9.8 Risks and Limitations

This section describes the Risks and Limitations

There are no industry standard practices for tuning methodology. The methodology outlined in this document aims at providing a generic framework while allowing customizations as per FI’s risk tolerance.

The methodology used here cannot be used to produce recommendations for two kinds of thresholds.

1. Max Thresholds : The methodology is designed to recommend thresholds only for Min thresholds. Any thresholds that impose an upper bound on some activity, e.g., Max_Credit_Amt in the RMF scenario, cannot be tuned using this methodology.
2. Secondary Thresholds: This methodology can recommend only one threshold for a given parameter. For example, in the HRG Funds Transfer scenario, three thresholds are used to evaluate the Total Amount of HRG Transactions parameter.
   1. Min HRG Total Trans Amt
   2. Min HRG Total Trans Amt (Primary)
   3. Min HRG Total Trans Amt (Secondary)

This methodology can recommend only one threshold for this parameter. The recommended threshold should be used only to recommend the threshold that is satisfied by all events generated by the scenario. In the example of the HRG Funds Transfer scenario, this threshold is Min HRG Total Trans Amt.