Elements of Customer Risk: Profiles and Relationships

March 16, 2020

Customer risk rating is an integral part of the customer due diligence process, yet it can be a difficult tool to implement. The risk tolerance of the organization, what products are used, what data is available and the weighting of each risk factor are just some of the variables that need to be considered to determine whether the overall aggregate score is considered high-, medium- or low- risk.

In Part 1 of this webinar series, Laurie Kelly, CAMS will discuss her experience with calculating risk ratings and things that every financial institution should consider. Attendees will learn about the objectives and fundamentals of customer risk scoring, as well as a logical way to categorize types of risks.

She will then review various risk factors to consider when assessing customer risk from a demographic/profile and relationships perspective.

Finally, Laurie will explore separately individual and business/commercial customers risk factors but with a greater focus on business customers, which have more nuanced and complex risk considerations.

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