Customer Portfolio Review Score

Understand the risk of your existing portfolio

Industry changes over time impact the credit patterns of organisation's enquiry patterns, default occurrences, insolvencies and the number of companies entering into external administration. Gaining insight into these changes can increase your ability to make proactive decisions to help manage risk and maximise opportunities.

 

When deciding whether to extend credit to a new customer, most organisations conduct a basic credit check. However many fail to monitor the risk profile of their customers over time. Veda's market wide view enables us to provide powerful insights into the credit history of your customers, as held on our database, through the Commercial Portfolio Review Score.

 

Commercial portfolios generally consist of a compilation of companies, businesses, partnerships, sole traders and investors, each with their own risk profiles and assessment requirements. Veda has built a rigorously derived statistical scorecard that incorporates the people behind the entities. The result is a highly predictive risk ranking tool, based on Veda's bureau data. A separate score can be provided for each account from individual, company or business details, either on the full portfolio or a segment of it, allowing the direct use of the credit score within strategy scenarios.

 

A Commercial Portfolio Review Score can help:

• Help achieve more accurate loss provision estimates and forecast future losses
• Identify segments that are higher risk than they appear to be
• Help value prospective portfolio acquisitions
• Benchmark a portfolios risk against another, or the bureau population
• Set differentiated strategies combining external risk assessment with internal risk assessment
• Monitor relative changes in risk of your portfolio over time, enabling appropriate provision adjustments
• Complement your current risk assessment by introducing external bureau based dimensions.

 

When accessing personal information users need to make sure that their disclose of personal information to Veda and the access to either individual commercial or consumer credit information is in compliance with the Privacy Act 1988 (the Act).

 

Do you have your own internal models? 

Internal models can be very predictive, however Veda's broader view across the industry means we see behaviours and risk profiles that can act as leading indicators to increased credit risk. Combining insights from the external market, as held on Veda's database, with internal information helps you better manage your credit exposures. 

 

Are you thinking of buying or selling a portfolio?

Veda's Portfolio Review Score can be used to assist in valuing prospective portfolio acquisitions.  Your portfolio's risk is compared against the portfolio you wish to acquire in a de-identified, aggregated report. If you're selling your portfolio you can benchmark against Veda's bureau.  Portfolio Review Score provides a consistent estimate of portfolio quality and a useful framework to support due diligence.