employee conduct to detect and deter unacceptable behaviours and protect the values and culture of the institution.

  • Tile4 REGULATORY

    Intelligence-led Regulatory Compliance through the detection and deterrent of Market Abuse and Inappropriate Trading.

Organised crime and terrorist groups rely on the global financial services industry to launder and distribute money to further their destructive causes. Financial Institutions (FI’s) are obligated to ensure they are not complicit in such criminal activity and that they are doing everything in their power to combat it. Regulators, customers, employees, and broader society demand this.

Today, most FI’s deploy a range of detection systems to monitor transactions against a set of pre-defined rules and models. These trader surveillance systems raise huge numbers of alerts that require large numbers of analysts to review, and because the technology and data is siloed, these systems and alerts drive a siloed organisation.

Effective and efficient financial crime threat mitigation must augment channel-specific detection systems and alert processing with cross-channel analytics, multi-skills teams, and an analytical and investigative approach.

Fraud is a major problem in the digital age, and its prevalence and impact continues to grow. The primary victims of fraud are, in many cases, the individual people whose money, assets or information have been stolen or compromised, however beyond that it's financial institutions that are taking the brunt of the cost.

Fraud comes in many shapes and sizes, ranging from simple, high volume fraudulent activity, to complex global networks of co-conspirators, and spanning both internal and external factors. However, fraud risks have one thing in common: they can be detected, deterred and combated effectively by adopting an integrated and intelligence-led approach.

Data is the lifeblood of financial institutions, if not any type of organisation in this digital age, and fraudulent activity leaves a data trail. Today, most organisations are struggling to govern and manage their volumes of data, let alone exploit it to combat fraud, and are relying on simple transaction monitoring or other narrowly-focused detection systems to alert suspicious activity. The processing of these alerts is often proceduralised and operationalised - understandable given the vast volumes, but sadly ineffective.

A more integrated approach is required, augmenting channel-specific detection systems and alert processing with cross-channel, integrated analytics, multi-skilled teams, and an analytical and investigative approac

Conduct at financial institutions such as investment banks has been under a global spotlight since the financial crisis. The impacts of poor employee conduct are not limited to external factors like reputational damage, itself a significant risk, or fines from misselling. Poor employee conduct negatively impacts the culture of the organisation in profound ways, making the likelihood of other risk events like market abuse more likely, not to mention driving up attrition and stifling innovation at a time when retaining top talent is already a challenge.

The technology, processes and skills used to detect and deter financial crime, fraud and market abuse can also be deployed to monitor conduct, looking at, for example, inappropriate and offensive behaviour internally, as well as how an organisation treats its customers. And because of the inherent link between employee conduct and other risks such as insider threat, fraud and market conduct, an integrated approach can deliver effectiveness and efficiency improvements over a more traditional, siloed approach.

Our financial markets and institutions perform a major role as part of the world's key global infrastructure, and are integral to the successful operation of global and local economies. But with great influence comes great responsibility, and financial institutions are therefore heavily regulated to ensure their global operations are not exploited by collusive networks to cheat, fix and destabilise markets, and that individual traders and other staff are held to account for their actions and prevented from unauthorised activity.

To date the overriding priority of trade surveillance has been one of coverage - of risks, regions, businesses, products and staff and customer populations, through the deployment of specific controls. These controls often come in the form of systems, procedures and people in a data channel or risk silo, as an integral part of the three lines of defence.

Whilst there are advantages to this approach, namely in it being easy to demonstrate coverage by simply mapping controls to a risk taxonomy, there are significant downsides: this approach generates huge volumes of system alerts and requires an army of surveillance officers to process the resulting backlog. It also creates tightly coupled solution 'stacks', where data, systems, users and processes are highly constrained, where change is difficult and costly, and where the full risk picture is not uncovered.

More effective insight can be generated, and more efficiently, by a more integrated approach.

  • Tile1 CRIME

    Protecting the Financial Institution, its customers, and wider society from the impacts of crime.

  • Organised crime and terrorist groups rely on the global financial services industry to launder and distribute money to further their destructive causes. Financial Institutions (FI’s) are obligated to ensure they are not complicit in such criminal activity and that they are doing everything in their power to combat it. Regulators, customers, employees, and broader society demand this.

    Today, most FI’s deploy a range of detection systems to monitor transactions against a set of pre-defined rules and models. These trader surveillance systems raise huge numbers of alerts that require large numbers of analysts to review, and because the technology and data is siloed, these systems and alerts drive a siloed organisation.

    Effective and efficient financial crime threat mitigation must augment channel-specific detection systems and alert processing with cross-channel analytics, multi-skills teams, and an analytical and investigative approach.

  • Tile2 FRAUD

    Detecting and deterring internal or external fraud, be that towards the Financial Institution or towards its customers.

  • Fraud is a major problem in the digital age, and its prevalence and impact continues to grow. The primary victims of fraud are, in many cases, the individual people whose money, assets or information have been stolen or compromised, however beyond that it's financial institutions that are taking the brunt of the cost.

    Fraud comes in many shapes and sizes, ranging from simple, high volume fraudulent activity, to complex global networks of co-conspirators, and spanning both internal and external factors. However, fraud risks have one thing in common: they can be detected, deterred and combated effectively by adopting an integrated and intelligence-led approach.

    Data is the lifeblood of financial institutions, if not any type of organisation in this digital age, and fraudulent activity leaves a data trail. Today, most organisations are struggling to govern and manage their volumes of data, let alone exploit it to combat fraud, and are relying on simple transaction monitoring or other narrowly-focused detection systems to alert suspicious activity. The processing of these alerts is often proceduralised and operationalised - understandable given the vast volumes, but sadly ineffective.

    A more integrated approach is required, augmenting channel-specific detection systems and alert processing with cross-channel, integrated analytics, multi-skilled teams, and an analytical and investigative approac

  • Tile3 CONDUCT

    Monitoring employee conduct to detect and deter unacceptable behaviours and protect the values and culture of the institution.

  • Conduct at financial institutions such as investment banks has been under a global spotlight since the financial crisis. The impacts of poor employee conduct are not limited to external factors like reputational damage, itself a significant risk, or fines from misselling. Poor employee conduct negatively impacts the culture of the organisation in profound ways, making the likelihood of other risk events like market abuse more likely, not to mention driving up attrition and stifling innovation at a time when retaining top talent is already a challenge.

    The technology, processes and skills used to detect and deter financial crime, fraud and market abuse can also be deployed to monitor conduct, looking at, for example, inappropriate and offensive behaviour internally, as well as how an organisation treats its customers. And because of the inherent link between employee conduct and other risks such as insider threat, fraud and market conduct, an integrated approach can deliver effectiveness and efficiency improvements over a more traditional, siloed approach.

  • Tile4 REGULATORY

    Intelligence-led Regulatory Compliance through the detection and deterrent of Market Abuse and Inappropriate Trading.

  • Our financial markets and institutions perform a major role as part of the world's key global infrastructure, and are integral to the successful operation of global and local economies. But with great influence comes great responsibility, and financial institutions are therefore heavily regulated to ensure their global operations are not exploited by collusive networks to cheat, fix and destabilise markets, and that individual traders and other staff are held to account for their actions and prevented from unauthorised activity.

    To date the overriding priority of trade surveillance has been one of coverage - of risks, regions, businesses, products and staff and customer populations, through the deployment of specific controls. These controls often come in the form of systems, procedures and people in a data channel or risk silo, as an integral part of the three lines of defence.

    Whilst there are advantages to this approach, namely in it being easy to demonstrate coverage by simply mapping controls to a risk taxonomy, there are significant downsides: this approach generates huge volumes of system alerts and requires an army of surveillance officers to process the resulting backlog. It also creates tightly coupled solution 'stacks', where data, systems, users and processes are highly constrained, where change is difficult and costly, and where the full risk picture is not uncovered.

    More effective insight can be generated, and more efficiently, by a more integrated approach.

A seismic shift is upon us … current approaches to tackling these types of risks are not scalable or even sustainable, and as data volumes and regulatory demands continue to increase, financial institutions are already drowning in a sea of alerts. Worse still, these alerts are not uncovering the full risk picture. The industry has a real opportunity to grow both effectiveness and efficiency through better use of existing data, design and implementation of flexible architectures, leveraging Cloud, and equipping analysts and investigators with not only the tools but also the tradecraft to succeed.

Matthew Pockson

Principal, Financial Services

Intelligence-led Risk Transformation

Screenshot 2019-08-19 at 15.26.02

Transforming your business

  • IconMission

    Mission, Vision, Strategy

  • TOMIcon

    Target Operating Model

  • SkillsIcon

    People & Skills

  • TradecraftIcon

    Investigative & Analytical Tradecraft

Risk or threat mitigation transformation programmes often start without a clear vision and strategy that is understood and backed by key stakeholders. We see this a lot, because we are often brought in to turn it around.

We strongly believe in the need to agree a unifying mission and to define and communicate a powerful vision from the outset. These can change over time, but you need this 'stake in the ground' if you are going to run an effective programme.

A Target Operating Model (TOM) is an essential part of your transformation journey, enabling you to design, plan and deliver business and technology change that’s true to your vision.

Your TOM must connect your mission through your organisation, linking your people and teams, the processes and tradecraft they deploy, and the underlying technology and data that enables them, to the businesses and risks that you are mitigating.

Detection systems that monitor data channels for risk events can be improved with the introduction of AI and machine learning technologies, increasing the effectiveness and efficiency of these risk indicators. But robots can't run investigations. You need people with an investigative and analytical mindset, operating in multi-skilled teams and equipped with these technologies, applying their judgement. We can help you define the skills and capabilities needed, and to build effective teams where the sum of the whole is greater than its parts.

tradecraft (n): the skills and methods developed over time from experience in a trade or profession.

We can help you take your business processes to the next level by defining and adopting investigative and analytical tradecraft that professionalises your compliance and financial crime fighting teams.

Transforming your technology

  • UXIcon

    User Centred Design

  • AgileIcon

    Agile Delivery

  • CloudIcon

    Cloud Delivery & Migrations

  • DataIcon

    Data Enablement

Investigative and analytical tooling needs to be both powerful and intuitive for it to be effective, but we often see communications and transaction monitoring solutions and integrated analytics platforms that slow teams down and introduce complexity through poor design.

Whether you want to focus on the User Interface (UI) of specific capabilities, or take a broader view of the overall User Experience (UX) of your desktop tools, we can help you enable your users in the best possible way.

Staying one step ahead of the risk is becoming increasingly challenging with many institutions struggling to adapt to the pace of change in today’s environments. Whether this is moving to 'two-speed IT' to provide innovative and agile technology delivery whilst continuing to operate legacy systems, or ensuring that your users have the latest analytics available, we can embed agility in your organisation.

With extensive experience of introducing Agile and DevOps, we can help you take a ‘product’ rather than ‘project’ view to deliver your vision. We work with business and IT stakeholders to drive value and focus on what’s important, to ensure that you are leaders, not laggards, in the digital race.

Financial institutions are embracing cloud technologies, but without a clear cloud strategy and architecture, cloud initiatives can fall short of the promised land. Having managed over £1bn of cloud projects and migrated over 250,000 workloads to the cloud in the last 5 years, we’re confident that wherever you are on your cloud journey, we can make your cloud migration and delivery a success.

Managing crime, fraud, conduct and other regulatory risks is fundamentally a data exploitation problem. If you work in a Financial Institution and are responsible for these types of risks, then you are inevitably faced with huge and ever-increasing volumes of customer and business data which you must cleanse, resolve, enrich, protect and govern, and present to users in such a way that enables them to uncover the risk.

We have built data enablement capabilities at scale – ingesting and unlocking petabytes of data for analysis whilst delivering iterative capability to the users.

How we work

DMW is a respected, independent consulting firm with a 30-year track record in delivering complex transformation projects. We can operate in critical advisory or delivery roles, or we can undertake a diagnostic exercise to help you shape your transformation.

Screenshot 2019-08-19 at 15.25.51

Chris Dean

CEO

  • Diagnostic
  • Advisory
  • Delivery
Our consultants work with clients to observe and articulate current operating models, performing broad analysis and deep diagnostic where required in order to identify areas for transformation both within the business and in enabling technologies.
Our consultants provide advisory services to senior executives in support of business management and/or transformation initiatives. They have expertise across organisational design, strategy development, future architecture definition and process optimisation.
Our consultants can lead or support transformation initiatives, large or small. With deep delivery expertise and broad domain knowledge our approach is both expert and tailored as we focus on delivery excellence: doing the right thing for you.

Diagnostic

Our consultants work with clients to observe and articulate current operating models, performing broad analysis and deep diagnostic where required in order to identify areas for transformation both within the business and in enabling technologies.

Advisory

Our consultants provide advisory services to senior executives in support of business management and/or transformation initiatives. They have expertise across organisational design, strategy development, future architecture definition and process optimisation.

Delivery

Our consultants can lead or support transformation initiatives, large or small. With deep delivery expertise and broad domain knowledge our approach is both expert and tailored as we focus on delivery excellence: doing the right thing for you.

We need to break down channel silos and adopt an intelligence-led approach. This means recognising system generated alerts as an intelligence source and not an outcome in their own right, being able to generate cross-channel insights, and equipping our analysts to use their skills and judgement to investigate and pursue the risk.

Mark McCormack

Managing Consultant, Financial Services

Intelligence-led Risk Transformation

Screenshot 2019-08-19 at 15.26.14

News & Views

Want to read more? Gain an insight into how we at DMW approach intelligence-led risk transformation in this series of articles. We discuss the issues faced by financial institutions in meeting their obligations, how we tackle them, and what the future will look like.