Summary:

ComplyGenics developed a data-driven CRR model tailored to the client’s customer segments ensuring consistent risk scoring across the organization to determine FCC risk.

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Problem Statement:

A large Bank’s customer risk profiles were outdated and had to be recalibrated.  Due to inaccurate risk ratings, false positives were being flagged and false negatives were slipping by.  The risk ratings were also not consistent across various customer segments.

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Our Approach:

• We developed a data-driven CRR model tailored to the client’s customer segments ensuring consistent risk scoring across the organization to determine FCC risk.

• Defined risk categories and factors relevant to the client capturing different customer risk characteristics

• Obtained and analyzed customer data, standardized response options and assigned risk ratings incorporating SMAs inputs and industry guiding standards

• Developed a tool to calculated weights for each risk factor, applied FCC constraints to derive optimized weights and determine thresholds

• Developed and implemented a standardized CRR methodology for calculating FCC risk across the organization reducing cost for maintaining multiple systems and conducting a periodic review

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Result:

• Standardize FCC risk scoring methodology that can be used across the institution by utilizing a data-driven, analytical approach eliminating subjectivity from the process

• Build and implemented a Customer Risk Rating tool to enhance risk rating processes that is scalable and can be adapted to the regulatory requirements