Banking

Trust Exchange Speaking at Risk Management Association's Governance, Compliance and Operational Risk Conference

Next week, I'm speaking in Boston on April 18th and 19th, at the Risk Management Association's  Governance, Compliance and Operational Risk Conference.  I'm speaking on a topic that is very familiar to me but may be a tad bit controversial for the typical Risk Management Professional.  The Topic: How Collaborative Compliance Overcomes the Limitations of Artificial Intelligence.

Artificial Intelligence has been over-hyped to the point where it is thought of as a cure-all.  In fact, some claim computerized superhuman intelligence is just around the corner. So powerful, that AI-powered computers and robots will take all of our jobs! This is simply not the case.  Ai has a LOT of limitations.  It is powerful but in a very specific set of applications.  

Artificial Intelligence works well when both the data being analyzed and the analysis rules are static.  OCR, Gaming, Diagnosis and Speech Recognition are all good examples of AI working at scale.  AI is a way to super scale LINEAR problems.  However, Operational Risk Management and Regulatory Compliance are fields wrought with redundant manual processes that chase and verify rapidly changing data.  They are EXPONENTIAL problems.

In my talk next week, “Compliance in an Exponential World: The Role of Artificial Intelligence and Curated Crowdsourcing in the Future of Compliance,” I will explore the use cases and limitations of Artificial Intelligence for managing risk and compliance and compare it to Trust Exchange’s unique Collaborative Compliance solution.

If you're attending, drop me a line here:  http://www.trustexchange.com/GCOR

 

 

 

The Cargo Cult of Business Information

The state of B2B credit today can be compared to the cargo cults of the post World War II pacific islanders. Like these cults, the large credit bureaus and financial institutions are trying to predict the future by recreating the circumstances of the past and forcing modern businesses to perform their sad obsolete rituals.

The John Frum Cult, located on the South Pacific island of Vanuatu, is a modern remnant of the “Cargo Cult” phenomenon. These cults sprung up when technologically advanced western cultures exposed themselves to the native islanders. The natives, upon seeing the inexplicable technology and vast amounts of supplies brought in by the militaries of the United States and Japan, attributed these achievements to magic or divine origin.

Once the war ended and the militaries withdrew, the natives began creating rituals that mimicked the behavior of the occupying militaries. They would stage parades, build runways, coconut radios and even airplanes made from palm trees in an attempt to conjure up the fantastic amounts of men, supplies and the miracle of flight. Sadly for them, short of another war, nothing they do will replicate the unique set of circumstances they witnessed in the 1940’s. Even today, the John Frum Cult (“Hello, I’m John from America”) has a ceremony every year on February 15th to celebrate their new god in the hope of his return.

Unfortunately, the business credit industry is enacting similarly obsolete rituals. Here are a few examples.

Check Credit.  It costs a lot to check a company’s credit and in most cases the data isn’t accurate, timely or correlated with any company’s long term viability or ability to pay. This is especially true for small and medium businesses. Furthermore, business failure is a process and not an event. In order to understand the true risk of entering into a business relationship you need to monitor viability vs. check credit.


Reporting Credit.  It costs a lot of money to report on a company, good or bad. The quality of a report is dependent on collecting ALL of the data on a particular company. These fees are a negative incentive to participation and reduce the quality of the overall data.


Data Integration.  It costs a FORTUNE to integrate real time with the large business credit bureaus. This is an additional blockage to free data and skews the existing data toward the outcomes of the larger integrations: telecom, utilities, etc.

Trust.  The large credit bureaus don't trust you to update your own information.  They also don't track key information beyond the payment information such as certifications.  (SOC1, SOC3, ISO, etc.)

At Trust Exchange, we are trying to stamp out the cult by making the data open, free and peer generated. With our service, you can create your own standards, rate companies and monitor all of your key business relationships.  

 

Credit Monitor

Learn more by contacting us HERE

Webinar: Reducing the Cost of Vendor Management for Credit Unions

SOLD OUT!  

This afternoon we are co-hosting a webinar with our partner, Auditlink entitled "Leveraging Latest Technologies to Lower Cost of Vendor Management."  Unfortunately, due to limited space, we were unable to accommodate everyone interested in attended so we had to shut down registrations.   We will post the slides and a recording of the webinar within the next few days.

In the meantime, here is a summary of the topics discussed:

  • new regulations are increasing the costs of managing vendors for credit unions
  • cost of compliance increase isn't incremental but exponential
  • existing solutions are largely manual workflow management and don't scale 
  • Trust Exchange provides a solution based on crowdsourcing and collaboration 
  • Trust Exchange DEMO
  • Q & A

Stay in the loop....don't miss the next webinar by clicking below.

 

Tutorial Part 1: How to Build a Custom Compliance Dashboard

Here is the first of a series of tutorial videos we will be releasing over the coming weeks.  This video provides a general overview of our product and demonstrates how easy it is to build a dashboard and track companies.

It's never been easier to build a custom compliance dashboard.

Uploaded by Trust Exchange on 2017-03-31.

To learn more contact us.  HERE

Trust Exchange 2017 Release is LIVE!

Release Features

This major release launches our new user interface, which features beautifully redesigned views, intuitive navigation and forms, greater user control over permissions and significantly enhanced reporting flexibility.  In addition to these platform upgrades, system updates have been implemented that increase speed and stability, several bug fixes have been applied, and support resources have been expanded.

Platform-wide User Experience Redesign

The new Trust Exchange user interface features attractive, easy to understand views and intuitive top level navigation in the left sidebar, as well links to user-friendly support resources and company information in the footer of every page.  In addition, helpful text descriptions and mouse over information is served up contextually throughout, and forms for searches, reports and information entry have been extensively redesigned for simple and efficient input of parameters and data.

Enhanced Dashboard Information

Dashboard pie charts have been replaced with dynamic graphs which provide detailed information on multiple aspects of portfolio list status at a glance.  The new dashboard also features a scrolling feed in the right sidebar highlighting summaries of new events created in portfolio companies.  The dashboard continues to offer direct navigation between portfolios, and list management, monitoring and reporting tools remain accessible via the list drop down menu.  New, expanded reporting capabilities can be utilized by clicking on the “Reports” icon in the navigation sidebar.

Intuitive, Versatile Reporting Tools

In the updated interface, reports are built using easy-to-understand report wizards and permit significantly increased reporting versatility.  Event Reports and Checklist Reports can be created for any number or combination of companies and/or portfolios. Each report type allows the user to select a custom set of events or checklists to report on, and the user may choose from several convenient, pre-set date ranges.

Flexible Company Profiles

Both company profile views and reports increase user control over the types of events displayed and the date range covered.  Enterprise tier users may now delete events which they themselves have created from a company’s timeline.
 

Expanded Company Information

Company information input forms are now tiered in multiple tabs, allowing a user to add basic information and then more details as desired.  A company owner has access to additional tabs to further complete their company’s profile.  This information works hand-in-hand with enhanced search capabilities and will allow prospective customers searching Trust Exchange to more easily find vendors who meet their needs.  Trust Exchange and its partners will also use this information to feature companies who meet the criteria of our enterprise customers who are seeking vendors with specific attributes.

Improved Document Management

Documents can now be uploaded in a user’s “Files” section via an easy-to-use form.  When attaching a document to an event, a user’s list of documents is served up at the bottom of the new event entry form, allowing a user to click to select any number of documents to attach them to the event.

Enhancements

Several useful enhancements have been implemented with this release:

  • Editing permissions can now be selectively granted for both private and public events

  • A “Comments” field, which displays in the Event Report as well as in event summaries, has been added to all event types

  • Users can now navigate to portfolios from a company profile

  • Functional organization is improved for portfolio and user settings

  • Many entry fields for event creation, checklist monitoring, permissions and reports throughout the platform now use incremental search rather than scrolling lists for input selection