What are risk factors?

Risk factors can only be used if you’ve purchased the optional Risk module. Contact us to find out more.

Risk factors are used in risk models as a way to measure the risk levels of product applications.

You choose which risk factors to include in your risk model. There are different risk factors for individual profiles and company profiles.

When the risk model is applied to a profile's product application to evaluate the application's risk, the profile’s details are checked against the condition of every risk factor rule to see if any conditions match.

The result impacts the application's total risk score as follows:

  • If a rule’s condition matches, the risk score for that rule is added to the application's total risk score.
  • If the conditions for multiple rules match, the highest risk score is used.
  • If the profile data required to match conditions cannot be found (e.g. a profile’s details have been left blank), no risk score is applied to the application's total risk score.

Risk factors can also be combined into a risk factor group where the highest single risk score, lowest single risk score, or mean risk score is used. When the risk model is applied, the score for each risk factor in the group is calculated, then the highest, lowest, or mean risk score is added to the total risk score accordingly.

You choose which rules, conditions, and risk scores are used for each of the risk factors in your risk model.

For most conditions, you also provide a list, some text or a number range to be matched with the profile’s data. Lists are always case-sensitive. Text is optionally case-sensitive.

For example, you might choose this for the Country of residence risk factor:

Rule
Conditions

If an individual’s country of residence is in Western Europe, add 0 to the application risk score.

The profile's country is included in this list: Belgium, France, Ireland, Luxembourg, Monaco, Netherlands, United Kingdom

If an individual’s country of residence is in North America, add 100 to the application risk score.

The profile's country is included in this list: Canada, United States

If an individual’s country of residence is anywhere else, add 999 to the application risk score.

The profile's country is not included in this list: Belgium, Canada, France, Ireland, Luxembourg, Monaco, Netherlands, United Kingdom, United States

An application's risk score is recalculated in any of the following circumstances:

  • A user changes any of the profile's details manually. For example, if a user updates the profile’s address, the risk score is recalculated even if the Country of residence and Postal code risk factors are not used in the risk model.
  • An automated check returns new/updated results for a profile. For example, during ongoing monitoring, a new PEPs match is found for the profile. The risk score is recalculated any time a potential match is found.
  • A significant date for one of the profile details is reached. For example, on the date of the profile’s Date of birth, the profile’s age is automatically recalculated and the Age risk factor is impacted. The risk score is only recalculated when the significant date impacts a risk factor used in the risk model.

If a change impacts one risk factor in the risk model, the profile is re-evaluated for all risk factors in the risk model.

Below is the list of the risk factors available, along with the conditions you can use for each one.

When you define your risk model, you can choose to make any of these risk factors required or non-required. To learn more, see the definition for Risk models in Introduction to PassFort’s terms.

Risk factors for individual profiles

Address

The risk associated with the individual’s current postal code.

Data matched: The postal code is taken from the profile’s current Address.

Possible conditions:

  • The postal code is included on a list you provide.
  • The postal code is not included on a list you provide.
  • The postal code exactly matches a postal code you provide.
  • The postal code starts with letters/numbers you provide.
  • The postal code ends with letters/numbers you provide.
  • The postal code contains letters/numbers you provide.

Adverse media matches

The risk associated with screening matches indicating the individual has been named in an adverse way by news sources.

Data matched: The adverse media matches discovered when the individual is screened for a product application or as part of ongoing monitoring.

Possible conditions:

  • The individual has one or more confirmed adverse media matches.
  • The individual has one or more potential adverse media matches.
  • The individual has no confirmed adverse media matches.
  • The individual has one or more ignored adverse media matches, and no potential or confirmed adverse media matches.

Age

The risk associated with the individual’s age.

Data matched: The profile’s Date of birth is taken, and the individual’s age is determined by calculating the number of years between that date and today.

Condition:

  • The individual’s age falls within a number range you specify.
Every year on the day of the profile’s Date of birth, the profile’s age is re-calculated and the profile is re-assessed for all risk factors in your risk model.

Country of IP address

The risk associated with the country of the individual's IP address.

Data matched: The individual’s IP address (captured via the API) is looked up to find its approximate location. The associated country is provided.

Possible conditions:

  • The country is included on a list you provide.
  • The country is not included on a list you provide.
This risk factor can only be used if you’ve configured the API to capture the individual's IP address.

Country of phone number

The risk associated with the country of the individual’s phone number.

Data matched: The country is found by looking up the international country calling code of the profile’s Phone number. The associated country is provided.

Possible conditions:

  • The country is included on a list you provide.
  • The country is not included on a list you provide.

Country of residence

The risk associated with the individual’s country of residence.

Data matched: The individual’s country of residence is taken from the profile’s current Address.

Possible conditions:

  • The country is included on a list you provide.
  • The country is not included on a list you provide.

Custom field

The risk associated with a profile’s custom field (e.g. Expected transaction volume per month or Product tier).

Data matched: The data taken from the custom field you specify.

Possible conditions when the data is text:

  • The data is included on a list you provide.
  • The data is excluded from a list you provide.
  • The data exactly matches text you provide.
  • The data starts with text you provide.
  • The data ends with text you provide.
  • The data contains text you provide.

Condition when the data is a number:

  • The data falls within a number range you specify.
  • The data is less than a number you specify.
  • The data is less than or equal to a number you specify.
  • The data is greater than a number you specify.
  • The data is greater than or equal to a number you specify.

Data result: For this risk factor, you can also specify that a prefix or suffix is added to the resulting data so it’s easier for users to read. For example, you might choose the prefix £ (as in, £100) or the suffix customers (as in, 100 customers).

If the value of the custom field is a date, use the Custom field date to months risk factor.

Custom field date to months

The risk associated with the number of months that have passed between the date in a profile’s custom field (e.g. Date of first transaction) and today.

Data matched: The date is taken from the specified custom field, and the number of months between that date and today is calculated.

Condition:

  • The data falls within a number range you specify.
  • The data is less than a number you specify.
  • The data is less than or equal to a number you specify.
  • The data is greater than a number you specify.
  • The data is greater than or equal to a number you specify.
Every month on the date of the specified custom field, the number of months is re-calculated and the profile is re-assessed for all risk factors in your risk model.

Email address

The risk associated with the individual’s email address.

Data matched: The email address is taken from the profile’s Email address.

Possible conditions:

  • The email address is included on a list you provide.
  • The email address is not included on a list you provide.
  • The email address exactly matches an email address you provide.
  • The email address starts with letters/numbers/symbols you provide.
  • The email address ends with letters/numbers/symbols you provide.
  • The email address contains letters/numbers/symbols you provide.

Nationality

The risk associated with the country of the profile’s nationality.

Data matched: The country of nationality is taken from the profile’s Nationality.

Possible conditions:

  • The country is included on a list you provide.
  • The country is not included on a list you provide.

Other matches

The risk associated with the individual’s other matches returned during screening. Other matches are returned during profile screenings when the category of the match does not fall under PEPs, sanctions, or adverse media (e.g. the individual has a criminal record).

Data matched: The other matches discovered when the individual is screened for a product application or as part of ongoing monitoring.

Possible conditions:

  • The individual has no confirmed other matches.
  • The individual has one or more potential other matches.
  • The individual has one or more confirmed other matches.
  • The individual has one or more ignored other matches, and no potential or confirmed other matches.

PEPs matches

The risk associated with screening matches indicating the individual is a politically exposed person (PEP).

Data matched: The PEPs matches discovered when the individual is screened for a product application or as part of ongoing monitoring.

Possible conditions:

  • The individual has one or more confirmed PEPs matches.
  • The individual has one or more potential PEPs matches.
  • The individual has no confirmed PEPs matches.
  • The individual has one or more ignored PEPs matches, and no potential or confirmed PEPs matches.

Sanctions matches

The risk associated with screening matches indicating the individual appears on sanctions lists.

Data matched: The sanctions matches discovered when the individual is screened for a product application or as part of ongoing monitoring.

Possible conditions:

  • The individual has one or more confirmed sanctions matches.
  • The individual has one or more potential sanctions matches.
  • The individual has no confirmed sanctions matches.
  • The individual has one or more ignored sanctions matches, and no potential or confirmed sanctions matches.

Risk factors for company profiles

Adverse media matches

The risk associated with screening matches indicating the individual has been named in an adverse way by news sources.

Data matched: The adverse media matches discovered when the company is screened for a product application or as part of ongoing monitoring.

Possible conditions:

  • The company has one or more confirmed adverse media matches.
  • The company has one or more potential adverse media matches.
  • The company has no confirmed adverse media matches.
  • The company has one or more ignored adverse media matches, and no potential or confirmed adverse media matches.

Associates

The risk posed to the company by the associate with the highest risk score for a specified factor.

Data used: You choose one or more associate types to be evaluated and one risk factor to be used for the evaluation.

You can choose any of the following associate types:

  • By relationship:
    • Officers
    • Shareholders
    • Authorised persons
  • By role:
    • Authorised persons
    • Unauthorised persons
    • Directors
    • Company secretaries
    • Resigned officers
    • Partners
    • Trustees
    • Shareholders
    • Beneficial owners
    • Others

You can choose any of the risk factors listed in this article (e.g. Adverse media matches, Age, Country of incorporation).

Some associates (e.g. shareholders) can be individuals or companies. If a risk factor is specific to profile type, it’s only applied to profiles of that type (e.g. the Age risk factor is only applied to individual profiles and the Country of incorporation risk factor is only applied to company profiles).

Actions performed: Every associate of the company that has the associate type you specified is evaluated for your chosen risk factor. A risk score is assigned to each one accordingly. The highest risk score is used as the company’s risk score for this factor.

This risk factor does not have any default conditions because it uses the conditions of your chosen risk factor to determine the associates’ risk scores.
If you want to assess multiple risk factors in your risk model (e.g. Age and Postal code for the associates of the company), create one Associates risk factor per risk factor.

Country of incorporation

The risk associated with the company’s country of incorporation.

Data matched: The country is taken from the profile’s Country of incorporation.

Possible conditions:

  • The country is included on a list you provide.
  • The country is not included on a list you provide.

Custom field

The risk associated with a profile’s custom field (e.g. Expected transaction volume per month or Product tier).

Data matched: Data taken from the custom field you specify.

Possible conditions when the data is text:

  • The data is included on a list you provide.
  • The data is excluded from a list you provide.
  • The data exactly matches text you provide.
  • The data starts with text you provide.
  • The data ends with text you provide.
  • The data contains text you provide.

Condition when the data is a number:

  • The data falls within a number range you specify.
  • The data is less than a number you specify.
  • The data is less than or equal to a number you specify.
  • The data is greater than a number you specify.
  • The data is greater than or equal to a number you specify.

Data result: For this risk factor, you can also specify that a prefix or suffix is added to the resulting data so it’s easier for users to read. For example, you choose the prefix £ (as in, £100) or the suffix customers (as in, 100 customers).

If the value of the custom field is a date, use the Custom field date to months risk factor.

Custom field date to months

The risk associated with the number of months that have passed between the date in a profile’s custom field (e.g. Date of first transaction) and today.

Profile data matched: The date is taken from the specified custom field, and the number of months between that date and today is calculated.

Condition:

  • The data falls within a number range you specify.
  • The data is less than a number you specify.
  • The data is less than or equal to a number you specify.
  • The data is greater than a number you specify.
  • The data is greater than or equal to a number you specify.
Every month on the date of the specified custom field, the number of months is re-calculated and the profile is re-assessed for all risk factors in your risk model.

Other matches

The risk associated with the company's other matches returned during screening. Other matches are returned during profile screenings when the category of the match does not fall under PEPs, sanctions, or adverse media.

Data matched: The other matches discovered when the company is screened for a product application or as part of ongoing monitoring.

Possible conditions:

  • The company has no confirmed other matches.
  • The company has one or more potential other matches.
  • The company has one or more confirmed other matches.
  • The company has one or more ignored other matches, and no potential or confirmed other matches.

PEPs matches

The risk associated with screening matches indicating the company's politically exposed persons (PEP) matches. What's considered a match depends on your data provider but, for example, state owned companies might be returned as PEPs matches.

Data matched: The PEPs matches discovered when the company is screened for a product application or as part of ongoing monitoring.

Possible conditions:

  • The company has one or more confirmed PEPs matches.
  • The company has one or more potential PEPs matches.
  • The company has no confirmed PEPs matches.
  • The company has one or more ignored PEPs matches, and no potential or confirmed PEPs matches.

Sanctions matches

The risk associated with screening matches indicating the company appears on sanctions lists.

Data matched: The sanctions matches discovered when the company is screened for a product application or as part of ongoing monitoring.

Possible conditions:

  • The company has one or more confirmed sanctions matches.
  • The company has one or more potential sanctions matches.
  • The company has no confirmed sanctions matches.
  • The company has one or more ignored sanctions matches, and no potential or confirmed sanctions matches.

Years since incorporation

The risk associated with the number of years a company has been incorporated.

Data matched: The profile’s Date of incorporation is taken, and the number of years since incorporation is determined by calculating the number of years between that date and today.

Condition:

  • The number of years since incorporation falls within a number range you specify.
Every year on the day the profile’s Date of incorporation, the number of years since incorporation is re-calculated and the profile is re-assessed for all risk factors in your risk model.


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