Use Case:

Organizations need to monitor transactions involving high-risk third parties to mitigate potential compliance or regulatory concerns. These third parties are classified based on their risk profile, making it critical to track transactions associated with them.

The High-Risk Subject Classification analytic enables organizations to select classifications from a predefined list and assign risk levels (weak, moderate, or strong) based on their risk tolerance and compliance priorities. Examples of classifications might include "government official," "politically exposed person (PEP)," or "resellers." The system then uses these risk assignments to flag transactions involving subjects that match the selected classifications for further review. By monitoring these high-risk relationships, organizations can proactively manage third-party risks, ensuring adherence to compliance standards and minimizing exposure to regulatory violations and reputational damage.