Ontologies

Some of the attributes and related advantages of ontologies are:
  • They allow a common understanding of the structure of information among people and software agents.  Thus if different trading venues share and publish the same underlying ontology, then computer agents  such as semantic rule based engines can extract and aggregate information allowing large scale data analysis;
  • They make domain assumptions explicit – there can be a common definition of some set of items. Thus there can be an agreed set of terms between trading venues and trading systems and in turn with their regulators;
  • Automated Discovery of Knowledge: For large datasets, a semantically rich data model would enable an inference engine to discover new knowledge about the data automatically; 
  • It is possible to easily change assumptions about a domain if our knowledge about the domain changes. Thus if there is a change in the set of terms for an exchange data feed, as an example,  then instead of error prone updates of programming code, it may be possible in many cases to just update the ontology.

The implications of such an approach for financial services GRC are mutliple.  An ontology such as the Big GRC Data Ontology can help:
Financial services companies to monitor, assess, and apply a multitude of regulations within and across regulatory domains to business processes and data.
  • Model the regulations to help simplify their consumption
  • Make it simpler for enterprises to map GRC policies onto regulations
  • Help organisations keep abreast of the ramifications of complex interacting regulatory rules and policies
  • Reason over regulations to identify risks and compliance issues
  • Contribute to the emergence of SMART Regulation.
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