Energy firms grapple with rising customer risk

Understanding the risks a firm is exposed to through its counterparties and customers is vital in today’s world, not just from a credit perspective but for compliance and reputational reasons, writes a senior analyst. Here she shares her experience of building a sophisticated customer screening programme

Understanding customer risk is vital in today’s environment of heightened geopolitical tensions, growing sanctions and increasing regulatory scrutiny.

It is essential that firms are able to identify and avoid counterparties and customers that might be involved in terrorism, bribery or corruption, or that are operating fraudulently or dishonestly. Given the complex interlinkages between companies globally and the range of customers that most firms have these days, customer screening is becoming