About Risk Scoring

TrustGate's Risk Engine provides intelligent, configurable risk scoring to help you make informed decisions about customers and transactions.

What is Risk Scoring?

Risk scoring quantifies the potential risk associated with an applicant, company, or transaction based on multiple factors. A higher score indicates higher risk.

Risk Score Scale

Score Range	Risk Level	Typical Action
0-25	Low	Auto-approve
26-50	Medium	Standard review
51-75	High	Enhanced review
76-100	Critical	Senior escalation

How Risk Scores are Calculated

┌─────────────────────────────────────────────────────────┐
│                    RISK INPUTS                          │
├─────────────┬─────────────┬─────────────┬──────────────┤
│ Identity    │ Screening   │ Geography   │ Behavior     │
│ Factors     │ Results     │ Risk        │ Signals      │
└──────┬──────┴──────┬──────┴──────┬──────┴───────┬──────┘
       │             │             │              │
       v             v             v              v
┌─────────────────────────────────────────────────────────┐
│              RISK ENGINE (AI + Rules)                   │
│  • Weight factors based on configuration                │
│  • Apply business rules                                 │
│  • Adjust for context                                   │
└─────────────────────────┬───────────────────────────────┘
                          │
                          v
┌─────────────────────────────────────────────────────────┐
│                  RISK SCORE (0-100)                     │
│          + Factor Breakdown + Recommendations           │
└─────────────────────────────────────────────────────────┘

Risk Score Components

Identity Risk

Factors from identity verification:

Factor	Impact
Document verification failed	+20
Biometric match failed	+25
Multiple verification attempts	+10
Data inconsistencies	+15

Screening Risk

Factors from AML screening:

Factor	Impact
Sanctions match	+50
PEP match	+25
Adverse media (high risk)	+20
Adverse media (medium risk)	+10

Geographic Risk

Factors from location data:

Factor	Impact
High-risk country (residence)	+20
High-risk country (nationality)	+15
Sanctioned jurisdiction	+40
Tax haven jurisdiction	+10

Behavioral Risk

Factors from applicant behavior:

Factor	Impact
Multiple applications	+10
Rapid resubmission	+15
Device fingerprint anomaly	+20
VPN/proxy detected	+10

Viewing Risk Scores

Get Applicant Risk Score

curl -X GET "https://api.bytrustgate.com/v1/applicants/{applicant_id}/risk-score" \
  -H "Authorization: Bearer YOUR_API_KEY"

Response

{
  "applicant_id": "550e8400-e29b-41d4-a716-446655440000",
  "risk_score": 45,
  "risk_level": "medium",
  "calculated_at": "2025-01-20T14:30:00Z",
  "factors": [
    {
      "category": "screening",
      "factor": "pep_match",
      "contribution": 25,
      "details": "PEP Tier 2 - Family member of government official"
    },
    {
      "category": "geography",
      "factor": "high_risk_country",
      "contribution": 15,
      "details": "Nationality: Country with elevated AML risk"
    },
    {
      "category": "identity",
      "factor": "verification_passed",
      "contribution": 0,
      "details": "All identity checks passed"
    }
  ],
  "recommendation": "enhanced_review",
  "recommendation_reason": "PEP status requires enhanced due diligence"
}

Company Risk Scores

Get Company Risk Score

curl -X GET "https://api.bytrustgate.com/v1/companies/{company_id}/risk-score" \
  -H "Authorization: Bearer YOUR_API_KEY"

Response

{
  "company_id": "660e8400-e29b-41d4-a716-446655440001",
  "risk_score": 62,
  "risk_level": "high",
  "factors": [
    {
      "category": "structure",
      "factor": "complex_ownership",
      "contribution": 15,
      "details": "3+ layer ownership structure"
    },
    {
      "category": "geography",
      "factor": "high_risk_jurisdiction",
      "contribution": 20,
      "details": "Incorporated in high-risk jurisdiction"
    },
    {
      "category": "ubo",
      "factor": "ubo_pep",
      "contribution": 25,
      "details": "1 UBO is PEP"
    }
  ],
  "ubo_risk_summary": {
    "total_ubos": 3,
    "verified_ubos": 2,
    "highest_ubo_risk": 45
  }
}

Risk Score History

Track risk score changes over time:

curl -X GET "https://api.bytrustgate.com/v1/applicants/{applicant_id}/risk-score/history" \
  -H "Authorization: Bearer YOUR_API_KEY"

{
  "history": [
    {
      "score": 25,
      "level": "low",
      "calculated_at": "2025-01-15T10:00:00Z",
      "trigger": "initial_verification"
    },
    {
      "score": 45,
      "level": "medium",
      "calculated_at": "2025-01-16T14:30:00Z",
      "trigger": "screening_completed",
      "change_reason": "PEP match identified"
    }
  ]
}

Recalculating Risk

Manual Recalculation

curl -X POST https://api.bytrustgate.com/v1/applicants/{applicant_id}/risk-score/recalculate \
  -H "Authorization: Bearer YOUR_API_KEY"

Automatic Triggers

Risk scores recalculate when:

• Verification status changes
• Screening results update
• Documents are verified
• Cases are resolved
• Monitoring alerts trigger

Risk-Based Decisions

Auto-Approve Low Risk

curl -X PUT https://api.bytrustgate.com/v1/settings/risk-decisions \
  -H "Authorization: Bearer YOUR_API_KEY" \
  -H "Content-Type: application/json" \
  -d '{
    "auto_approve": {
      "enabled": true,
      "max_score": 25,
      "require_all_checks_passed": true
    },
    "auto_reject": {
      "enabled": true,
      "min_score": 90,
      "sanctions_match_always_reject": true
    },
    "escalation": {
      "threshold": 75,
      "escalate_to": "team_senior_compliance"
    }
  }'

Best Practices

1. Calibrate thresholds: Adjust score thresholds based on your risk appetite
2. Review edge cases: Manually review scores near threshold boundaries
3. Monitor trends: Track average scores to identify systematic issues
4. Document decisions: Record rationale for risk-based decisions
5. Periodic review: Reassess scoring weights quarterly

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Next Steps

• Risk Factors - Detailed factor configuration
• Workflow Rules - Automate risk-based actions
• Country Risk - Geographic risk configuration