Big Data in the Practice: Applications for Risk Management and Portfolio Monitoring

1. Big Data in der Praxis:
Risikomanagement und
Portfolioüberwachung
Dr. Volker Stümpflen
Baader Investment
Konferenz
25. September 2014

2. Clueda AG
Clueda
Generating value from Big Data
2

3. Clueda AG
Big Data: High Growth Market
Global demand for quicker and better decisions
3
http://www.bain.com/publications/articles/big_data_the_organizational_challenge.aspx/
More likely to
make
decisions
much faster
than
competitors

4. Clueda AG
A Novel Industry
Emerging new technologies and companies
4
Data
Applications
Social Media
Analytics
Operational
Intelligence
Business
Intelligence
Analytics
Visualization
IBM
7%
HP
5%
Dell
4%
SAP
3%
Teradata
3%
Others 78%

5. Clueda AG
The Big Challenge: Achieving Real-Time Relevance
Real-time data processing
 Relevance has a deadline: How to be ready for real-time insights?
 Examples
 SAP Hana
 Accelerate business applications
 Parstream
 Analyze big data in motion
 People react in real-time. So should Big Data analytics.
5

6. Clueda AG
The Dark Matter of Big Data
Unstructured information
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 Structured Data
 Standard machine processing
 Unstructured Data
 Hard to interpret for computers
 80 - 90 % of data in financial
services is unstructured[1]
[1] http://www.oracle.com/us/industries/financial-services/bigdata-in-fs-final-wp-1664665.pdf

7. Clueda AG
3 Steps to Optimal Decision Making
Supported by Big Data analytics
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 Read
 Simplify reading and interrelation recognition
 Understand
 Gain knowledge through understanding
 Decide
 Decide based on optimized knowledge

8. Clueda AG
What Matters: Real-Time Relevance
Do you have the appropriate environment?
8
What you have:
-News
-Blogs
-Tweets
-Emails
-Pdfs
-Word
-Databases
…
What you get:
REAL-TIME RELEVANCE
What you need to do:
-Eliminates duplicates
-Evaluates sentiment
-Detects events
-Generates alerts
-Establishes associations
-Understands concepts
-…

9. Clueda AG
Knowledge Networks
Inspired by the human brain
9
Tim Cook
China

10. Clueda AG
Knowledge Networks
Inspired by the human brain
10
Apple
Samsung
verklagt
beliefert
Tim Cook
ist CEO
China

11. Clueda AG
Knowledge Networks
Inspired by the human brain
11
Apple
Samsung
verklagt
beliefert
HP
beliefert
Tim Cook
ist CEO
Canon
beliefert
Cirrus
Logic
beliefert
beliefert
China
beliefert

12. Clueda AG
Knowledge Networks
Inspired by the human brain
12
Apple
Samsung
verklagt
beliefert
HP
beliefert
Tim Cook
ist CEO
Canon
beliefert
Cirrus
Logic
beliefert
beliefert
China
Seltene Erden
beliefert
kontrolliert
benötigt
In collaboration with

13. Clueda AG
Solution for Portfolio Monitoring
React to market moving changes in real-time
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 Challenge:
• Over a million financial instruments
• 500,000 news daily
 Solution:
Real-time detection of market moving
• Events
• Sentiments
• Trends
 Benefit:
• Get the decision relevant information in real-time,
faster than competitors
• Act immediately
• Avoid losses and take profits
„Mit der Software sparen
wir jeden Tag Tausende von
Euros“
- Uto Baader

14. Clueda AG 14
In collab. with Dr. J. Mayser; CRO Baader Bank, AK MaRisk BaFin
 Challenge:
• Hidden risk factors
• Diverse sources and complex
relationships
 Solution:
• Alerts, events and filters
• Personalized view of relevant factors
• Trends and new regulations
 Benefit:
• Get alerted of potential risks
• Take preventive actions
• Monitor industry relevant changes
Solution for Risk Management
Manage risk with a personalized real-time dashboard

15. Clueda AG
Solution for compliance
Monitor communication in real-time
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 Challenge:
• Securities regulations in the U.S FINRA & SEC
 Solution:
• Analyze mail and chat streams
• Multiple search-options
• Define alerts and events
• Dashboard with statistic features
• Fraud triangle
 Benefit:
• Be compliant and act preventively through
events/alerts
• Prevent penalties
• Detect frauds

16. Clueda AG
FromBig Data to Relevance
 Increasing investments in Big Data
 $ 6.5 billion in 2015 in financial services alone
 Emerging technologies and companies
 Real-time relevance is key to unlocking value
 Dark matter and the big challenge
 Understanding unstructured data
 Successful applications
 Portfolio monitoring
 Risk management
 Compliance
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17. Clueda AG
Dr. Volker Stümpflen
CEO
T +49 89 4161402 10
M +49 176 57288282
v.stuempflen@clueda.com
Clueda AG
Elsenheimerstraße 59
D-80687 München
www.clueda.com
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Contact
Selected References