The Role of Decision Management in Financial Compliance

James Taylor, CEO of Decision Management Solutions, and I co-presented a webinar earlier this month to discuss the application of business rules and business decisions in implementing financial compliance solutions.

We agreed that regulatory compliance (e.g., Basel III, FED 5G, FATCA) is a problem well suited to a Business Rules approach. Primarily because:

  • it is repeatable and tractable to automation
  • it demands transparency and traceability (regulations need to be followed and be seen to be followed) which implies the rules need to be expressed in business English
  • regulations change frequently and typically mandate a ‘short time to market’
  • it requires a degree of rigor to cope with the complexity of regulation
  • it stipulates many regional variations in business logic which need to be coordinated

However, we identified five key issues for financial compliance and discussed why business rules alone do not fully address these challenges. In summary, we feel that Business Rules alone does not resolve:

  • how business metrics can be used to monitor the effectiveness of compliance rules
  • ‘big picture’ impact analysis to a compliance rule set when regulations or underlying financial conditions change
  • the need to consistently apply a compliance policy throughout a complex business process
  • the ability to precisely define rule semantics and align them to compliance policies
  • the ability to scale a rule set while maintaining coherence

Decision management can address these issues and the webinar illustrates this with a demo of a compliance decision model using DecisionsFirst Modeler. Please see the recording of the webinar at

If anyone is using decision management (or just business rules) for financial compliance I would be most interested in your views.


Effective Business Decision Management: How Mature is Your Company?

Effective Business Decision Management: How Mature is Your Company?

Are you effectively managing your business decisions (or indeed rules)? Are you fully in control of those operational decisions your company makes, maybe thousands of times a day or more (possibly using some degree of automation), that determine which customers you will accept, what credit terms you will offer them, what risks you’re prepared to take, what products they might like or need, what prices to charge for them, whether you are compliant with regulatory edicts – in short, the bedrock of your business?

The reason I ask is that the vast difference between various companies’ approaches to operational decision management is a constant surprise to us. For some, the management process is a well-oiled machine: not only are all key decisions automated (this represents the bare minimum in this contest!), but so too is the continued measurement of their effectiveness and alignment with (ever changing) business strategies. Decisions are separate from code, tangible to the business, explicit, agile, measured and optimized.

For other companies decision management is a morass of emails, spreadsheets, confusion brought about by lack of visibility and missed opportunities. For many, despite the acknowledged importance of these decisions, their processes are mired in chaos. “We’re not mature enough for that,” or “There is no need to be so highfalutin,”  some IT managers claim – it seems to us that, when you examine how well the two corporate styles compare in their effectiveness, this denial is just not credible.

So: how grown-up is your company when it comes to decision management? Why not take our quiz and find out? (more…)