Corporate – Supply Chain Risk Management

Evaluating risk throughout the supply chain is becoming a common business practice across all sectors. Whether you are in manufacturing, consumer products, real estate or the financial sector there are suppliers required to support your business. Supply disruptions are inevitable. Understanding your supplier’s financial status, how that impacts you and your business and what tools and processes you can implement to develop a strategy to mitigate risk is critical in today’s business.

Rapid Ratings’ products and services provide the supplier Financial Health Ratings (FHRs) for publicly traded suppliers. In addition we have developed a unique ability to secure and evaluate private company financials, so clients can assess all prospective and current suppliers on a common basis.

Although a financial evaluation of your supply base is very important there is more to Supply Chain Risk Management. It requires, assessing, evaluating, monitoring and managing your risk.

Whether risk evaluations are conducted at supplier selection, on-boarding or with your established supply base, Rapid Ratings can work with you. We can provide you with our products and, if you wish, we have the in-house expertise to collaborate with your team to build and implement a unique risk management solution; evaluate current processes, advise on and share best practices, and develop a risk strategy. We will help incorporate our products with your internal processes to create a comprehensive and integrated risk management solution.

Corporate – Credit Risk Management

More than ever before, we must all know if our customers are healthy or weak. Board members, shareholders, CEOs, CFOs, Chief Compliance Officers, Chief Risk Officers and others, are all scrutinizing heavily the credit being extended to customers and the changing risk profiles of receivables books. Add the complexity of multinational customers and the challenges of evaluating private companies alongside publics, and credit risk management is more difficult and pressure-filled than ever.

Rapid Ratings’ solutions for credit professionals utilize the forward-looking, predictive properties of the FHRs for portfolio-wide and individual counterparty credit risk analysis. Our FHR Reports and Indicator Reports on over 5,000 global companies, Sector Research on 31 industry sectors and Counterparty Risk Reports on customized “portfolios” of names are all available to be integrated into clients’ workflow processes.

Our Private Company FHR Service is used by almost all of our Credit Risk customers. RR provides the ability to rate private companies on apples to apples bases, economically and quickly. This allows our customers to assess all counterparties systematically and to finally have a continuously replicable process in place for sourcing and evaluating private financials

Products

Rapid Ratings™ suite of products (used daily by bankers, research analysts, traders, risk managers, traditional and quantitative fund managers etc.) strategically and tactically add and preserve value.

Rapid Ratings™ derives three product lines from the FHR™ system: Data, Research and Portfolio Analytics. Coverage currently includes the Russell 3000, the FTSE 350, the Toronto TSX 225 and other selected universes in developed markets around the globe. Coverage will continue to expand over the next year.

Centex Corporation vs. 5 Year CDS Spread

Material deterioration in financial health indicates an increased risk profile for a company. The graph above shows the 5 year CDS spread of Centex Corporation widening when the company drops below the investment grade threshold of 65, and extreme widening of CDS following a 34 point downgrade to an FHR of 12.