The Verified platform calculates a client's Anti-Money Laundering (AML) risk in two ways:

1. The Standard Method (Weighted Average): Adds up your risk factors normally.

2. The Multiplier Method (HRM/LRM): Aggressively boosts high-risk scores so major red flags (like a PEP match) don't get hidden or "watered down" by low-risk items.

The standard method - Weighted average

Think of this like a final school grade where some assignments are worth more than others. Each risk item has a Weight (how important it is) and a Risk Score (how severe it is, from 1 to 9).

The system multiplies each item's weight by its score, adds them up, and divides by the total weight.

Example:

Imagine you are checking three risk items for a client:

• Item 1: Weight 100 × Risk Score 5 = 500

• Item 2: Weight 100 × Risk Score 9 = 900

• Item 3: Weight 50 × Risk Score 3 = 150

The Math:

1. Add the scores together: 500 + 900 + 150 = 1,550

2. Add the total weights together: 100 + 100 + 50 = 250

3. Divide the total score by the total weight: 1,550 / 250 = 6.2

The Result: A score of 6.2 usually means Medium Risk. (Administrators can adjust these thresholds in the settings menu if they want 6.2 to count as High Risk instead).

The multiplier method (HRM / LRM)

Why do we use this? If you only use the standard method, a major threat could look harmless if the client has 10 other low-risk items that bring the average down.

The High Risk Multiplier (HRM) fixes this. If any single risk score goes above the middle value (above 5), the system automatically triggers a calculation booster.

How the booster multiplies a score:

If a risk item gets a high score of 7 (where 5 is the middle):

1. The system looks at how far above average it is ($7 - 5 = 2$).

2. It uses that variance to boost the score to an "Adjusted Value" of 11.

3. It then multiplies that value by a severity level chosen by your company (the higher the level, the bigger the impact):

At Level 80, that single item's point value shoots up to 1,510, instantly forcing the client's overall status to High Risk, no matter how many low-risk items they have.

(Note: The Low Risk Multiplier / LRM works exactly the same way, but it shrinks scores that fall below 5).

Important system safeguard

When using the Multiplier method, a risk item's weight cannot be 0. If an administrator accidentally sets a weight to 0 in the settings panel, the system will automatically change it to 10 to keep the calculations accurate.