By Sanday Chongo Kabange, The Red Flag Group®
IntegraRating® - enhanced risk rating
IntegraRating® is The Red Flag Group®’s proprietary 10-points risk rating system which is replacing the generic traffic light system commonly used to assess and determine risks.
Our enhanced risk rating system has been developed by our compliance and subject matter experts to easily conform with varying risk exposure and appetite from industry to industry and country to country.
Each client’s risk tolerance is different from the other; as such, assessing and determining risks based on three traffic lights does not provide an accurate assessment of the identified risks; and how those risks may impact on your business relationship. This is because what may be a considered a risk in the financial or banking sector may not apply in healthcare or information technology.
To help clients manage risks more effectively, The Red Flag Group® has developed a more tailored risk rating system that uses 10-points to assess direct and indirect risks by considering your risk tolerance, local insights, industry expertise and global practices. The comprehensive details of our risk analysis methodology involve over 120 data point considerations, including determining the quality and reliability of data sources.
IntegraRating® - risk validation
The purpose of IntegraRating® is to provide you with a transparent system of gradation by which informed business decisions may be made – quickly and effectively.
Our classification of risks is based on identifying and validating risks which are:
- Significant – risks which will directly impact the business relationship
- Major – risks which will likely impact the business relationship
- Moderate – risks which may affect the business relationship
- Minor – risks which have negligible or small impact on the business relationship
IntegraRating® - 360° considerations
To provide a relevant rating, we analyse:
- Availability and quality of data
- Historical, potential and current issues and risks
- Impact of the findings to your business relationship
- Impact of the findings with reference to the entity’s business operations
- Reliability of data sources
In addition, our team of trained compliance, integrity and ethics professionals located in 15 strategic cities around the world and covering 45 languages constantly communicate with you to fully understand your risk needs, as well as take instructions on what to focus on when conducting research, assessing risks and determining an applicable risk rating.