Virtusa / Banking & Financial Services / Risk & Compliance
Intelligent Technology to Handle Your Risk and Compliance Needs

Banks have to prepare for an increase in more thorough banking regulations and compliance requirements in the coming years. These requirements include retaining high-quality data for internal and regulatory reporting, capital planning and stress testing processes, new market risk methods (FRTB),  modeling risk-management frameworks, and detailed real-time surveillance. Banks need to start adopting technology solutions that enable intelligent and automated handling of regulation-related processes today to manage these extensive compliance requirements that are coming in the near future.

Our Solutions

AML Model Validation Framework

Validate that AML model is performing in compliance with OCC 11-12 and meeting defined business objectives

AML Model Validation Framework

Regulators worldwide are implementing guidelines and measures to prevent the illegitimate transfer of money. With huge penalties slapped on financial institutions for Anti-Money Laundering (AML) non-compliance, banks are forced to tighten their approach toward AML model validation. Our AML model validation framework assesses a bank’s compliance with the OCC regulatory guidance to establish a framework that confirms your business process model is performing in line with defined AML business objectives. We help clients handle AML and other compliance risks by not just implementing requirements, but also by testing operations models to quantify and verify the ability to adequately and efficiently mitigate risk.

What you’ll get

  • Improved AML Risk Management by minimizing and mitigating risk within the AML program
    Satisfying regulatory expectations and requirements for the soundness of models in use within the AML program
  • Effective and improved customer due diligence (CDD) & enhanced due diligence (EDD) processes
  • Increased model productivity and efficiency that in turn improves the quality of AML audit observations and improves business decisions
  • Reduced costs by helping banks avoid fines and penalties imposed by regulators due to gaps in AML programs

Financial Crime Center of Excellence (COE)

Minimize reputational risk and avoid monetary penalties

Financial Crime Center of Excellence (COE)

As regulators launch new rules to tighten controls globally, banks and financial institutions are aligning their IT systems and processes to minimize reputational risk and regulatory penalties. Our financial crime center of excellence (COE) focuses on automating compliance processes so that your bank can meet the regulatory expectations while staying cost competitive. We have extensive industry knowledge and resources to provide an array of services including gap analysis, consulting, and implementation to end-to-end integration.

What you’ll get

  • Deep domain knowledge and technical expertise in AML compliance (KYC/CDD/EDD, sanction screening, and SAM) and trade compliance (market manipulation and abuse)
  • A host of checklists and frameworks to help automate compliance processes and create cost efficiencies by minimizing reputational risks and regulatory penalties
  • Applying RPA to automate the AML manual process and apply machine learning to reduce false positives
  • Expertise in leading compliance products including Actimize, Mantas, and SAS

We co-created the compliance solution for an enhanced due diligence and US sanctions screening for a tier 1 global bank.

FCC Analytics

Prevent fraud with sophisticated analytics solutions

FCC Analytics

Regulators are implementing mechanisms that are helping strengthen the financial ecosystem and reducing fraud. As a result, financial institutions are applying FCC analytics modeling techniques including text mining, sentiment analytics, social network analysis, behavioral modeling, and link analysis. Our analytics framework uses machine learning to identify and analyze unusual activities from historical data. This helps banks and financial institutions make better decisions and leads to a reduction in false positives, naturally increasing the productivity of actual alerts.

What you’ll get

  • Holistic communication surveillance by applying data lake and machine learning techniques to detect market manipulation and illicit activities in near real-time
  • Deployment of statistical model-based tools to monitor, analyze, and act on the data based on trade behavior pattern recognition that enables real-time decision making
  • Financial crime analytics on transactional and market data to identify anomalous behavior earlier

Validation of Transaction Monitoring and Filtering Solutions

Fight money laundering and terrorism better compliance protocols

Validation of Transaction Monitoring and Filtering Solutions

Under the new DFS regulation (final rule 504), financial institutions (FIs) are required to review their transaction-monitoring and filtering programs to ensure that they are reasonably designed to comply with risk-based safeguards. Our framework helps FIs to get certified with DFS on an annual basis, validate AML risk assessment programs, and red flag money laundering transactions. We provide end-to-end and pre-and post-implementation and data validation with a robust methodology for alert investigation and SAR filing, ongoing analysis, governance, and vendor selection.

What you’ll get

  • Appropriately match the BSA/AML risks to the financial institution’s businesses, products, services, and customers/counterparties
  • On-going analysis to assess the logic and performance of the technologies and tools for matching names and accounts OFAC sanctions list and the threshold settings to see if they continue to map to the risks of the financial institution
  • Validation of the integrity and quality of data to ensure that accurate and complete data flows through the transaction monitoring and filtering program

We are in conversations with multiple clients to apply this framework to be compliant with the NYDFS regulation in 2018.

AML Risk Assessment Framework

Implement a risk-based approach as part of your AML program

AML Risk Assessment Framework

As regulators tighten AML compliance globally, banks and financial institutions (FIs) are revisiting their client relationships and client acceptance processes. We developed a framework to implement a risk-based approach toward AML compliance programs. This framework adopts best practices and guidelines from the FATF recommendations, Wolfsberg principals, EU Fourth Directive, and BSA/AML risk assessment guidance. The essential components of the framework to identify the risk rating include customer, geographic, product and services, and delivery channels.

What you’ll get

  • Ability to identify low, medium, or high-risk customers and appropriate mapping of red flags for population groups of customers
  • Application of relevant risk factors to specific models based on relative risk weights and resulting score contributions
  • Enable FIs to evaluate the strengths and weaknesses of their compliance efforts, define enterprise-wide and customer-level risk models, and gain a solid business perspective during the implementation of AML software solutions

Watch how our ACRiS solution can help you achieve AML compliance

Model Risk Repository

Mitigate model risk with an integrated system for governance

Model Risk Repository

Models were developed in silos without enterprise-level governance. This led to inconsistencies in data-quality, quantitative methodologies, model uses, and validation processes. As a result, banking and financial services firms now feel the need for a comprehensive model risk repository. Our model risk repository framework helps banks establish a centralized system to manage all of their internal risk models and harmonize governance. This framework provides the bank with an inventory of models along with the proper model assumptions, documentation policies, and infrastructure to ensure sound model risk management.

Our Value Proposition:

  • Reduction in the manual efforts required to appropriately manage inventory, documentation, communication, and monitor changes
  • Ensure clear oversight throughout the bank’s model risk lifecycle including well-controlled model development, implementation, and policy
  • Centralized capability to manage and track core processes and workflows throughout the model life cycle

We’ve built a model risk repository for a tier 1 global bank.

Regulatory Reporting Workbench

Enable better governance processes for end-to-end regulatory reporting

Regulatory Reporting Workbench

Banks and financial institutions are facing multiple challenges due to the increasing complexity of regulations rolled out globally. While regulators focus on internal controls and process governance, issues with data quality and the limitations of manual processes are forcing banks to spend considerable efforts in generating reports. Along with the correctness of the numbers, the Fed and EBA also monitor banks’ risk management practices regarding internal controls, governance, management oversight, and accountability. Our regulatory reporting workbench is an overarching solution that helps banks streamline the entire regulatory reporting process without disturbing their existing infrastructure. This solution integrates with banks’ current state architecture and provides complete control over the regulatory reporting process, provides orchestration and governance of risk, and financial reporting lifecycle from the data source to the regulatory reports.

What you’ll get

  • Flexible workflows to connect all stakeholders with the ability to add new systems, processes, and user-roles
  • Blends with existing landscape and runs across as the backbone of regulatory reporting using end-to-end rules framework, model and scenario management, results analysis, dashboards, workflows and audit trails.
  • Strong partnership with Pega

We enhanced reporting process automation that led to a 35% saving of efforts and time for a tier 1 US Bank.

Risk Monitoring with In-Built Analytics

Gain enterprise-wide visibility of risk to improve decision making

Risk Monitoring with In-Built Analytics

Banks realize the importance of data beyond simple risk data compliance. This is why they are seeking ways to use data strategically by leveraging advanced analytics and digitization to support business growth. The growth of analytics technology, lower costs of storage and processing, and need for near real-time risk monitoring will continue to boost the potential of risk analytics and decision making. This trend has been recognized by areas including credit, trading, risk management, scoring, and internal ratings among others. We deploy customized risk monitoring solutions after ascertaining the required risk measures and their appropriate dimensions. Our deep capabilities in decision science and hands-on experience across all areas of risk management make it possible to measure, quantify, and deploy predictive risk models.

What you’ll get

  • Conceptualized risk visualization across multiple areas of financial risk management and an exhaustive reference library of dashboards
  • Existing library of visualizations covering market risk and credit risk for corporate and retail businesses.
  • Near real-time risk dashboards with integrated analytics and decision-making tools that enable CROs

We implemented market risk monitoring in near real-time for a tier 1 investment bank that improved the bandwidth of operations by 10% and reduced reporting time by 50%.

Scenario Manager

Create, manage, and distribute scenarios for analysis and stress testing

Scenario Manager

After the global economic meltdown, regulators have put stringent mechanisms in place to ensure a repeat of the 2009 crises does not happen again. They are demanding that financial institutions implement more transparent, repeatable, and auditable stress testing processes that integrate data, models, and reports. Our scenario manager framework allows banks to facilitate end-to-end, organization-wide stress testing and capital planning exercises. The framework gives banks the ability to analyze a variety of scenarios that can occur as a result of ever-increasing market volatility and changing regulatory expectations.

What you’ll get

  • Integrated regulatory reporting and business intelligence capabilities for report submission service and key business strategy reporting functionalities
  • A rich library of risk factors for multiple stress testing processes and systems
  • Meet internal and regulatory requirements of the bank for scenario analysis using a single platform

We created a scenario manager for a tier 1 US Bank for sensitivity analysis, scenario analysis, and stress testing that reduced the average scenario creation time from three weeks to four days.

Data Lineage Solution

Achieve better compliance with BCBS239

Data Lineage Solution

BCBS 239 has set a standard for regulators, and D-SIBs and other non-G-SIBs have sought to conform as well. More frequent, regulatory targeted reviews are expected, such as ECB’s thematic review of BCBS 239 compliance for G-SIBs. As a result, banks are required to diagnose and examine their data and reporting architecture, capabilities, and governance weakness by conducting enterprise, risk, and business-wide gap assessments. Through data lineage, organizations can trace sources of specific business data to track errors and apply steadier data governance protocols. Our data lineage solution provides a framework to create a lineage across the lifecycle from transactions to reporting.  It concentrates on four themes running through the BCBS239 principles that require focus which include completeness, timeliness, accuracy, and adaptability.

What you’ll get

  • A variety of databases including Teradata, MySQL, and Oracle as well as ETLs including MF JCLs, Informatica, and Datastage
  • Ability to capture data lineage and object lineage, automatic comparison, validation, and connectivity to any GraphDB or visualization tools for reporting
  • Saved time and money by identifying the origination of data in reports and the systems where poor quality data exists

We re-engineered the risk data for compliance with BCBS 239 for a tier 1 investment bank. We helped the client eliminate more than 100 EUCs and achieve complete straight through processing into a single computational engine for one risk measure.

Risk Model Validation

Gain greater confidence about the effectiveness of your risk management processes

Risk Model Validation

Risk, pricing, and other related models, whether analytical or numerical, are crucial to the success of any financial institution. With the current regulatory and competitive market scenario, banks need to keep on developing and updating adequate and proper models. These models should be validated and tested continuously to manage model risk and ensure clear oversight. Our model validation framework provides comprehensive testing and technical services to assist with regulatory compliance issues. Using a structured approach to model testing, we enable our clients to focus clearly and mitigate model risk by through faster and more informed business decisions.

What you get

  • Model governance framework comprises of model documentation, policies, and procedures.
  • Validation of model assumptions ensuring treatment for stale assumptions, observable references, and taking care of consistency and relevance
  • Processing checks that include core model logic, calculation and processing, and internal integrity

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Virtusa Corporation
132 Turnpike Road
Suite 300,
Southborough, MA 01772