Customer risk : a STRATEGIC issue
Customer risk management is a strategic financial and business issue on which the future of your company hinges. Moreover, good risk management reassures all the company's stakeholders: suppliers, customers, bankers, financial partners and insurance companies.
It is an essential requirement that must be integrated into company policies. The way it is included in company management and the importance attached to it is material to the level of risk prevention.
Good management of trade receivables is vital for companies since they often represent the company's biggest asset item, accounting on average for 30% of the balance sheet total.
Companies are exposed to various risks every day: operating loss, loss of a customer or a supplier, technological risks, fraud, mergers, acquisitions and sales. Companies that keep those risks in-check have a definite competitive advantage in their market, thus increasing their chances of achieving their goals.
And to manage those risks, you need to have full knowledge of both threats and opportunities.