To ensure objective, consistent, and compliant Know Your Customer (KYC) procedures, our platform utilizes an advanced risk engine. Below is an overview of the principles governing how risk is calculated and presented within the system when using the Point based risk model.

"Highest Value Governs"

The Point based risk model is built on the principle of Max Logic. This means that the total risk level is not determined by an average of various risk factors. Instead, the single factor that generates the highest score defines the overall risk level for the entire project.

• How it works: Each response in the system is linked to a specific point value (e.g., 1, 3, or 5 points). The system reviews all answered questions and identifies the absolute highest score among them.

• Why? This methodology ensures that critical red flags are never hidden or "diluted" by other low-risk parameters. If a customer triggers even one high-risk factor, the system will prioritize that indicator and flag the project as High Risk, ensuring you can take the necessary due diligence actions.

Real-Time Automated Calculation

Risk is calculated automatically the moment data is retrieved from official registries or submitted via KYC forms or other internal forms. The system analyzes information against your predefined risk matrices (e.g., geographic risk, industry risk, or entity type etc.) and immediately assigns a risk level based on your risk settings (e.g., Low, medium, High).
The risk levels and risk scores are all configurable.

From Overview to Detail

• Summarized Risk: The total risk level is clearly displayed on the Customer Card overview, providing the user with an immediate status update.

• Detailed Analysis: For a deeper review, users can navigate to the Risk Assessment tab. Here, every individual parameter and response is listed alongside its specific risk score. This provides full traceability and helps the user understand exactly why a certain risk level was assigned.

Manual Overrides

Authorized users can manually override the final risk classification. Any override requires a mandatory comment, ensuring a complete and audit-ready history of the decision-making process.

Summary

The point based risk model is designed to provide security and peace of mind. By focusing on the highest identified risk factor and combining it manual override option, you gain a tool that both streamlines your workflow and significantly reduces the risk of human error in your compliance process.