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The Aegenis Group Files for Patent on ARē Risk Methodology
Thursday, June 14, 2007
The Aegenis Group announced this week that it has filed for a patent on its proprietary methodology for assessing merchant risk within an acquirer's portfolio.
Park City, UT -- The Aegenis Group announced this week that it has filed for a patent on its proprietary methodology for assessing merchant risk within an acquirer's portfolio. The AR²T Acquirer Risk model, created by company founder Chris Mark, allows acquirers to identify and assess large groups of merchants quickly and accurately, reflecting not only their likelihood of compromise, but the potential impact to the acquirer should a compromise occur. Unlike other risk tools available in the payments industry, the AR² methodology arms acquiring banks with the tools that they need to take proactive, measurable steps to manage compromise risk.
"In our industry, there is a tendency to equate compliance with the Payment Card Industry Data Security Standard with proactive risk management. The two are not the same and this frame of reference can be quite costly," said Mr. Mark. This is especially the case for those acquirers that are focused on level four merchants. According to Mr. Mark, "because validation of compliance is not required for level 4 merchants managing their compliance offers unique difficulties and risks. Leveraging our experience and expertise in data security and compliance in the electronic payment industry, The Aegenis Group was able to create a tool that allows acquirers to get a very real picture of their exposure in the event of a data compromise in one of their merchants."
The AR² Methodology takes into account a variety of factors about each merchant in a given portfolio -- their length of time in business, their transaction volume and similar characteristics -- and using patent-pending algorithms can very accurately estimate the financial impact of a data breach within a particular merchant or group of merchants. Using this knowledge, the acquirer can then create a strategy for focusing their efforts on real risk reduction.
The AR² Methodology marks a departure from the current set of risk management tools available in the electronic payments industry. Most risk management tools focus on absolute risk and are industry specific, assigning a certain level of risk to merchants in certain verticals. AR² not only allows acquirers a more realistic view into the overall risk of their merchant portfolio, but it also measures and tracks relative risk. The AR² Methodology is an extremely flexible tool that can be integrated into existing platforms or as a stand-alone product.
About The Aegenis Group
The Aegenis Group is a regulatory compliance and risk management consulting organization specializing in strategic consulting, training, and market development assistance for companies in and around the payment card industry. Among the products and services offered by The Aegenis Group are merchant risk profiling, PCI specific training, market development and sales support. The Aegenis Group also offers a product designed to help companies detect sensitive or prohibited data that may be stored in their environment. For more information about The Aegenis Group please contact us at (435) 649-3379.
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