Velocity Country Risk Rating (VCRR) model is based on a modular and transparent methodology. It can be adjusted and updated in real-time based on significant events, such as, regulatory regime adverse rating, narcotics sanction, terror sanction, credit downgrade, terrorist attack or corruption conviction. Moreover, the methodology is based on multiple layers, where each additional layer captures an amount of risk that is reflected in the final score. Due to the highly modular and transparent equation driven calculations that the Country Risk Rating model employs, all risk dimensions are readily apparent to the user, providing significant flexibility in either including or excluding a specific risk dimension, based on user’s application requirements.
An extensive array of data sources consisting of more than 400 independent and public sources introduces a rare combination of expansiveness, diversity and comprehensiveness in Velocity’s CRS model. Underlying data come from a variety of sources including data bases, news reports, event descriptions, surveys and sanction lists to name a few. This richness of data further enables Alacer to develop CRS using a rare combination of qualitative, quantitative and hybrid data that is normalized for homogeneity, processed for consistency, and corroborated via cross-verifications and triangulations.
This large data is therefore sufficiently robust and statistically random for conducting a series of statistical modeling to generate various weighting factors and coefficients at the intermediate stages of risk score calculation, whereby using a composite weighted average risk score provides various final stage risk indices.
The global regulatory landscape is marked by a rapid increase in the volume and complexity of regulatory changes.
Assessment is based on risk factors extracted from public data. Risk Ratings are based on in-house gap analysis in awareness and implementation
The final risk rating for a country is displayed in 3 different color-coding schemes -