We like to believe that all our clients are worthy individuals who deliver information on time, are hungry and appreciative of our advice, and pay our bill as soon as it’s presented.
So let’s dispense with that myth. Reality is very different to this rose-tinted viewpoint. And COVID has added additional layers to our usual way of assessing risk.
How do we assess risk post COVID?
In our Fee Builder resource pack for July 2021, we offer a new perspective on this issue.
We assert that there are now three flavours to the neopolitan bar that determines risk in the post COVID world. They are:
- ability and willingness to pay,
- interested in the value of your services or just want you to prepare and file, and
- at risk of failure due to continuing COVID disruption.
These three elements provide enough data for you to reconsider which of your clients are high risk, low risk or somewhere in between.
Is a reassessment of client risk necessary?
Without a formal reassessment of risk, you are basically walking into a minefield with no knowledge that you next step may prove to be terminal.
Staff may agree to undertake work for a client without appreciating that their time will never be paid.
Also, practitioners need to take a hard look at the changed reality facing them now that COVID continues to disrupt economic activity.
- How many dependable clients – based on pre-COVID criteria – have morphed into the high risk grouping?
- What if the high risk element leave or cease trading?
- Without a formal assessment, how can you manage these risks?
- How will these changes affect your practice development?
This risk assessment process could be a useful service to sell to clients
Nothing is wasted in this process of recalibrating risk as the systematic approach we have created can be offered to clients to reassess the risks of their customer base.
Sign up for free access to our July 2021 resources
As a contribution to tackling this issue, we would like to offer you the chance to use our July 2021, Assessment of Risk resources on a complimentary basis. Fee Builder – the service that provides these resources – is low cost and high value. We feel sure that if you take up our offer you will continue to benefit from an ongoing subscription.
Or email firstname.lastname@example.org for more details.