Integrated Risk Management Solutions
IBM and Norkom: Enabling defense
against financial attacks
Highlights
 Reduce compliance and
management costs
 Establish a strong defense
against financial attacks
 Increase agility when respond-
ing to changing conditions
 Maximize ROI by re-using
existing technologies
 Enable more effective decision-
making and business processes
 Deploy new products with
confidence, knowing compli-
ance and defense measures
are in place
Today’s global financial institutions
are faced with unprecedented
challenges in dealing with financial
crime. The increasing sophistica-
tion of cyber criminals, combined
with the relatively weakened state
of many institutions, increases risk
exposure dramatically. It is expected
that financial crimes cost institutions
an estimated US$19 billion in losses
annually, while the operational costs
of compliance are growing at a rate
of 43 percent year-on-year – placing
even more pressure on already-
stretched budgets and systems.
Fragmented IT solutions, siloed
information and inadequate gover-
nance conspire to create a gap in
the detection and prevention of
financial crime, leaving many finan-
cial institutions exposed and slow
to respond to organized criminal
attacks. This, in turn, leads to mount-
ing reputational risk and financial
losses on a global level.
What’s needed to deal with this
challenge is an integrated approach
to risk management that creates
transparency and enables financial
institutions to better manage their
complete risk exposure. Adopting
a strategy that encompasses not
only IT, but also business processes
and policies, is the key to meeting
the financial crime challenge. This
strategy in turn demands a robust
enablement platform that can gather
information from all of the intercon-
nected parts of the enterprise and
transform it into new, actionable
intelligence that drives smarter busi-
ness decisions.
Joint end-to-end solutions that protect
your organization and customers
IBM and Norkom, an IBM Business
Partner and industry leader in
information security solutions, are
helping global financial services
organizations – from smaller financial
enterprises to the most sophisticated
global financial institutions – adopt
a comprehensive, integrated, risk-
based approach to financial crime
and compliance management. Our
joint solutions can be scaled and
customized to meet a broad range
of current and future needs, from
anti-money laundering (AML) and
customer due diligence to detection
and enterprise investigation of all
types of fraud.
The strength of the joint IBM and
Norkom portfolio of software, serv-
Norkom's Enterprise financial crime and compliance solution
1. Financial Crime Platform
• Intelligence platform
• Forensic profiling
• Detection and prevention
• Investigation management
stigation M
Inve
• Resolution and enforcement
• Financial crime knowledge base e an
is a

rpr

ge
ices and IT infrastructure solutions 2. Applications
AML Fraud

me
Ente
• Multi-Channel Fraud
derives from Norkom’s specialized • Online Fraud

nt
• Internal Fraud
expertise in the financial crime and Financial
• Check Fraud crime Sanctions
Transaction
compliance software marketplace, • Card Fraud
Filtering platform & PEP
• Payments Fraud Screening
and IBM Integrated Risk Management • AML for Retail Banking
solutions that include consulting, • AML for Correspondent Banking
• AML for Insurance CDD/KYC
infrastructure design, management • Sanctions &PEP Screening and
and implementation capabilities. This Transaction Filtering
• Watch List Management
formidable expert team can enable • CDD/KYC
financial organizations to take intel-
3. Enterprise Investigation Management (EIM)
ligent action, control their defenses • Command and Control
• Enterprise Investigator
and evolve their strategies against
• Enterprise Interrogator
financial crime.

Norkom: Fighting crime, delivering value

Having spent a decade delivering
innovative, award-winning financial
and compliance software solutions to
some of the world’s leading financial
institutions, Norkom fully understands
the business and regulatory require-
ments of global financial institutions.
It is one of the few vendors that offers
a comprehensive portfolio of products
that addresses every aspect of crime
and compliance – from money laun-
dering to fraud.
The Norkom portfolio includes:
Norkom Enterprise Investigation
Management (EIM)
EIM is an out-of-the-box investigation
solution for anti-money laundering
and fraud that can be configured
to manage all types of investiga-
tions across the enterprise, from any
source, using one infrastructure.
EIM gives financial institutions
complete, actionable information
that empowers them to make the
right risk decisions quickly. EIM
incorporates three separate but
linked components:
• Interrogator: Pre-processes alerts
from multiple sources in a central alert
hub for automated triage and routing,
thereby speeding response time.
• Investigator: Manages alerts and
case workflows more efficiently by
fusing all relevant information from
disparate systems, enabling analysts
to make better and faster decisions.
• Command and Control: Allows
managers and executives to define
and monitor Key Risk Indicators
from multiple sources to measure
ROI, and set rules and thresholds to
take action automatically.
Norkom Multi-Channel Fraud Management
A true end-to-end enterprise
system, the Norkom Multi-Channel
Fraud solution enables financial
institutions to manage fraud risk
effectively across the organization,
helping them to detect, prevent,
investigate, respond and measure
fraud across all business units
and channels. Norkom’s detection
methods deal with fraud – includ-
ing card, online, internal, payments,
check and deposit fraud – across
several channels.
Norkom Anti-Money Laundering
Manages all aspects of the AML
process, from account onboarding
to disclosures. It offers a full spec-
trum of capabilities such as trans-
action monitoring, automated risk
assessment, link analysis, AML
investigative management, e-filing
of regulatory reports, and integration
with legacy systems and databases.
Norkom AML deployment includes
configuration tools and engines that
enable business users to edit and
adapt detection and investigation
logic to reflect changing requirements.
Norkom Customer Due Diligence/Know Your
Customer (CDD/KYC)
Norkom CDD/KYC offers a com-
plete, enterprise-wide approach to
managing requirements – from initial
onboarding to ongoing vigilance –
helping to minimize risk throughout
the customer lifecycle. It addresses
all the major steps in the CDD/KYC
process including customer informa-
tion capture, validation, risk-rating,
investigation, regulatory reporting
and continuous monitoring.
Norkom Watch List Management
(WLM) Solutions
The Norkom WLM solutions –
Sanctions and PEP Screening, and
Payments and Transaction Filtering –
monitor and analyze – in real time
and batch mode – every customer
and transaction against industry
and internal lists, enabling financial
institutions to detect known high-risk
entities and avoid engaging in busi-
ness with them.
Norkom Identity Resolution
Norkom Identity Resolution is a
cross-functional module designed
to disambiguate identities at any
stage of the customer risk lifecycle,
by more precisely identifying “who
is who” across customers, employ-
ees, vendors and partners. Norkom
Identity Resolution is powered by
IBM InfoSphere Entity Analytic
TM
Solutions (EAS), an industry-leading,
patented technology that enables
enterprisewide identity insight and full
attribution in real time. The module
helps financial institutions understand
new identity data in the context of
everything the enterprise already
knows, helping enable better busi-
ness decisions via more accurate Norkom at a glance
insight, analysis, reporting and alerts. • Global provider of financial
crime and compliance
IBM: Maximizing the business value of solutions, easily personalized
Norkom solutions and fine-tuned to meet
A total risk management solution individual needs
requires much more than powerful
software. Deep and broad business, • 100 percent focused on
industry and technology expertise, financial services industry
along with leading technology offer-
ings are essential to transform the • Serving over 75 clients
underlying business processes, operating in 100 countries,
policies and infrastructure. IBM, including five of the top 10
building on 80 years of proven solu- global financial institutions and
tions and world-renowned expertise, five of the top 10 U.S. banks
provides both within its Worldwide
Banking Centers of Excellence • Acknowledged market
(BCoE). The BCoE is staffed by IBM leader in financial crime and
banking experts with deep techni- compliance, winning:
cal skills and strong domains skills – Vendor of the Year –
including risk, and can provide rapid, Institutional Investor
skilled support, technology and archi- News ARC Awards (2008)
tecture expertise, as well as solution – Best Anti-Money
expertise to meet client proof of con- Laundering Solution –
cept, thought leadership and innova- Banking Technology
tion needs. (2007 and 2008)
– No.1 for Anti-Fraud
IBM infrastructure solutions Solution – OpRisk &
Infrastructures that are rigid, isolated Compliance 2009
or outdated stand in the way of effec-
tive, integrated risk management.
IBM has developed a strategy for
a dynamic IT infrastructure that will
help financial institutions and other
businesses address their customers’
increasing service expectations while
mitigating risks and controlling rising
costs. IBM dynamic infrastructure
offerings lay the foundation for break-
through productivity, gains and accel-
erated value creation.
The IBM dynamic infrastructure
approach can be the foundation for
a risk and compliance strategy that
helps banks:
• Enable enterprisewide visibility,
In a market with rapidly increasing
regulation and ever-larger penalties
for noncompliance, management of
compliance obligations is a critical
competency. IBM Global Business
© Copyright IBM Corporation 2009

control and automation across all Services has a Risk Management

business and IT assets
• Transform assets into more
valued services
• Address complexity and optimize
the supporting infrastructure to
achieve more with less
• Leverage flexible sourcing, such as
cloud computing
All Norkom solutions are under-
pinned by a common technology
platform that is optimized for
deployment on IBM architecture,
enabling clients to meet current
and future needs while protecting
them from the burden of large-scale
technology investment in the future.
Clients can implement a single
solution to meet an immediate busi-
ness need, and easily add other
solutions as their crime and compli-
ance strategy evolves.
Center of Excellence with consultants
skilled on Norkom solutions with
capabilities that leverage a broad
understanding of financial regula-
tions, market drivers, IBM Research
and extensive work with major finan-
cial institutions around the world.
IBM can provide services including:
requirements definition, solution
implementation and integration, train-
ing, user acceptance testing and risk
reporting. The team offers unparal-
leled services and has continuously
redefined and expanded their deliv-
erable portfolio to meet client needs
and specific situations.
Combined expertise that drives
enhanced business value
The IBM and Norkom alliance is
built on our combined deep market
understanding, a single unifying
IBM Corporation
1 New Orchard Road
Armonk, NY 10504
U.S.A.
Produced in the United States of America
August 2009
All Rights Reserved
IBM, the IBM logo, ibm.com and InfoSphere
are trademarks or registered trademarks of
International Business Machines Corporation
in the United States, other countries, or both.
These and other IBM trademarked terms are
marked on their first occurrence in this informa-
tion with the appropriate symbol (® or TM), indicat-
ing U.S. registered or common law trademarks
owned by IBM at the time this information was
published. Such trademarks may also be regis-
tered or common law trademarks in other coun-
tries. A current list of IBM trademarks is available
on the Web at ibm.com/legal/copytrade.shtml
Norkom, Norkom Technologies, all Norkom
logos and all other marks annotated with the
“TM” or “®” symbol are trademarks or registered
trademarks of Norkom Technologies Limited
and/or its subsidiaries.
Other company, product, or service names
may be trademarks or service marks of others.
References in this publication to IBM products
or services do not imply that IBM intends to
make them available in all countries in which
IBM operates.

technology platform and our long-

IBM services and expertise
Given the fact that remediation is
far more costly than risk prevention,
IBM experts work to help clients
progressively increase their ability to
deal with risk and compliance – from
merely detecting and repairing dam-
age to proactively preventing risks.
term approach to client relation-
ships. Norkom’s proven reputation
in financial crime and compliance,
complemented by end-to-end risk
management solutions from IBM, pro-
vide financial institutions the security
required to combat financial crime.
For more information
To learn more about how IBM
can help you better manage your
risk exposure, please contact
your IBM sales representative or
IBM Business Partner.

Visit us at:

ibm.com/banking/risk

FDS03002-USEN-00