Case Study - Risk management scoring processes Case study discussing risk management by optimizing the scoring processes of defined security standards

The Background

Due to lack ofin-person customer contact in online business the risk of fraud in payment is significantly higher than in the traditional stationary business.
By optimizing the current risk management process, payment security should be guaranteed at the best possible level while generating a high turnover potential.

Tasks

  • Analysis and evaluation of current risk management processes and systems
  • Catalog of recommended procedures to optimize risk management

Implementation

  • Checkout funnel analysis:
    • What kind of processes does the customer have to follow when his data is inserted then checked?
    • At what point(s) in the whole fulfillment and payment process are most of the orders declined?
    • What are the key reasons orders are aborted?
  • Development of a scoring model:
    • What kind of processes / systems are needed to check orders and to reduce the risk of deficits in payment?
  • Market analysis: payment service provider
    • Which providers are market leaders?
    • What kind of solutions do they offer?

Results

  • Reduction of risks of deficits in payment by optimally adapting the system (automatic filters)
  • Process optimization as a result of standardized reporting
  • Increase in turnover by minimizing deficits in payment while simultaneously maximizing acceptance for potential orders