The New Enhanced FRISK® Score: Now Powered by Credit Professionals

Download (135.45 KB)

As of June 2016, the already highly accurate FRISK® score just got even better -- now powered by the activity of our subscribers. 

CreditRiskMonitor is used by thousands of corporate credit and supply chain professionals in Fortune 1000 companies around the world. Collectively, these professionals 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.

We have found that when our customers, when viewed as an anonymous, aggregate group, become concerned with a company, they begin to investigate more closely, showing distinct and definite behavioral patterns. After extensive back-testing, we have discovered that adding this crowd-sourced activity -- when significant enough -- to the scoring model can actually identify more risky companies. Specifically, it shows already risky companies becoming riskier.

We are now 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.

To learn more, download the fact sheet using the button at right.

Not yet a subscriber? See the score up close for yourself -- request a personalized risk assessment