Responding to market conditions

Today’s rapid changes to risk exposure create uncertainty and opportunity. While sectors such as hospitality have been paralyzed by the pandemic others, such as healthcare, may experience increased investment. Assessing the changing financial strength and creditworthiness of those you do business with is an important aspect of risk management, but involves processing vast amounts of complex data.

That’s why Bureau van Dijk offers the Market Reactive MORE score, which can help evaluate a company’s credit risk and responsiveness to the current volatile environment.

The MORE score was developed with our partner modeFinance for users of our global information database Orbis and our Catalyst risk platform. The score has been enhanced to help users respond to current market conditions, resulting in the Market Reactive MORE score, which provides an assessment of any company’s probability of default.

The Market Reactive MORE score is responsive, configured according to each company’s operational environment, allowing it to provide a more predictive view of creditworthiness. It weighs up the financial strength of a company based on its financials, together with the effects of significant events such as the pandemic on its sector and on the wider economy. It can therefore provide a point-in-time probability of default.

Using sector and country risk factors the score leverages Moody’s Analytics’ economic forecasting expertise and quantitative variables to develop ‘impact scenarios’, including geopolitical factors. The score offers an assessment of how these scenarios would affect company turnover, grading their ability to meet their financial commitments. The output of the score can also be used in scorecards, workflows and dashboards and to set up alerts.

The Market Reactive MORE score is designed to give Catalyst users of Orbis a timely snapshot of financial strength to allow better, faster decision making at this time of ongoing change.

Find out more about credit risk analysis