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Download the whitepaper to see how a more accurate model can improve your supply chain risk analysis.

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Understanding Model Accuracy Risk Prediction

The limitations of relying on trade payment data as a predictor of financial distress

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Read this whitepaper to learn:

The comparative accuracy levels of financial health data versus trade payment data in predicting default risk.
Why trade payment data is a poor basis for calculating default risk.
How 97% of the data showed no correlation between late payments and financial distress.
The key reasons businesses legitimately leverage late payments.
How greater accuracy is achieved by modeling data from financial statement analysis.

Data drives every supply-chain risk management decision. So, the data and the modelling need to be exceptional. But not all data and modelling are equal. Which begs the question, “How do I know whether I’m getting an accurate read on my risk exposure from the solution I’m using?”

We tested the accuracy of various models to understand what data and model gives the most accurate results. This white paper, Model Accuracy in Default Risk Prediction, summarizes that research and draws some interesting conclusions which may alter your approach to evaluating risk.

We detected an extremely low correlation between trade payment data and insolvency risk. So, is there a more accurate indicator of pending insolvency that is going to disrupt your supply chain?

Predicting Supply Chain Disruption & Defaults Earlier: 5 Pro Strategies from Industry Experts

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July 26, 2023