Customer Risk Rating Manager™ Module
Customer due diligence begins with verifying each customer’s identity and assessing the associated risk. Assessing customer risk is an essential component of a comprehensive Anti-Money Laundering monitoring program. A comprehensive Anti-Money Laundering monitoring program requires CDD and EDD procedures to be in place for customers ID verification and assessing the associated customer risk.
Customer Risk Rating - CRR calculation is required not only on customer onboarding and account opening but on various other occasions such as in provision of new financial services and every time one of customer static data changes.
When a financial institution provides a new financial service to its customers requires to calculate the financial risk but also to calculate customer’s overall risk including AML risk. Therefore, third party application such as a personal loan management application or credit card application requires to receive AML Customer Risk Rating upon request.
To achieve higher accuracy on customers risk rating, financial institutions are modernizing their customer risk rating models, moving from heuristic, rule-based customer risk rating models to statistical models such as ordinal logistic regression models. These statistical models perform better than rules-based models, are easier to update, validate and maintain and also easier to justify to the regulators because they use an established and understood framework. Customer Risk Rating with statistical models quickly taking their place due to the regulatory pressure more scientific approaches to ne used.
CubeIQ Customer Risk Rating Manager – CRR Manager™ is a Web Based autonomous software application which has been designed and developed with the purpose to calculate customer AML risk rating and to categorize customers to the corresponding risk category.
CRR Manager™ integrates with existing AML legacy system in order to exchange customers’ data, define Risk Models and calculate Customer Risk. It also publishes a Web Service which third party application consume to receive ad-hoc Customer Risk Rating.
CRR Manager™ Features:
- Easy Risk Models definition.
- Multiple Risk Models per installation.
- Statistical Risk Models support.
- Easy and flexible operating configuration.
- Accommodates any risk model.
- Accommodates any type of business.
- Employs 45+ risk items, additional risk items can be added.
- Preconfigured with individuals and 12+ business types, additional customer types can be added.
- When working in parallel with PCS™ it can encapsulate EDD Reporter Risk Model.
- Modern and intuit user interface.
- On-line, ad-hoc Customer Risk Rating by consuming published web services.