Handle with Care: Strategies for Dealing with High-Risk Customer Types and Industry Sectors

Lower-risk customers can be risk managed using a "category of customers" approach, but can higher-risk customer types be managed the same way? The "Joint Statement on the Risk-Based Approach to Assessing Customer Relationships and Conducting Customer Due Diligence," issued cooperatively by multiple federal agencies, emphasized the importance of managing high-risk customer types, but not every company can do so. As a result, we will examine new strategies for dealing with high-risk customer types and industries.