Company Watch, a commercial credit reference agency at the forefront of predictive and financial risk management technology, has launched its unique Covid-19 Scenario Forecast H-Score® tool.

It’s used by organisations around the world to accurately predict their exposure to financial risk; H-Score® predicted 92% of quoted company insolvencies around the world over the last four years. The new functionality is designed specifically to allow credit and procurement risk analysts, as well as funds, investment houses, and other financial institutions to test their ‘what-if’ assumptions and how changes to various factors, such as change in sales or bad debts, might affect a company’s financial performance. It can be used for any UK company which has filed full accounts with Companies House.

H-Score® is specifically aimed at managing the volatility and unpredictability of a company’s exposure to risk, enabling companies to stress-test clients through various scenarios and take action accordingly. The new Covid Scenario Forecast allows various parameters (i.e. changes in: sales, direct costs of sales, overheads, dividends, depreciation of tangible fixed assets and bad debt) to be applied to forecasts, using industry-based, pre-defined scenarios, which can be adjusted to allow for varying factors using sliders to get an instant view (chart and numerical) of what future company performance might be.

The advanced data modelling used by Company Watch has proven to be an asset for predicting risk and informing decisions, allowing clients to understand risk exposure in real time, based on forecasted company financials adjusted for sector-specific volatility. Companies gain the ability to minimise exposure to clients and holdings which show profit warnings and have a low H-Score®.

Jo Kettner, CEO of Company Watch, said: “Our entire team has worked really hard to further develop a truly innovative solution for our existing clients, building flexibility into our advanced analysis techniques. With the latest enhancements, H-Score® is an even more valuable tool for researching and managing risk in credit and procurement decision making. The Scenario Forecast function will allow companies to easily understand their exposure to risk as companies and markets are affected by Covid-19.”

She added: “I’m very proud of our team for creating such an effective new analysis tool, in record time. This is much needed in the current climate, and the wonderful response from our clients is testimony to this. We are constantly working on innovations for the industry and this is set to be a very important risk management tool.”

The launch of Covid Scenario Forecast H-Score® has created a very high level of interest from clients, with the launch webinar being many times oversubscribed. The Covid Scenario Forecast H-Score® is available to all existing clients at no additional cost.

Source:  Company Watch Press Release