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.

1. 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.

A Simple 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).

2. 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.