In the lack of an automated system like KYC Portal,
organisations assess risk by asking for many details from the subject being
on-boarded. These are usually in the form of document requirements, forms to
fill in, declarations to sign and many other requirements such as the KYC forms
on entities. All this is being done in order to minimise risk being on-boarded.
Organisations then tend to have on-going reviews conducted on such entities to
ensure that the risk has not increased over time throughout our relationship
with the respective entity (be it a customer, a supplier, operator, etc.).
The problem with the approach above is that in a manual
environment, the time between on-boarding such an entity and the next review is
exposing the organisation to risk. Not being able to constantly assess the risk
in real-time can cause major issues of risk exposure. Risk can vary on so many
factors including market happenings, internal policy changes and regulatory
updates that it would be impossible to monitor all subjects manually.
KYC Portal’s automatic risk assessment is constantly
checking the risk based on all factors that you feed the system with, in real
time, instantly alerting the compliance team when the organisation is exposed.
KYC Portal’s approach to real-time calculation of risk allows for further
automation. Clients have automated the opening of bank accounts for subjects
whose risk is green without involving any human interaction. On the contrary, the second a subject became high risk for whatever reason, they instructed the
system to put on hold any possibilities of withdrawal for the respective
When risk calculation is automated, the
possibilities of automation are endless and most importantly the risk exposure
of the brand is always safeguarded.