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Glossary term

What is Risk scoring?

Risk scoring is the process of assigning a risk level to an address, transaction, entity, or customer based on evidence and policy rules. Good scores are explainable: analysts should be able to see the labels, exposure, typologies, thresholds, and confidence behind the result rather than only a black-box number.

Definition

Risk scoring should map to the institution's policy, not just a vendor default. A defensible score explains whether the trigger came from direct exposure, indirect exposure, sanctions status, typology, adverse media, customer profile, or another rule.

CipherOwl uses a 194-category taxonomy for screening and monitoring so analysts can inspect why a result was raised instead of relying on a single opaque label.