ING Group named leading institution in financial crime risk

ING Group has been listed as the leading institution in financial crime risk management in a ranking from Elucidate, a risk quantification platform.

The FinCrime Risk Monitor (EFRM) ranking examined the largest 100 banks in the world according to market capitalisation and assets under management. It is based on the company’s open database for scoring the financial crime risk vulnerability of financial institutions.

Coming in second on the list was Germany’s Commerzbank and third was Finland’s Nordea.

The study analysed 100 banks across 26 different jurisdictions. China, the US and Japan had the highest representation, with 17, 13 and 7 banks listed, respectively. However, most of these only received a score of between 54 and 57.

Each bank was given an EFRM score, which is an aggregation of scores for four themes: customer portfolio, transactional activity, reputation, and geographic footprint. The first two themes, which quantify dynamical financial crime risk, are calculated using gaussian modelling. Reputation risk was calculated through sentiment analysis of entities.

Elucidate CEO Shane Riedelv said, “The EFRM represents a shift from superficial and inaccurate risk scoring of financial institutions. On the surface, based on a limited amount of public data, one might have anticipated that some of the strongest banks in the market are quite poor at managing financial crime risk.

“In reality, and based on the most timely and insightful data sets, we see that banks can and are shifting their risk profiles. These banks deserve to be acknowledged for the results of their efforts.”

Speaking on the list, Elucidate senior data scientist Dr. Anjishnu Bandyopadhyay said, “The banks analysed in the ranking serve as central nodes within the global financial system. Therefore, any financial crime risk associated with these has an increased likelihood of contagion through the market. It is important to examine closely what efforts these institutions are taking to mitigate their risk.”


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