Company Watch, a commercial credit reference agency using predictive and financial risk management technology, has launched its unique Covid-19 Scenario Forecast H-Score tool. It’s used by organizations 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 modeling used by Company Watch has proven to be an asset for predicting risk and informing decisions, which means 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.