We worked closely with the client to understand their key concerns and coupled this with our expertise on the pressure points which can cause certain types of companies to deteriorate rapidly, we carried out an identification of the suppliers within our databases (including group structures) and credit scored the suppliers using current financial data.
Based on a range (25) of economic scenarios that were discussed with the client, we then modelled a range of financial outcomes for these suppliers, using our abridged (abbreviated) company model
to impute P&L figures where needed.
The modelling outcome was >1M sets of modelled financials and associated credit scores. These were discussed and presented to the client in risk ‘buckets’. By flexing the economic assumptions we were also able to give an indication of which of them was most likely to have the biggest effect on the outcome: stress-testing the results demonstrated which assumptions were most critical to the portfolio.