ZBrain
Log in
Book a demo
Agents Trade Risk and Compliance Intelligence Agent
Trade Risk and Compliance Intelligence Agent Icon

Trade Risk and Compliance Intelligence Agent

Delivers real-time, explainable risk and compliance scoring for trade requests using policy interpretation and historical analysis.

Manual trade risk assessment within trade management is resource-intensive, prone to delays, and often relies on subjective interpretations of complex regulatory requirements and policy documents. Teams must manually extract compliance criteria, analyze historical risk patterns, and aggregate trade data before making time-sensitive decisions, resulting in operational bottlenecks and increased process risk.

The Trade Risk and Compliance Intelligence Agent combines advanced policy interpretation, real-time data aggregation, historical pattern analysis, predictive risk scoring, compliance assessment, and automated explainability. It integrates structured data such as trade requests, historical records, compliance logs, and approval matrices with unstructured sources like regulatory bulletins, policy documents, and trade narratives. The agent extracts compliance rules, analyzes historical precedents, aggregates current trade information, calculates risk and compliance scores using predictive models, and automatically provides clear rationales for every score. All insights are seamlessly integrated into the trade management portal to drive efficient decision-making workflows.

By automating compliance interpretation, real-time risk scoring, and audit-ready explainability, this agent reduces manual effort, enhances process productivity, and improves employee efficiency. It enables consistent, explainable decision-making while ensuring adherence to regulatory and internal policy requirements. Organizations benefit from faster trade approvals, minimized process delays, and high-quality compliance oversight.

Accuracy
TBD

Speed
TBD

Input Data Set

Sample of data set required for Trade Risk and Compliance Intelligence Agent:

Trade Execution Request: SXF-98345


Requesting Trader: Brenda Wallace
Trade Desk: Americas - Commodities
Submission Date: 2024-10-23




Trade Details


    

  • Trade ID: SXF-98345
    • 

  • Product: Soy Futures (SXF)
    • 

  • Counterparty: Quantum Dynamics S.A.
    • 

  • Direction: BUY
    • 

  • Notional Value (USD): $15,500,000
    • 

  • Quantity (Contracts): 2,500
    • 

  • Settlement Date: 2025-03-15
    • 

  • Origin Jurisdiction: Brazil
    • 





Trader's Narrative & Justification


We are capitalizing on favorable market conditions following the latest agricultural report. The proposed volume is approximately 20% higher than our standard ticket size with Quantum Dynamics, but their recent performance and our strategic goal to increase market share in this sector justify the exception. This trade is intended to secure supply ahead of anticipated price increases in Q1 next year. We have a strong historical relationship with Quantum Dynamics and foresee no settlement issues.

Deliverable Example

Sample output delivered by the Trade Risk and Compliance Intelligence Agent:

Trade Risk & Compliance Analysis: SXF-98345


Analysis Complete: 2024-10-23 11:32 AM UTC
Trade ID: SXF-98345
Counterparty: Quantum Dynamics S.A.




Executive Summary


This trade request is flagged for MEDIUM-HIGH RISK and requires MANAGEMENT REVIEW before execution. The primary risk drivers are the trade's notional value exceeding established counterparty limits and potential compliance exposure related to new environmental regulations in the origin jurisdiction.






Metric
Score
Assessment






Overall Risk Score
72 / 100
Medium-High Risk




Compliance Score
81 / 100
Caution








Detailed Rationale & Findings


1. Risk Score Analysis (72/100)


The risk score is primarily influenced by counterparty exposure and trade size.


    

  • Counterparty Credit Risk (Elevated):
      

    • The proposed notional value of $15.5M exceeds the pre-approved trading limit of $12M for Quantum Dynamics S.A. by 29%.
      • 

    • Reference: Internal Policy 78.B (Counterparty Exposure Limits).
      • 

    

    • 

  • Historical Performance (Minor Concern):
      

    • Analysis of 45 prior trades with Quantum Dynamics S.A. shows a 96% successful settlement rate. However, one settlement delay was recorded within the last 18 months (Ref: Trade ID SXF-81044).
      • 

    • Reference: Historical Trade Database.
      • 

    

    • 

  • Market Volatility (Standard):
      

    • The volatility for Soy Futures is within expected parameters for the current season. No abnormal market risk is detected.
      • 

    • Reference: Real-time Market Risk Data Feed.
      • 

    

    • 



2. Compliance Score Analysis (81/100)


The compliance score indicates potential issues requiring further due diligence.


    

  • Jurisdictional Compliance (Caution):
      

    • The trade's origin jurisdiction (Brazil) is subject to the new "Sustainable Sourcing Act" (REG-AGRI-LATAM-2024-08).
      • 

    • The act requires documented proof of sustainable land use for commodities exceeding a $10M notional value. This documentation has not been provided with the trade request.
      • 

    • Reference: Regulatory Bulletin REG-AGRI-LATAM-2024-08.
      • 

    

    • 

  • Internal Policy Adherence (Violation):
      

    • The trader's justification for exceeding volume limits requires Level 2 management approval as per internal guidelines. The request was submitted without this pre-approval.
      • 

    • Reference: Internal Policy 112.D (Trade Approval Matrix).
      • 

    

    • 





Recommended Actions


    

  1. Required: Obtain Level 2 Management sign-off for exceeding the counterparty limit defined in Policy 78.B.
    2. 

  2. Required: Request and attach the "Sustainable Sourcing Certificate" from Quantum Dynamics S.A. to comply with REG-AGRI-LATAM-2024-08.
    3. 

  3. Recommended: Notify the settlement team of the counterparty's minor history of settlement delays.
    4.

Related Agents

Trade Management Decisioning Agent

Automates trade request review by scoring risk, enforcing policies, and providing instant approval or clear exception routing.

Trade Management Assurance Agent

Orchestrates guided trade intake, data extraction, auto-population, and real-time validation for accurate, efficient trade management.

Trade Exception Routing Agent

Automatically analyzes, prioritizes, summarizes, and routes flagged trades, ensuring efficient and auditable exception management.

Trade Exception Resolution Agent

Accelerates compliance exception handling by diagnosing root causes, assessing impact, and recommending tailored corrective actions.

Trade Exception Management Agent

Centralizes exception handling, identifies causes, suggests remediations, and auto-assigns owners for efficient trade resolution.

Trade Exception Intelligence Agent

Automatically delivers personalized, actionable trade rejection notifications with specific reasons and next-step guidance to sales executives.