The May issue of Credit Manager magazine features a Bureau van Dijk article titled “Managing the tension between business growth and credit risk”. Credit Manager is published by the The Polish Institute of Credit Management (PICM), a platform for corporate credit risk management professionals.
The article covers the importance of best practices in know your customer (KYC) and regulatory compliance. It explores how a holistic internal approach to credit risk and company information can help create balance between risk and growth.
Challenges for credit managers
Emerging markets have great potential for business growth but there can be limitations to credit risk processes. These include:
- a lack of available company data
- knowing where to source data from
- being aware of international and unilateral sanctions
How company information helps
Orbis is the world’s most powerful resource on private companies. Using Orbis, credit risk professionals have access to:
- standardized financials designed to make it easier to analyze and compare companies in all countries
- quantitative scores such as ModeFinance’s MORE credit risk score with an overview of risk by geographic region
- qualitative scoring where limited financials exist to understand:
- company management and directors
- number of employees
- structure information including subsidiaries
- corporate ownership information to assess the corporate group or take the financial strength of the parent company into account