Account Registration Risk Scoring

account registration risk scoring

Account registration risk scoring helps financial institutions (FIs) balance risks, operational efficiency and regulatory compliance at the point of account opening. It gives FIs the insight they need to approve more applicants, tailor account privileges to align with risk thresholds and protect against new account losses due to first-party fraud or mismanagement.

A risk account registration risk scoring is calculated by multiplying probability x impact for a given risk. The resulting score can then be used to rank risks by likelihood, and determine which ones should be tackled first.

The risk score can be a scatter plot, table or grid with one axis for probability and the other axis for impact. The probability axis can be numbered or have descriptions, such as Rare, remote, moderate, likely, very likely and insignificant, minor, significant, major or critical.

Better Safe Than Sorry: How Account Registration Risk Scoring Can Prevent Fraudulent Activity

Risk response strategies for threats include accepting the risk, avoiding it, mitigating it or transferring it. For opportunities, response strategies can be to accept the opportunity, exploit it, enhance it or share it.

Identifying and mitigating risks can be a time-consuming task. However, if a team is organized and uses a data log that includes all of the necessary information, it can save them a lot of time.

The more specific and detailed the risk register is, the better. That’s why it’s important to create one that’s suited for your project needs and is easy to use.

Although spreadsheets are commonly used to track risks, they are often not as accurate as a purpose-built database like Hyperproof. They also lack the data analysis and reporting capabilities that organizations need for IT compliance audits.

Read More