Credit & financial risk
Turn company and financial evidence into a documented risk decision. Explore credit reports, financial due diligence and the changes that can trigger a review.
18 of 60 topics shown
- Business credit assessmentBusiness Credit ReportA business credit report brings together information used to evaluate a company’s ability and likelihood to meet financial obligations. Depending on the source and jurisdiction, it may include identity details, filed financial information, payment indicators, adverse events and a credit assessment. The content is not identical across providers or markets.
- Business credit assessmentBusiness Credit ScoreA business credit score is a model output used to summarise specified aspects of company credit risk.
- Business credit assessmentCredit LimitA credit limit is the maximum exposure permitted under a defined credit arrangement or policy.
- Business credit assessmentPayment HistoryPayment history records observed payment behaviour within the scope of the available data.
- Business credit assessmentCreditworthinessCreditworthiness is an assessment of a party’s ability and likelihood to meet financial obligations.
- Financial information & due diligenceFinancial Due DiligenceFinancial due diligence is a structured examination of a business’s financial information to understand performance, financial position and risks relevant to a decision. The scope depends on the transaction: evaluating a supplier is different from investigating an acquisition target. A useful review tests the evidence behind the figures rather than merely collecting statements.
- Financial information & due diligenceFinancial StatementsFinancial statements report an entity’s financial performance, position and other information for defined periods under an accounting framework.
- Financial information & due diligenceBalance SheetA balance sheet reports specified assets, liabilities and equity at a particular date.
- Financial information & due diligenceIncome StatementAn income statement reports income and expenses over a defined reporting period.
- Financial information & due diligenceCash Flow StatementA cash flow statement reports movements in cash under specified categories over a reporting period.
- Financial indicatorsLiquidityLiquidity concerns the ability to meet near-term obligations using available cash or assets that can be converted appropriately.
- Financial indicatorsFinancial LeverageFinancial leverage describes the use of debt or other financing obligations relative to an appropriate financial base.
- Financial indicatorsProfitabilityProfitability concerns earnings relative to a defined base such as revenue, assets or capital over a period.
- Financial indicatorsWorking CapitalWorking capital commonly refers to current assets minus current liabilities under a specified accounting scope.
- Financial indicatorsCurrent RatioThe current ratio compares current assets with current liabilities in a defined set of financial statements.
- Third-party exposureThird-Party RiskThird-party risk is the exposure created by a relationship with an external organisation or person.
- Third-party exposureSupplier RiskSupplier risk concerns the potential disruption or loss associated with a supplier relationship.
- Third-party exposureCounterparty RiskCounterparty risk is the risk that the other party fails to fulfil relevant obligations in a transaction or relationship.