Client Risk Assessment by Banks : Team Sport Rather Than A Solitary Player’s Game
Client Risk Assessment (CRA) is a crucial element for banks and financial institutions that are engaging with and servicing a wide spectrum of clients. But are banks and financial institutions best and appropriately positioned to perform a comprehensive risk assessment of all the clients – both New to Bank and Existing to Bank? Do they have the exhaustive data sets, client behaviour patterns, all wealth sources and other required inputs for any and all clients – both prospective and existing clients? The answer could be No. As part of the Client Due Diligence (CDD) process, assessing client’s profile in terms of their risk profile is a critical step for any bank or a financial entity. Organisations have made extensive improvements in this area and have deployed sophisticated models, rule engines and analytical systems to assess each client (individual or entity) across various parameters such as industry, source of wealth, geographic region / country, political exposure, initia...