Are You Ready for Increasing Global Financial Risk?

Sometimes, a picture is worth a thousand words. 

Even as several financial markets are marking new highs and headlines talk about a global rebound in oil and other commodities, these images tell another story.

Here are two trends to consider:

1. Global Bankruptcy Risk is Up 53%

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Source: CreditRiskMonitor FRISK® Stress Index

 

2. The Global Credit Bubble Continues to Expand

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Source: David Stockman's Contra Corner

 

We could go on, but the point, for credit and financial professionals, is this. 

After an extended period of near zero interest rates, debt is fueling a build-up of economic capacity, while demand is faltering. And unlike 2007, in the face of economic stress, the central banks don’t have an easy fix up their sleeve.

Sooner or later, the global credit bubble will deflate, and bankruptcy risk — which is already elevated — will climb higher. Do your due diligence on worldwide customers and suppliers, because they may be impacted. Global risk can hurt you business. If you need help understanding your global risk exposure, give us a shout. Many of our customers have told us they're increasingly concerned with their risk outside North America. They've also been really surprised to find out how global their risk exposure actually is. 

Get in front of increasing global financial risk, now.

To be ready for increasing global risk, request your free risk assessment today.

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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.