The financial crisis of 2008 is considered by many to be the worst since the Great Depression. A number of large firms that had been in existence for decades went under with little warning that they were going to fail. Therefore, it is important for companies to be aware of credit risk (aka. default risk) management possibilities in the aftermath of such a calamity.
It’s Important to Be Proactive
There are never any guarantees that a client will pay his or her bills on time. In fact, there is no guarantee that a client will pay any portion of an outstanding balance. However, using credit risk management tools can help you predict which customers are likely to live up to their obligations and which ones are less likely to. This can help your company minimize its losses and create objective criteria as to what a quality client or customer looks like.
You Can Prepare to Make Claims in Bankruptcy Court
If you can predict ahead of time that [Read more…] about Why Credit Risk Management Matters in a Post-Recession World