Many may wonder where to start when engaging with a robust customer’s risk assessment and measuring one’s own risk exposure. The below example may help to understand the engineering of the process.
Its is good to start from the scratch and draw a mind map. The mind map to be aimed at visualising the risk areas we may need to consider when engaging with a new customer. The below is an example one might use as a starting point:
Visual presentation engages more senses into the process, hence I would recommend to use it as a frame for the next step, which would be to decide the weight of the variables in the risk assessment. Based on the weights we would then be able to assign risk scoring to all new client engagements and decide upon this determination with whom to engage and on what terms and conditions and who should not become our customer due to unacceptable risk exposure. Obviously sometimes deviations and exceptions may happen.
I will take the risk scoring topic as the next blog entry to come. Thank you for reading and bearing with me.
