Credit Risk and Accounts Receivable
Banks are not the only ones facing credit risks - they can affect your company, too. There is a certain default risk attached to all receivables. Where the legal grounds of the receivable are undisputed, default can occur in the event that the debtor is unable to make the repayment, or can only pay at a later date. This also has an impact on your liquidity planning.
Credit risks of this nature depend primarily on the creditworthiness of the individual debtors. Measuring credit risks, taking into account the default probability attached to individual debtors and correlations in your receivables portfolio, puts you in a position to evaluate these risks and take steps to manage them. A number of new options enabling the active management of credit risks, in particular, have appeared on the market over the past few years, e.g. credit derivatives, securitisation, etc.
d-fine can offer you support in quantifying and managing credit risks with respect to
- Receivables from clients
- Receivables from business partners relating to financial transactions
- The use of modern credit risk management tools
d-fine can support you at all stages of the risk management process:
- Valuation of supplier and client default risks
- Development of risk strategies, including risk limitation
- Optimisation of hedging strategies
- Valuation of credit derivatives
- Selection and implementation of suitable IT systems for trading, risk management systems and limit management
We're not simply concerned with producing design concepts; we help our clients to develop tailored solutions that can be implemented in practice. And d-fine actively supports the implementation of these solutions at your company, including process optimisation and integration in your IT landscape, e.g. by introducing suitable software. Naturally, our projects give you access to d-fine's extensive pool of expertise, which covers a whole range of areas including accounting, financial engineering, credit risk and corporate finance.
