How can we explain the unexpected 20% decrease in approval rates for Riskified's Account Secure solution among new enterprise clients this quarter?

Introduction

The unexpected 20% decrease in approval rates for Riskified's Account Secure solution among new enterprise clients this quarter is a critical issue that demands immediate attention. To address this problem, I'll employ a systematic approach to identify, validate, and resolve the root cause while considering both short-term and long-term implications.

My analysis will follow a structured framework, covering issue identification, hypothesis generation, validation, and solution development. This approach ensures we thoroughly examine all aspects of the problem and develop a comprehensive plan to address it.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be a recent change in the onboarding process. Has there been any modification to the enterprise client onboarding workflow in the last quarter?

Why it matters: Changes in onboarding could directly impact approval rates. Expected answer: Yes, we updated the onboarding process last month. Impact on approach: If confirmed, we'd focus on analyzing the new onboarding steps.

• Considering the specificity of "new enterprise clients," I'm wondering about the performance for existing clients. Have existing enterprise clients experienced a similar decrease in approval rates?

Why it matters: This helps isolate whether the issue is specific to new clients or a broader problem. Expected answer: No, existing clients' approval rates have remained stable. Impact on approach: If confirmed, we'd focus on factors unique to new client integration.

• Given the magnitude of the decrease, I'm curious about any changes in the risk assessment model. Has there been any recent update to the risk scoring algorithm used in Account Secure?

Why it matters: Changes in the risk model could significantly impact approval rates. Expected answer: Yes, we implemented a new machine learning model two months ago. Impact on approach: If confirmed, we'd scrutinize the new model's performance and potential biases.

• Considering the enterprise focus, I'm thinking about potential changes in client demographics. Has there been a shift in the industries or sizes of new enterprise clients acquired this quarter?

Why it matters: Different client profiles could have varying risk profiles, affecting approval rates. Expected answer: We've seen an increase in clients from the financial services sector. Impact on approach: If confirmed, we'd analyze how industry-specific factors might impact approval rates.