risk management for risky times
DESCRIPTION
The slides for a talk I gave at Amazon.TRANSCRIPT
http://fraudbackstage.blogspot.com
@ohadsamet
RISK MANAGEMENT FOR RISKY TIMES
ABOUT
The Challenge
Solutions That W
orkThe M
arket
1. Who’s Out There?
2. The Payments Market Beyond eCommerce
3. Disruption, the Next Generation
4. Risk Management is Not What it Used to Be
5. Consumer Risk is a Solved Problem. Or is it?
6. …But Seller Risk Definitely Isn’t
7. (Some Popular Risk Equations)
8. Data Overload
9. The Single Source of Truth
10. Iterate, Iterate, Iterate
WHO’S OUT THERE?
Why don’t you become a payments provider?
THE PAYMENTS MARKET BEYOND ECOMMERCE
DIGITAL
MARKETPLACES
LOCAL-MOBILE-OFFLINE
DISRUPTION NEXT-GEN
THE METHOD: SHORT TERM CREDIT
THE WALLET: PAYROLL
RISK MANAGEMENTIS NOT WHAT IT USED TO BE
Technology Challenge
Core Part of the Product
The Factory Approach *
CONSUMER RISK IS A SOLVED PROBLEM
I can pay!
I’m that Guy!
?
OR IT IS?
Fake IdentitiesStolen IdentitiesAccount Take Over
Hacked MachinesReturning
FraudstersCrime Rings
Device Fingerprinting
BlacklistsLimits
THE INITIAL ENCOUNTER
TRUST ME
MERCHANT RISK ISN’T SOLVED
RISK “EQUATIONS”
P[LOSS] * [EXPOSURE] = RISK
DATA + DOMAIN EXPERT + ITERATIONS= QUALITY DECISION
DATA OVERLOAD
CONTEXT IS EVERYTHING
.edu.edu
.edu .edu
.edu
Citi CITIBANK SOUTH DAKOTACitybank
BofA BOAAmerica BankBANK OF
AMERICA
KNOW YOUR CUSTOMERS
DON’T USE BLACKLISTS
THE SINGLE SOURCE OF TRUTH *
THE BASIC CAPABILITY: TXN REVIEW
FOCUS ON THE WHY, FOCUS ON PEOPLE
GENERALIZE
ANALYTIC STORYTELLING
ITERATE, ITERATE, ITERATE
Instrumentation and Tracking
Gap Analysis
Stories
Feature Engineering
Modeling
