Risk assessment is relevant to most people in business. The right data can be decisive when you are about to do a deal, especially when you are granting someone credit and risk losing out on a delivery because the customer, for one reason or another, cannot pay. In Enin's web portal, every registered company is given a risk assessment. So it does not come as an extra cost when you look up a company.
Credit checks with a risk model
A risk assessment that uses a rating, score or status from a risk model can be a guide to which customers should be examined more closely. Processing an application or enquiry manually is time-consuming, and what you really want to know is which ones you do not need to check. Bankruptcy figures are often given prominence in the media and look alarming. Even so, it is worth being aware that only a small share of all businesses are assessed as having a very high bankruptcy risk.
The image shows Enin's assessed risk levels for bankruptcy probability, and the distribution of Norwegian AS companies across each category, in per cent.
Our risk model is built using machine learning. That means it is based on and validated against actual events, and improved over time. It is retrained once a year on new data and produces updated assessments of every company each month.
Several risk models on the market are built using rules based on human experience and theories. That makes them harder to update, and they fail to capture data elements that are not part of the model.
This data can help you assess risk
Alongside a standardised risk level, there is usually a range of other information that can also be relevant when you make an assessment.
Examples include:
- People connected to a company in roles such as general manager, chair of the board, shareholders or beneficial owners.
- Changes in the number of employees.
This image from the Enin web portal shows the change in the number of employees for a randomly chosen company. The figures are based on the company's own reporting via the A-melding.
- Changes to the board and the general manager, mergers, or other changes in the company's status.
The image shows an example from the Enin web portal of events and flags that can indicate risk.
- Group structure (if the company has a strong parent company behind it, that provides a measure of security)
- Payment remarks registered by the debt collection agencies
- Auditor remarks
If a company has a remark about "uncertainty regarding going concern", for example, that can be an indication that you should be extra careful. - News and current events
The image shows an overview from Enin's web portal of stories in which Enin is mentioned.
- Court cases, pledges, involvement in legal proceedings or official announcements
The image shows an example of the information available in the Enin web portal. An overview of pledges, and the details behind them, is also available for each company.
There is bound to be data that is of particular interest to you and that matters when you decide on risk.
Your own history, and data specifically tied to your business, industry or business model, can also be decisive in spotting warning signs.
How do you get access to the data?
You can now get instant access to our web portal with fantastic data at your fingertips!
At Enin we believe in the free flow of data, and we have gathered everything in one place for you. We also believe in a pricing model that gives you no nasty surprises. That means you can monitor an unlimited number of portfolios in the web portal, of customers or suppliers for example, and be alerted when something changes.
Do get in touch if you have any questions.
