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Supplier Risk Management

The insolvency or illiquidity of any member of the supply chain can cause serious damage and disruption, or even make it impossible for the company to continue its business as usual. This is why risks on both the buy and the supply sides need to be addressed.
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Business information services are available on the market, providing basic company data and general company information. However, in our view this is not sufficient.

The professional services proposed by Marsh mean effective support for risk management on the supplier side through complex data and information processing, which is constantly updated throughout the Coface international credit insurance and business information service provider's activities.

Coface, our partner with decades of professional experience, uses a complex, unique, up-to-date method based on its own information. Just like when making a credit insurance decision, the company establishes a so-called DRA value (Debtor Risk Assessment), which indicates, on a scale from 0 to 10, the short-term ability of the company to fulfil its financial obligations. The indicator is made up of macroeconomic data, the company's financial analysis and previous credit insurance experience.

What data and unique information do we use?

  • Macro-economic outlook
  • Company identification data
  • Financial information
  • Determination of solvency
  • Past experience and trends
  • Financial reporting and balance sheet analyses
  • Extended sources of information (e.g.: personal interviews, credit insurance claim experience, etc.)

The overview created as a result of the analysis contains all the information needed to manage risks in three key areas:Adós Kockázat Értékelés (DRA):

  • The DRA value of the companies
  • Macroeconomic relationships affecting the companies: country risk assessment, sector risk assessment
  • Industry indicators (Outlook Index): Coface's exclusive classification system that combines current payment delay trends with credit risk trends by sector

The service also includes professional consultation with a dedicated risk expert colleague.

By properly managing supply chain risks, you can make significant progress in ensuring that supplier insolvency and liquidity difficulties do not cause significant interruptions in the operation of your business.

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Bence Buttás

Bence Buttás

Senior Client Executive, Corporate Client Practice

  • Hungary

Márton Péter Nagy

Márton Péter Nagy

Senior Client Executive, Corporate Client Practice