Risk Scoring
Understanding how Arcliance calculates transaction risk scores
How Risk Scoring Works
Every transaction in Arcliance receives an automated risk score from 0-100. This score helps prioritize reviews and determines approval routing. Higher scores indicate greater compliance risk.
Risk Score Components
Country Risk (0-30 points)
30% weightBased on the destination country's risk tier. Embargoed countries (Iran, North Korea, etc.) score maximum points. Tier 1 allies score minimal points.
Entity Risk (0-25 points)
25% weightTrading partner screening results. Denied party matches add significant points. New or unverified entities score higher than established partners.
Product Risk (0-25 points)
25% weightBased on product classification. USML items and high-sensitivity ECCNs score higher. Commercial items with no controls score minimal points.
Transaction Factors (0-20 points)
20% weightValue thresholds, unusual patterns, red flag indicators (e.g., unusual shipping routes, cash payment, reluctance to provide end-use information).
Risk Levels
| Score Range | Level | Action |
|---|---|---|
| 0-25 | Low Risk | Standard approval workflow |
| 26-50 | Medium Risk | Additional review required |
| 51-75 | High Risk | Senior approval required |
| 76-100 | Critical Risk | Executive review or auto-block |
Configuring Risk Thresholds
Administrators can customize risk thresholds and approval routing:
- Go to Settings > Compliance Policies
- Select Risk Scoring
- Adjust threshold values for each risk level
- Configure approval workflows for each level
- Save changes