Martina Rejsjo, our VP of Product Management, shares insights into the latest industry trends, surveillance updates, and product developments. Her updates dive into new features, best practices, and strategic roadmaps designed to keep you informed and ahead of the curve.
This quarter, I want to highlight some key features and processes that Validus offers to help you build efficient and robust surveillance programs. We’ll focus on the critical role of supervisory controls and follow-ups, as these are often the backbone of a successful surveillance system. As we know, a surveillance program is only as strong as its weakest link—and often, that weak link comes from resource shortages or human error.
One major drain on resources is the overwhelming volume of alerts generated by surveillance systems. These excessive alerts arise from various factors, with poorly configured thresholds often at the forefront. When thresholds don’t align with the nature of the monitored instrument or the relevant accounts, it floods the system with unnecessary alerts. Other contributors include market volatility and low-priced securities that trigger alerts with nearly every price change, as well as conservative settings designed to avoid missing true positives.
While human errors are more difficult to eliminate, we can reduce their impact. Simplifying the alert review process for analysts, implementing a system to review the accuracy of resolutions, and conducting regular supervisory checks can make a significant difference.
Despite thoughtful calibration, some false positives are inevitable, and even the most robust processes may occasionally miss something. At Eventus, we’ve invested considerable effort into addressing these challenges. With Validus, we’ve developed multiple solutions to help surveillance teams maximize resources and avoid common pitfalls:
- Automation: Validus automates alert reviews using pre-programmed steps from your compliance manual. This automation cuts down on workload by allowing the system to handle most alerts, freeing analysts to focus on exceptions. It also reduces human errors by ensuring consistent handling of alerts based on your organization’s guidelines, eliminating variability in analyst interpretation. Lastly, it leaves behind an auditable trail of decisions on each alert.
- Easy Configuration: Validus allows you to clone and customize procedures to fit your specific needs. The same procedure can manage thresholds for different asset classes, products, liquidity levels, and even individual trader profiles, making your surveillance more precise and adaptable.
- Supervisory Controls: Validus selects procedures for regular supervisory review to maintain quality. Even alerts closed automatically by the system undergo supervisory checks to ensure compliance with oversight requirements.
- Calibration Assistance: Our notebook feature is perfect for “near miss” reviews. If an account consistently falls just under your minor threshold, the frequency of these events can prompt you to recalibrate your settings. Validus also flags procedures that never trigger alerts, indicating they may need adjustment.
These are just a few ways Validus helps you streamline surveillance and manage resources effectively. We’re committed to equipping your team with the tools needed to detect your risk quicker.
To learn more or book a demo of Validus click here.