Mapping sudden risks such as the COVID crisis independently of the scorecard is now possible in the Credit Management Cloud Service CREDITY. In response to the COVID crisis and its effects, CRIF has developed and implemented a Risk-Chance-Factor in a short turnaround. The new function is now available to CREDITY users and enables credit managers to deal with unforeseeable risks and opportunities in an agile manner.
With the Risk-Chance-Factor, credit managers can now map current short-term changes in risk assessment in a targeted way and without significant configuration effort. In the current context, for example, these can be predicted scenarios of the development of insolvencies, which show an increased risk of default. When using such information, it is possible to select precisely how the risk factor will affect the entire portfolio or only certain segments. Using specially defined rules, it is possible to map risks quickly and without changing the existing scorecard.
"We have heard and taken seriously the call from our clients for an innovative and flexible solution to assess unforeseeable, sudden risks. Within a very short time, the Risk-Chance-Factor was developed, which has been available to our customers since the beginning of June at no extra cost. Thanks to the agile development of the cloud service CREDITY, we are able to react quickly and smartly to market changes and customer needs, which benefits all our customers", commented Carsten Jünger, Head of Business Development & Consulting, on the introduction of the Risk-Chance-Factor.
The Risk-Chance-Factor in CREDTIY is a parameter that defines additional changes that are not reflected in the scorecard. It can be applied in segments, and this segmentation is an important component when applying the Risk-Chance-Factor. If you look at the effects of the COVID crisis in different countries, companies and sectors, they will be different. This becomes clear, for example, when we compare the probability of default in e-commerce and the tourism industry.
"The COVID pandemic has affected many countries and industries and will continue to do so. Information from external sources, such as GDP and forecasts by the Federal Statistical Office of Germany, can be used by credit managers to calculate the Risk-Chance-Factor, as well as internal information. It should be mentioned here that the current situation may give rise not only to risks but also to opportunities in certain sectors," explained Carsten Jünger.
Credit managers can also configure several Risk-Chance-Factors for different influences in CREDITY. These can act independently of each other or in combination, and the factors can be adjusted and deactivated at any time. In this way, CREDITY users are able to perform agile credit management in a rapidly changing environment.
"CRIFBÜRGEL offers a variety of innovative products from one source, especially in the B2B sector, bringing optimal results and synergies. In the area of credit management, with CREDITY we offer a modern and highly configurable B2B credit management solution, which with the Risk-Chance-Factor now provides an additional feature to allow consideration of current market conditions. Further product developments are planned, and through additional partnerships, CRIFBÜRGEL will continuously optimize the quality and depth of data in the area of business credit information", commended Frank Schlein, Managing Director at CRIFBÜRGEL.