An organisation must first quantify its risk before understanding what level of risk it can take. Moreover, as credit risk is dynamic, this process must be cyclical. Yet, credit risk management is often compromised by time constraints. This results in unprofitable sales, poor resource allocation or bad debt. Activities that provide opportunity for improvement are:
- Ledger risk scoring
- Quantitative and qualitative tools
- Management reporting
- Accountability assignment
- In-house control versus outsourcing
- Reporting and process controls
- Skill development
- System development and exploitation
Benefits:
- Higher profitability
- Less bad debt
- Lower working capital
For further information email Peter Hattaway or phone 1800 127 285 (Australia) or 0800 12 8500 (NZ)