SIC codes vs. NAICS for High Risk Customer Screening?

[Former Member]

I’m working on a project that will enable our GTS system to perform high risk screening on our customers.

Has your company transitioned to NAICS (North American Industry Classification System) codes or are you still using SIC (Standard Industrial Classification) codes for purposes of classifying your customers?

Any and all advice regarding high risk screening and codes welcomed!

Thank you, Mikki

[former_member215181]

Hi Mikki,

Have you already decided how to use the NAICS codes in GTS, or are you looking for ideas?

And what is the perceived relationship or correlation between the NAICS code and the "risk" of doing business with a customer?

Regards,

Dave

[Former Member]

Hi Dave, Thanks for responding. I'm actually interested in learning what other companies are using for the classification of their customers (either NAICS or SIC codes, or another method).  We are wanting to begin performing high risk screening in our GTS system.

[former_member215181]

Hi Mikki,

Ok, but I'm not sure if you'll find many companies classifying their customers in those ways.  The standard SAP Customer Master has a "Marketing" tab (as I'm sure you already know), but with no fields for SIC or NAICS - just Customer Class and Industry Codes.  I guess you could use the latter for the classification.

As suggested above, I'm puzzled as to why those codes would assist in high-risk screening.  Is there some feeling that (say) Bin Laden would have been any less desirable a customer if he'd set up a Service company rather than a Manufacturing company.  What's the logic there?

Regards,

Dave