A Common-Sense Approach to AML/BSA Customer Risk Modeling€¦ · A Common-Sense Approach to...

A Common-Sense Approach to AML/BSA Customer Risk Modeling

Christopher Brauser, CPA/ABV/CFF, CIRA, CAMS

Chief Executive Officer

Frank Ewing, CAMS

Partner/ Assistant General Counsel

AML RightSource

Christopher Brauser CPA/ABV/CFF, CIRA, CAMS

Chief Executive OfficerEducation

The Wharton School at the University of Pennsylvania

MSc Finance and Accounting

The London School of Economics and Political Science

Bsc Economics (Finance and Accounting)

Professional Background

Mr. Brauser is the Chief Executive Officer of AML RightSource and serves as a primary Subject Matter Expert. Mr.Brauser has focused his 20-year career on forensic and investigative accounting, with a specialized focus on Anti-Money Laundering (“AML”) for the last decade. He is a frequent speaker on AML topics and issues, and providesspecific focus on data analytics and statistically-derived methodologies for measuring and managing risk. Anaccomplished financial and consulting professional, he has also frequently served as an expert in the areas offinancial analysis, mathematics, econometrics, and forensic accounting in a number of courts and arbitrations. Mr.Brauser is a Certified Public Accountant in the State of Ohio, is Accredited in Business Valuation and Certified inFinancial Forensics by the American Institute of Certified Public Accountants, is a Certified Insolvency andRestructuring Advisor, and a Certified Anti-Money Laundering Specialist.

Frank Ewing CAMS

Partner/Assistant General Counsel

Education

SUNY Buffalo Law School

J.D., Magna Cum Laude

Le Moyne College

Bachelor of Arts in Political Science, Summa Cum Laude

Professional Background

Mr. Ewing is the partner in charge of operations and subject matter expertise in the firm’s risk and compliancepractice and also serves as Assistant General Counsel. He is a licensed attorney and anti-money laundering expertwith over 13 years of combined professional experience in global consulting, banking, and law. Mr. Ewing hasextensive hands-on experience in the areas of anti-money laundering compliance, regulatory enforcement actions,regulatory affairs, internal audit, commercial litigation, corporate investigations, fraud, and risk management. Mr.Ewing earned his undergraduate degree at LeMoyne College in Syracuse, New York and his juris doctor at theUniversity of Buffalo Law School.

Outline

1. What is RISK?

2. Quantitative Models (Red Bull available in the back)

3. Linear Modeling

4. Model Outputs – So now what??

5. Pitfalls and Best Practices

6. Q&A

What is RISK?

Quantitative Modeling

Linear Scorecard Modeling

So, as it turns out…

Qualified Risk Model

Model Outputs – So What??

Best Practices & Pitfalls

Points to Remember

1. Risk is Not an Amorphous Concept

2. Models are Models and Reality is Reality

3. Elegance Does Not Increase Predictive Capability

4. A Well Designed Plan Trumps Any Technology

Questions