The commercial risk score of a business is based on a number of factors, including it’s strategic, managerial and operational behaviour. This behaviour is sourced from a range of bureau data and is used to provide an overall score of the business’ financial health.
SV Partners’ Commercial Risk Outlook Report provides an analysis of over 510,000 Australian businesses, the March edition revealed that over 12,300 businesses or 2.4% were classified in the High to Severe risk category.
Key contributing factors (not limited to) that frame a risk score are as follows:
Likelihood: Wind up notice, court writ, payment default, mercantile enquiry
Rapid assessment, quick win strategies, full situational analysis to prioritise action plans
Action: Business Improvement
Likelihood: Potential to slip into high risk if no immediate action taken
Address operational inefficiencies, missed market opportunities, people/tech issues, work on add value options
Action: Efficiency & Value Enhancement
Likelihood: Overcome challenges & grow/succeed
Further enhance operational efficiencies, growth in new markets/locations/services. Potential M&As, profitability focus, succession planning