7.4.2.1 Rule-based Risk Assessment

Rule-based assessment calculates a risk score based on client configurable rules. The rule-based assessment model supports a business process framework, which allows the bank or FI to provide different values for the predefined rules. All customers are first assessed using the Rule-based Assessment Model and then assessed using the Algorithm-based Assessment Model.

For the rule-based assessment, the values for each rule are provided by the Admin user. For more information about providing values to the rule-based assessment, see Adding Rules for Rule-based Risk Assessments.

A customer can fall under one or more rules during the rule-based assessment. When a customer has been matched to multiple rules, the application considers the maximum score of the matched rules.

For example, a customer has matched the Country of Citizenship and Country of Residence rules, with the values being Afghanistan and India, with a score of 45 and 60 respectively. In this case, the application considers the risk score as 60 for the customer. It also captures and displays all the rules matched.

Risk assessments created using this workflow are promoted to a case based on the risk score mentioned in the DIM_RISK_CATEGORY table. The values in the F_USR_REVIEW_REQ_FLAG and F_HIGH_RISK_WATCH_LIST_FLAG parameter must always be set to N; if you set the F_HIGH_RISK_WATCH_LIST_FLAG parameter to Y, then a case is generated irrespective of the risk score. For more information on the columns, see the Examples of Derivation of Risk Score appendix in the Oracle Financial Services Know Your Customer (OFS KYC) Risk Assessment Guide.