Create a Custom Risk Score

  1. Navigate to Risk Score:
53445344
  1. Click + Create new risk score in top right corner of chart:
53445344

🚧

I can't create a Custom Risk Score!

You can check if you can create a Risk formula by going to Setting -> and see if you profile has “Create Risk Score” enabled

  1. A new “Create Risk Score” page will open.
53445344

Section: Risk Score

First, type in a descriptive short name for your risk score.

Section: Choose Variables

In this section, you will create your custom risk score formula using variables.

Agents must select a minimum of 1 variable.

Name

Explanation

Example

Associated Cases

The count of cases associated with an entity over the past 6 months

An entity with over 4 cases in the past 6 months gets a risk score of 80/100.

Associated Alerts

The count of alerts triggered which has the entity associated against over the past 6 months

An entity with 6 alerts in the past 6 months gets a risk score of 60/100.

Transactions

The count of transactions an entity has sent/received over the past 6 months

An entity with over 100K transactions OR less than 10 transactions in the past 6 months gets a risk score of 50/100.

Cross Border Transactions

The count of transactions an entity has sent/received in different currencies over the past 6 months

An entity with:

  • 100 cross txns, risk score = 80/100
  • 50 cross txns, risk score = 40/100
  • 25 cross txns, risk score = 20/100
  • 5 cross txns, risk score = 0/100

Transaction Instruments

The count of instruments the entity has used to send/receive transactions over the past 6 months

An entity with:

  • 4 instrument, risk score = 80/100
  • 3 instrument, risk score = 40/100
  • 2 instrument, risk score = 20/100
  • 1 instrument, risk score = 0/100

Age of Record

The number of months since the entity was first registered/created

An entity record with:

  • age = 12 months, risk score = 80/100
  • age = 24 months, risk score = 60/100
  • age = 48 months, risk score = 40/100
  • age = 72 months, risk score = 20/100
  • age = 96 months, risk score = 0/100

Associated KYC Alerts

The count of KYC alerts that have flagged the entity over the past 6 months

An entity with a count of 1 KYC alert in the past 6 months get a risk score of 100/100.

The Custom Variables can come from two places:

  • Variables sent in by your developers using our APIs when creating or updating an entity.
  • Enabling the Socure third party CRS and sending in the data via our APIs.

Simply select the variables you wish to use in your formula:

53445344

For each selected variable, click Define Risk Range.

This will bring up a prompt to Add Mapping Function. Click the button:

53445344

The mapping function defines the relation between the variable's value and the risk value as "data points".

For example:

53445344

The logic for the variable and risk value is as follows with 6 data points:

  • If this entity has 0 Associated Cases in the last 6 months, the risk value is 0.
  • If this entity has 2 Associated Cases in the last 6 months, the risk value is 20.
  • If this entity has 4 Associated Cases in the last 6 months, the risk value is 40.
  • If this entity has 6 Associated Cases in the last 6 months, the risk value is 60.
  • If this entity has 8 Associated Cases in the last 6 months, the risk value is 80.
  • If this entity has 10 Associated Cases in the last 6 months, the risk value is 100.

You can add as many data points as you wish using the Add Point button. You can delete erroneous relations using the Clear Points button.

  1. Preview the Sample entities widget:
53445344

Section: Preview Sample Entities

This table is a preview of the scores generated from the variables you selected in the previous “Choose Variables” section.

We score 100K random entities for you to review. This is a good time to check your results and update your mapping functions and variables.

53445344
  1. Define the Risk Score Weight to dynamically adjust your risk formula.
53445344

In this section, agents can set the weight of each individual variable as it pertains to the final risk score.

This is the final part of the Custom Risk formula which, in turn, will calculate the CRS.

Section: Define Risk Score Weights

Agents can dynamically change the weight of each variable by dragging the sliding indicator LEFT (reducing weighting) or RIGHT (increase weighting).

The total weight should add up to 100%. For example:

12891289

Variable

Percent

Socure:

10%

Associated Cases:

40%

Transactions:

50%

Age of Record:

0% (Will not be used)

CUSTOM RISK SCORE TOTAL:

100%

Additionally, weighting of a variable can be set to zero (wherein this variable will not be used in the Custom Risk formula).

📘

Weighting does not need to add up to 100%.

Your score weights don't have to be exact, we will adjust them for you so they add up to 100% automatically.

  1. Preview the Risk Score chart to inspect the results of your CRS:
53445344

In this section you can preview the CRS on 500K randomly selected entities to make sure you are satisfied.

📘

My Previous Risk Score chart isn't showing anything!

You can hit the Refresh button to update your Score chart.

12891289

The chat y-axis shows the "Number of bucketed Entities". The x-axis shows the "Risk Score".

This chart is dynamic; if the risk score formula weighing changes so will the chart (it may take a few seconds to refresh - you may use the Refresh button to update the chart).

  1. To finalize the CRS agents must click the Deploy Risk Score button:
53445344

Your CRS has been activated. It may take up to 24 hours for the scores to update.

A Quick Example:

Let's take an entity with:

  • a score from Socure of 40,
  • 2 cases in the last 6 months,
  • 11,000 transactions in the last 6 months,
  • and an age record of 3 years.

Variable

Percent Weight

Risk Value

Risk Score

Socure:

10%

40

4

Associated Cases:

40%

20

8

Transactions:

50%

10

5

Age of Record:

0%

10

0

RISK SCORE CALCULATED:

100%

12

The Risk Score for this entity is 12. It is very low and this is a safe and trustworthy entity.


Did this page help you?