Risk Scoring Methodology
We review and enhance AML Risk Rating Methodologies by working with MLROs, Financial Crime Teams, CROs, and Front Line Teams to agree on the new enhanced methodology.
This is undertaken by:
- Reviewing current methodology in line with specific business risks
- Designing and documenting new methodology
- Systematically enhancing AML Risk Ratings Methodology
- Codify for system implementation
- Data Validation and User Acceptance Testing
Policy, Procedure & Process Documentation
Using our deep domain experience we are able to design and embed all AML/CDD related documentation including policies, procedures and process mapping.
This work is designed and assessed against current regulation and industry best practice.
"The fight against financial crime requires continuous innovation from financial institutions to sharpen their capabilities. This can be achieved by partnering with innovative financial crime compliance experts."
Jon Sweet
CEO of Lysis Group
Customer Risk Rating (CRR) Methodology Reviews and Redesign
Many firms identify deficiencies within their client AML risk rating methodologies which can lead to inefficiencies and increased risk. A firm’s customer risk rating methodology must be flexible to incorporate new regulatory requirements such as the ESG agenda which is becoming more prominent. There is an increased expectancy to further consider the ESG risks as an integral part of the CRR, in addition to the FC risks. This calls for a redesign of the CRR to include the increased ESG risks and influence the entire approach to customer on-boarding and ongoing management throughout the CLM process.
In our experience, some deficiencies could include:
- The risk of not identifying clients who fall outside of the firm’s risk appetite or categorised as high risk.
- Attributing a higher AML risk rating to a client due to inaccurate risk scoring calculations.
- Not considering all the risk factors as part of the CRR model.
- Deficient or untested risk weightings for the identified risk factors.
Lysis Financial can assist firms to design, test, calibrate and implement effective CRR ratings by considering all applicable risk factors, proportionate to the firm’s profile, their coverage and business model.
We support firms with:
- Reviewing and redesigning of the CRR methodology.
- Automation of processes proportionate to the firm’s profile, coverage, and business model,
driving efficiencies. - Conducting an impact assessment: testing of the new model to align with the intended impact on the risk profile of the firm’s client base.
- Documentation of processes.
- Implementation and testing of the CRR model in the firm’s business as usual environment.
Risk Scoring Methodology
We review and enhance AML Risk Rating Methodologies by working with MLROs, Financial Crime Teams, CROs, and Front Line Teams to agree on the new enhanced methodology.
This is undertaken by:
- Reviewing current methodology in line with specific business risks
- Designing and documenting new methodology
- Systematically enhancing AML Risk Ratings Methodology
- Codify for system implementation
- Data Validation and User Acceptance Testing
Policy, Procedure & Process Documentation
Using our deep domain experience we are able to design and embed all AML/CDD related documentation including policies, procedures and process mapping.
This work is designed and assessed against current regulation and industry best practice.
"The fight against financial crime requires continuous innovation from financial institutions to sharpen their capabilities. This can be achieved by partnering with innovative financial crime compliance experts."
Jon Sweet
CEO of Lysis Group
Customer Risk Rating (CRR) Methodology Reviews and Redesign
Many firms identify deficiencies within their client AML risk rating methodologies which can lead to inefficiencies and increased risk. A firm’s customer risk rating methodology must be flexible to incorporate new regulatory requirements such as the ESG agenda which is becoming more prominent. There is an increased expectancy to further consider the ESG risks as an integral part of the CRR, in addition to the FC risks. This calls for a redesign of the CRR to include the increased ESG risks and influence the entire approach to customer on-boarding and ongoing management throughout the CLM process.
In our experience, some deficiencies could include:
- The risk of not identifying clients who fall outside of the firm’s risk appetite or categorised as high risk.
- Attributing a higher AML risk rating to a client due to inaccurate risk scoring calculations.
- Not considering all the risk factors as part of the CRR model.
- Deficient or untested risk weightings for the identified risk factors.
Lysis Financial can assist firms to design, test, calibrate and implement effective CRR ratings by considering all applicable risk factors, proportionate to the firm’s profile, their coverage and business model.
We support firms with:
- Reviewing and redesigning of the CRR methodology.
- Automation of processes proportionate to the firm’s profile, coverage, and business model,
driving efficiencies. - Conducting an impact assessment: testing of the new model to align with the intended impact on the risk profile of the firm’s client base.
- Documentation of processes.
- Implementation and testing of the CRR model in the firm’s business as usual environment.
Risk Scoring Methodology
We review and enhance AML Risk Rating Methodologies by working with MLROs, Financial Crime Teams, CROs, and Front Line Teams to agree on the new enhanced methodology.
This is undertaken by:
- Reviewing current methodology in line with specific business risks
- Designing and documenting new methodology
- Systematically enhancing AML Risk Ratings Methodology
- Codify for system implementation
- Data Validation and User Acceptance Testing
Policy, Procedure & Process Documentation
Using our deep domain experience we are able to design and embed all AML/CDD related documentation including policies, procedures and process mapping.
This work is designed and assessed against current regulation and industry best practice.
"The fight against financial crime requires continuous innovation from financial institutions to sharpen their capabilities. This can be achieved by partnering with innovative financial crime compliance experts."
Jon Sweet
CEO of Lysis Group
Customer Risk Rating (CRR) Methodology Reviews and Redesign
Many firms identify deficiencies within their client AML risk rating methodologies which can lead to inefficiencies and increased risk. A firm’s customer risk rating methodology must be flexible to incorporate new regulatory requirements such as the ESG agenda which is becoming more prominent. There is an increased expectancy to further consider the ESG risks as an integral part of the CRR, in addition to the FC risks. This calls for a redesign of the CRR to include the increased ESG risks and influence the entire approach to customer on-boarding and ongoing management throughout the CLM process.
In our experience, some deficiencies could include:
- The risk of not identifying clients who fall outside of the firm’s risk appetite or categorised as high risk.
- Attributing a higher AML risk rating to a client due to inaccurate risk scoring calculations.
- Not considering all the risk factors as part of the CRR model.
- Deficient or untested risk weightings for the identified risk factors.
Lysis Financial can assist firms to design, test, calibrate and implement effective CRR ratings by considering all applicable risk factors, proportionate to the firm’s profile, their coverage and business model.
We support firms with:
- Reviewing and redesigning of the CRR methodology.
- Automation of processes proportionate to the firm’s profile, coverage, and business model,
driving efficiencies. - Conducting an impact assessment: testing of the new model to align with the intended impact on the risk profile of the firm’s client base.
- Documentation of processes.
- Implementation and testing of the CRR model in the firm’s business as usual environment.
