Innovative Risk Management
Effectively and efficiently managing risk is paramount to achieving success in the global financial industry. One of the greatest risks currently facing governments and financial institutions is the lack of preparedness to adapt to changing markets and needs.

Recent Global Anti-Money Laundering initiatives and increased exposure to financial fraud have resulted in a renewed emphasis on improving the assessment, monitoring and mitigation of risk. Financial institutions, and their senior managers as fiduciaries, are not immune to the problems caused by ineffective controls.

In the past, a limited number of financial institutions facilitated financial fraud and money laundering, funded drugs, human trafficking, arms dealing, the corruption of government officials and terrorism. This occured with inside help or because of an ostensible lack of senior management knowledge, this fact serves to demonstrate the need for an all-encompassing technology that can be used to mitigate these various risks.

The resulting challenge is for Financial Risk Managers to identify new technologies that allow for a comprehensive approach to managing financial risk while being affordable and flexible enough to adapt to changing markets and environments. Two strategies implemented shortly after September 11th, 2001 in response to the international pressures for AML solutions have been onerous and ineffective. The first strategy attempts to address compliance concerns by simply adding AML tools to existing technology. This resulted in large inefficiencies caused by increased manual labor, lost productivity, long waits for IT improvements and difficult customization.
 
The second approach, attempted primarily in Latin America, was to adopt minimum- standard solutions that provided nominal compliance and financial risk management. In addition to being first generation solutions, most of them included extensive hidden costs that negated the primary reason for their initial adoption. The sheer size of the legal and reputation risks of an institution linked to money laundering abuses and financial fraud demonstrates a need for stronger compliance and more effective risk management solutions.

The rationale for utilizing a flexible, efficient and affordable approach is compelling, and, hence, a critical element for decision makers who need real, first-tier solutions that can be implemented quickly at a price affordable to regional organizations.

At both large and small financial institutions, more effective process oriented solutions are taking the place of inefficient, fragmented and duplicative tasks. These solutions allow for continual testing and validation and provide an emphasis on enterprise-wide AML and Fraud Risk Management.


There is a clear need for an automated solution that can critically evaluate unusual client relationships and transactions and variations from standard procedures. Such a solution must provide tools that identify potential threats to the financial institution, and should be able to perform automated list checking in order to identify and prevent transactions that would create unwanted exposure for the institution.

The Haydrian solutions for AML and Anti-Fraud have been designed by the most experienced team of financial experts in these specific areas of risk management. The team includes expertise of world class engineers, with experience in AML and fraud prevention, as well as world leaders in the field of financial regulation and internationally recognized experts in the field of financial crimes. In addition, the team has experts in international banking, NYSE company directors and recognized senior executives in the credit and brokerage industry who provide specialized subject matter expertise to the Haydrian Solution. The result of their efforts is the Haydrian XM3 platform, which provides a comprehensive approach to AML and Fraud Risk Management and is accurate, innovative, flexible and affordable.