Obtaining financial insight on a publicly-traded company prior to actual disclosure has always been difficult given restrictions that prevent insider trading. “Fair Disclosure,” however, does not apply to credit managers, whose job is to assess a public company’s financial health. Crowdsourcing is an extremely important – and legal – way to understand how reliable a company truly is as a partner, supplier, customer or investment.
Leveraging sentiment among credit managers and other CreditRiskMonitor subscribers enables a powerful predictive element that strengthens our proprietary FRISK® score, which is 96% accurate in predicting public company bankruptcy risk within a 12-month period.
Our subscribers are provided a wealth of information on companies within their portfolios, and this information is available all in one place. Our research indicates that when a subscriber is worried about the financial health of a company in their portfolio, the information they access on our site creates a specific “click pattern.”
Our website has always been highly structured, enabling us to track these very specific patterns of use through our sophisticated and proprietary algorithms, which means we’ve been able to analyze click patterns for the past 10 years, through many financial shifts.
In 2018, with the kind of behavioral data in our pocket, we continue to exceed expectations and guide those who depend on us away from financial peril. And it's all thanks to you.