What is one main characteristic of the Application Processing stage?

The Application Processing stage is primarily characterized by its dual review process, which includes both operational assessments and risk management procedures. This characteristic is crucial because it ensures that applications are thoroughly vetted not only for compliance with operational standards but also for potential risks that may arise from approving a particular application.

Operational reviews typically assess the applicant's adherence to established guidelines and regulations, while risk management procedures evaluate the potential risks associated with approving the application, such as fraud or financial instability. This comprehensive approach allows organizations to make informed decisions, balancing the need for efficient processing with the imperative of maintaining security and minimizing risk.

This characteristic distinguishes the Application Processing stage as a critical point in the overall transaction flow, where due diligence is essential to safeguard the interests of both the organization and its clientele.