The client posed a need for a standardized credit risk scorecard to evaluate customer creditworthiness. D&B developed a custom Behavioral Credit Risk Scorecard and Credit Limit Assignment Model improving efficiency in credit evaluations.
A global industrial materials organization, faced significant challenges in managing credit risk due to a high volume of manual reviews required for credit limit increase requests. Additionally, the absence of a standardized credit risk scorecard led to inconsistencies in evaluating customer creditworthiness and assigning credit limits, making the process inefficient and prone to errors.
The organization faced operational inefficiencies due to a heavily manual process for reviewing credit limit increase requests. This not only consumed significant time and resources but also led to inconsistent credit decisions, as evaluations varied across teams and regions without a unified framework.
The organization lacked a standardized method to assess customer creditworthiness across its global customer base. This made it difficult to integrate and interpret diverse data sources - such as aging analysis and third-party credit data, resulting in challenges maintaining accuracy and consistency in credit limit assignments.
D&B supported the organization by providing critical third-party data elements that were integrated into the custom Behavioral Credit Risk Scorecard and Credit Limit Assignment Model. This enriched data helped enhance the accuracy and consistency of credit evaluations, enabling more reliable and automated credit limit decisions.
Product
Sales & Marketing Solutions, Analytics
Industry
Industrial Minerals
Function
Credit Risk Management
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