12 Managing KYC Risk Factor Pipelines

Oracle Financial Crime and Compliance Management Know Your Customer Cloud Service uses KYC Risk Factor pipelines to assess and evaluate customers based on their transactions.

ATTENTION:

KYC Risk Factor pipelines are only available if your firm has implemented Oracle FCCM Know Your Customer Cloud Service.

Widgets in KYC Risk Factor Pipelines

Depending on the pipeline type, specific widgets are available in the widgets pane of the pipeline. The following table describes the widgets available in KYC Risk Factor pipelines.

NOTE:

The widgets used in this pipeline are the same widgets used for Scenario pipelines. For more information on specific widgets, refer to Managing Scenario Pipelines.

Widgets in KYC Risk Factor Pipelines and their Descriptions

Widget	Name	Description
	High Level Dataset (HLD)	Use this widget to add a High Level Dataset. Essentially, this is the data that is used to detect unusual or suspicious behavior.
	Risk Indicator	Use this widget to add a Risk Indicator. Risk indicators help determine the overall risk of transactions and parties and aid users working with events.
	Create Event	Use this widget to create an Event. An event is a record of one or more pattern matches in a detection run, which is a signal for further investigation.

Process Flow of Widgets

The widgets must be updated in the following sequence and are mandatory.

This workflow shows the Transaction by Customer data pipeline flowing into the risk indicator widget which links to the create event widget.

After you have updated the widgets, click Save Save icon .

NOTE:

· You cannot delete a widget from an existing KYC Risk Factor pipeline. Instead copy a pipeline and edit it or create a new pipeline as in the above sequence for this pipeline type.

· On opening the Create Event widget, it will be blank for this pipeline type but it is mandatory.

Using Risk Factor Pipelines

This section provides the workflow of how risk factor pipelines work to risk assess a customer based on their transaction history.

To implement Transaction-based KYC Assessments on customers, follow these steps:

1. Configure the Risk Factor pipeline.

2. Configure the Threshold and Job. Refer to Managing Threshold Sets and Using Jobs for more information.

3. Attach the new task with the created pipeline job along with the calendar task to the batch as shown in the following sequence.

a. LoadKYCCustomerInterestedParties

b. Calender

c. KYCScenarioBasedRiskFactors

d. KYCProcessingAccountData

4. Configure the risk indicator ranges for behavioral risk in the Behavioral Risk Indicator menu. Refer to the Behavioral Risk Indicator section in Configuring Dimension Data.

5. Configure the Risk Elements for the risk indicator by adding the applicable customer type, KYC check and Mapping lookup. Refer to the Risk Element Conguration section inConfiguring Dimension Data..

6. Add the rules in Business Check and Algorithmic Scoring as necessary.

After running the batches, the customers are scored using the configuration in the above widget.

Using High Level Dataset in KYC Risk Factor Pipelines

Refer to Using High Level Dataset to understand how to use the High Level Dataset in a pipeline. For KYC Risk Factor pipelines, use only the Transaction by Customer High level dataset.

The Transaction Type filter is mandatory to include in the Transaction by Customer widget for KYC Risk Factor pipelines. You can add additional filters as required.

For more information about how to configure a specific risk factor, refer to Managing Risk Indicator.

Performing KYC Assessments Without Transaction-based Scenarios

You can opt out of risk assessing customers based on their transaction history.

To conduct KYC assessments without transaction based scenarios, follow these steps.

1. Do not add any rules related to KYC Risk Factors in Algorithmic Scoring & Business Check Scoring Widgets.

2. Remove the tasks Calendar, KYCScenarioBasedRiskFactor tasks from KYCDeploymentInitiation, KYCDaily batches.