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FROM THE BATTLEFIELD TO THE BOTTOM LINE:
USING MULTI-NODAL NETWORK ANALYSIS TO
DETECT FINANCIAL RISK
Christopher Kenly
Aveshka, Inc.
Vice President
Innovative Analytic Solutions
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Bottom Line
We can leverage thelessons learned from
the governments
change in the way itis doing business
after 9/11 and apply
them to managingfinancial risk.
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Pre-9/11 Threats
Pre-9/11, how did we think about national security threats?
Regional Concerns
Economic Interests
Nation-States
Narcotics
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Post 9/11
We are faced with looselyaffiliated groups united by
ideology
Not tied to nation-states
Independently funded
Operating globally
Operating clandestinely
Difficult to track/trace
How do we view the new threat environment?
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Post 9/11
What has the battlefield looked like?
No frontline; attacks
throughout the country
Limited visibility intoenemy organization &
operations
Evolving adversarytactics & techniques
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Post 9/11
How to deal with new threats?
New government agencies and programs
to facilitate information sharing
New efforts to collect and share critical
infrastructure information and exploitopen-source data sets
Enhanced analytical techniques
throughout government
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Post 9/11
How to deal with new threats?
Multi-nodal network analysis toprovide a 360 view of threat
network
Identifies previously unknown
linkages using Dark Network Theory
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Analytics in Action
New tools to identify and analyze threat streams, financial networks,
and communications and conduct targeting and travel screening
New technologies and techniques that allow an analyst to query datafrom multiple databases rapidly and comprehensively to provide
information awareness and reveal hidden relationships
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Threat Environment
Systemic Risk MoneyLaundering
Rogue Trading
Insider Trading
Leaks or Loss of
IP
Accounting
Fraud
Pump-&-DumpSchemes
Identity Theft
How did we think about financial threats?
Ponzi Schemes
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Financial Battlefield
What does the financial battlefield look like?
Globalization of risk
Company brands at risk
Millions of transactions
Non-transactional data
Social media sources
Proprietary data sources
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How does it currently work?
Without analytics, researching and planning for the mitigation of risk is
a cumbersome and intricate task.
FinancialRisk andExposure
Unknown exposure torisks results
misinformed decisionmaking
Sifting through massivedata sets, located indisparate databases,
and existing in variousformats
Traditional mitigationbased on transactionalanalysis often fails to
identify hiddenrelationships and
latent risks
Analytical accuracy andspeed can vary across
organizationaldivisions, experience
levels, and subject
domains
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Lessons Learned
Use multi-nodal network analysis and data analytics to help mitigate risk
Multi-nodal network analysis
Identify conflicts of interest
Identify derogatory information (e.g., bankruptcies)
Map social media relationships
Determine front companies
Identify operational tactics
Data analytics
Connect the dots
Identify linkages quickly
What lessons can we take from the battlefield and apply to
financial risks?
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Analytics in Action
Fraud
Detection
Anti-Money
Laundering
Intelligence
Collection &
Analysis
Competitive
Intelligence
Transaction
Monitoring
Risk
AssessmentDue Diligence
Brand &
Reputation
Management
How can analytics transform the financial industry?
If used correctly, it can truly be a game changer.
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Benefits of Analytically Enabled Multi-Nodal Network Analysis
Seamless Single intuitive interface enables access to vast quantitiesof data from disparate sources
Flexible Cloud-based scalable architecture enables tailored inputsand outputs analysis and reporting on your terms
Cost-effective Independent of your infrastructure so that it can beaccessed anywhere with lower total lifecycle costs
PowerfulCustomizable visualization tools highlight hidden
relationships and new avenues of inquiry
EfficientAutomated data collection and prioritization of results
shrink the analytic timeline
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QUESTIONS?
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Points of Contact
SCOTT SCHNEIDERMAN
o | 571.814.5737m | 917.209.8829
PRINCIPALInnovative Analytic Solutions
ADAM KILLIAN
o | 571.814.5729
m | 571.243.4388
PRINCIPAL
Innovative Analytic Solutions
CHRIS KENLY
o | 571.814.5702
m | 609.372.5120
VICE PRESIDENT
Innovative Analytic Solutions
KELLI COOPER
o | 571.814.5745m | 706.564.2411
ANALYSTInnovative Analytic Solutions
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