LITERATURE REVIEW

Performance of customer risk

Customer risk refers to the risk of loss due to a customer's non re-payment (default) on a
consumer credit product, such as a mortgage, unsecured personal loan, credit card, overdraft and
other bank products (Murray Bailey, 2010 ; David Lawrence and Arlene Solomon,2010 ; Anthea
Wynn and Helen McNab,2010 ).Organizations face some of their biggest risks when clients or
customers behave in unexpected ways. The loss of a major customer, a change in buying pattern
or a cancelled order can all represent significant shocks if not anticipated. Organizations may be
at risk for a variety of reasons nor a problems with their own level of service, the financial
difficulties of clients, or new market entrants with more attractive offer ( Marsh & McLennan ,
2006 ).The variables included demographic,geographic,psychographic and behavioral of the
customer.Its will explores strategies to assess your organization’s susceptibility to risk. Minimize
adverse impacts of operational risk, market risk and credit risk on resources, earnings and cash
flows through risk analysis.This informative study reveals that the credit crisis has prompted
senior executives in financial services to scrutinise their risk management practices in greater
detail. Some financial services firms are moving away from a silo-focused approach to risk
management and adopting a more sophisticated, holistic system.