manage-customer-credit-risk

name	manage-customer-credit-risk
category	money
description	Manage customer credit risk through verified identity, exposure, payment evidence, consistent limits, monitoring, and controlled exceptions. Use when granting or changing payment terms, credit limits, guarantees, holds, or collection actions.

manage-customer-credit-risk

Separate commercial pressure from documented credit authority.

When to use

• Use for business customers, distributors, marketplaces, large orders, or concentrated receivables.
• Apply lawful, relevant criteria consistently and avoid protected-trait proxies.
• Do not use protected traits, irrelevant personal data, or undocumented commercial pressure as credit criteria.

Procedure

1. Verify customer legal identity, ownership, entity, addresses, tax details, bank instructions, and authorized contacts from trusted sources.
2. Gather relevant financial statements, payment history, trade references, external data, disputes, industry, country, currency, and concentration exposure.
3. Define governed scoring factors, evidence windows, risk bands, decision rights, review cadence, and appeal process.
4. Calculate current and potential exposure across open orders, invoices, credits, guarantees, group entities, currencies, and settlement timing.
5. Set limit, terms, deposit, collateral, guarantee, insurance, payment method, hold, and escalation conditions proportionate to risk.
6. Identify conflicts of interest and route overrides through independent approval with rationale, amount, expiry, and compensating controls.
7. Monitor aging, disputes, broken promises, returned payments, limit utilization, adverse changes, fraud indicators, and concentration.
8. Trigger review, outreach, hold, limit reduction, collections, insurance notice, or legal escalation through documented thresholds.
9. Verify bank-detail changes independently and restrict access to sensitive customer data.
10. Reassess decisions for calibration, consistency, losses, false positives, and commercial outcomes without hiding overrides.

Done

• A customer credit file records verified facts, exposure, score, limit, terms, approvals, exceptions, monitoring, and review dates
• Identity, exposure, consistency, bank-change, limit, aging, override, and outcome checks verify each material credit decision