Risk indicators

Documentation

This API offers valuable data for assessing whether to engage in business with a company. Its strength lies in the ability to define custom templates with sets of rules that influence the API's response. These rules act as alarm thresholds, triggering a true/false alarm state. When configured correctly, each indicator will display an alarm status, providing a comprehensive view of the company's risk level.

Entities in the API:

• Indicators: Actual data points representing company events, including historical data.
• Templates: User-defined configurations of rules applied to indicator data.
• Rules: Definitions with user-defined parameters that build the conditions to filter indicator data.

Customize Your Experience with Risk API Templates:

To query the Risk API, a user-defined template is required. This template can be created in the "Risk Templates" section, accessible via the settings panel. During the creation process, users select one of the predefined templates and configure it with custom parameters and thresholds. Once saved, the templates for your organization will appear in the list at the root of the "Risk Templates" section. Each template is assigned a templateId, which is then used to query the API through the GET /{templateId}/{companyId} endpoint. This applies the template to the indicator data for the specified company.

Within the "Risk Templates" section, users can create, list, and modify existing templates. Additionally, a changelog is available to help users easily track changes made to templates within their organization.

Primary Endpoint:

After obtaining a templateId a user can now query the API via GET /{templateId}/{companyId} endpoint. This will applying the template to the indicator data of the specified company.

Helper Endpoints: These endpoints complement the UI-based approach to managing templates. The write endpoint have been disabled initially but its possible to list entities via the API.

• Retrieve Templates: Use GET /templates to view the templates associated with your company. If no templates are available, you can add /templates?showDefault=True to display public or global templates. These templates can be used immediately, but creating customized versions is recommended for more relevant insights.
• Retrieve Specific Template By Id: The /template/{templateId} to fetch specific template with given templateId

Indicators and default values

Below is a table of indicators that are recalculated on a daily basis. Some indicators might not be available for certain companies. As example:

• revenueByEmployee indicator is missing for a company without employees
• missingAuditor flag is missing for non-AB company.
• meanAgeOfRepresentatives is missing if there is no board For these indicators the rule will not be evaluated at all (they will be omitted from the API response)

The sandbox examples consist of 5 companies with mocked indicator data and 2 pre-configured templates. In a production environment, the indicators are recalculated daily based on real company data, while the templates can be adjusted at any time through the settings GUI. The parameter values in these sandbox templates are purely fictional and not recommendations for production use. In production, customers should define thresholds that suit their specific needs. For advice on configuring templates, don’t hesitate to contact Roaring support. For this demonstration, the current date is mocked to 2024-01-01, as several indicators depend on date calculations.

1. Full Sandbox Template (4ecbaaaa-139f-4196-b365-477c87878919)

The full sandbox template is designed to identify a broad range of risks effectively. It includes balanced thresholds and active monitoring of key indicators such as board changes, revenue efficiency, and regulatory compliance. The template aims to catch companies with operational instability, financial issues, or regulatory non-compliance.

Key Characteristics:

• Balanced thresholds for indicators like board changes, address changes, and financial performance.
• Comprehensive coverage: Monitors both financial and non-financial risks, including compliance with tax and registration regulations.
• Multi-dimensional risk detection, ensuring companies with various risk profiles are identified.

2. Alternative Weaker Sandbox Template (a0b55461-b2c3-409e-871b-3083ab5779fb)

This weaker template demonstrates how lenient thresholds and disabling certain indicators can reduce the effectiveness of risk detection. It uses overly lenient thresholds and disables several indicators. It highlights the impact of omitting important indicators from the API response, which may suit specific customer needs but also introduces the risk of overlooking key issues.

Key Characteristics:

• Higher thresholds: Indicators like board changes and address changes have lenient limits, reducing sensitivity.
• Disabled indicators: Some key metrics, like revenue efficiency and industry code changes, are omitted from the API response.
• Flexible configuration: Shows how the API allows customization to fit specific customer needs, but also demonstrates the potential downsides of a misaligned setup.

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Company Indicator Data

Each of the five companies demonstrates a different risk scenario, based on the indicator data and template configurations:

1. 5560572850 Company in High-Risk Status (Bankruptcy, Frequent Changes)

This company is flagged as high risk due to multiple bankruptcies and frequent changes in key indicators such as board composition, industry codes, and organizational data. The combination of these factors indicates significant instability and financial distress.

{
  "companyId": "5560572850",
  "connectedBankruptcyCompanies": 7,
  "bankruptciesPerReference": 10,
  "pepCount": 0,
  "boardChangeCount": {
    "2023-06": 1,
    "2023-07": 1,
    "2023-08": 2,
    "2023-11": 3,
    "2023-12": 1
  },
  "addressChangeDates": [
    "2021-06-15",
    "2023-05-22",
    "2023-08-22"
  ],
  "industryCodeChanges": {
    "2023-02-15": "58190",
    "2024-05-01": "56100"
  },
  "revenueByEmployee": {
    "2022-12-31": 1250.99,
    "2023-12-31": 500.99
  },
  "meanAgeOfRepresentatives": 55.4,
  "registrationDate": "2000-09-01",
  "vatReg": true,
  "fTaxReg": true,
  "arbAvgReg": true,
  "orgDataChanges": [
    "2021-03-10",
    "2022-07-15",
    "2023-12-12"
  ],
  "missingAuditor": false,
  "orgStatusChanges": {
    "2023-01-01": "100",
    "2024-01-01": "352"
  },
  "legalCount": 4
}

2. 5564881422 Company with Stable Operations and Minor Changes

This company represents a low-risk entity with a stable history and minimal changes. Its consistent operations over time suggest financial and organizational stability with no significant risk indicators.

{
  "companyId": "5564881422",
  "connectedBankruptcyCompanies": 0,
  "bankruptciesPerReference": 0,
  "pepCount": 0,
  "boardChangeCount": {
    "2021-02": 1
  },
  "addressChangeDates": ["2020-05-15"],
  "industryCodeChanges": {
    "2020-01-01": "35140"
  },
  "revenueByEmployee": {
    "2020-12-31": 1351.83,
    "2021-12-31": 1548.83,
    "2022-12-31": 1698.16,
    "2023-12-31": 1730.99
  },
  "meanAgeOfRepresentatives": 40.2,
  "registrationDate": "2005-08-30",
  "vatReg": true,
  "fTaxReg": true,
  "arbAvgReg": true,
  "orgDataChanges": ["2021-01-01"],
  "missingAuditor": false,
  "orgStatusChanges": {
    "2023-05-01": "100"
  },
  "legalCount": 0
}

3. 5564779444 Company with Recent Growth and Organizational Changes

This company is experiencing growth, with recent changes to its board composition, industry codes, and organizational structure. While it shows positive growth indicators, its moderate risk level is due to a history of one bankruptcy and other organizational shifts.

{
  "companyId": "5564779444",
  "connectedBankruptcyCompanies": 1,
  "bankruptciesPerReference": 1,
  "pepCount": 2,
  "boardChangeCount": {
    "2022-03": 2,
    "2023-07": 3
  },
  "addressChangeDates": ["2022-10-15"],
  "industryCodeChanges": {
    "2023-04-05": "49410"
  },
  "revenueByEmployee": {
    "2022-12-31": 1254.38,
    "2022-12-31": 1675.45
  },
  "meanAgeOfRepresentatives": 35.5,
  "registrationDate": "2015-06-12",
  "vatReg": true,
  "fTaxReg": true,
  "arbAvgReg": true,
  "orgDataChanges": ["2023-09-15", "2024-03-10"],
  "missingAuditor": false,
  "orgStatusChanges": {
    "2022-07-01": "100",
    "2023-06-01": "101"
  },
  "legalCount": 2
}

4. 5567164818 Newly Registered Company with No Historical Data

This recently registered company has minimal operational history and few risk indicators. While it currently represents a low-risk profile, the lack of historical data introduces some uncertainty.

{
  "companyId": "5567164818",
  "connectedBankruptcyCompanies": 0,
  "bankruptciesPerReference": 0,
  "pepCount": 0,
  "meanAgeOfRepresentatives": 32.0,
  "registrationDate": "2023-08-01",
  "vatReg": true,
  "fTaxReg": true,
  "arbAvgReg": false,
  "missingAuditor": true,
  "legalCount": 0
}

5. 5564866803 Company with Missing Auditor and Regulatory Issues

This company is flagged for missing an auditor and non-compliance with tax registrations, which raises its risk level. Despite having no bankruptcies, the failure to meet regulatory requirements presents a moderate risk.

{
  "companyId": "5564866803",
  "connectedBankruptcyCompanies": 0,
  "bankruptciesPerReference": 0,
  "pepCount": 0,
  "boardChangeCount": {
    "2023-02": 1
  },
  "addressChangeDates": [
    "2021-04-10"
  ],
  "industryCodeChanges": {
    "2021-11-05": "68202"
  },
  "revenueByEmployee": {
    "2022-12-31": 300.45,
    "2023-12-31": 125.45
  },
  "meanAgeOfRepresentatives": 41.3,
  "registrationDate": "2010-04-25",
  "vatReg": false,
  "fTaxReg": false,
  "arbAvgReg": false,
  "orgDataChanges": [
    "2022-01-15"
  ],
  "missingAuditor": true,
  "orgStatusChanges": {
    "2022-06-01": "100"
  },
  "legalCount": 1
}