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4 questions to help you identify risky customers… sooner than later!

Camico Insurance is the second largest provider of liability insurance for CPAs, so when it comes to risky clients, they pay attention. In a recent article on Managing Risk in Desperate Times, John A. Dodsworth, CPA and CEO of Camico shared his advice for CPAs. 

“The key is to identify risky clients sooner than later. Get to know their situations and make sure that they are getting good advice. Take an active role in helping them solve problems. It’s much easier to deal with trouble ahead of time than after the fact. The good news is that taking the initiative and helping a client through a difficult period can cement the client–CPA relationship.”

Two take-aways:
Take a good look at your business borrowers before it becomes obvious they are challenged.

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  • Which clients are losing customers?
  • Which are making less money?
  • Which are in breach of loan covenants?
  • Which are in danger of losing their investors?

Take an active role in helping them solve their problems and you’ll cement a good relationship.

About the Author
Linda Keith CPA is an expert in credit risk readiness and credit analysis. She trains banks and credit unions throughout the United States, both in-house and in open-enrollment sessions, on Tax Return and Financial Statement Analysis. She is in the trenches with lenders, analysts and underwriters helping them say "yes" to good loans. Creator of the Tax Return Analysis Virtual Classroom at www.LendersOnlineTraining.com, she speaks at banking associations on risk management, lending and director finance topics.