Risk Stratification

Risk Stratification

Focus on real risks with a stratified approach that saves time and strengthens compliance.

Not all high-risk customers are created equal

Managing risk is often a one-size-fits-all approach. A typical risk system uses generic models that incorporate numerous risk factors, resulting in large volumes of high-risk customers. But all high-risk customers are not created equal. A local charity, for example, likely does not present the same level of risk to your institution as an international Non-Governmental Organization (NGO).

Nasdaq Verafin’s high-risk management approach allows you to define what risk means to you, and stratifies risk within high-risk categories, such as Money Services Businesses (MSBs), Private ATM Owners, and Marijuana-Related Businesses (MRBs). This ensures you are reviewing the right customers at the right time and provides greater visibility to the examiner of your institution’s risk profile.



With a stratified approach, Nasdaq Verafin addresses how risk differs within each high-risk category of customers, with stratified risk agents that automatically risk score each high-risk customer relative to other customers in that category.


You can customize risk agents in Nasdaq Verafin to align with your institution’s risk appetite, and compliance policies and procedures. This stratified approach allows for control and flexibility, to add, remove or update agents based on the specific and changing needs of your institution.


Nasdaq Verafin monitors activity across all customers for specific risk factors that segment and further stratify risk within higher-risk groups. Nasdaq Verafin’s approach allows you to control the risk factors that are included in configurable risk agents, and how each factor impacts risk stratification.


With a centralized Risk Assessment dashboard, you can get a quick view of your institution’s stratified risk profile, or you can drill down into each risk category. Easily access lists of higher-risk customers, both in specific categories and overall.


Updates to customer-risk profiles, configurations and risk agents are all tracked and logged for auditing purposes. Nasdaq Verafin’s enterprise reporting functionality helps you provide detailed reports for examiners and senior management on your high-risk customers and Enhanced Due Diligence (EDD) cases.


Get an accurate view of your institution’s customer-risk profile

If you are trying to capture all potential risk factors in a single risk agent, you are likely creating too many high-risk customers to review, leading to increased workload and compliance costs, along with an inaccurate view of your institution’s customer-risk.

Nasdaq Verafin increases efficiency by first identifying high-risk customers, then automatically segmenting and stratifying those customers relative to their specific high-risk category.

Save time with fewer high-risk customer reviews

Not all high-risk customers are created equal. For example, a grocery store that simply cashes small checks likely poses less risk to your institution than an international money transmitter; however, without stratification, you are expected to spend the same amount of time and effort monitoring and reviewing both MSBs.

Nasdaq Verafin stratifies all customers, regardless of category, resulting in less truly high-risk customers for you to investigate, saving you time by allowing you to focus on the ones that pose the greatest risk to your institution.

Easily show examiners your High-Risk Customer categories and how they tie into your EDD review processes

Examiners are putting a greater emphasis on Customer Due Diligence (CDD) and EDD procedures for higher-risk customers.

Nasdaq Verafin will help you prepare for your next exam with confidence by stratifying risk across your customer base, even within higher-risk categories of customers. This will allow you to provide examiners with a more accurate picture of your institution’s risk profile, and more visibility of the customers that pose the greatest risk to your institution.

More Nasdaq Verafin Features

High-Risk Customer Segmentation. From an integrated Account Opening Questionnaire to continuously monitoring your existing customer base with intelligent segmentation analytics, Nasdaq Verafin’s High-Risk Customer Management solution automates identification of high-risk customers and segments them into high-risk categories. Learn more >
EDD Reviews. Nasdaq Verafin’s automated EDD solution is a centralized workflow for reviews that integrates in a continuous loop with customer risk and targeted surveillance. The output of the EDD review process dynamically impacts customer risk to ensure an accurate risk score and efficient due diligence process. Learn more >
High-Risk Customer Surveillance. Nasdaq Verafin’s behavior-based approach and targeted analytics provide powerful ongoing surveillance of accounts within specific high-risk categories to improve quality — and reduce the volume — of high-risk customer alerts. Analytics draw from the Cloud to intelligently evolve based on peer data, automatically updating the risk level of any customer demonstrating unusual or risky activity. Learn more >
Anti-Money Laundering. Nasdaq Verafin alerts you to a wide range of potentially suspicious customer activity occurring across multiple transaction channels. From unusual flow of funds to human trafficking and terrorist financing activity, Nasdaq Verafin’s risk-rated AML alerts ensure criminals are not preying on your institution. Learn more >

Interested in learning more about Nasdaq Verafin's Risk Stratification Solution?