Introduction to Online Payments Risk Management

If you’ve been tasked with building a team to handle risk management for online payments (RMP), this practical introduction provides a framework for choosing the technologies and personnel you need. Author and financial services executive Ohad Samet explains the components of payments risk management, and presents a coherent strategy and operational approach.

You’ll learn the answers to questions you’re likely to encounter in the first 18 months of operation, with information that Samet has shaped and tested over several years in the industry. This book is ideal whether you intend to be a one-person task force or work with dozens of agents and analysts.

• Use both a portfolio and behavioral approach to analyzing and optimizing losses
• Learn about your customers to determine if they can and will meet obligations
• Build an RMP team for payment risk operations, analytics, and decision automation
• Use linking mechanisms and velocity models to detect unusual activity among your customers
• Design system and data architecture to facilitate your activity analysis
• Implement the decision and loss-reduction mechanisms you need to act on your findings

Table of Contents

Part I: Background and Theory
Chapter 1. What Is Risk Management in Payments?
Chapter 2. What Problem(s) Are We Trying to Solve?
Chapter 3. The Two Leading Approaches to the Analysis and Optimization of Losses
Chapter 4. How Should We Describe and Understand Behavior?

Part II: Organization and People
Chapter 5. The Goals and Functions of a Payments Risk Management Team
Chapter 6. Hiring for Your RMP Team

Part III: Tools and Methods
Chapter 7. Detection: Figuring Out that Something Is Wrong
Chapter 8. Analysis: Understanding What’s Going On
Chapter 9. Action: Dealing with Your Findings