Skip to main content
Client risk scoring evaluates the risks involved with a new or existing client. It’s key to preventing fraud, ensuring compliance, and managing financial exposure.

In this section

How the risk is calculated

The overall risk is weight-based:
  1. Each category has a specific number of risk rules.
  2. The system takes the maximum possible result of each rule and sums it up. Risk scores:
  • Very low — 1
  • Low — 2
  • Medium — 3
  • High — 4
  • Very high — 5
  1. The system calculates each category risk: Category risk / Category risk total * 100
  2. The system calculates each category risk by its weight and sums everything: (Category 1 risk * Category 1 weight) + (Category 2 risk * Category 2 weight) + ...
Example video: Watch on Loom