Wondering how RiskPulse scores are created? Read on to learn how Risk Scores and International Scores are calculated and how to use them effectively.
Understanding Risk Score and International Score
RiskPulse uses two complementary scoring systems, Risk Score and International Score, to help you assess the financial stability and risk level of companies both locally and globally. The foundation and purpose of each score is detailed below:
Risk Score
Score Purpose
The Risk Score estimates the risk of serious payment delinquency or bankruptcy within 12 months within that country.
Score scale
Risk Score scales vary by country due to local methodologies. The specific scale used for a company is displayed in the PDF report available on the company profile page.
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
How to use it
Use the Risk Score to support decisions related to credit terms, partnerships, and ongoing monitoring.
International Score
Score Purpose
The International Score provides a standardized risk measure that allows you to compare 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.
The International Score normalizes country‑specific Risk Scores onto a consistent scale, making it easier to benchmark global supplier or counterparty risk.
While the default range is typically 1–100, some countries use different scale expressions (for example, Canada, Korea, and Switzerland), which is why the international score is a useful benchmark for comparison.
How to use it
Use the International Score when managing cross‑border portfolios, prioritizing global risk, or comparing companies operating in different jurisdictions. It simplifies global risk assessment by providing a consistent measure.
How Are Risk Scores Created?
Risk Scores are generated using a suite of 6 proprietary scoring models, applied based on a company’s business type, size, and available data.
The models:
Evaluates a defined set of financial, payment, structural, and demographic characteristics
Applies different weightings to each factor based on predictive value
Calculates the probability that a company will fail within the next 12 months
The models are proprietary, and further explanation cannot be disclosed for commercial reasons.
For additional information on how RiskPulse scores are calculated and the data used within the models, please review the article What Data Is Used to Calculate RiskPulse Scores.
Why These Scores Are Important
Risk Scores and International Scores are continuously updated as new information becomes available that affects a company’s risk profile. Each score is backed by millions of data points and tailored models, giving you confidence when making decisions, whether you’re evaluating a single domestic supplier or managing a global portfolio.