Given the current level of regulatory oversight, can the current technology tool sets and processes be relied upon to ensure compliance and mitigate regulatory & operational risk?
Traditional technology solutions either leverage keyword based searches or random sampling to monitor employee communications for compliance to regulatory or operation policy. It is now generally accepted that keyword searching produces far too many false positives that then need to be manually reviewed. On the other hand, random sampling produces far too many false negatives - i.e. the process fails to find anything.
Undiscovered breaches in information barriers, information leakage from deal rooms and the flow of watch list/restricted information within and outside the firm is a significant source of regulatory risk. Catelas is the first compliance solution to comprehensively monitor every single email within and outside the firm, to do so without collecting a single email and without disrupting either the business or IT.
Catelas automatically uncovers who communicated to whom and when, how well people know each other and the levels of activity throughout networks.
More specifically Catelas:
Information Barriers: visually displays the communication networks between business silos / groups, allowing direct communications to be uncovered and indirect relationships (friends in common) to be identified.
Deal room: uncovers where strong and trusted relationships are being used as a conduit for communication containing specific topics.
Restricted Lists: generates company wide network maps which visualize who is communicating to whom about restricted securities.
Watch Lists: displays all communications associated with lists (watch lists, restricted lists, grey lists) as a network and allows compliance to quickly identify risk by visualizing 'who spoke to whom about what and when'.
Information Theft: audits the activity and behavior of new and departing employees for inappropriate relationships, theft of important information (software code or trading strategies) or broadly across the entire company for information flow to competitors, webmail or the press.
Catelas fundamentally reduces regulatory & operational risk by allowing compliance to conduct and resolve audits quickly and easily. This allows Compliance to automatically monitor a greater number of communications networks – something that would not be possible with a traditional tool as the time and effort required would be prohibitive.