RiskPulse Risk Scores are calculated using a combination of financial, payment, operational, and public‑record data. The models adapt to the information available for each company and are designed to provide a balanced view of financial health and risk.
Below is an overview of the primary data categories used.
Payment History Data
Payment behavior is a key indicator of financial reliability. Risk Scores may include analysis of:
Trade payment data from 85M+ tradelines
Days Beyond Terms (DBT) – how many days past due a company typically pays
Payment performance compared to industry peers
Patterns of late or irregular payments over time
Financial Data (Availability varies by company size)
When financial statements are available, Risk Scores incorporate different indicators depending on the company's scale.
Small companies
Liquidity ratios
Leverage ratios
Medium companies
Profitability ratios
Leverage ratios
Indicators of current financial position
Large companies
Profitability ratios
Financial trends over time
Key balance sheet figures:
Net worth
Working capital
Net cash flow from operations
Debtors & cash
Turnover (for larger companies)
Financial ratios, including creditor/debtor days, pre-tax profit margins
Legal & Public Records
Publicly available legal and regulatory information is used to identify potential financial stress, including:
County Court Judgments (CCJs)
Bankruptcies
Tax liens
Court judgments
Liquidation/administration notices
Mortgages
Audit qualifications (concerns raised by auditors)
Company Demographics
Basic company characteristics help provide context for risk assessment, such as:
Company age
Location/geographic area (certain areas have higher insolvency risk)
Industry code (SIC03)
Number of employees
Premises type
Company size classification
Director Information
Leadership history and governance factors may influence Risk Scores, including:
Changes in number of directors
Associated director failures
Previous directorships
Director performance history
Corporate Structure
For companies that are part of a larger group, Risk Scores may consider:
Ultimate Holding Company (UHC) performance
Whether UHC is creditworthy or insolvent
Group influence
Industry Analysis
Risk Scores also take into account broader industry conditions, including:
Sector-specific risk factors
Industry trends
Certain industries have a greater risk of insolvency
How Are Risk Scores Calculated When Data Is Limited?
In some cases, detailed financial statements or trade payment data may not be available. When this happens, a sparse data model is used to assess risk based on structural, demographic, and behavioral indicators that are statistically predictive of default risk. When applying this model, the following factors are taken into account:
Business Age
The length of time a company has been operating
Newly incorporated businesses are generally associated with higher risk
Legal Form
Company structure, such as:
Limited company
Sole trader
Partnership
Registered Status
Current registration status, including:
Active
Dormant
Proposal to strike off
Industry Classification
Industry sector based on NACE / SIC codes
Sector‑level default risk plays an important role
Geography
Regional insolvency patterns
Certain locations historically experience higher insolvency rates
Group Status
Whether the company operates as:
A standalone entity, or
Part of a wider corporate group
Group association can positively or negatively influence risk, depending on structure and performance
How Often Are Risk Scores Updated?
Risk Scores are updated whenever new information becomes available that has an impact on the score. Therefore, there is no fixed update schedule.
Is All Data Refreshed Each Time a Score Is Updated?
No. A Risk Score is only recalculated when new or updated data materially impacts the score.
If a data point has not changed or does not influence the model outcome, it will not trigger an update.