Select risk factors

After identifying the third-parties by type and category to assign to the risk model Created for different third-party types and categories within the type to apply separate evaluation criteria to diverse types of third parties. Four factors make up a risk model: country, type and category, DDQ questions, and third-party custom field questions. and the tiers, you assign weights to risk factors Include assessments, questionnaires, categories, and CIP rankings, and other weighted risk factors. The weights assigned to each factor are used to calculate the risk score for the third party., like assessments, questionnaires, categories, and CIP rankings. The higher the weight you assign, the higher the risk. The system calculates an overall risk rating The risk assessment history which changes over time based on the risk model assigned and other factors. Details include how the relationship is categorized, the services provided, the country risk, due diligence questionnaire responses, and custom fields. for each third-party based on the weighted risk factors.

When rating a risk factor, the system looks at the highest number as representative of the highest value in points. Assign relative values to everything below that value. This statement is true unless you are using raw scoring which is only related to DDQ Due Diligence Questionnaire which can be sent to third parties for response. Questions can be added to a risk model to use in determining the overall risk rating for a third party. and custom fields Custom fields can be created to use in risk models.. The raw score is the weighted value which is the same as the point value. For example, if you assign 5 as a weighted value, it assigns 5 points. It is suggested you only use negative values when raw scoring is employed.

Steps:

1. Select the risk factors to include in the model, such as the Third Party Category, CPI Corruption Perceptions Index which ranks countries by perceived levels of public sector corruption. The CPI generally defines corruption as an abuse of entrusted power for private gain., Due Diligence Questionnaire, and so on.

2. Assign weights to each risk factor with higher weights to assign more risk. The risk factors must total 100 points. Not all factors have to be used. If you select either of the Calculate... checkboxes, put 0 in the "parent" selection above them because the numbers will not be used in scoring.

3. Select Next Step