Royal Bank of Canada
SYSTEM AND METHOD FOR RECONCILIATION OF ELECTRONIC DATA PROCESSES

Abstract:

Risk levels for accounts are assessed based on account data for the accounts, including reconciliation status and balance values. For each of the accounts, risk criteria scores are assigned for a plurality of risk criteria, based at least in part on one or more of reconciliation status and balance value for the account, and a composite risk score is determined for the account based on a weighted summation of a selection of the risk criteria scores for the account. A density distribution of the composite risk scores is generated for an audit population of the accounts, and quantiles determined. Thresholds are identified based at least in part on the quantiles of the density distribution, and a risk rating assigned to each of the accounts in the audit population based at least in part on the composite risk score for that account as compared to the thresholds.