The second approach is by using the Filters, it categorizes the flags as follows.
To enable this feature, from the top menu, select Tools > Options, select Referrals tab and in the Automatic Flags Assigning section set the By Filters radio button, check the Run always after adding referrals data, click Reset Flags Descriptions then click OK.
IMPORTANT! The automatic flags assigning by filters will apply the filters sequentially from filter 1 to filter 7, once a referral matches a particular filter, the following filters checking will be skipped for such referral and will be assigned to the corresponding group of the matched filter. For example, if a referral matches filters 1 and 2, this referral will be assigned the Red flag and not the Orange flag.