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A risk evaluation produces a score from 0 to 100 for a business, classifies it into one of four risk levels, and records the individual factors that contributed to the result. Every evaluation is stored, so you can track how a business’s risk profile changes over time.
The risk engine is a simulated scoring system designed for demo and testing purposes. Scores use deterministic industry and country modifiers combined with controlled randomness — they do not reflect real-world financial or compliance risk.

Triggering an evaluation

1

Open the business detail page

Click a business name in the registry to open its detail page at /businesses/{id}.
2

Click Evaluate Risk

Press the Evaluate Risk button. The engine runs immediately and the result replaces the current score and factor breakdown on the page without a full reload.
3

Review the result

The updated score, risk level, and factor breakdown appear instantly. The evaluation is also saved to history.

Risk levels

LevelScore rangeDescription
low0 – 24.9Minimal concern. Typical for low-risk industries in safe jurisdictions.
medium25 – 49.9Moderate concern. Standard monitoring is appropriate.
high50 – 74.9Elevated concern. Enhanced due diligence is recommended.
critical75 – 100Severe concern. Immediate review warranted.

Factor breakdown

Each evaluation records five values that show exactly how the final score was derived.
FactorDescription
base_scoreRandom starting value drawn uniformly from 10 to 70.
industry_modifierAdjustment based on the business’s industry. Positive for high-risk sectors, negative for low-risk sectors.
country_modifierAdjustment based on the business’s country. Positive for high-risk jurisdictions.
noiseSmall random variation of ±5 added to reflect real-world unpredictability.
final_scoreThe clamped result: base_score + industry_modifier + country_modifier + noise, bounded to [0, 100].

Calculation formula

final_score = clamp(base_score + industry_modifier + country_modifier + noise, 0, 100)
The result is rounded to one decimal place.

What affects scores

Industry modifiers

CategoryIndustriesModifier
High-riskcrypto, gambling, weapons, tobacco+15 to +30
Low-riskhealthcare, education, agriculture−20 to −5
All othersAny industry not in the above lists0

Country modifiers

CategoryCountriesModifier
High-riskNorth Korea, Iran, Syria, Russia+15 to +25
All othersAny country not in the above list0
Industry and country matching is case-insensitive. A business with no industry or country set receives a modifier of 0 for that factor.

Risk history

Every evaluation is persisted. To review a business’s full evaluation history, click the Risk History link on the detail page. The history page lists every past evaluation in reverse chronological order, including the score, risk level, factor breakdown, and the timestamp of when the evaluation was run.

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