How Our Risk Assessments Work

Every assessment combines quantitative data sources with AI-enhanced analysis to produce a single, trustworthy risk evaluation backed by verifiable sources.

6 data sources| 6 risk categories| 60 compliance controls

The Assessment Process

When you run a third party assessment, six things happen automatically — in under a minute.

1

Company Verification

We verify the third party's existence and registration through government corporate registries (OpenCorporates) and SEC filings. This confirms the entity is legitimate and currently active.

2

Real-Time Research

AI-enhanced screening covers 13 different categories of information — from news and financial data to security incidents, compliance certifications, legal proceedings, and customer reviews. Up to 30 sources are gathered, each with citations you can verify.

3

Sanctions & Watchlist Screening

Every third party is screened against global sanctions databases including OFAC, UN, EU sanctions lists, Politically Exposed Persons (PEP) databases, and crime/fraud records.

4

AI-Enhanced Risk Analysis

All research, sanctions results, quantitative data, and third party information are analyzed using AI-enhanced screening to evaluate risk across six dimensions. This layer understands context and identifies patterns across sources that manual review would miss.

5

Quantitative Scoring

A formula-based scoring engine independently evaluates the third party using structured data — jurisdiction risk, business legitimacy, financial stability, compliance certifications, and adverse media. Recent findings are weighted more heavily than older ones.

6

Unified Score

The AI analysis and quantitative score are combined equally to produce a single unified score. This balanced approach ensures the assessment is both contextually intelligent and data-grounded.

What We Evaluate

Every third party is scored across six risk categories, giving you a complete picture of their risk posture.

Financial Risk

Revenue stability, funding status, credit indicators, company age, insurance coverage, and financial health trends

Operational Risk

Business continuity capabilities, service reliability, incident response maturity, and infrastructure resilience

Reputational Risk

Public perception, media coverage sentiment, customer satisfaction, executive stability, and brand trust

Compliance Risk

Regulatory adherence, security certifications, audit history, violations, and enforcement actions

Security Risk

Cybersecurity posture, breach history, encryption practices, access control maturity, and vulnerability management

Data Privacy Risk

GDPR/CCPA compliance, data handling practices, privacy policies, and cross-border data transfer safeguards

Risk Scoring

Every assessed third party receives a clear risk score with a color-coded traffic light rating, plus a data confidence score showing assessment completeness. Missing data does not inflate the risk score — it lowers the confidence score instead, keeping your risk picture accurate.

Low
0–25Very low risk. Strong controls across all categories.
Moderate
26–50Some areas need attention and documentation. Monitor closely.
High
51–75Significant risk. Requires remediation plan and enhanced monitoring.
Critical
76–100Very high risk. Immediate action required before engagement.

Our Data Sources

We use verified, real-time data — never fabricated or estimated. Every finding links back to its source.

Real-Time Web Research

AI-Enhanced

13 query types across news, financial reports, security disclosures, and compliance databases with cited sources

Global Sanctions Databases

Live Database

OFAC, UN, EU sanctions lists, PEP databases, crime records, and fraud watchlists via OpenSanctions

Corporate Registries

Official Records

Government corporate registries worldwide — verifies company registration, status, and officers

SEC Filings

Official Records

US Securities and Exchange Commission filings for public companies — 10-K, 10-Q, 8-K, and proxy statements

Country Risk Index

Research-Backed

Jurisdiction risk scoring based on data privacy laws, regulatory enforcement strength, and political stability

Third Party-Provided Data

First-Party

Self-reported responses from third party questionnaires, uploaded certifications, and contract documentation

6 Compliance Frameworks, 60 Controls

Every assessment automatically maps to major compliance frameworks — no extra work required.

SOC 2 Type II

Security, availability, confidentiality

10 controls

ISO 27001:2022

Information security management

10 controls

HIPAA

Protected health information

10 controls

GDPR

EU data protection

10 controls

NIST CSF 2.0

Cybersecurity framework

10 controls

SOX

Financial reporting controls

10 controls

Each control shows pass/warning/fail status with specific explanations and actionable recommendations.

What Makes Our Approach Different

Screening Enhanced with AI

We don't rely solely on AI opinions. Every assessment combines AI research with formula-based quantitative scoring weighted equally. The AI provides depth; the quantitative engine provides consistency.

Real Data, Real Sources

Our assessments are built on verifiable data — government registries, SEC filings, sanctions databases, and cited news sources. Every finding links back to its source. No black boxes.

Recency Matters

A data breach from last month matters more than one from three years ago. Our scoring automatically weights recent findings more heavily, so your risk picture reflects today's reality.

Better Safe Than Sorry

Our scoring philosophy favors flagging potential risks over missing them. It's better for your analyst to review each flagged finding — accept it as valid risk or dismiss it with a documented reason — than to never see a real threat.

Continuous Monitoring

Risk doesn't stop after the initial assessment. Enable continuous monitoring to automatically detect changes in your third party's risk profile.

New adverse media or data breaches
Sanctions list matches
Significant risk score changes
Financial distress signals
Regulatory actions or litigation
Alerts via dashboard, email, Slack, or Teams

See It In Action

Run a free third party risk report and see exactly how our assessments work — no account required.

Free forever. No credit card required.