Velocity Country Risk Rating Score is a composite measure of uncertainties of doing business in a particular country. Arising out of various global and systemic factors related to geopolitical, macro-economic, social, and legal environments of a country, these uncertainties capture broader regulatory risks germane to the jurisdiction in reference that includes money laundering and terrorist financing risks. Thus, Velocity Country Risk captures the comprehensive uncertainties from a multitude of risk dimensions in assessing uncertainty in money laundering and terrorist financing risk for a country. Besides incorporating the guidelines of Wolfsberg Principles, 1 Velocity’s ML-TF Country Risk Score (CRS) version 3.0 captures a multitude of risk dimensions as 6 distinct risk indices: Global regulatory risk index, Narco-terror risk index, Structural terror risk index, Systemic corruption risk index, Systemic regulatory risk index Systemic legal risk index.
Our Exclusive Risk Ratings portal for 250+ Countries is now tailored to your specific needs of capturing the comprehensive uncertainties of doing International Business.
On popular demand, now Individual Professionals can also subscribe to our Country Risk Ratings portal and enjoy the benefits. Stand-alone subscriptions are also available for Organizations with 3 minimum accounts for easy access.
STEPS INVOLVED IN RISK COMPONENT CREATION
COUNTRY RISK DATA MANAGEMENT PROCESS
Risk Indices
Global Regulatory Risk Index
Global regulatory risk index for a country represents the measure of uncertainty arising out of a comprehensive set of international regulatory regimes, for which the composite quantitative measure is generated from 10 different risk components, which are - International Narcotics Control Strategy Report (INCSR) I Score, INCSR II Score, Financial Secrecy Index (FSI) Score, OECD Score, FATF Score, BASEL III Score, OFAC Score, UN Sanction Score, EU Sanction Score, US Sanction Score.
Narco-Terror Risk Index
Narco-terror risk index for a country is a measure of uncertainty arising out of perceptions from investors, travelers, commercial entities, and international entities, for which the composite quantitative measure is generated from publicly available data, surveys, and continuing events related to narcotics and terror-related activities and sanctions that impact the country and jurisdiction in question.
Structural Terror Risk Index
The structural terror risk index is created to capture systemic, structural, and inherent uncertainties in the country arising out of actual on the ground issues, events, and scenarios of terrorism-related activities, which are not captured from formal sanctions lists, surveys, opinions, and indices published globally, yet can significantly impact global anti-money laundering and terrorism combating efforts.
Systemic Corruption Risk Index
The systemic corruption risk index is created to capture the systemic and structural uncertainties in the country arising out of both perceptions and actual instances of corruption. The composite quantitative measure of systemic corruption in the country is generated from sanctions lists, surveys, and opinions.
Systemic Regulatory Risk Index
The systemic regulatory risk index is created to capture the systemic and structural uncertainties in the country arising out of ineffectiveness in regulatory frameworks, for which the composite quantitative measure is generated from an understanding of risks in the country from a lack of regulatory awareness, an absence of regulatory awareness among government officials, a lack of regulatory infrastructure so that such an environment can directly impact the return on business investment and international exchanges in cultural, economic, and academic pursuits.
Systemic Legal Risk Index
Systemic legal risk is created to capture the systemic and structural uncertainties in the country arising out of ineffectiveness in its legal frameworks, for which the composite quantitative measure is generated from legal databases, court proceedings, surveys, and opinions related to access to justice, conviction rates, the existence of applicable laws and by evaluating the relevant constitution of the country that can directly impact the return on business investment and international exchanges in cultural, economic, and academic pursuits.
FAQs
How does Velocity Country Risk Rating software help financial institutions?
Velocity Country Risk Rating software helps to understand the risk associated with a particular country and monitor the transactions with the help of advanced analytics. By using the risk assessment methodologies, the software helps financial institutions make informed business decisions, comply with regulatory requirements, and effectively manage risk.
How does Velocity Country Risk Rating software help financial institutions?
Velocity Country Risk Rating software helps to understand the risk associated with a particular country and monitor the transactions with the help of advanced analytics. By using the risk assessment methodologies, the software helps financial institutions make informed business decisions, comply with regulatory requirements, and effectively manage risk.