A Semantic Solution for Risk Data Aggregation Reporting

Risk data aggregation reporting (BCBS239) is a new regulatory requirement affecting global banking. The regulation requires banks to produce new and changeable reports on risk factors while demonstrating data governance. We make the case that the most effective route to compliance is by using an ontology, such as one based on FIBO. Reporting is enabled by semantic data virtualization technology, using W3C standards (i.e. R2RML) to translate queries from SPARQL into conventional database queries.

Semantic queries are used to recreate existing bank reporting templates and provide the means to extend and vary these quickly, with minimal application development. The non-disruptive nature of this architecture means that existing bank systems of record are used, without the need for centralized data storage (relational or graph database). Existing data quality measures remain unaffected. An initial probabilistic mapping method is applied for each data source and queries may be built visually by business analysts.

Using ontology to originate reports from existing data sources
Semantic Data Virtualization technologies compliant with the W3C R2RML standard
A reference ontology uses and extends FIBO
Systemically important banks can demonstrate BCBS239-compliant risk reporting
Reports are created using SPARQL (semantic querying) via graphical query production

Dr. Juan Sequeda is the co-founder and Senior Vice President of Technical Sales and Research of Capsenta, and the Senior Director of Capsenta Labs. He holds a PhD in Computer Science from the University of Texas at Austin. His research interests are on the intersection between Relational Databases and Semantic Web for Data Integration. Juan is the inventor of Ultrawrap, a patented system which virtualizes relational databases as Semantic Web graph data sources, which spun-off into Capsenta. Juan is the recipient of the NSF Graduate Research Fellowship, 2nd Place in the 2013 Semantic Web Challenge for his work on ConstituteProject.org, Best Student Research Paper at the 2014 International Semantic Web Conference and the 2015 Best Transfer and Innovation Project awarded by Institute for Applied Informatics. Juan is on the editorial board of the Journal of Web Semantics and has been an invited expert member and standards editor for the W3C Relational Database to RDF working group.

Mike Bennett is the semantics expert and ontologist for the EDM Council and the founder of semantics consultancy Hypercube Ltd. He is the architect and originator of the Financial Industry Business Ontology (FIBO) and represents the Council within the Object Management Group and on ISO technical standards committees. He has over 15 years of financial industry experience and is well-regarded as both a resource and speaker within the semantic technology community.