CREDIT RATING CHECK
Before carrying out commercial operations, it’s very important to detect the credit risk related to each of them.
It's important to retrieve information every time you need to start commercial partnerships with other companies in order to prevent insolvency risks and choose carefully partners and customers.
There are many KPIs which can help us in a risk based audit and it’s therefore necessary to know the differences in order to get a truthful evaluation.
Two main indicators which can helps in measuring the company’s ability to face debts stipulated with its suppliers are the credit rating and credit score.
The data icrif.ae offers to evaluate the credit risk in its International Business Report are:
- CREDIT RECOMMENDATION
- CRIF GULF CREDIT SCORE
The Credit Recommendation is based on a certain percentage of the compnay's issued capital. Its primary purpose i sto ascertain the level of credit risk in quantifiable terms within a comapny and on the basis of which a credit recommentation is determined.
The Credit Limit is developed for companies in the emerging market where the assessement of risk based on the unusual factor as financial, behavioural, firmographic, social data is limited.
The CRIF Gulf Score is a qualitative confidence based score which consists of two parts: the transparecncy indicator and business confidence.
Transparency indicator measure the level of cooperation from the subject to volunteer their information or data during the course of an investigation. The indicator is measured as a relative number out of 100, where 100 represents the maximum transparency over the course of the investigation.
The confidence index gives an idea of the risk associated in building relationships with a specific business, notably the likelihood of business continuance or failure over the next 12 months. This is measured as a relative number out of 999, where 999 represents the maximum confidence asserted on the subject.