Credit risk strategy
In the light of recent events many companies are now reviewing their credit risk management strategy, including:
Risk appetite
Clients want to articulate a clear view of the level of risk to be taken, both quantitatively and qualitatively. At the moment we see a trend towards greater levels of risk retention.
Risk analysis
We also see a strengthening demand for detailed analysis on key risks. The primary options are to develop in-house capabilities by recruiting a team of analysts or to access independent 3rd party analysis. 3rd party support can be achieved by:
- Using a credit insurer’s credit limit service
- Accessing fully independent analysis – this can benefit companies which do not insure, or those which take a high Discretionary Limit on their policy
Information
Risk analysis is only as good as the information it is based upon. The best information may not all come from one source.
Central or decentralised credit management
Different companies have different views, but even those who favour a decentralised approach want to be sure that there is consistency and compliance throughout.
Shared Service Centre
A number of companies are considering this option.
Outsourcing
Most companies want to keep control of risk strategy. This can be achieved effectively in close partnership with the right outsource partner.
Audit trail and visibility of risk
We see companies becoming more rigorous in their requirements. When things go wrong they want a clear audit trail when the question is asked “On what basis did you agree this?” You may be satisfied that your own systems do the job, or may want Co-pilot to advise you about available 
platforms.
Co-pilot can provide support every step of the way – from reviewing the status quo to formulation and implementation of the agreed strategy.
Co-pilot is not a broker – we will partner your broker in any discussions that involve your credit insurance.
