The purpose of paper is to recommend strategies to increase customer loyalty through complaint management and as a tool to manage risk. The paper encompasses the theoretical concepts which emerge from the extensive review of literature on complaints and risk. It was found that complaints and risk have a significant relation and through complaint management, risk can be reduced. The study has proposed COMPSAT Grid (reinforced with literature review) demonstrating the state of Banks based on no. of complaints and loyalty of customers. COMPSAT Grid can become a base to design the strategies to increase customer’s loyalty. The study is limited to the customer’s perceived risk. The paper stresses on the importance of complaints in managing the risk. Through COMPSAT grid the service providers may modulate existing strategies to increase customer loyalty. The concepts will establish complaint management as a basis of marketing strategy modulation. The model is a theoretical approach which is based on the concepts.