Automated Political Risk Management

Abstract

A risk management method and system for facilitating analysis and quantification of risk associated with politically exposed persons is disclosed. A computerized political risk management system maintains a database relating individuals to politically sensitive positions and world events. A rating system is used to assess risk based upon criteria such as a position held, historical data and/or interpretation of world events. The system can generate a risk quotient or other rating based upon a weighted algorithm applied to the criteria. The risk quotient is indicative of risk associated with an account. Actions commensurate with a risk quotient can be presented to an institution to help the institution properly manage risk associated with a politically exposed person. A log or other stored history can be created such that utilization of the system can mitigate adverse effects relating to a problematic account.

1 . (canceled) 
     
     
         2 . A processor-implemented method for managing risk comprising:
 receiving, periodically, data relating to a politically exposed account holder of a financial institution, the data affecting the political exposure of the account holder;   receiving information relating to a financial transaction involving the politically exposed account holder;   structuring the data and the information according to political risk quotient criteria;   calculating, via a processor, a political risk quotient for the financial transaction based on the structured data and information; and   generating a suggested action related to the financial transaction based on the political risk quotient for the financial transaction.   
     
     
         3 . The processor-implemented method of  claim 2 , wherein the political risk quotient is generated in real-time. 
     
     
         4 . The processor-implemented method of  claim 2 , further comprising:
 creating a record comprising the political risk quotient and actions taken; and   providing the record to a compliance entity.   
     
     
         5 . The processor-implemented method of  claim 2 , further comprising
 calculating a mean political risk quotient associated with the financial institution through an analysis of a plurality of political risk quotients; and   determining a level of risk associated with the financial institution based on the mean political risk quotient.   
     
     
         6 . The processor-implemented method of  claim 2 , wherein the suggested action is one of: generating an alert, blocking acceptance of the transaction, creating a report, and notifying a compliance department. 
     
     
         7 . The processor-implemented method of  claim 6 , wherein the suggested action comprises blocking acceptance of the transaction when the political risk quotient reaches or exceeds a predetermined political risk quotient threshold. 
     
     
         8 . The processor-implemented method of  claim 2 , wherein the political risk criteria comprises a position held by the account holder, a country in which the position is held, how long the position has been held, a strength of the position, a veracity of previous dealings with person from the country, and a propensity of people in similar positions to engage in unlawful or unethical transactions. 
     
     
         9 . The processor-implemented method of  claim 2 , further comprising
 calculating an average political risk quotient associated with the financial institution through an analysis of a plurality of political risk quotients;   determining a level of risk associated with the financial institution based on the average political risk quotient; and   applying a rating for the financial institution based on the level of risk associated with the financial institution.   
     
     
         10 . The processor-implemented method of  claim 2 , wherein the structured data and information comprises a plurality of political risk categories, and wherein the political risk quotient is further calculated based on weights applied to each of the plurality of political risk categories. 
     
     
         11 . The processor-implemented method of  claim 2 , wherein generating the suggested action related to the financial transaction further comprises comparing the political risk quotient with a risk quotient threshold to determine the suggested action related to the financial transaction. 
     
     
         12 . A system for managing risk comprising:
 a memory;   a processor disposed in communication with the memory, and configured to issue a plurality of processing instructions stored in the memory, wherein the processor issued instructions to:
 receive, periodically, data relating to a politically exposed account holder of a financial institution, the data affecting the political exposure of the account holder; 
 receive information relating to a financial transaction involving the politically exposed account holder; 
 structure the data and the information according to political risk quotient criteria; 
 calculate a political risk quotient for the financial transaction based on the structured data and information; and 
 generate a suggested action related to the financial transaction based on the political risk quotient for the financial transaction. 
   
     
     
         13 . The system of  claim 12 , wherein the processor issues instructions to:
 calculate an average political risk quotient associated with the financial institution through an analysis of a plurality of political risk quotients; and   determine a level of risk associated with the financial institution based on the average political risk quotient.   
     
     
         14 . The system of  claim 12 , wherein the instruction to generate the suggested action related to the financial transaction further comprises instructions to compare the political risk quotient with a risk quotient threshold to determine the suggested action related to the financial transaction. 
     
     
         15 . The system of  claim 12 , wherein the processor issues instructions to:
 store the political risk quotient for the financial transaction and actions taken; and   create a record comprising the political risk quotient and actions taken.   
     
     
         16 . A processor-implemented method for managing risk, the method comprising:
 receiving structured financial transaction data relating to at least one financial transaction, the financial transaction data structured according to political risk criteria;   calculating, via a processor, a political risk quotient for each of the at least one financial transactions based on the structured financial transaction data;   calculating an overall political risk quotient associated with a financial institution through an analysis of the political risk quotients;   generating one or more reports related to the political risk quotient associated with the financial institution.   
     
     
         17 . The processor implemented method of  claim 16 , further comprising:
 generating, based on the overall political risk quotient associated with the financial institution, a suggested action regarding the financial institution.   
     
     
         18 . The processor implemented method of  claim 16 , wherein the structured data comprises a plurality of political risk categories, and wherein the political risk quotient calculated for each of the at least one financial transactions is further calculated based on weights applied to each of the plurality of political risk categories. 
     
     
         19 . The processor-implemented method of  claim 16 , further comprising presenting the one or more reports to a compliance entity. 
     
     
         20 . The processor-implemented method of  claim 16 , wherein the one or more reports comprise an aggregation of the political risk quotients, a mean of the political risk quotients, and an average of the political risk quotients. 
     
     
         21 . The processor-implemented method of  claim 16 , wherein the financial transaction data includes data identifying a participant in a financial transaction, wherein the method further comprises determining that the participant is a politically identified person based on the status of the participant.