Portfolio risk management is an important success factor in an organization’s ability to deliver more business value and mitigate risk. The portfolio risk monitoring strategy involves identifying, assessing, measuring, and managing risk within the customer’s portfolio.
Continuous monitoring of the aforementioned metrics gives you a bird’s eye view of your performance and operational efficiency and gives you actionable data for you to focus on and make improvements.
12% of organizations’ total revenue is being dedicated to digital initiatives – Gartner.
Technology plays a vital role in building an agile credit function. A/R executives should look forward to implementing digital transformation initiatives to help their team create strategic value in the office of the CFO.
According to a recent Gartner Risk Leadership Council survey, 66 % of organizations surveyed globally are pursuing some form of digital transformation. Several leading credit teams undertake this initiative to deploy risk management tactics and identify new and emerging risks, especially in the credit space.
Choosing the right credit management system is important to mitigate credit risk. In the US, about 97% of B2B transactions are made on credit. Mentioned below are six key parameters to consider when choosing a credit application to help A/R teams reduce the bad debt by 20%.
HighRadius Credit Software automates the credit management process, enabling credit managers to make highly-accurate credit decisions 2X faster and enable faster customer onboarding with 4 primary components: configurable online credit application, customizable credit scoring engines, credit agency data aggregation engine, and collaborative credit management workflow. Along with that, there are a lot of key features that should definitely be explored some of which are online credit application, credit information aggregation, automated credit scoring & risk assessment, credit management workflows, approval workflows, and automated bank & trade reference checks. The result is faster customer onboarding, better internal collaboration, higher customer satisfaction, more targeted periodic reviews, and lower credit risk across the company’s customer portfolio.