The risk report is used to view in a few clicks outstanding of each client and compare them to any guarantees and credit limit granted.
It is an operational tool to manage receivable exposure.
It highlights the risk outstanding and credit available
for every buyer.
The customer risk is assessed at the level of the legal entity. If several accounts are linked to the same legal ID, the tool consolidates outstanding accounts concerned in order to have the global exposure.
This report allows a credit risk
monitoring based on real outstanding and credit limit
The fields credit limit
(that you set according to your criteria), Insurer guarantee (if you have a credit insurance contract) and Other guarantees
(bank guarantee, documentary credit ...) are associated with the legal entity and not on accounts individual.
It's possible to import the amount of order backlog
per customer (orders received not invoiced yet). This information is added to the receivables to obtain the total outstanding amount of an account, which is then compared to the credit limit
and the insurer's guarantee to determine the residual risk.