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Risk assessment models

Informa D&B Portugal is a national reference in the development and implementation of scoring solutions and automated decision systems, leveraging the solid experience of Dun & Bradstreet Worldwide Network in this area.

 

Risk of Failure Assessment

A risk management tool that indicates the probability of a company ceasing activity with outstanding debt in the following 12 months. As a predictive indicator, it completes the information provided by the Risk of Delinquency Assessment.

Informa D&B's Risk of Failure Assessment Model enables, in each moment’s economic context, a more effective risk management and better credit decisions, as it is the model that best reflects, at all times, the conditions and characteristics of the Portuguese business universe, in addition to being the most rigorous.

The accuracy of the risk of failure assessment process adopted by Informa D&B is guaranteed by two fundamental factors:

  • an analytical model with high predictive power,
  • updating of each entity’s assessment whenever there is a significant change in the variables considered in the assessment.

The occurrence of a failure event indicates the existence of outstanding debt, which almost always results in the total loss of the commercial credit that has been granted to the failing entity.

A more comprehensive and rigorous assessment of credit risk is obtained by combining the rating of the risk of failure and the rating of the risk of delinquency (the risk of a company paying with delays of over 90 days in the following 12 months). Credit decisions can thus be optimised.

 

Risk of Delinquency Assessment

A risk assessment model that indicates the probability of a company paying with a delay of over 90 days in the following 12 months. As a predictive indicator, it completes the information provided by the Risk of Failure Assessment Model.

This rating system includes five risk classes: from class 1 – less risk – to class 5 – more risk.

A more comprehensive and rigorous assessment of credit risk is obtained by combining the rating of the risk of delinquency and the rating of the risk of failure (the risk of a company ceasing activity with outstanding debt in the following 12 months). Credit decisions can thus be optimised.

 

Paydex

A statistical indicator of the average number of days beyond the payment deadlines agreed with suppliers. This tool was developed by Dun & Bradstreet.

Paydex generates a score from 0 to 100 when a history of at least three payment experiences is collected from three different suppliers over a 12-month period.

The payment experiences are collected from companies participating in our unique Dun-Trade® programme. Thousands of companies around the world participate in this programme to share information about real payment experiences.

 

Risk of Viability Assessment

A system for classifying the probability of an entity terminating activity.

Incorporating predictive and descriptive assessment tools, the Viability Rating reflects the probability of an entity shutting down, going into inactivity or insolvency in the following 12 months, compared to all businesses in Portugal.

Each entity assessed is assigned a score from 1 – lowest risk – to 9 – highest risk.

 

Modelos de avaliação de risco

Custom Scoring Models

Informa D&B gathers a set of unique conditions to, in partnership, add value to its customers, developing and implementing custom scoring models:

  • it knows the domestic business universe and its different sectors of activity in detail,
  • it has specific Scoring tools and expertise.
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