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Trusted by 40% of Fortune 1000
Valley Cottage, NY – CreditRiskMonitor, the leading financial risk and news analysis service on public companies for credit professionals, today announced its enhanced FRISK® business failure score — now powered by behavioral data crowd sourced from its subscribers, credit managers and professionals in Fortune 1000 organizations.
It’s the first predictive business credit score of its kind, driven not just by financial data but also through credit crowd sourcing.
CreditRiskMonitor is used by thousands of corporate credit professionals in Fortune 1000 companies around the world. Collectively, these credit managers manage billions of dollars of credit risk annually. Every day, they investigate and analyze public companies, giving them up-close access into changing risk profiles of these companies, a key driver of economic risk.
CreditRiskMonitor has found distinct behavioral patterns that emerge when its credit subscribers are investigating businesses with rising financial risk. As a company becomes more financially risky, credit professionals scrutinize companies more closely and show definitive patterns of activity.
CreditRiskMonitor is using this aggregate behavioral activity as an input into the enhanced FRISK® financial risk score, which predicts financial stress as the probability of a public company failing within 12 months. The usage data adds to the financial ratios, agency ratings and market cap volatility data already used in the score.
With the anonymous usage data from its subscribers now factored in, the FRISK® score is now 96% accurate in predicting U.S. public company bankruptcy within 12 months, making it one of the most reliable company financial stress scores available.
“Credit managers have a front-row view on changing risk conditions because they are in the driver’s seat every day,” said Jerry Flum, CEO of CreditRiskMonitor. “Our subscribers are credit professionals in the top companies of the world, managing literally billions of dollars of risk. We have proven that their activity signals coming financial stress. It’s not what they are saying that drives the risk signal. It’s what they are doing — which is far more powerful. We believe this credit score to be the first of its kind — and results in the most accurate financial risk score commercially available.”
CreditRiskMonitor’s proprietary FRISK® score is based on current financial statements, stock market volatility, market capitalization and bond agency ratings. As of today, it also factors in the behavior of thousands of credit managers in large companies. The score estimates the probability of business failure (bankruptcy) within 12 months and is proven 96% accurate in predicting failure of U.S. public companies.
“Everyone should know that public company risk is higher now than it was at the start of the Great Recession, and we can expect even greater trouble coming soon,” Flum says. “With the enhanced FRISK® score, for the first time, anyone concerned with financial risk can benefit from the inside view provided by the world’s top credit managers.”
Overview
CreditRiskMonitor.com, Inc. (creditriskmonitor.com) sells a suite of web-based, SaaS subscription products providing access to comprehensive commercial credit reports, bankruptcy risk analytics, financial and payment information, and curated news on public and private companies worldwide. Our primary SaaS subscription products for analyzing commercial financial risk are CreditRiskMonitor® and SupplyChainMonitor™. These products help corporate credit and procurement professionals stay ahead of and manage financial risk more quickly, accurately, and cost-effectively. Our subscribers include nearly 40% of the Fortune 1000 and well over a thousand other large corporations worldwide.
To help subscribers prioritize and monitor counterparty financial risk, our SaaS platforms offer the proprietary FRISK® and PAYCE® Scores as well as the FAST Rating, the well-known Altman Z”-Score, agency ratings from key Nationally Recognized Statistical Rating Organizations (“NRSROs”), curated news, and detailed financial spreads & ratios. Our FRISK® and PAYCE® Scores are financial distress classification models that measure a business’s probability of bankruptcy within a year. The FRISK® score also includes a risk signal based on the aggregate research behaviors of our subscribers, who control counterparty access to trade credit at some of the most sophisticated companies in the world. The inclusion of this risk signal boosts the overall accuracy of this bankruptcy analytic by lowering the false positive rate for the riskiest corporations.
Through its Trade Contributor Program, the Company receives monthly confidential accounts receivables data from hundreds of subscribers and non-subscribers, which it parses, processes, aggregates, and reports to summarize the invoice payment behavior of B2B counterparties without disclosing the specific contributors of this information. The size of the Trade Contributor Program’s current annualized trade credit transaction data is approximately $3 trillion.
Safe Harbor Statement
Certain statements in this press release, including statements prefaced by the words “anticipates”, “estimates”, “believes”, “expects” or words of similar meaning, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include details of the accounting restatement, the expected impact of the accounting restatement and the remediation of the related material weakness in internal control over financial reporting. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, expectations or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements, including, among others, those risks, uncertainties and factors referenced from time to time as “risk factors” or otherwise in the Company’s Registration Statements or Securities and Exchange Commission Reports. There can be no assurance that (i) the consequences of the Company’s restated results will be as anticipated above and (ii) the Company will be able to promptly and efficiently implement the appropriate remediation steps into its financial reporting. We disclaim any intention or obligation to revise any forward-looking statements, whether as a result of new information, a future event, or otherwise.
Contact
CreditRiskMonitor.com, Inc.
Mike Flum, Chief Executive Officer
(845) 230-3037
ir@creditriskmonitor.com
