Risk Rules: Best Practices & Recommendations

Risk settings help your financial institution mitigate the risk involved with money movement in Digital Banking. With Risk Manager, you have complete control of the conditions and actions (outcomes) of the risk rules you put in place. Benefits of using risk rules/settings include:

1. Mitigate fraud

2. Emulate segmentation

3. Customize user experiences 

4. Complete control over ACH, wires, and user-based actions/events

Risk Rule Conditions

Risk settings are a component of the Admin Platform that helps FI mitigate risk when it comes to the movement of money and user profiles in the digital banking platform. 

1. ACH

   • Age of External Account

   • Days Since User Login

   • External Account Velocity Day/Week 

   • Transaction Type

2. Wires

   • User Age Days 

   • User Password Reset Requests 

   • User Transaction Count Total 

   • User Email Change Velocity

3. Users

   • User Failed Velocity Day/Week/Month

   • User Age Categories

   • Micro-deposit Velocity Day/Week

😀 For a complete list of available risk conditions that can be used when adding a new risk rule, please see Risk Conditions.

😀 For instructions on how to add a new risk rule, please see Add a New Risk Rule.

Recommended Best Practices

Below are the risk rules Narmi recommends as a baseline for tighter controls:

Use Cases

Below are some sample use cases highlighting where risk rules could be used. 

New User Transfer Limit

Prevent new accounts from initiating ACH/wire transfers by adding a risk rule that sends Users by age into review. You can customize the age of the User to the day. In this example, any User less than 30 days old will not be able to initiate ACH transfers without review. 

New User Transfer Limit with Sub-Conditions

In this example, you can prevent a new user from initiating ACH/wire transfers of a certain amount using Sub-Conditions.  

Large Transfer Limit

In this example, you can prevent a User from transferring a certain amount via ACH/wire and by transaction type:

1. Push (credit) 

2. Pull (debit) 

Multiple Transfer Limit

In this example, you can set a limit on the amount of transfers a User can initiate in a day, week, or month. 

Failed Login Attempts

In this example, you can lock a user after a specified amount of failed login attempts. You can set this limit on a daily, weekly, or monthly basis. 

Limiting Routing Numbers

In this example, you can send a user to review if they are trying to initiate a transfer involving other financial institutions. For example, your institution may experience higher levels of fraud with certain third-parties in your platform. If this is the case, your FI may decide to send all transactions involving these parties to manual review or block the transactions altogether. 

You can also add a sub-condition that only limits the functionality based on the transfer amount.