Financial Risk Management

We can help manage trade credit risks so that you can prevent, recover and indemnify bad debts.

Trade credit risk is a common part of everyday business and the danger it can pose to finances is significant. In order to avert payment default, it is crucial to have a detailed financial risk management plan that protects your business from unsecured credit risk. Whilst business risk is unavoidable it does not have to be unmanageable.

There are business risk management strategies that can be implemented to protect your company and ensure that strong credit management is in place and that everything possible is done to avert, allay and indemnify against financial risk.

Offering open account to clients can be a safe business practice that increases sales and grows your client base, not another financial risk on the balance sheet.

Find out how Coface can help you manage your financial risk today!

Mitigate financial risk with industry specific information:

EMERGING ASIA - Business risk in construction

Contrary to Western Europe and North America, where financial risks are tending to stabilise, emerging Asia is following a different path despite sustained growth in China and India. Due to the process of consolidating overcapacities currently underway, stock levels are rising and company debt is increasing.

 The metal industry has seen steel prices fall. It is the only Asian industry to be assessed as a "very high risk" sector since last April.

 The deterioration of sector risks continues in construction and paper-wood. Construction, threatened by weakened demand, more severe credit conditions and the appearance of ghost towns in China, moves from “medium” risk to “high” risk. The increase in insolvencies of SMEs in the paper industry, combined with overcapacities, leads Coface to downgrade the risk in the paper-wood sector to "medium".

Up to date industry and company based information is invaluable to commercial risk management.