Do you know that today's global supply chain industry imposes many insurance, legal and financial risks, problematic to measure and manage? We understand this could be a risk to your business.
Together with KnowRisk, we are developing an open-source distributed ledger risk management platform for automating, auditing and validating commercial transactions, rights and obligations.
The Client
- Objective: To merge data from Management, Accounting, Insurance and Law to better identify, monitor and manage risk across entire supply chains.
- Services: Development based on Corda Distributed Ledger Technology.
- Results: A smart contract management platform for identifying, detecting and preventing any kind of financial, insurance and legal risk imposed from the supply chain.
- Industry: Supply Chain Management
- Year: 2021
The Challenge
It is not a secret that today's world is globalised and with an interconnected business landscape. In such scenery, large companies rely on highly complex supply chains. A slight change in one can result in significant disruption to the other parties involved.
The barriers that have prevented near-real-time risk management are many, but they all consequence that risk measurement was never designed into the processes.
- It was not possible in the past as the processes were manual and too costly to be anything other than periodic assessment.
- Each organisation built proprietary systems primarily for efficiency benefits, not collaboration in the assessment of risk.
- The bulk of the data was in unstructured data sources such as paper documents or excel spreadsheets.
- There has always been a fear of sharing data as the only way to share it required making copies.
- Everyone used the wrong model that bolted risk management onto the process via contracts instead of making it an integrated part of the process data model.
- The technology to measure risk and share data or IP in a decentralised way did not exist.
The Solution
- About Knowrisk
Together with our partners from the KnowRisk consortium, we are developing an open-source distributed ledger risk management platform for automating, auditing and validating commercial transactions, rights and obligations of any kind using corporate and AIL data. The solution is fusing IoT, AI and distributed ledger technologies around standardised data models to achieve the result of the project.
- Decentralised and standardised models
The platform provides a protocol for decentralised, inter-enterprise continuous “ assurance and control monitoring ” to enable the real-time identification, monitoring and provisioning for accounting, legal and insurance risks across an entire supply chain.
It implements standardised data models that represent the workflows, rights, obligations with their risks and risk mitigations. This allows the clauses of contracts and SOWs to be code generated and assembled into regulated contract agreements.
- Sustainable data access
Address incentives, opportunities and ongoing business models to ensure a sustainable data access approach. Distributed technology will be used to overcome the cultural and regulatory barriers to sharing data whilst maintaining data privacy and integrity. By eliminating the need for each supply chain partner to manage risks and provide insurance, we will simplify their activities while reducing their cost.
- Non-technical aspects of data access
Address broader, non-technical aspects of data access methods, including ethics, bias and privacy. Our approach utilises peer-to-peer distributed ledger technologies (DLT) and cryptographic techniques that allow logic to visit the data instead of the other way around. That prevents using non-authorised information by the owners while enabling the value of data to be shared.
Technologies
- Kotlin
- Ant Design
- Spring
- React
- Docker
- Gradle
- Corda
- GitLab
The Results
Together with KnowRisk, we are changing the way accountancy, insurance, and legal firms operate and make money.
- Accountancy firms will increase the automation in audits that will happen more and more at a transactional level. This will decrease errors and enhance the quality of audits. Automation will occur in more real-time audits resulting in fewer employees.
- Insurance companies will perform more real-time risk management that will lead to new products and revenue models. Real-time evaluation of inter-party risk will lead to insurance frameworks creation with multiple insurers sharing the risk.
- Legal firms will deal with more standardised documents that have historically resulted in fewer disputes. It would force more balanced agreements between parties and move revenue models toward recurring revenue and less hourly billing.
Explore KnowRisk
A smart contract management platform for identifying, detecting and preventing any kind of financial, insurance and legal risk imposed from the supply chain.
