How to configure the Risk settings in Pascal Transactions

The Risk settings page in Pascal Transactions allows you to configure how client risk is assessed across your organisation. You can determine how account age, risk indicators, SIC codes, country classifications, and individual risk values contribute to the overall risk level displayed in a client’s profile.

Changes to these settings may affect existing client risk scores and alerts that use client risk information.

How to open the Risk settings

1. Click your organisation name or your initials in the top-right corner.
2. Click Settings in the newly shown menu.
3. In the Transaction monitoring section, select the Risk classification .

The Risk section contains the following configuration areas:

• Risk profile
• SIC codes
• Risk scores
• Country risk classification

Together, these settings determine how Pascal calculates and displays a client’s overall risk level.

How to configure account creation risk

The Account creation setting determines how long a client account is considered new. You can assign a risk level that applies to new accounts. By default a client is considered new the first 90 days and the risk attached to new clients is High risk.

After the configured number of days has passed, the account creation risk automatically changes to Very low. While the account is considered new, the account creation risk is the value set in this setting.

To configure account creation risk:

1. Open the Risk classification page in the Transaction monitoring settings.
2. In the Risk profile card, locate Account creation.
3. Enter the number of days during which an account should be considered new.
4. Open the risk level dropdown beneath the number of days.
5. Select the risk level that should apply to new accounts.
6. Click Save at the top of the card.

How to configure risk indicators

Risk indicators are labels that represent specific client risk factors. Pascal includes Sanctions and PEP as default indicators, but you can change their risk levels, remove them or create additional indicators that reflect your organisation’s risk policy.

When multiple risk indicators are assigned to a client, the indicator with the highest risk level determines the risk shown for the Risk indicators component of the client profile.

Add a risk indicator

1. Open the Risk classification page in the Transaction monitoring settings.
2. In the Risk profile card, locate Risk indicators.
3. Click Add risk indicator.
4. Enter a name for the new risk indicator.
5. Open the dropdown next to the indicator.
6. Select the risk level that should be associated with the indicator.
7. Click on Save in the top of the card.

Edit a risk indicator

1. Click the name of the risk indicator you want to edit.
2. Change its name or select a different risk level.
3. Click on Save in the top of the card.

Remove a risk indicator

1. Click the Trash icon next to the relevant risk indicator.
2. Click on Save in the top of the card.

How to manage Screening risk settings

The risk related to Screening risk factors can also contribute to a client’s overall risk score.

The Screening settings themselves are managed outside the Pascal Transactions Risk page. You press Defined by Pascal Risk to navigate to those settings.

How to configure SIC code risk

Standard Industrial Classification, or SIC, codes can be used to assign industry based risk levels to Business clients.

Each configured SIC code consists of:

• A code or code pattern
• A label
• A risk level

When Pascal recognises a configured SIC code, both its code and label are shown in the client’s profile. 

When a Business client has multiple SIC codes, the highest applicable SIC code risk level is used in the client’s profile.

Add a SIC code

1. Open the Risk classification page in the Transaction monitoring settings.
2. In the SIC codes card, click on the Add code button.
3. Enter the SIC code or code pattern.
4. Enter a descriptive label name.
5. Select the applicable risk level.
6. Click Add.

A SIC code cannot be edited after it has been added. To change an existing entry, remove it and add it again with the correct configuration.

Use matching operators in SIC codes

You can use the following optional operators when configuring code patterns:

• % matches any number of characters before, after or within a code.
  • For example: %50 will match on the codes 2050, but not on 5010.
• _ matches exactly one character in a specific position.
  • For example: 70_ will match on the code 700, but not on 1700. 

Remove a SIC code

1. Open the Risk classification page in the Transaction monitoring settings.
2. Locate the SIC codes card.
3. Click the Trash icon next to the SIC code you want to remove.

How to configure tax haven risk

The Country risk classification settings allow you to assign risk levels to countries that your organisation considers tax havens.

This can be used to associate risk to transactions involving either the client’s bank country or the counterparty’s bank country.

To assign a country risk level:

1. Open the Risk classification page in the Transaction monitoring settings.
2. Scroll down to Country risk classification.
3. Click Edit.
4. Enter the country name in the Search countries field. You can also use the page numbers and arrows below the table to browse the country list pages.
5. Locate the relevant country.
6. Open its Risk dropdown in the Tax haven column.
7. Select the applicable risk level.
8. Repeat these steps for any other countries you want to configure.
9. Click Save in the top right corner.

How to configure blocked countries

You can mark countries as Blocked to identify transactions involving countries your organisation does not permit or considers relevant for review.

By default, all countries are marked as available.

To block a country:

1. Open the Risk classification page in the Transaction monitoring settings.
2. Scroll down to Country risk classification.
3. Click Edit.
4. Enter the country name in the Search countries field. You can also use the page numbers and arrows below the table to browse the country list pages.
5. Locate the relevant country.
6. Turn on the toggle in the Blocked column.
7. Repeat these steps for any other countries you want to configure.
8. Click Save in the top right corner.

How to configure risk scores

Pascal uses five risk levels:

• Very low
• Low
• Moderate
• High
• Very high

The Risk score configuration consists of two parts:

• Risk classification, which assigns a numerical value range to each risk level.
• Breakpoints, which determine which total score corresponds to each overall client risk level.

The values assigned to the individual risk components in a client’s profile are added together. Pascal then compares the total with the configured breakpoints to determine the client’s overall risk level.

To configure the risk scoring system:

1. Open the Risk classification page in the Transaction monitoring settings.
2. Locate the Risk scores card and click on the Edit button.
3. In Risk classifications, enter a numerical value for each risk level. The values must be higher than the previous number and must be a positive number.
4. In Breakpoints, enter the minimum total score for each overall risk level. The start value of the range must be higher than the end of the previous risk value range.
5. Save the configuration by pressing the Save button.