Wondering how the RiskPulse scores are created? Read on to find out!
Understanding Risk Score and International Score
RiskPulse uses two powerful scoring systems, Risk Score and International Score, to help you assess the financial stability and risk level of companies worldwide. The foundation and purpose of each score is detailed below:
Risk Score
Score Purpose: The Risk Score predicts the likelihood that a company will become insolvent within the next 12 months.
Score Scale: Risk score scales vary by country due to local methodologies. Refer to the company’s PDF Report on their company profile page to see the specific scale used.
Score Inputs:
Payment history and trends
Financial performance and ratios
Public records like bankruptcies or legal filings
Company profile details such as age, size, and industry
Score Application: Use to make informed decisions about credit terms, partnerships, and ongoing monitoring.
International Score
Score Purpose: The International Score gives you a standardized risk rating for companies across different countries.
Score Scale: Risk score scales vary by country due to local methodologies. Refer to the company PDF report to see the specific scale used!
Score Application: It simplifies global risk assessment by providing a consistent measure, even when local credit practices differ.
Why These Scores Are Important
Both scores are updated in real time and backed by millions of data points, giving you confidence in every decision—whether you’re working locally or managing international relationships.