2016 CFO Survey: The Credit Risk Analytics Your CFO Really Wants

CFO survey results, big data needs: how to transform financial data into meaningful insights

More than ever, “big data” and credit risk analytics are helping to transform credit management. Using the right tools to deliver crucial insights, target risk, and make better decisions was an important theme at this month’s CRF Forum and EXPO. 

And if those aren’t reasons enough to update your toolkit, here’s another: It’s what your CFO wants you do, too. 

Read on, for interesting research about CFO priorities in 2016, and three simple ways to deliver against those goals.  

CFO Survey: Time to Navigate Economic Uncertainty With Data Insights

Corporate performance software firm Adaptive Insights surveyed 377 global CFO’s of high performing finance organizations, to learn what they value most in these challenging times. More than two-thirds of CFOs cite economic uncertainty as the greatest financial risk for their company.

The following initiatives and skillsets are high on their agenda:

  • 78% of the CFO’s surveyed cited the ability to apply financial data analysis as providing the most strategic value to their organization
  • 77% expect that the ability to transform financial data into intelligence will be their greatest focus over the next 3 years
  • 75% stated that using financial data analysis tools effectively is an important source of strategic value.

As they look to the future, CFO’s are depending on their teams to transform data into insights, and plan to invest in the technology that will help them do so.

How to Give Your CFO Exactly What She Wants

Clearly, your biggest value add as a credit professional isn’t spending time gathering financial data. It’s transforming that data into meaningful insights. This cartoon sums it up well:

CFO survey results, big data needs: transform vast amounts of financial data into meaningful insights.

Here are three ways that the right technology can help you to do that (no magical thinking required!):

Contribute trade data: This is the proverbial low hanging fruit. If you haven’t contributed trade data, you owe it to yourself and your company to benefit from the critical portfolio insights this can provide. Take advantage of a trade contributor program to target credit risk.

Add predictive credit risk analytics to your process: There’s a reason that our customers love the FRISK® score. It’s the most reliable and most predictive financial risk score out there, and an essential part of any internal risk scoring model. And now, an enhanced risk model makes it even better.

Automated alerts and credit risk monitoring: You wouldn’t think we’d have to convince anyone of this one! Yet at every conference, we meet a few credit managers who ask, “Why subscribe to a service for public company information that’s available for free?” When you automate your processes, you can add more value. 

Better Credit Risk Analytics, Better Results

There's a ton of data coming at you, and not nearly enough time to put it to use. Yet, your CFO relies on you to take this "big data" and use it to manage risk. Assembling a toolkit that can help you to be a more agile and insightful credit manager is an important first step. 

Remember: the tools you need are out there. Learn how to:

  • Incorporate a predictive risk score in your decision-making processs
  • Automate the gathering of public company financial data from disparate sources
  • Eliminate the time-consuming process of spreading financials for business credit analysis
  • Use custom, time-saving reports with real time information, reliable risk scores, peer analysis, and your own trade data
  • Get news updates on risky portfolio companies delivered right to your inbox. 

You'll be glad you did!

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About CreditRiskMonitor

CreditRiskMonitor is a financial news and analysis service designed to help professionals stay ahead of public company risk quickly, accurately and cost-effectively. More than 35% of the Fortune 1000, plus thousands more worldwide, rely on our commercial credit reporting and predictive risk analytics for assessing the financial stability of over 58,000 global public companies.

At the core of CreditRiskMonitor’s service is its 96% accurate FRISK® score, which is formulated to predict public company bankruptcy risk. One of four key components calculated in the FRISK® score is crowdsourced subscriber activity. This unique system tracks subscribers' patterns of research activity, capturing and aggregating the real-time concerns of what are essentially the key gatekeepers of corporate credit. Other features of CreditRiskMonitor’s service include timely news alerts, the Altman Z” score, agency ratings, financial ratios and trends. CreditRiskMonitor’s network of trade contributors provides more than $135 billion in trade data on their counterparties every month, giving them visibility into their biggest dollar risks.