Risk Analysis Evaluations
Assess the risk of payment defaults of businesses, while evaluating the overall quality of the business environment
Our risk analysis is based on:
- Macroeconomic expertise in assessing risks
- Contextual business expertise
- Microeconomic expertise built up over 70 years
Coface provides you with detailed study on the economic environment of each country and their business climate. These detailed reports help you evaluate the potential risk in operating in each country and to decide the suitability for you to extend operations.
Country risk analysis
With Coface’s expertise in country evaluations, 160 country assessments are available using a spectrum of indicators incorporating geopolitical or governance risks, economic vulnerability, the risk of foreign currency liquidity crisis, the severity of external indebtedness and the financial vulnerability of the banking system.
Regularly updated, they provide an estimate of the average credit risk on a country’s businesses. This is an invaluable tool, giving an indication of a country’s potential influence on businesses’ financial commitments.
Of course, there may be some very solid businesses in high-risk countries, just as there may be some risky ones in reliable countries. The overall risk is thus a combination of business-specific factors and factors relating to the country in which the business operates. Our analyses use a seven-level ranking. In ascending order of risk, these are: A1, A2, A3, A4, B, C and D.
Evaluation of the business environment
Evaluating the business climate of a country depends on the quality of a country’s private sector governance. The disclosure of financial information and the effectiveness of the legal framework in settling debts play a major role in this.
At Coface we do this on the basis of:
- Expertise on the market – the advantage of our worldwide presence.
- Various assessments done by renowned international organizations
Coface’s assessment is not limited to, evaluating the liquidity and solvency of the country, but also takes into account, the microeconomic factors of the country.
Coface’s economic research
At Coface we are able to provide you with important information and a view of the economy, based on our credit insurance business worldwide. Our assessments are based on payment experience recorded coupled with the evaluations done by our expert analysts.
Economic research: Is based on historical experience of the risks we cover, and also serves to evaluate these same risks:
Macroeconomic analysis: We monitor and analyze political, banking and financial risks are integrated in the day-to-day running of our business.
Microeconomic signals: In the form of payment arrears recorded enable us to fine-tune our diagnostics on the economies and sectors concerned, and our forecasts and country evaluations.