by Evelyne Legaux on 19-01-2022
We were very pleased last month with the results of our Poll question ‘Do you incorporate ESG-type criteria into your customer Credit risk assessment methodology / scoring model?’
It is very encouraging & refreshing to know that a comfortable majority of respondents out there (62%) have taken on board key lessons from the climate change & sustainability agenda to evolve their customer Credit risk scoring model.
These figures however leave a strong minority (38%) saying that they haven’t done so and are not considering doing so either. While various factors could explain that, it is a cause of concern, for those businesses may be missing out on new essential dimensions or ramifications of Credit risk, either triggered or accelerated by the climate crisis in tandem with the pandemic.
Further, it may be a missed opportunity to drive sustainable improvements throughout the Cash Conversion Cycle.
Could your business’ own Credit rating be adversely impacted by lack of awareness, visibility or due diligence when it comes to 3rd party Credit risk assessment?
You are not alone! If you need help to move away from outdated Credit scoring models, do get in touch on email@example.com or indeed through our Contact page.