CreditRiskMonitor introduced an improved business failure score now powered by behavioral data crowdsourced from its Fortune 1000 clientele.
The FRISK business failure score relies on current financial statements, stock market volatility, market capitalization and bond agency ratings supplied by subscribers, credit managers and other corporate professionals. It predicts financial stress as the probability of a public company failing within a year. CreditRiskMonitor claims 96 percent accuracy.
CreditRiskMonitor has discovered clear behavioral patterns which emerge when its clients investigate those with rising financial risk.
“Credit managers have a front row view on changing risk conditions because they are in the driver’s seat every day,” CreditRiskMonitor CEO Jerry Flum said. “Our subscribers are credit professionals in the top companies in 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’re doing, which is far more powerful.”
Mr. Flum said public company risk is higher now than it was at the beginning of the recession.