One of the advantages of the RapidRatings platform is the increase in productivity that our tools offer you. We often see that there are many types of stakeholders who want to understand a high-level summary of risk, but don't necessarily need to get into the weeds.
- Management needs to understand the overall risks the company is exposed to and must report that up to the board
- A risk council that is tasked with evaluating enterprise-wide risk has to be aware of a multitude of different types of risk and understand the exposure of different groups
- Cross-functional groups need to be notified of risks that may affect their own work or decisions
Communicating summaries in a succinct, easy to read fashion is necessary in any role. Very often, it involves searching and pulling the raw data, compiling the needed summaries, and then polishing to make it look presentable.
We designed our Portfolio Risk Report to circumvent this additional work and effort. If you have already decided on the group to be analyzed, this report is an off-the-shelf pdf that shows the biggest changes and trends, providing an overall view of the risk level in the target group.
Our portfolio risk report summarizes salient points about risk in the target group over the past week, month or quarter
It’s heavily used by clients who use the FHR as a standalone / final metric (supply chain, TPRM) vs clients who will use the FHR as an input into further models
The first page highlights the most significant ratings changes to bring the reader up to speed
The rest of the report describes the overall distribution of risk and then lists companies from weakest to strongest
At the very beginning of the report, you’re given a summary of the group: # of companies, time period, the average FHR of the group and average delta, and then more importantly Warning Flags: # high risk, # very high risk, # showing a downward trend
The report is also heavily visual – tabular and graphical representations of the combined risk, and an overlay of the portfolio against our historical default distribution
This report is especially helpful for teams or people who are not involved in the day-to-day management or interactions with the supplier group, counterparty list or vendor list but need to get a handle on the current situation to make strategic decisions