Business Case: Adverse Media for Banking
As a current tool utilized by most large financial institutions to support their AML/KYC processes, Adverse Media can play a significant role in realizing operational efficiency and improved risk decision making. The challenge for many organizations is how to deploy this technology not just in a high risk business line, but enterprise wide, without creating a mountain of work for internal teams eating a mountain of work for internal teams.
- While many banks have utilized a broad spectrum of negative media coverage when screening their high-risk portfolios, the trend is now to screen the entire portfolio, applying a risk based approach that applies a more targeted spectrum of adverse media risk categories.
- Once the coverage is applied to the entire portfolio, even on a more focused spectrum, how do teams apply and inject the information without an overwhelming output of alerts?
- How do you determine what parameters to apply to ensure you aren’t missing something that would result in a clear decision for the bank?