Risk Assessment

Question 1

What are the two main purposes of organizing data in the four-step research model?

Answer 1

1) To compare what is known about the customer with risk factors to determine a risk rating, and 2) To identify if enhanced research is needed.

Question 2

In the four-step research model, what is the purpose of filtering the information gathered in the first two steps?

Answer 2

To isolate and structure the most relevant and important information into the report template.

Question 3

How is a risk rating typically derived?

Answer 3

By using a risk model that calculates inherent risk from customer, jurisdiction, product, and channel data.