Counterparty Risk Evaluation

Global markets, enhanced interconnectedness between counterparties and dependencies through raw materials, technologies and innovations are only a few good reasons to have a transparent and full-scale knowledge about business partners. Consequently, the analysis regarding financial strength and performance of counterparties are a very relevant element in a company’s risk management activities.

But not only microeconomic factors do have their relevance in this analysis; political stability, sector developments, competitor situation and volatility to the economic circles are crucial information to understand the resilience of a long-term partnership. In order to secure supply chain processes, it became a central necessity to identify risks in existing or new relations to suppliers and customers.

Corporate analysis at TACTICAL ANALYTICS

TACTICAL ANALYTICS uses quantitative and qualitative criteria to analysis the financial strength of counterparties. In addition macroeconomic risk drivers are evaluated that connect the individual situation of a regarded counterparty with its environment. Benchmarks on company’s size, industry and logistic channels assemble a full picture of the risk profile. These risk profiles can be compared to other business partners or possible second sources and markets in order to initiate a decision making process based on facts not general instinct.

Depending on the grade of potential risk a supplier or customer can imply to an organization, TACTICAL ANALYTICS performs an analysis that is measured to the objective. The scope of the analysis starts with desktop evaluations and ends with an external audit at the regarded company’s site lasting several days. All risk analysis procedures at TACTICAL ANALYTICS follow defined evaluation standards that are of central importance to be able to compare risk profiles in the processes after the evaluation.