Counterparty Credit Reports
As credit and commercial teams become more interconnected, effective communication becomes more critical.
Facilitate conversations without using the word "no".
Build a risk aware culture
Highlight Key Risks & Strengths
Focus on what is relevant to decision making. Reports highlight the strengths and weaknesses of the credit review.
Risk Appetite Alignment
Establishing risk appetite thresholds confirms credit risk management is aligned with your companies objectives and strategies.
Recommendations
Instead of presenting challenges without solutions, propose actions that align with organization goals. Be proactive in addressing and mitigating risk effectively.
Credit Risk Reports
As a credit professional, one of your key responsibilities is to provide clear, insightful, and actionable credit risk reports.
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Credit risk reports serve as a bridge between raw financial data and informed decision making. That is why CreditKernel reports close the communication gap between credit, sales, and executives by eliminating technical jargon and complex financial terms.
Sales professionals may not have a deep understanding of credit risk and underestimating the potential financial impact of a counterparty default. This lack of understanding can lead to unrealistic expectations and disagreements between the sale and credit teams.
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Our reports ensure all parties are connected to the potential business impact and aligned on the recommended next steps.
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The counterparty's final credit rating and proposed credit exposure determine the review type; Streamline or Full.
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Streamline - Credit rating and credit exposure are within your organizations risk appetite threshold for what you deem to be a lower risk, lower limit counterparty.
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Full - Credit rating and credit exposure fail the Streamline test. Users have the option to add commentary on the credit profile's key strengths and weaknesses. Users offer actionable recommendations and clear guidance on how to manage the identified risk(s).
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Benefits
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Optimized credit terms - customize credit terms and pricing based on the specific risk profile of the counterparty. Ensure your company is compensated for taking on risk.
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Proactive risk management - counterparty credit reviews facilitate early detection of financial distress signals, allowing you to take corrective action before issues escalate.
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Confidence - provide confidence that credit decision are based on thorough analysis, reducing uncertainty.
Effective credit risk reports are more than just data summaries - they are strategic tools that instill confidence when making informed decisions and proactively managing risk.