Credit Risk Mitigation in a Volatile Economy


This eBook outlines the insights from Experian, CreditSafe, CreditRiskMonitor, Credit.net and S&P Global as they highlight the pivots in risk mitigation strategies and credit policy, customer profiling, changes in credit scoring perspective. It also explains the role of technology in building an agile credit function.

Contents

Chapter 01

New Risk Mitigation Trends Observed As a Result of Crisis

Chapter 02

Balancing Credit Risk: Immediate Action Plan For The Credit Team

Chapter 03

Balancing Credit Risk: Tips To Adjust To The New Reality

Chapter 04

Role Of Technology In Building An Agile Credit Function

Chapter 05

About HighRadius
Chapter 01

New Risk Mitigation Trends Observed As a Result of Crisis


Titbits From:

Credit Bureau Panel-1

Dan Meder
We’re seeing a greater emphasis on portfolio analysis. Clients who weren’t doing it before have now started analyzing it on a more frequent basis.

DAN MEDER
Vice President, Solution Consulting
Experian

Dustin Luther
When the COVID-19 started really hitting, our data team quickly went into high gear and started coming up with a COVID-19 impact score.

DUSTIN LUTHER
Head Of Marketing
CreditSafe USA

Michael Flum
We’re looking at sentiment analysis as a way of giving some additional inputs to the finance teams.

MICHAEL FLUM
COO & Senior Vice President
CreditRiskMonitor

Eric Kider
A/R professionals are using their sales teams to help them to connect to their clients and create the right type of terms and the status of that organization from a financial position.

ERIC KIDER
Senior Vice President
Credit.net

Ian Thompson
Coming up with a playbook that you can get together with your commercial and finance teams on the course of action for your portfolio of accounts.

IAN THOMPSON
Senior Director of Order-To-Cash Operations
S&P Global

Chapter 02

Balancing Credit Risk: Immediate Action Plan For The Credit Team


Key Concern in Terms of Risk Assessment as of Now?

50% Evaluating Customer’s Credit Worthiness
10% Collecting Money from Existing Customers
35% Strategizing for Long-Term Business Profitability
04% Improving Cash Flow

Pivots To Adjust The Credit Policy During The Risk

Credit Bureau Panel-3

Renewed focus on cash flow & $ @risk methodology rather than looking at relative risk

Requests for getting timely credit scores

Focus on leveraging credit card payments as a way of risk mitigation

Greater emphasis on portfolio analysis and what segments of portfolio are challenged

Michael Flum, CreditRisk Monitor
Dan Meder, Experian

How To Flag Customers To Stay Ahead Of Risks

Credit Bureau Panel-4

Looking at payment trade data to understand how the organization is paying other suppliers

Business verification should be an important step to avoid frauds

Analysing buyer’s customers as it ultimately flows to A/R

Eric Kider,Credit.net
Michael Flum, CreditRisk Monitor
Dan Meder, Experian

Chapter 03

Balancing Credit Risk: Tips To Adjust To The New Reality


What Is Your Primary Focus Of Your Department Upon Reopening?

42% Investing in Building An Aglie Credit Function
14% Investing in Risk Mitigation
25% Building a Long-Term Continuity Plan
10% Updating Credit Poilcy
09% Shifting Workforce to High Priority Credit Functions

Changing Trends In Credit Bureau’s Prespective

Credit Bureau Panel-5

Continue with the same scoring models with emphasis on back-end data

Integrated-credit scoring with AI, ML & deep neural networking

Identifying high risk industries and how to delve into those accounts

Dan Meder, Experian
Michael Flum, CreditRisk Monitor
Ian Thompson, S&P Global

Need To Perform Frequent
Periodic Reviews

Credit Bureau Panel-6

Looking at portfolio on a weekly basis, trying to leverage those elements and metrics that allow you to look at outstanding receivables

Eric Kider,Credit.net

Adjusting Credit Policy
To Accomodate Changes

Credit Bureau Panel-7

Pushing SMEs for credit card payments & payment portals

Engaging with new industries and new markets

While onboarding, focusing on extracting more information on regional and industrial-level

Eric Kider,Credit.net
Ian Thompson, S&P Global

Chapter 04

Role Of Technology In Building An Agile Credit Function


Credit Bureau Panel-8

During a poll, 42% of the respondents responded that they wanted to have an agile credit function upon reopening. Dan Meder from Experian commented that an agile credit function should have the ability to shift gears quickly when a radical change happens.

In order to build an agile credit function, technology plays a vital role. To know more on how to build a technology-supported agile credit function, talk to a HighRadius expert.

Chapter 05

About HighRadius


HighRadius is a Fintech enterprise Software-as-a-Service (SaaS) company that leverages Artificial Intelligence-based Autonomous Systems to help companies automate Accounts Receivable and Treasury processes. The HighRadius® Integrated Receivables platform reduces cycle times in your order-to-cash process by automating receivables and payments processes across credit, electronic billing and payment processing, cash application, deductions, and collections.

How Credit Teams Can Stay Crisis-Ready with the Latest Technology |Ask An Expert
Chapter 01

New Risk Mitigation Trends Observed As a Result of Crisis


Titbits From:

Credit Bureau Panel-1

Dan Meder
We’re seeing a greater emphasis on portfolio analysis. Clients who weren’t doing it before have now started analyzing it on a more frequent basis.

DAN MEDER
Vice President, Solution Consulting
Experian

Dustin Luther
When the COVID-19 started really hitting, our data team quickly went into high gear and started coming up with a COVID-19 impact score.

DUSTIN LUTHER
Head Of Marketing
CreditSafe USA

Michael Flum
We’re looking at sentiment analysis as a way of giving some additional inputs to the finance teams.

MICHAEL FLUM
COO & Senior Vice President
CreditRiskMonitor

Eric Kider
A/R professionals are using their sales teams to help them to connect to their clients and create the right type of terms and the status of that organization from a financial position.

ERIC KIDER
Senior Vice President
Credit.net

Ian Thompson
Coming up with a playbook that you can get together with your commercial and finance teams on the course of action for your portfolio of accounts.

IAN THOMPSON
Senior Director of Order-To-Cash Operations
S&P Global

Recommendations


Template

Business Credit Application Template

Abstract

About the Business Credit Application Checklist This excel-based checklist is a ready-to-use template…

2 mins

Blog

How does AI-Powered Credit Risk Management Work…

Abstract

Credit risk management teams have come a long way from being a back-office…

3 min

Webinar

Credit Policy Tools to Transform Credit into…

Abstract

Two months back, most of the credit policies and business goals were focused…

45 min

There’s no time like the present

Get a Demo of Credit Cloud for Your Business

Request a Demo

Request Demo Character Man

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.