This software agent helps industry professionals review compliance case investigations, find resolutions, and improve decision making.

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1 Lost in a sea of data? Facing an external audit? Or just wondering how you re going meet the challenges of the next regulatory law? When you need fast, dependable support and company-specific solutions for compliance, risk management, and business and transaction monitoring systems, Exprentis is there for you. Customers -Brokerage Firms -Stock Exchanges -Retail/wholesale Banks -Regulatory Agencies Business Areas -AML Compliance -Securities Trading Compliance -Energy Trading Compliance -Fraud Detection -Risk Management Service Areas -Compliance Analytics -Model Development -Model Optimization -Model Governance -Model Repositories and Regulatory Knowledge Bases -Regulatory Data Mining and Knowledge Engineering -Compliance Technologies Expertise: Extensive expertise in regulatory compliance and risk management. Strong knowledge of data mining, knowledge-based technologies and their applications to the financial services industry. Experience in process improvement, creation of model repositories and knowledge bases, and the automation of business processes. Services: Regulatory Compliance -Reviews of internal compliance policies -Regulatory knowledge engineering services Risk Management: -Model governance and model risk management -Model validation and data quality assessments Specialized Compliance Analytical Services: -Compliance and detection model development -Post-deployment model optimization and tuning -Development of customer risk scoring models -Development of alert scoring and management rules Data Mining: -Data mining for regulatory compliance purposes -Technology research and feasibility studies Servicing Regulatory Agencies: -GSA Schedule GS-35F-0448Y Resolvian Regulatory knowledge at your fingertips. This software agent helps industry professionals review compliance case investigations, find resolutions, and improve decision making. For ten years, Exprentis has worked alongside some of the industry s top financial services firms. We ve helped revitalize hundreds of compliance monitoring systems and models, given analysts more control over their functions, and introduced products that automate tasks and simplify investigations. Want to give your analysts the power to do more? Give us a call. We'll work with your staff to help optimize your system's performance, extend its capabilities, Quality. Integrity. Proven Results. In an independent survey, customers ranked Exprentis teams "96/100" for reliability, quality, cost, and timeliness Exprentis, Inc. All rights reserved.

2 Rapid Response Model Development Service Many initial compliance technology system implementations are limited due to lack of data, deadlines, or budget constraints. Over time, evolving business and compliance requirements necessitate the introduction of additional financial instruments, new data sources, or detection model adjustments that can not be delivered as part of your vendor s normal product release cycle. Exprentis Rapid Response Model Development Service can quickly implement custom detection models (scenarios), customer risk scoring models, or make adjustments that help you bridge the gap when your solution s built-in tuning capabilities are insufficient or unable to meet your business or compliance needs. Our custom model/scenario development services include: Scope of Services Risk Assessment supports the assessment and prioritization of new financial instruments, accounts, and lines of business into existing compliance monitoring solutions. We help you weigh the business imperatives and risks against data quality and technology limitations so you can make better, more informed decisions. Pattern Discovery and Scenario Development develops custom scenarios that meet the specific needs of our clients. Using state of the art data mining and behavior detection tools, we organize and manage corporate data to develop a variety of analytical models that generate high quality alerts. We also help you discover new and emerging patterns hidden in your data and assist in aligning your regulatory compliance monitoring needs Service Deliverables and Documentation You ll receive documented analytical models driven by business needs. Depending on the methodology and technology used by your organization, we can also convert these models into software components that are embedded into your existing information technology systems. In this way, knowledge discovered from the data is directly incorporated into the existing technology resources to satisfy your business objectives. Specific deliverables include: Customer risk scoring models, scenarios or analytical detection models with documentation Patterns to be represented as business logic software components Reports documenting findings generated by the developed models Services that Fit Your Schedule on Time and on Budget The Rapid Response Model Development Service is offered at a fixed price based on the number and complexity of the models being adjusted or developed. It only takes 4-6 weeks for each model/scenario to be developed. The Pattern Discovery and Model Development phase may be dependent on a Risk Assessment phase, which will usually be structured on a time and materials basis.

3 Model Optimization Service When a compliance or risk management solution is initially implemented, compliance analysts face two pressing issues poor alert quality and high alert volume. These alert issues can take up valuable analytical time and resources. Resources you d rather focus on more actionable alerts and case investigations. Exprentis can help. Our Model Optimization Service provides model/scenario tuning packages designed to meet your specific business and compliance needs. Each package is offered at a fixed price and completed within a set time frame. These services can be performed via remote access, using extracted data samples, or on-site. Model Optimization Packages Required Source data analysis and discovery of patterns and trends. Alert data analysis and visualization of alert clusters. Model performance analysis and threshold tuning recommendations. 3-4 weeks Enhanced Advanced All services and deliverables included in the Required Package, plus: Semi-automated analysis of alert investigation comments Automated discovery of patterns in alert data Alert and risk scoring rule analysis, recommendations and simulation. All services and deliverables included in the Advanced Package, plus: Scenario library analysis for compliance gaps and risks Analysis and recommendations for custom scenario enhancements. Compliance procedures assessment report identifying potential issues in system performance and alert analysis procedures. 4-6 weeks 6-8 weeks Note: Travel and related expenses are not included in fixed price offers. The fix prices quoted for the service are for well defined lists of detection models and data segments that impact a number of tunable parameters. The results... Smaller, better sets of alerts that are on time, target, and contain complete information. Fewer false positives and missed alerts. An optimized system that improves your solution s overall performance. You ll receive a full report covering our general findings, issues found with processes or data, and model tuning and alert scoring recommendations. How do we do this? Model Optimization Benefits We achieve our results by leveraging our knowledge of leading high end transaction monitoring and alert generation systems and our own proprietary tools and methodologies. We also support efforts to meet regulatory requirements by validating analytical model structures and settings and periodically tuning your compliance monitoring solution.

4 Model Validation Service To meet today s demanding business practices and regulatory guidelines such as OCC s Supervisory Guidance on Model Risk Management (OCC ) financial institutions not only need sound risk management profiles, but well developed and dependable risk models. Ineffective models are error prone and can ultimately lead to the degradation of an organization s risk management profile. How can you ensure that your risk models meet regulatory guidelines and protect your overall risk profile? Exprentis Model Validation Service can help align your model risk with your overall risk policy by identifying potential model deficiencies and recommending corrective actions for more effective risk management. Scope of Services Using the OCC guidelines, Exprentis will validate your alert generation and risk models, analyze their structures, and perform an empirical evaluation of their performance. We ll also review your model development, maintenance processes, and artifacts. Then we ll provide you with a model validation report. Theoretical Soundness Development Validation This validation phase ensures that the model: Includes the right information inputs, risk factors, and filters Has a structure that is based on a sound theoretical foundation, algorithms, equations Has a list of filters and tunable parameters necessary to set its boundaries Is well constrained to data segments where it properly operates Follows documented regulatory guidelines Follows proper commercial practices This analysis is used to: Model Monitoring Benchmarking Analysis Check if the model is being used and performing as intended Evaluate if changes in products, transaction, or customer data require adjustments, redevelopment, or replacement of the model components Check if the model limitations identified in the development stage are regularly assessed Review the program of ongoing testing and evaluation of model performance Check if tests employed during development are included in ongoing monitoring Check if the benchmarking of the model performance is done regularly Analyze model constraints in the context of the business data segments Check how the model handles missing data This evaluation includes: Model Performance Testing Evaluation Extraction and preparation of a model evaluation data sample Performance of quality assessments for data feeds utilized by the evaluated models. Developing a set of qualitative and quantitative characteristics of the underlying data segments Analyzing frequency distributions, histograms, and other statistical characteristics Checks to see if models are performing as expected, in line with designed objectives and business purpose and applicable regulations Construction and analysis of a model confusion matrix and other model performance measures Using the developed statistics and business rationale, check validity of the model parameters. Following regulatory, quantitative, qualitative, and data-driven guidelines Report findings and recommendations in Model Validation and Performance Reports

5 Managing regulatory knowledge and analytical models can be a complex and dynamic task. The number of regulations, policies, and models has exploded and now compliance and risk management staff face the challenge of addressing the regulation and model governance needs. Software vendors have responded with advanced systems to help support regulatory data processing and analytical tasks, but these generate reports or alerts that require time consuming analysis. This can make it difficult to ensure that case investigations are adequately addressed and ultimately raise the costs of compliance. Exprentis can help. What you need... Representation of Regulations, Policies, and Models Compliance Decision Models Optimized Case Investigations What we offer... Subject Matter Expertise Areas: Ontology Modeling Knowledge Acquisitions Development of Rule Bases Representation of Decision Models What we deliver... Solutions for Model Governance and Model Repositories Regulation and Model Repository Development Services: Anti-Money Laundering Regulations Ontology, Rules, Decisions, Explanations, Analytical Models Trading Compliance Regulations Related Internal Compliance Policies Explicitly represented and documented regulations and business compliance practices Defined decision models designed to evolve with regulations, business practices, and standards Business logic that accounts for globally interdependent components Explained decisions that prevent the emergence of hidden business practices What our clients gain... Knowledge Based Technologies: Exprentis Resolvian, or IBM Ilog Pega Systems Progress Corticon Regulatory Knowledge Engineering Services that: Resolvian Regulatory Knowledge Bases that: A Dedicated Team that helps: -automate and improve existing compliance and risk monitoring solutions -make the most out both internal and external of subject matter expertise -enhance productivity, analysis and workflow, and case management -produce more focused reports and alerts that better manage risk -help automate compliance decision making processes -enhance workflow and streamline case investigations -ensure consistency of analysis and reporting -adaptive reasoning and explanation capabilities -capture regulatory and business subject matter knowledge -embed best business practices into system operations -represent regulations, compliance policies and procedures -implement, use, and tune your alert generation and case management systems Now What can we do for you? To learn more about our products and services, contact us to schedule a free consultation, arrange a system demo or to receive one of our white papers.