Compliance Rules Analytics Engine Real-Time Scalability

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Solution Overview

Problem

Conventional portfolio compliance systems lack real-time scalability and performance, leading to post-mortem detection of violations and increased risk due to their non-scalable and stateful designs, restricting the evaluation of compliance rules to only a small percentage in real-time, while the industry demands more stringent performance thresholds with increasing transaction volumes and regulatory complexities.

Innovation Solution

A compliance rules analytics system utilizing a RETE-based process, comprising a rule editor, translator, and compliance analytics engine, which converts rule-related data into executable format, performs real-time compliance evaluations, and integrates with online analytical processing (OLAP) to efficiently manage and analyze large datasets, enabling fast impact analysis and explicit reporting.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Productivity

If conventional portfolio compliance systems are used, then system simplicity is maintained, but real-time scalability and performance are insufficient

Engineering Contradiction:

Improvereal-time compliance evaluation capabilityVSAvoidsystem architecture complexity

Core Design Contradiction:

ProductivityVSDevice complexity

Solution Approach 1:

The system segments the compliance evaluation process into distinct modular components: rule editor, rule translator, compliance analytics engine, and rule repository. Each component handles specific tasks independently, enabling real-time processing while maintaining manageable complexity through clear separation of concerns.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The rule translator serves as an intermediary component that converts business rules into executable format, acting as a mediator between the rule editor and the compliance analytics engine. This intermediary layer enables real-time evaluation without requiring complex direct integration between all system components.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Reliability

If comprehensive real-time compliance evaluation is implemented, then violation detection capability is improved, but system performance and scalability deteriorate

Engineering Contradiction:

Improvecompliance rule evaluation accuracyVSAvoidtransaction processing speed

Core Design Contradiction:

ReliabilityVSProductivity

Solution Approach 1:

The system performs preliminary actions by compiling and translating business rules into executable format before real-time compliance evaluation begins. The rule translator pre-processes rules during development phases, so that during real-time operation, the compliance analytics engine can efficiently evaluate transactions without the overhead of rule compilation, thus maintaining both accuracy and speed.

Inventive Principle:

Principle #10Preliminary action

3Device complexity

If post-mortem compliance checking is used, then system complexity is reduced, but violation detection timing is delayed

Engineering Contradiction:

Improvecompliance system architectureVSAvoidviolation detection time

Core Design Contradiction:

Device complexityVSLoss of time

Solution Approach 1:

The system replaces traditional mechanical post-mortem checking approaches with an event-driven real-time evaluation mechanism. The compliance analytics engine continuously monitors transactions and automatically evaluates them against compiled rules as they occur, substituting the mechanical batch-processing approach with a more responsive automated system that reduces detection time while maintaining manageable complexity through the use of pre-compiled rules.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Data Source

PatentUS7603358B1Compliance rules analytics engine

Publication Date: 2009.10.13 TAIWAN SEMICONDUCTOR MANUFACTURING CO LTD

AI summary

The present invention relates to compliance rules analytics systems and methods for facilitating compliance, such as the compliance of an investment portfolio or a set of investment portfolios, with a rule or a set of rules.