Ratings, Reports & Standards Reference

Standards & Ratings Reference

Every Octopus module is built on globally recognised rating methodologies and regulatory standards. Click Help on any module to view the full standard, rating scale, methodology, and official documents.

Quick Reference

All Rating Scales at a Glance

Credit Rating — AAA to D

AAAAAABBBBBBCCCCCCD

S&P/Moody's equivalent scale. Investment grade: BBB and above.

CVSS v3.1 — Cyber Severity

CriticalHighMediumLowNone

FIRST.org CVSS 0.0–10.0. Critical = immediate patch required.

PD Score — Probability of Default

< 1%Very Low risk

1–5%Low risk

5–20%Medium risk

20–50%High risk

> 50%Very High risk

12-month horizon. Drives Basel III EL = PD × LGD × EAD.

Identity Confidence Score (ICS)

≥ 80Auto-Approve

50–79Manual Review

< 50Auto-Reject

Composite KYC/AML score. 0–100 scale. FATF-aligned thresholds.

VaR & Expected Shortfall (ES)

VaR 99%10-day maximum loss (Basel II)

ES 97.5%Expected tail loss (FRTB/Basel III)

IFRS 93-stage ECL provisioning model

FRTB has replaced VaR with ES at 97.5% as the primary market risk measure.

Hedge Fund Performance Metrics

Sharpe Ratio> 1.0 acceptable, > 2.0 strong

Sortino RatioDownside-only risk. > 1.5 target

Max DrawdownMandate limit typically –15% to –25%

AlphaExcess return vs. benchmark (annualised)

GIPS-compliant reporting. IOSCO-aligned disclosures.

Module 01 — Foundation Layer

Data Intelligence

Rating / Score Type

Data Quality Score (DQS)

A composite 0–100 score measuring completeness, consistency, freshness, and uniqueness of ingested data records. DQS ≥ 85 is required before data is promoted to...

Applicable Standards

GDPR CCPA PDPA ISO/IEC 8000

Key Reports

Data Quality Assessment Report GDPR Data Lineage Audit Trail CCPA Data Subject Request Log

Module 02 — AI Scoring Engine

Predictive Risk

Rating / Score Type

Probability of Default (PD) & Loss Given Default (LGD)

PD is expressed as a percentage (0%–100%) probability that an obligor defaults within a 12-month horizon. LGD represents the estimated loss rate in the event of...

Applicable Standards

Basel III SR 11-7 IFRS 9 EBA Regulatory Technical Standards on IRB

Key Reports

Basel III Capital Adequacy Report IFRS 9 ECL Staging Report Model Risk Governance Log (SR 11-7)

Module 03 — Identity Intelligence

Fraud & KYC

Rating / Score Type

Identity Confidence Score (ICS)

A 0–100 composite score measuring identity authenticity across document verification, biometric matching, sanctions screening, and behavioural analysis. ICS ≥ 8...

Applicable Standards

FATF Recommendations eIDAS USA PATRIOT Act AMLD6

Key Reports

FATF Customer Due Diligence Record Suspicious Activity Report (SAR)KYC Audit Trail Report

Module 04 — Threat Intelligence

Cybersecurity

Rating / Score Type

CVSS v3.1 Vulnerability Severity Score

The Common Vulnerability Scoring System (CVSS) v3.1 is the industry-standard framework for communicating the characteristics and severity of software vulnerabil...

9.0–10.07.0–8.94.0–6.90.1–3.90.0

Applicable Standards

ISO/IEC 27001 DORA NIST Cybersecurity Framework CVSS v3.1 Specification CISA Known Exploited Vulnerabilities

Key Reports

CVSS Vulnerability Posture Report NIST CSF Maturity Assessment DORA ICT Incident Report

Module 05 — Underwriting Engine

Credit Rating

Rating / Score Type

Credit Grade (AAA to D)

Octopus assigns credit grades using the standard S&P/Moody's equivalent scale from AAA (prime) to D (default). Grades drive automated pricing, collateral requir...

AAAAAABBBBBBCCCCCCD

Applicable Standards

ECOA Consumer Credit Directive PSD2 Credit Rating Agency Reform Act Basel III IRB Approach

Key Reports

Credit Grade Migration Matrix ECOA Disparate Impact Analysis Digital Term Sheet

Module 06 — Risk Metrics

Portfolio Risk

Rating / Score Type

Value at Risk (VaR) & Expected Shortfall (ES)

VaR measures the maximum expected loss over a given time horizon at a specified confidence level (e.g., 99% 10-day VaR). ES (also called CVaR) measures the expe...

Applicable Standards

IFRS 9 CECL Solvency II Basel III ICAAP

Key Reports

Basel III Capital Adequacy Report (Market Risk)IFRS 9 / CECL ECL Provisioning Report Stress Testing Scenarios Report

Module 07 — RegTech Suite

Compliance

Rating / Score Type

Regulatory Compliance Score (RCS)

A 0–100 score measuring how comprehensively your organisation meets its applicable regulatory obligations. Calculated from control implementation status, policy...

Applicable Standards

Wolfsberg Group AML Principles AMLD6 BSA OFAC Sanctions Programs MiFID II

Key Reports

Suspicious Activity Report (SAR / STR)OFAC SDN Screening Log Regulatory Compliance Calendar

Module 08 — Business Resilience

Crisis Management

Rating / Score Type

Business Impact Score (BIS) & RTO/RPO Targets

The Business Impact Score quantifies the operational, financial, and reputational impact of a crisis on a scale of 1 (negligible) to 5 (catastrophic). RTO (Reco...

Applicable Standards

ISO 22301 OSHA Emergency Action Plan Standards DORA ICT Business Continuity NIST SP 800-34

Key Reports

ISO 22301 Business Impact Analysis (BIA)Incident Response Post-Mortem Report DORA BCP Testing Report

Module 09 — Competitive Intelligence

Market Intel

Rating / Score Type

Market Sentiment Score & Competitive Threat Index

The Sentiment Score is an NLP-derived measure from -100 (extremely negative) to +100 (extremely positive) applied to news, social, and regulatory filings about ...

Applicable Standards

Sherman Antitrust Act Article 101 & 102 TFEU EU AI Act GDPR

Key Reports

Competitor Intelligence Briefing Market Sentiment Dashboard Report Antitrust Compliance Audit Log

Module 10 — Fund Operations

Hedge Fund

Rating / Score Type

Fund Performance Metrics (Sharpe, Sortino, Alpha, Beta)

Key performance and risk-adjusted return metrics: Sharpe Ratio (return per unit of total risk), Sortino Ratio (return per unit of downside risk), Alpha (return ...

Applicable Standards

IOSCO Principles for Hedge Funds Dodd-Frank Act AIFMD MAS Guidelines on Licensing and Business Conduct Investment Advisers Act of 1940 GIPS

Key Reports

SEC Form PF – Private Fund Report AIFMD Annex IV Report Investor Capital Account Statement

All standards and regulatory references are kept up to date by the Octopus compliance team. Links open official regulatory body and standards organisation websites. For specific compliance questions, contact our team.