Transforming Enterprise Risk Management with the Finexio Payment Risk Score™

Introducing the Finexio Payment Risk Score™

Enterprises face an increasingly complex and volatile payments environment. In 2024, a staggering 80% of organizations experienced attempted or actual payment fraud, according to the AFP Payments Fraud and Control Survey. The consequences aren’t just financial—they’re operational and reputational, too.

As businesses accelerate digitization across their finance departments, the diversity of payment types—checks, ACH transfers, wire transfers, virtual cards—demands a smarter way to evaluate and mitigate risk. That’s why Finexio developed the Finexio Payment Risk Score™: a clear, quantifiable method for evaluating payment method risk within the enterprise.

What Is the Finexio Payment Risk Score™?

The Finexio Payment Risk Score™ is a comprehensive risk assessment tool designed to evaluate the security posture of an organization's current payment mix. By factoring in both the number and dollar value of payments across four core payment types, the Payment Risk Score™ delivers a single, actionable metric that highlights where risk exposure exists and how it can be reduced.

The Payment Risk Score™ formula blends two essential dimensions:

• Risk Level by Method (current risk levels: checks = 5, wire = 3, ACH = 2.5, virtual cards = 0.5)
• Weighted Volume and Value of each payment type

This structured methodology gives finance leaders visibility into vulnerabilities introduced by their current payment strategy—and a roadmap to improvement.

Risk Levels by Payment Type: A Quick Breakdown

Checks – Risk Level 5 (Very High Risk)
Checks are still common but incredibly vulnerable. The physical nature of checks, combined with sensitive data like routing and account numbers, makes them prime targets for theft, forgery, and counterfeiting.

Wire Transfers – Risk Level 3 (Moderate Risk)
Used for high-value payments, wires are secure but not immune. Phishing and social engineering schemes can result in irreversible, high-cost errors.

ACH Transfers – Risk Level 2.5 (High Risk)
Although ACH is more secure than checks, these transfers are increasingly subject to Business Email Compromise (BEC) and account manipulation. Fraudsters exploit weaknesses in controls and credentials.

Virtual Cards – Risk Level 0.5 (Very Low Risk)
Designed with B2B security in mind, virtual cards offer single-use functionality, transaction-specific limits, and encryption that drastically reduce fraud exposure.

From Reactive to Proactive: Applying the Payment Risk Score™ in the Real World

In practice, the Payment Risk Score™ gives organizations the tools to reduce payment risk and modernize operations:

• A manufacturing firm relying heavily on checks and wires scored a Payment Risk Score™ of 6.90, highlighting high exposure and prompting a shift toward lower-risk digital methods.
• A tech company prioritizing ACH and virtual cards achieved a Payment Risk Score™ of 1.68, demonstrating reduced fraud risk and improved efficiency.

By using the Finexio Payment Risk Score™ to inform payment strategy, enterprises can:

• Lower the likelihood of fraud
• Simplify reconciliation and reduce manual touchpoints
• Enhance internal controls and meet compliance requirements (e.g., SOX)

A Living Metric: Supporting Continuous Risk Reduction

Risk is not static. As new fraud vectors and payment technologies emerge, Finexio recommends recalibrating the Payment Risk Score™ regularly. This enables organizations to continuously improve their financial security posture, rather than reacting to incidents after the fact.

Because the Payment Risk Score™ integrates seamlessly into existing enterprise risk management frameworks, it also supports broader governance, compliance, and audit efforts. It’s not just a score—it’s a strategic lever.

What's Your Payment Risk Score™ ?

Modern risk management requires more than fraud monitoring—it requires foresight. The Finexio Payment Risk Score™ equips CFOs, controllers, and AP leaders with the visibility they need to optimize their payment strategy and secure their organization’s financial future.

Ready to uncover your Payment Risk Score™ and reduce payment risk? Calculate your PRS Calculator

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