B.2.1 Risk Calculation for Customer D

Customer D is an Individual customer. Therefore, the Individual risk model will be used.

The following table shows the risk calculation for customer D.

Table B-7 Risk Calculation for Customer D

Parameter	Weight	Calculation or Verification Step	Calculation for Customer D
Watch List Primary Customer	15	If the customer is on a trust or exempt list (that is, a list with a risk <0), Watch List Risk --> 0 Else, (highest risk of the matched list x 10).	Customer D is on Watch List A and Watch List B. Watch List A’s risk is 7. Watch List B’s risk is 6. Customer A’s Watch List Match Risk = max of (7, 6) * 10 = 70.
Geography Risk associated with Country of Residence	10	Risk as it appears on the Parameter Risk Score Jurisdiction tables for country geography risk.	Customer D’s Country of Residence is the US. Per Country Parameter Risk Score Jurisdiction table of respective Jurisdiction, US risk is 100 Customer D’s Country of Residence Geo Risk = 100.
Geography Risk associated with Country of Primary Citizenship	5	Risk of countries of citizenship as it appears on the Parameter Risk Score Jurisdiction tables for country geography risk.	Customer D is a citizen of Romania and the US. Per Country Parameter Risk Score Jurisdiction table, US risk is 50, Romania's risk is 100. Customer D’s Country of Citizenship Geo Risk = Max of (50,100).
Geography Risk associated with Country of Secondary Citizenship	5	Risk of countries of citizenship as it appears on the Parameter Risk Score Jurisdiction tables for country geography risk.	Customer D is a citizen of Romania and the US. Per Country Parameter Risk Score Jurisdiction table, US risk is 50, Romania's risk is 100. Customer D’s Country of Citizenship Geo Risk = Max of (50,100).
Source of Wealth	10	Source of wealth values as it appears on the Parameter Risk Score Jurisdiction tables.	Customer D’s Source of Wealth values is Income from Leases Property (risk 80) Customer D’s Source of Wealth Risk = 80.
Occupation	10	Risk as it appears on the Parameter Risk Score Jurisdiction tables for occupation.	Customer D’s occupation is Gambler, therefore risk = 100.
Length of Relationship with the bank or FI	15	0 - 12 months --> 80 13 - 36 months --> 60 37 - 120 months --> 40 More than 120 months --> 0	Customer D has been a client for 12 months. Customer D’s Length of Relationship with the bank or FI Risk = 80.
Account Type	10	Maximum Risk of all the accounts a customer has a controlling role on.	Customer D has 2 accounts – Credit Card and Savings Account for which the score are 60 and 25 respectively. Customer D’s Account Type Risk is Max of (60,25).
Method of Account Opening	10	Maximum Risk of all the accounts a customer has a controlling role on.	Customer D has 2 accounts that have been opened via Online and Walk-in and the scores are 70 and 20 respectively. Customer D’s Method of Account Opening Risk is a maximum of (70,20).

Risk Score = Sum (value of the risk assessment parameter * weight in decimals)

Sum(0*.10) + (70*.15) + (50*.10) + (100*.05) + (40*.1) + (20*.10) + (0 *.05) + (40*.15) + (60*.10) + (70*.10)

= 70.5.