This is the first of four StrategicRISK roundtable discussions this year, designed to look at the way that companies assess and manage their key risks. The subject for this first discussion is an issue that lies at the core of a successful business - managing customer risks. Deciding how to attract customers, which customers you take on and how you provide a service to them that is better than your competitors’, determines whether your business will prosper, merely survive or fail.
Clearly there are no easy answers - if there were, every company would excel! But looking across the spectrum of aspects which the participants in this discussion felt were important may give some pointers to the areas on which organisations should be focusing.
The risks start at the customer acquisition stage and continue throughout the whole life cycle of the customer’s relationship with your company. While specific risks may vary according to the type of business that you are engaged in, there are some generic issues that affect all organisations.
The UK Turnbull guidelines on corporate governance for listed companies require businesses to manage and monitor their key risks. I believe that managing the risks associated with attracting, retaining and losing customers is a crucial part of meeting those guidelines.
Sue CopemanEditor
