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Business risk in financial services refers to the potential financial loss or exposure a financial institution or payment processor faces due to the actions or failures of a business. This includes risks such as fraud (for example, using stolen cards or submitting fake transactions), chargebacks (when customers dispute and reverse charges), insolvency (where a business is unable to fulfill orders or refund payments), and non-compliance with legal or regulatory requirements. Effectively managing business risk involves robust onboarding, continuous monitoring, and using data-driven models to detect and mitigate anomalies. There are many types of business risk, the key types that Sardine covers are:
  • Compliance Risk: Legal/regulatory violations.
  • Third Party Fraud: Accounts based on stolen/synthetic identity.
  • First Party Fraud: Valid ID used with intent to defraud.
  • Credit Risk: Business insolvency or bankruptcy.
  • Reputational Risk: Association with illegal activities.
  • Operational Risk: Poor business practices or technical failures.
How can Sardine help?Sardine’s Business Risk OS Platform provides end-to-end business risk management through:
  • KYB and compliance verification (TIN, UBO screening, OFAC checks)
  • Web360 AI monitoring (site quality, traffic, reviews, bankruptcy)
  • Real-time credit checks and fraud detection
  • Document analysis and financial assessment
  • Portfolio monitoring with configurable analytics
  • No-code platform for workflows and rules This unified approach helps manage business onboarding, ongoing monitoring, and risk mitigation using data-driven models to detect anomalies.