COVID-19 has had a profound impact on businesses across many sectors. Profits and balance sheets have taken a hit. Consumer spending has stalled. Even the office itself isn’t what it used to be.
And let’s not forget risk. Not only is it on the rise, but the goal posts have changed, leaving many businesses scrambling for ways to keep up with today’s rollercoaster economy.
What does this new risk reality look like?
Gone are the days of business as usual when it comes to assessing risk. COVID-19 has given rise to a number of new factors and impacts that demand to be considered, namely:
- Risk is changing at a far more rapid pace.
- Normal market conditions have been turned on their head.
- Government stimulus payments and repayment holidays can mask true economic impacts.
- Conventional scoring and risk assessment methodologies may not be as predictive as they used to be.
With these factors in mind, we’ve gone through a rethink of our own in terms of how we enable clients to better manage risk within this ever-changing economic climate.
It’s time for a new way to assess risk
Encouragingly, we’re seeing a significant number of businesses – primarily in banking, telcos and utilities – adapting to change and embracing new ways of assessing risk.
In particular, Westpac has been quick to rethink how they manage risk and, consequently, have engaged our COVID Commercial Index, combining it with our Failure Risk Score for timely, pertinent insights into the credit health of their client base.
If you’re ready for a rethink on how you can manage risk in your business, we encourage you to contact your illion Account Manager, or learn more about our COVID Commercial Index here.