HealthMark estimates the default risk for millions of private companies globally based on the best available data. It is calibrated using financial data and FHR data, which is exclusive to RapidRatings.
Introduction
HealthMark is calibrated to leverage RapidRatings’ unique access into global supply chains across all industries. Using robust financial data trends and high-quality data, it predicts which suppliers within your supply chain have the highest probability of being in financial distress, which could lead to disruption.
Using HealthMark and FHR
Where the FHR provides the market’s most accurate indicator of financial risk, HealthMark helps risk professionals triage risk with immediate access to a comprehensive database of HealthMarks. It is especially useful for suppliers that have not yet made their financial statements available or where the relationship does not warrant the investment in a full FHR review.
Model Features
HealthMark incorporates advanced modeling intelligence with key features:
Rolling Financial Data Refreshes: Underlying FHR data is frequently refreshed to capture current market trends, providing a leading indicator of risk hotspots within your supply chain.
Greater Profiling Specificity: Data is aggregated for cohorts representing a cross-section of country and sector (country-sector cohort) for improved accuracy.
HealthMark Scale
HealthMarks are expressed on a 1-5 scale corresponding to FHR Risk Levels.
Data Depth
Data depth indicates the level of data used when calculating the score. This conveys a level of confidence in the resulting HealthMark.
Full financial statements can produce a full FHR. This provides the most accurate measurement of financial health and default risk. When full financial statements are unavailable, we classify data depth as Substantial, Adequate, or Limited. In the majority of cases, the data depth will be Substantial or Adequate.
Data Depth | Primary Data Sources | Typical Region | What it Means |
Substantial | Selected financial data such as sales, profit, equity, and working capital. | UK, France, Germany, Italy, Belgium, Netherlands, Ireland, Norway, Sweden | Marks with this data are generally reliable, although the financial data is likely aged, so some caution is necessary |
Adequate | FHR Dataset, Firmographic data (country, age, size), Trade payment data where over 120 days | USA and the Rest of the World | Marks with this level of data provide an indication of business viability, but a full FHR is recommended for critical counterparties. |
Coverage Area
HealthMark consolidates data from multiple providers for global coverage, with strong representation in North America, Europe, and Asia. We provide HealthMarks for millions of private companies.
For further information or questions about HealthMark, please contact your Client Success Manager, who will be happy to help you further.