The Challenge of Disconnected Risk Assessment
Many TMS solutions often fall short in providing a truly effective and efficient approach. One of the primary reasons for this is the disconnect between risk assessment and the actual configuration of the TMS solution.
Traditional methods often involve separate processes for risk assessment and TMS rule creation. This disjunction can lead to several issues:
- Misaligned Risk Indicators: TMS rules may not accurately target the most significant business-specific risks, leading to false positives or missed alerts.
- Ineffective Model Validation: It becomes challenging to validate the effectiveness of the TMS model if the rules are not directly linked to identified risk indicators.
- Manual Processes: The manual nature of the process can be time-consuming and error-prone.
The Power of a Closed-Loop Approach
To address these challenges, a holistic approach is needed that integrates risk assessment, TMS rule creation, and model validation. This "closed-loop" approach offers several advantages:
- Accurate Risk Targeting: By directly linking risk indicators to TMS rules, organizations can ensure that their monitoring efforts are focused on the most critical areas.
- Enhanced Model Validation: The ability to trace triggered alerts back to specific risk indicators provides a more robust method for validating the effectiveness of the TMS model.
- Increased Automation: By automating the process of linking risk indicators to TMS rules, organizations can significantly reduce manual effort and improve efficiency.
- Improved Accuracy: A closed-loop approach can help to minimize false positives and false negatives, leading to more accurate and actionable alerts.
Closing the loop between risk assessment and TMS rule creation helps to ensure that the monitoring efforts are focused on the most critical areas, while also improving the accuracy and reliability of the alerts. Companies can achieve up to a 90% reduction in TM-alerts while dramatically minimizing fraud-related financial losses using this approach.
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Don't hesitate to reach out to me with question about our TMS solution:
Tommy Flemström
Co-founder, Verified Global AB
