Page 9 - HW April 2020

Important new tool enables risk forecasting
FOR SOME TIME now, long-time
NZ Hardware Journal contributor CreditWorks has been working on a series of market analysis reports that the company believes will help its clients better understand their debt ledger – and the risks therein.
is involves analysis around risk pro ling, using data from its CRISworks database to answers questions like: “What level of credit risk does a particular industry sector pose to me, as a supplier to that sector?”
Boasting we’re told an extremely high Gini coe cient (indicating very high accuracy), the rst of these new debt risk market analysis reports is already posted on CreditWorks’s website presenting a position in 33 di erent industry sectors (see example above right).
e rst report shows positions as at the end of March but, says CreditWorks, these graphs will be updated and added to monthly, to show the change in risk
CreditWorks Data Solutions Limited Industry Risk Analysis - 31 March 2020
35 30 25 20 15 10
5 0
45
40
Agriculture
Mining
pro le for each industry sector over time.
using the same measurements as shown in
ese general reports will be freely
the general graphs.
40
35
35
W30e hope to be able to feature some of 25
All Companies
% Likelihood of Failure
hard news
Sika 1451
% of total industry
% of total industry
% of total industry % of total industry
% of All Companies
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APRIL 2020 | NZHJ 7
available but clients of CreditWorks who
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50 40 30 20 10
0
Manufacturing
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50 40 30 20 10
0
30
the results of this important work in NZ 20
supp2ly5 Aged Trial Balances will also be able 20
Hardware Journal in coming months. 10
to se1e5an analysis of their own company
15
10
www.creditworks.co.nz
% Likelihood of Failure
ledger, showing the overall spread of risk,
55 00
% Likelihood of Failure
BUILD IT TO LAST
Food & Beverage Product Manufacturing
% Likelihood of Failure
% Likelihood of Failure
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