The challenged consumer environment will continue to pressure retailers and restaurants, which spells trouble for the collective group but especially for operators with red zone FRISK® scores.
The Federal Reserve recently voiced concerns about excessive corporate financial leverage - and risk management departments need to take heed.
With inflation at a 40-year high and interest rate hikes beginning to be implemented, more and more overleveraged companies with sinking FRISK® scores are in greater danger of bankruptcy in 2022.
Central banks worldwide are suppressing borrowing rates to accommodate credit markets, trying to alleviate financial pressures on corporations. This is creating a surge of "zombie companies," or firms that are staying alive in spite of their inability to service interest expenses.
A supplier network fraying at the edges can eventually break down into a full-blown disruptive crisis. With global debt soaring, daily bankruptcy risk evaluation is a must.
The COVID-19 pandemic swiftly delivered hundreds of bankruptcy filings in 2020. Here in 2022, geopolitical tensions, supply chain challenges, and tightening credit conditions could lead to a similar devastating outcome.
Optimal assessment of public company bankruptcy risk requires the balanced, holistic analysis provided by the FRISK® score.
Sanctions have delivered significant financial stress to the Russian government and corporations alike. Overall, many Russian companies have dropped into – or have sunk further down into – the FRISK® score red zone, indicating heightened financial stress and corporate failure risk.
Credit professionals use CreditRiskMonitor®’s Trade Contributor Program to gain quality, real-time insights into their accounts receivable portfolio. We collect in excess of $2 trillion in trade data annually from our trade providers. After processing this data, we work with credit professionals to be more proactive and tactical with their accounts receivable to make healthier business decisions.