Risk identification system and methods

Abstract

The present invention relates to a system and methods by which the risk associated with a new opportunity or new or ongoing relationship may be assessed. An example of such new opportunity or new relationship for which the present invention may be used to assess the risk is that concerning a potential new customer of a financial institution. The risk assessment of the present invention may be used to assess whether a new customer should be taken on as a customer and, if so, to what extent should the possible full range of account benefits be provided to the new customer. Other applications include assessing risk regarding a candidate for employment, assessing casualty loss and/or repayment risk in the insurance industry, and assessing risk in a landlord tenant relationship to determine whether or not to rent to the prospective tenant and if so, the amount of the security deposit.

1 . A computer system method to determine an overdraft service limit offered by a financial institution to a customer, comprising the steps of:
 identifying the customer;   accepting by the computer system a credit rating score of the customer;   determining if the credit rating score is at or above a designated cut-off;   receiving by the computer system a check verification report;   reviewing the results code of the check verification report;   formulating a risk profile of the customer; and   establishing the overdraft service limit to be offered to the customer.   
   
   
       2 . The computer system method of  claim 1 , wherein said formulating step further comprises the steps of:
 locating the credit rating score and the results code of the check verification report on a matrix; and   revealing an alphabetic designation code defining the options of the financial institution.   
   
   
       3 . The computer system method of  claim 1  further comprising the steps of:
 checking on a periodic basis the risk profile of the customer; and   adjusting the overdraft service limit.   
   
   
       4 . The computer system method of  claim 3 , wherein said adjusting step further comprises the step of:
 considering one or more factors selected from the group comprising of: market conditions, number of branches the financial institution comprises, number of markets the financial institution serves, location of the financial institution, and appetite for risk of financial institution.