{"id":71796,"date":"2024-03-22T16:20:27","date_gmt":"2024-03-22T15:20:27","guid":{"rendered":"https:\/\/www.cashontime.com\/en\/?p=71796"},"modified":"2025-04-18T16:31:49","modified_gmt":"2025-04-18T15:31:49","slug":"customer-risk-management","status":"publish","type":"post","link":"https:\/\/www.cashontime.com\/en\/articles\/customer-risk-management\/","title":{"rendered":"Customer risk management: succeeding in a constantly changing world"},"content":{"rendered":"\n\n\n\n\n\n
What are the customer risks?<\/strong><\/td>\nThere are 3 types of customer risk: the risk of non-payment, increased payment delays and the loss of a customer.<\/td>\n<\/tr>\n
How can you reduce customer risk?<\/strong><\/td>\nTo reduce customer risk, it is necessary to carry out a retrospective analysis (analysis of past customer data) and a prospective approach to anticipate changes and risks.<\/td>\n<\/tr>\n
What tools are available to assess customer risk?<\/strong><\/td>\nTo assess customer risk, you can use KPIs such as DSO and Ebitda.<\/td>\n<\/tr>\n
What are the different types of recovery?<\/strong><\/td>\nWe distinguish between amicable collection (reminders and formal notice) and legal collection, which involves recourse to a judge (payment injunction, payment summons, etc.).<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

From one day to the next, a good-paying customer may no longer be so assiduous in his payments. This usually translates into longer payment terms<\/strong>, or even late payments. Customer risk<\/a> is constantly evolving. This is all the more true in an uncertain economic climate, where more and more companies are experiencing difficulties. Customer risk management<\/strong> is therefore a major challenge for all companies, whatever their size. That\u2019s why it\u2019s imperative to put in place a customer risk management strategy<\/strong>, not only to limit the risks to your company, but also to anticipate them as effectively as possible in order to reduce the consequences.<\/p>\n

Understanding the challenges of customer risk management<\/h2>\n

To manage customer risk effectively<\/strong>, it\u2019s essential to understand what\u2019s at stake.<\/p>\n

As a reminder, customer risk is a commercial risk that translates into late payment by a company\u2019s customers, or even non-payment. This can affect the company\u2019s cash flow<\/strong>. In fact, if cash receipts don\u2019t arrive within the initial timeframe, customer risk can cause cash shortfalls and tensions<\/strong>. Without liquidity, the company exposes itself to unpaid suppliers, and is unable to invest in its business.<\/p>\n

Customer risk management therefore involves deploying a range of strategies and measures to identify, monitor and control customer risk<\/strong>. The aim is to reduce customer risk.
\nEffective customer risk management not only improves a company\u2019s cash flow, it also boosts profitability and preserves its image.<\/p>\n

Conversely, inadequate customer risk management can hinder a company\u2019s growth<\/strong>. This can jeopardize the company\u2019s financial health, and lead management to take drastic measures, such as increasing shareholders\u2019 equity to alleviate the financial difficulties encountered. In addition, poor customer risk management can lead to a deterioration in customer relations<\/strong>, as well as in relations with suppliers whom the company has difficulty paying. Finally, the company\u2019s reputation is also a key factor in customer risk management.<\/p>\n

Assessing potential customer risks<\/h2>\n

The customer risks a company may face are :<\/p>\n