The situation we all are in right now will continue to impact us in different ways. It is and will be a tough time for many companies, which is why our aim is to help as many of our customers as possible to regain stability, control and insight.
Our scorecards are an important tool and a foundation for many credit decisions, and will continue to be so. It is, therefore, highly important for us to ensure we continue to maintain predictive scores.
There are and will continue to be changes in the market, and we need to and will monitor our evaluations carefully. Based on previous crises and scorecard validations, the scorecards ranking from low to high risk remained stable. This means that a company with a high score will still have a lower risk than a company with a lower score. However, the corresponding risk for each score did increase and deviate from predicted and the scores did underestimate the risk.
From previous experiences and analysis, we assume our scorecards will continue to rank the companies from low to high risk. However, the situation right now means the risk will most likely increase. We strongly believe in providing statistical scorecards based on facts, historical data and modelling. This is our preferred way forward to ensure stability and control.