Abstract
This webinar explains how decision management and a decision model based approach can overcome many of the challenges of implementing compliance systems: aggressive deadlines, increasing complexity, inconsistent and ambiguous requirements, misunderstood data dependencies, constant change requests and the need for post hoc explanation and transparency. We illustrate the benefits of decision modeling using real examples from financial regulatory compliance.
This webinar covers:
What is the Decision Model and Notation (DMN), an open standard for modeling complex business decisions
Insights into how to automate and improve the transparency of your compliance implementations using DMN
How DMN enables a model-driven approach to compliance that reduces the needs for code development, lowers the risk of error and improves agility
A live demonstration using Trisotech’s DMN Modeler to model parts of a regulatory system
Tried and tested DMN techniques for quickly determining your true data dependencies, handling change and improving accountability
Featured Panelist:
Jan Purchase, Co-Founder & Financial Decision Management Consultant, Lux Magi
The Path to Product Excellence: Avoiding Common Pitfalls and Enhancing Commun...
Overcoming the challenges of financial decisions with DMN
1. Overcoming the Challenges of Financial
Decisions with DMN
How Decision Modeling Addresses the Risks of Regulatory Compliance
Jan Purchase www.luxmagi.com
3. About Lux Magi
� Lux Magi Ltd (www.luxmagi.com)
� Lux Magi helps investment banks and financial institutions
worldwide leverage Business Decision Modeling and Business
Decision Management.
� We help clients to manage, automate and optimize their operational
policies for regulatory compliance and competitive advantage.
� Lux Magi offers effective training and mentoring programs to ensure
clients get the best results from decision technologies.
� 17 years Business Rules Consultancy in Finance Sector
� Business Decision and DMN experts
� Training, mentoring, team leading
� Mining, analysing and building solutions
� Trisotech partner
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4. About Jan Purchase
� Working in IB for 19 Years
� Applying Decision Management
and business rules to regulatory
compliance since 2011
� Experienced Decision Modeler
� DMN practitioner, mentor, trainer
� Coauthor with James Taylor of
“RealWorld Decision Modeling
with DMN”
� Available Q4, 2016
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5. Compliance is a Serious Issue
� Wide Ranging
� Risk/Liquidity Management: Basel II/III, FTP, Volatility
Buffer
� Disclosure: FATCA, FASB, IFRS 9, FED 5G, EBA, QIS
� Consumer Protection: Dodd Frank, MiFID, GDPR
� Fraud: SOX
Therefore Broad Process/Architecture Impact
� Expensive
� Many Pessimistic About Delivery Against Deadlines
� Cost of Failure is High
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6. Compliance is Decision Making
� Compliance is About Making Operational Decisions
� How risky is that asset?
� Can I use it as collateral? What is its collateral value?
� Should (and how do) I report that liquidity profile?
� With whom can this client data be shared?
� Not All Business Decisions Are About Compliance
� Should I offer this client a loan?
� Can I writeoff this vehicle?
� Should I pay this insurance claim?
� What web content is most relevant for this client?
� But Compliance Decisions Must be Explained
� Scope of Compliance is Growing
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7. What is a Decision?
� A Decision Is…
� A determination a business makes on a regular basis
� Results in an output given one or more inputs
� Output has observable impact on an organisation (action)
� Decisions Should
� Have real business value and impact
� Be made frequently
� Be conducted at high volume or at high speed
� Require consistent or audited application
� Change
� Have an error cost
� Be managed
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8. Compliance Decision Making
� Compliance Decisions Need to Be Made
� Accurately
� Transparently
� Explicitly
� Quickly
� Consistently
� Flexibly
� Often This Means They Must Be Automated
� Decisions Must Be a ‘First Class Citizen’
� Decisions Must be Managed
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10. What is Decision Management
� Approach and Technology Stack for
� Making decisions explicit, transparent, accurate, consistent
� Increasing business agility and adaptability
� Linking decisions to measurable business performance
metrics
� Automation
� Important Part of this is Decision Modeling
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11. What is Decision Modeling
� Means of Documenting Decisions
� Standardized – Decision Model and Notation (DMN)
� Business oriented – effective means of collaboration
� Precise – ‘living spec’, can be executed
� Traceable – direct links to specifications
� Scalable – able to represent large requirements
� Insightful – quickly determines data requirements, dependencies
� Identifies, Captures, Shares and Improves Decisions
� From the heads of SMEs – in legacy system code – in rules
� How Are Decisions Modeled?
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12. How Does Decision Modeling Work?
� First Identify and Mine Your Business’s Key Decisions
� From processes, goals, policies and BI
� From your subject matter experts
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22. Compliance – The Key Challenges
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Time Pressure
Proliferation of Regulations – Short Deadlines
Specification Complexity
Big, Ambiguous and Inconsistent Specification
Late Discovery of Errors
Faster, More Accurate Data Requirements
Rigor/Execution Finds Logical Flaws/Omissions
Rigor/Early Testing Identifies Issues More Quickly
Hierarchical Definition ‘Divide and Conquer’
Less Time Wasted on ‘Shelfware’ Documentation
Accountability
Coverage – Unexpected Results Maintenance
Knowledge Links Prove Coverage/Explain Results
PostOp Statistics Prompt Improvements
Safe Agility
Consistent Need for Rapid Change Without Error
Strong Traceability Allows ‘Keyhole Surgery’
Explicit Dependency Support Impact Analysis
Collaboration and Transparency Avoids Mistakes
