NICE Actimize, a NICE business and a provider of financial crime, risk, and compliance software for the financial services industry, this month introduced its new Holistic Behavioral Analytics Solution designed to help financial institutions uncover conduct-related threats that traditional analytics are not designed to detect. The new solution transforms existing compliance processes by discovering risks that lie in enterprise silos, a critical step in mitigating losses, thereby protecting a firm’s reputation and meeting regulatory obligations.
Global regulators—such as the Financial Industry Regulatory Authority, the Financial Conduct Authority, and the Securities Futures Commission of Hong Kong—require firms to manage conduct risk, create a culture of compliance and effectively govern the firm. However, since behaviors violating these mandates often don’t follow a predictable pattern that can be easily modeled, certain types of threats may go undetected for long periods. NICE Actimize’s Holistic Behavioral Analytics solution exposes these threats by analyzing vast volumes of trades, communications and other data to identify risky individuals or entities.
“From the front office to compliance and risk teams, the strategic use of behavioral analytics enables firms to move from identification of compliance risk to prediction and prevention of risk, applicable to both buy side and sell side firms, as well as retail organizations,” said Joe Friscia, President, NICE Actimize. “The integration of advanced behavioral analytics into traditional analytics reduces the cost of compliance and saves analysts time by eliminating the all too often alerts traffic jams.”
The NICE Actimize Holistic Behavioral Analytics solution, which identifies high-risk entities such as a trader, account, broker, desk or counterparty, enables analysts to spot changes in behavior and instantly open an investigation. If an analyst determines that the behavior is putting the firm at risk, they can open an investigation – mitigating the risk of financial loss or regulatory violation. Powered with an open and flexible platform, firms can easily extend this new solution to cover emerging areas of risk.
In addition to detecting hidden threats, the NICE Actimize Behaviorial Analytics solution, when used in conjunction with the NICE Actimize Markets Surveillance solution, also helps firms more accurately assess alerts for known threats such as insider trading, spoofing and marking the close. Firms using both solutions can view alerts generated by both traditional analytics and the behavioral data associated with them within NICE Actimize’s case management, better enabling analysts to more quickly assess severity of alerts.