Risk analyses and evaluations
Access to our most strategic information, enabling you to assess the risk of payment defaults of businesses, while evaluating the overall quality of the business environment.
Our risk analysis is based on:
- Time tested expertise in country risk assessments
- Our microeconomic expertise built up over 60 years of payment experience
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.
The assessments of the countries are regularly monitored and they provide an estimate of the average credit risk based on the country’s business and socio-political environment. This information is a valuable tool, indicating a country’s potential influence on businesses’ financial commitments.
The countries are graded on a seven level ranking scale, in the ascending order of risk they are A1, A2, A3, A4, B, C and D. Of course there are other factors that affect the evaluation of the strength of specific business and there may be exceptions to the general business climate of a country, however these assessments give a fair idea of the country’s climate for doing business.
Evaluation of the business environment
Assessing 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 offer you useful 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.
Our economic research is thus based on historical experience of the risks we cover, and also serves to evaluate these same risks:
- macroeconomic analysis and monitoring of 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.