Semantic Solutions for Financial Industry Systemic Risk Management
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  David Newman   David S. Newman
SVP & Strategic Planning Manager Enterprise Architecture
Wells Fargo
  Mike Bennett   Mike Bennett
Head of Semantics and Standards
EDM Council


Tuesday, June 5, 2012
11:30 AM - 12:15 PM
Level:  Business/Strategic

Location:  Franciscan B

Semantics and industry-standard ontologies have emerged as one of the hottest topics in the financial information industry for their ability to precisely define data content, facilitate classification, represent data rules and add dimensions of intelligence onto data structures more efficiently and at a lower cost than conventional technologies. As a result, semantics are gaining prominence as a foundational technology by enterprises for the performance of both operational and risk management functions. The Enterprise Data Management Council has been working with the Object Management Group to create semantic financial data standards to represent the contractual structure of financial instruments, business entities and semantic metadata. Most recently, the Council has finalized an operational proof-of-concept on the use of business ontologies and semantics processing to precisely identify, describe, characterize and classify OTC derivatives. The POC illustrates the real-world application of semantics and shows its potential for meeting the transparency and systemic risk analytics objectives of regulators and financial institutions. This presentation will provide an overview of the EDMC/OMG financial industry business ontology (FIBO) standard and offer an in-depth look at the operational semantics effort on derivatives. Key Points
• Business justification for the application of semantic technology and how this is different from conventional technologies
• Introduction to the Financial Industry Business Ontology (FIBO)
• Regulatory use cases that may be fulfilled by FIBO
• Overview and demonstration of the OTC Derivatives Operational Ontology

David Newman is Senior Vice President and Strategic Planning Manager of Enterprise Architecture at Wells Fargo Bank. David also chairs the Semantic Technology Program for the Enterprise Data Management Council and is leading a collaborative effort with the Object Management Group to develop and implement operational ontologies for Business Entities, Derivatives, Mortgage Backed Securities, Loans and other financial instruments as part of the Financial Industry Business Ontology (FIBO) effort. David is also a frequent speaker on semantic technology at industry, academic and financial regulatory conferences and has authored several articles on the subject.

Mike Bennett is the Head of Semantics and Standards at the Enterprise Data Management Council, a global non-profit financial industry association. Mike is the editor and originator of the Financial Industry Business Ontology, a semantic model of financial instrument and business entity terms and definitions, built for the industry using semantic technology and now being progressed through the Object Management Group as a series of proposed standards. Mike has some years of financial industry experience, covering investment management, messaging standards and conceptual modeling. Prior to this, Mike spent his time in software and systems development and test, working on safety-critical systems and model driven technology development. He is based in London.

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