Deloitte and IBM’s strategic alliance set to deliver “next generation risk intelligence”

Deloitte and IBM are jointly delivering next generation risk intelligence solutions

Deloitte and IBM are jointly delivering next generation risk intelligence solutions

Deloitte and IBM have announced the latest step in their long-standing strategic alliance which is specifically designed to create a “transformative series” of risk management and regulatory compliance solutions.

Significant changes have occurred in the risk landscape in recent years, subsequently increasing the regulatory compliance demands placed on financial services organisations and, at the same time, driving the need for enhanced risk management approaches.

Firms are facing regulatory, shareholder and public pressure to further enhance governance systems while also increasing transparency, competitiveness and profitability. As a result, financial services companies and regulators alike are necessarily having to revise their expectations around how risk is both identified and mitigated.

There have also been significant technological advances in big data, analytics and cognitive computing which can generate much deeper insights (and faster than ever before). However, organisations have not yet been able to effectively apply all of these capabilities within one solution.

Deloitte and IBM are developing solutions for financial services firms to more efficiently address their immediate compliance and conduct requirements. One of these is a regulatory compliance and control solution (which is being demonstrated at the IBM Vision Conference in Florida this week). The solution combines Deloitte’s regulatory intelligence with advanced technology from IBM. It will leverage IBM Analytics and cloud capabilities, with plans to incorporate Watson cognitive computing to disaggregate and classify regulations paragraph by paragraph, in turn helping clients to compare their control frameworks in direct relation to current and emerging regulatory mandates.

Tom Scampion: Global Risk Analytics Leader at Deloitte UK

Tom Scampion: Global Risk Analytics Leader at Deloitte UK

This solution can help to provide a streamlined view across the business, assisting with the confirmation of regulatory control coverage, managing remediation and prioritising the efforts of future regulatory change programs.

In addition, Deloitte and IBM have begun to develop the next generation of capabilities for managing risk and regulatory compliance.  Moving beyond the use of traditional structured data to leverage unstructured information and external data, the solution will include more predictive capabilities. This can be applied in real-time to help deliver actionable insights, limit exposure and reduce the impact of compliance and conduct issues that may arise.

Big data and predictive analytics

“The global enterprise risk management domain is undergoing significant transformation, and emerging technologies like big data and predictive analytics can be used to address complex regulatory requirements,” said Tom Scampion, global risk analytics leader at Deloitte UK.

“We’re excited to be working with IBM to apply their market leading technologies and platforms and so enable faster, more insightful business decisions. This alliance aims to completely re-frame and re-shape the risk space.”

IBM's Alistair Rennie

IBM’s Alistair Rennie

Alistair Rennie, general manager of analytics solutions for IBM, commented: “Financial services firms are under tremendous pressure which has forced them to spend the majority of their IT budgets on addressing regulatory requirements. There’s an opportunity to transform the approach organisations are taking and leverage the same investments to go beyond compliance to deliver real business value.”

Rennie concluded: “We’re excited to be working with Deloitte. They are the leading global risk consultancy provider with a reputation for helping clients to pro-actively manage their enterprise risk. Combining their knowledge with our technology will provide our clients with breakthrough capabilities and deliver risk and regulatory intelligence in ways previously not possible.”

About the Author
Brian Sims BA (Hons) Hon FSyI, Editor, Risk UK (Pro-Activ Publications) Beginning his career in professional journalism at The Builder Group in March 1992, Brian was appointed Editor of Security Management Today in November 2000 having spent eight years in engineering journalism across two titles: Building Services Journal and Light & Lighting. In 2005, Brian received the BSIA Chairman’s Award for Promoting The Security Industry and, a year later, the Skills for Security Special Award for an Outstanding Contribution to the Security Business Sector. In 2008, Brian was The Security Institute’s nomination for the Association of Security Consultants’ highly prestigious Imbert Prize and, in 2013, was a nominated finalist for the Institute's George van Schalkwyk Award. An Honorary Fellow of The Security Institute, Brian serves as a Judge for the BSIA’s Security Personnel of the Year Awards and the Securitas Good Customer Award. Between 2008 and 2014, Brian pioneered the use of digital media across the security sector, including webinars and Audio Shows. Brian’s actively involved in 50-plus security groups on LinkedIn and hosts the popular Risk UK Twitter site. Brian is a frequent speaker on the conference circuit. He has organised and chaired conference programmes for both IFSEC International and ASIS International and has been published in the national media. Brian was appointed Editor of Risk UK at Pro-Activ Publications in July 2014 and as Editor of The Paper (Pro-Activ Publications' dedicated business newspaper for security professionals) in September 2015. Brian was appointed Editor of Risk Xtra at Pro-Activ Publications in May 2018.

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