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Customer risk assessment

Regulations in the financial industry require that you assess the risk profile of your individual and organization customers. The assessments that you make are determined by many factors that change over time and impact the risk. The financial industry requires an assessment of the overall risk for the customer with the ability to drill down to understand individual factors of the risk, such as countries involved, products used, and related parties. You can assign weight values to these risk factors, such as low, medium, high, and extreme.

The following articles detail the default customer risk assessment factors and whether they apply to individual or organization customers, or to both.

The risk assessment of both individual and organization customers is calculated using the following scorecards, which combine and weigh the score of each factor.

  • CustomerRiskAssessmentForInd (individual risk)
  • CustomerRiskAssessmentForOrg (organization risk)

For more details about how to extend customer risk properties, see the Implementation Guide on the Pega Client Lifecycle Management for Financial Services page.

The following table displays the default weightings for the risk factors.

Risk factor type Weight (individual risk) Weight (organization risk)
Occupation information 1 Not applicable
Business code Not applicable 1
Country related 0.5 1
Relationship duration 1 0.5
Product related 1 1
Related parties 0.5 0.5
Secondary risk 1 1
External data 1 Not applicable

Each risk factor is driven by a specific scorecard rule, which is part of the decision rule category. The Pega Financial Services Industry Foundation provides a declarative network that automatically invokes the required rule in order to assess the needed value.

Invocation of the risk engine

In this rule, the data transform SynchronizeRiskProfile is used for invocation of the risk engine and reassessment of Customer risk.

There are two declare expressions that are configured on the properties CustomerRiskCode and CustomerRiskScore that trigger the calculation of risk profile.

  • SaveWorkFolder – Used for the creation of and to update the master profile of the customer. This activity uses the pyWorkParty(Customer) copy of Customer data from the current work case as source data, which is then synchronized into the Customer Master Profile. Synchronization is performed by means of the SynchronizeDriverDataToMasterProfile data transform.
  • RiskProfileInfoInd (section for Individual)
  • RiskProfileInfoOrg (section for Organization)
  • RiskProfileInfoFund (section for Funds)