CreditRiskMonitor Launches the Industry’s First Crowd-Sourced Financial Stress Score: The Enhanced FRISK® Score, Powered by Credit Managers
VALLEY COTTAGE, NY—June 13, 2016— CreditRiskMonitor (OTCQX: CRMZ), 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.”
Ready to learn more?
Overview
CreditRiskMonitor (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. The products help corporate credit and procurement professionals stay ahead of and manage financial risk more quickly, accurately, and cost-effectively.
The Company’s newest platform, SupplyChainMonitor™, leverages its financial risk analytics expertise to create a risk management solution built specifically for procurement, supply chain, sourcing, and finance personnel involved in the supplier lifecycle, risk assessment, and ongoing risk monitoring. Users can assess counterparty risks at the aggregate and granular levels under a variety of categories including geography and industry, as well as customized, customer-specific configurations. The platform features mapping capabilities with real-time weather/natural disaster event overlays as well as customizable news notifications, reports, and charts.
Our subscribers, including nearly 40% of the Fortune 1000 and well over a thousand other large corporations worldwide, use the Company's timely news alerts, research, and reports on public and private companies to make important risk decisions. The Company's comprehensive commercial credit reports covering both public and private companies worldwide are published through its web-based platform and feature detailed analyses of financial statements, including ratio analysis and trend reports, peer analysis, corporate issuer ratings from key Nationally Recognized Statistical Rating Organizations ("NRSROs"), as well as the Company's proprietary bankruptcy analytics: the FRISK® and PAYCE® scores. One of the FRISK® scoring model's exclusive input features is the aggregate risk sentiment of our subscribers based on their crowdsourced usage behaviors resulting in the improved classification of bankruptcy risk for the riskiest corporations and boosting overall accuracy.
The Company, through its Trade Contributor Program, receives confidential accounts receivables data from hundreds of subscribers and non-subscribers every month. This trade receivable data is parsed, processed, aggregated, and finally reported to summarize the invoice payment behavior of B2B counterparties, without disclosing the specific contributors of this information. The Trade Contributor Program's current trade credit file exceeds $2.5 trillion of transaction data annually.
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. 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. 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, CEO & President
845.230.3037
ir@creditriskmonitor.com