Risk Engine

Risk engines evaluate credit limits, portfolio exposure, concentration risk, and operational limits. In payments, they gate transaction approval alongside fraud engines. Rules engines (Drools) plus ML for dynamic limits.

@Service
public class PaymentRiskEngine {

  public RiskDecision evaluate(Transaction txn, CustomerProfile profile) {
    List<RiskRule> rules = List.of(
      new DailyLimitRule(profile.getDailyLimit()),
      new VelocityRule(Duration.ofHours(1), 20),
      new ConcentrationRule(profile.getMaxSingleTxn()),
      new CountryRiskRule(sanctionsList),
      new MerchantCategoryRule(blockedMcc)
    );

    for (RiskRule rule : rules) {
      RiskResult result = rule.apply(txn, profile);
      if (result.isBlocked())
        return RiskDecision.block(result.getReason());
    }
    return RiskDecision.approve();
  }
}