BIIA’s managing director recently attended FCIB’s Annual International Credit Management Conference in Vienna, Austria. The main theme of the conference was about measuring and managing risk as a source for competitive advantage. Notwithstanding the current precarious risk environment most credit transactions are still conducted on open credit (80% – 90%). Existing lines of credit appear not to be impacted. Suppliers of supply chain financing report further growth, however payment trends and delays are beginning to creep back to previous recession levels.
An interesting discussion ensued about the usefulness of benchmarking tools concerning payment terms and payment delays. Some credit managers believed that benchmarking is a useful tool in risk assessment, nevertheless when taking a poll they represented a small minority amongst attendees. Attendees from the information industry felt that rating agencies provided benchmarks on predictive defaults, and credit information companies are developing trade information services based on industry verticals. If these services were seen as not effective, credit managers and their association should provide specific information of what is needed.
To read the full story click on the attachment: News from the Credit Management Profession