With changing economic conditions, the threshold for risk tolerance is also changing. Adopting and modifying existing risk mitigation strategies is important for maintaining steady cash flow and creating a significant working capital impact in the CFO’s office.
This blog contains key insights on credit risk mitigation strategies from leading credit groups, such as Experian, CreditSafe, CreditRiskMonitor, Credit.net, and S&P Global. These suggestions regarding modifying your native credit policies will help you stay abreast of the changing risk classes and stay ahead of lending out bad debt.
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 Integrated Receivables Software Platform is the world's only end-to-end accounts receivable software platform to lower DSO and bad-debt, automate cash posting, speed-up collections, and dispute resolution, and improve team productivity. It leverages RivanaTM Artificial Intelligence for Accounts Receivable to convert receivables faster and more effectively by using machine learning for accurate decision making across both credit and receivable processes and also enables suppliers to digitally connect with buyers via the radiusOneTM network, closing the loop from the supplier accounts receivable process to the buyer accounts payable process. Integrated Receivables have been divided into 6 distinct applications: Credit Software, EIPP Software, Cash Application Software, Deductions Software, Collections Software, and ERP Payment Gateway - covering the entire gamut of credit-to-cash.