SigmaWay Blog

SigmaWay Blog tries to aggregate original and third party content for the site users. It caters to articles on Process Improvement, Lean Six Sigma, Analytics, Market Intelligence, Training ,IT Services and industries which SigmaWay caters to

Overcoming the problem of Incomplete Financials in Assessing Credit Risk

A Risk Analyst frequently comes across companies with incomplete financial information which is essential for their credit assessment. To solve this problem a dual approach that takes into account both the quantity and materiality of the exposures is useful: a) When there is a large number of small exposures, it is reasonable to fill gaps by leveraging company credit score benchmarks or looking at the Country Risk Scores and Industry Risk Scores that capture the risk of doing business in a country/industry.b) When there are large exposures,  we need to employ advanced statistical techniques, tailored to the company type, industry, and region, to estimate missing financial ratios needed in our fundamentals-based models, and thus generate a credit risk score.Read more at: http://marketintelligence.spglobal.com/blog/when-enough-is-enough-assessing-credit-risk-of-companies-with-incomplete-financials

 

Rate this blog entry:
Dual risk rating system: A step-wise demonstration...
Efficient Marketing with Google Attribution 360
 

Comments

No comments made yet. Be the first to submit a comment
Already Registered? Login Here
Guest
Tuesday, 18 June 2019
If you'd like to register, please fill in the username, password and name fields.

Sigma Connect

sigmaway forums

Forum

Raise a question

Access Now

sigmaway blogs

Blogs

Blog on cutting edge topics

Read More

sigmaway events

Events

Hangout with us

Learn More

sigmaway newsletter

Newsletter

Start your subscription

Signup Now

Sign up for our newsletter

Follow us