For small or medium-sized companies, credit agencies or credit insurers can function as information service providers. A Dun & Bradstreet Failure Score between 1510 and 1569, on the other hand, means an average annual default risk of 0.09% (https://www.dnb.com/resources/financial-stress-score-definition-information.html). Even today, they provide employees with relevant information in condensed form or feed default probability models directly with the necessary data for further processing. This continues to place great challenges on current models and approaches. It is possible that combinations of statistical models and artificial intelligence could help to improve credit risk forecasts in the future.

Source: Forbes July 23, 2024 19:59 UTC