Commercial Risk Evaluation

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.

Types of risk

High To Severe

Risk Bands 1 – 3

Average to Moderate

Risk Bands 4 – 5

Minimal to Low

Risk Bands 6 – 8

What makes up the risk score?

Key contributing factors (not limited to) that frame a risk score are as follows:

  • The type and frequency of credit enquiries
  • The time since a business/company made or changed its registration
  • Credit activities including credit enquiries or adverse information of the business proprietor
  • Existence of default information on a company file
  • Credit source enquiries that a company makes may impact its trade history
  • Serious adverse event information recorded such as a previous external administration or other serious adverse events on file
  • Industry based enquiry patterns
  • Director information and credit activity of a company director such as credit enquiries or adverse events

How we can minimise your risk

Action: Stabilisation
Likelihood: Wind up notice, court writ, payment default, mercantile enquiry
Immediate Future:
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
Immediate Future:
Address operational inefficiencies, missed market opportunities, people/tech issues, work on add value options

Action: Efficiency & Value Enhancement
Likelihood: Overcome challenges & grow/succeed
Immediate Future:
Further enhance operational efficiencies, growth in new markets/locations/services. Potential M&As, profitability focus, succession planning

Are you concerned about your financial position? Contact us now for an obligation free consultation.