Risk-Based Profiling
Advanced profiling to help financial institutions meet regulatory standards and safeguard against risks.
What is Risk-Based Profiling
Risk-Based Profiling empowers organisations to proactively manage risks such as money laundering and terrorist financing. Fully integrated with Prospero’s DetectX® Predictive Analytics Platform, it combines machine learning with dynamic KPIs and KRIs to support compliance, fraud prevention, and intelligent risk management.
In today’s regulatory environment, organisations must proactively manage financial crime risks such as money laundering and terrorist financing. DetectX® Risk-Based Profiling empowers financial institutions with advanced tools for creating, evaluating, and optimising client risk profiles in real time, helping meet the standards of the Financial Action Task Force (FATF) and other regulatory requirements. By calculating key risk and performance indicators (KRIs and KPIs), Risk-Based Profiling delivers actionable insights into each client’s risk profile, ensuring efficient, transparent, and compliant risk management.
Why Risk-Based Profiling Matters for Financial Institutions
DetectX® Risk-Based Profiling equips financial institutions with tools for real-time profiling, risk classification, and compliance. By automating detection and adapting to emerging threats, it supports a robust approach to financial crime prevention.
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Real-Time Profile Creation: Generates dynamic client risk profiles in line with legal requirements, based on ongoing calculations of KPIs and KRIs.
Flexible Rule Designer: Allows compliance teams to create, test, and activate custom rules for risk assessment using the calculated KPIs and KRIs, providing agility in adapting to changing regulations.
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Provides automated risk classifications for clients and business relationships based on transactions and behaviour.
Supports periodic, consolidated risk analyses to ensure a consistent approach to managing and monitoring risk across client portfolios.
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Offers a comprehensive pending task system with customisable workflows, ensuring systematic checks, escalations, and documentation.
The Alert Viewer includes tools for audit-proof documentation, enabling effective tracking and management of suspicious cases.
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Visualises connections within complex transactions and high-risk relationships, aiding in the detection of potential fraud networks.
Allows the addition of high-risk criteria (e.g., FATF countries, thresholds for complex transactions) through lookup tables and the Rule Designer for detailed compliance monitoring.
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Serves as the foundational module for the Behavioural Analysis module, supporting fully automated, machine-learning-driven detection and prevention of money laundering, fraud, and cyber threats.
Benefits of using Risk-Based Profiling
Empower Your Compliance Strategy with Dynamic Profiling, Automated Classification, and Real-Time Insights
Proactive Financial Crime Detection
Instantly flags unusual activities or patterns, enabling timely, effective countermeasures and reducing exposure to potential threats.
Enhanced Regulatory Compliance and Transparency
Ensures complete audit compliance with structured workflows, enabling easy tracking and reporting for regulatory audits and internal reviews.
Flexible and Autonomous Compliance
The Rule Designer empowers institutions to manage, adjust, and customise risk rules, creating a more agile compliance framework.
Future-Proof Predictive Analytics
Powered by machine learning, the module continuously optimises and recalibrates its models, adapting to emerging threats and regulatory changes.
Added Value of DetectX® Risk-Based Profiling Module
Risk Management Capabilities with Customisable, Transparent, and Audit-Ready Solutions
Dynamic Rule Creation and Maintenance
Simplifies the creation and modification of rules, expanding beyond static rule sets to incorporate machine learning and data-driven model optimisation.
Full Audit Compliance
Absolute transparency and traceability of all activities, helping institutions meet complex audit and regulatory demands.
Comprehensive Risk Management
Expands the reach of risk-based profiling to support the Understand Your Customer (UYC) approach and ensure a holistic view of client risk, especially in high-risk scenarios.
Platform interactions
Risk-Based Profiling can function independently but benefits significantly when combined with Transaction Monitoring and Behavioural Analysis, which enable real-time execution of profiling rules. DetectX® also supports ETL tasks and the integration of external data sources, ensuring seamless data flow and analysis across the organisation’s ecosystem of DetectX® Risk-Based Profiling Module
Leverage DetectX® Predictive Analytics Platform for adaptive, real-time compliance and risk management.
DetectX® Risk-Based Profiling module offers a proactive approach to compliance, empowering financial institutions to respond to evolving financial crime risks with confidence.
Contact us today to learn how this advanced tool can enhance your risk strategy and support long-term success.
