CreditRiskMonitor.com, Inc. (CreditRiskMonitor.com) provides interactive business-to-business SaaS subscription products designed specifically for credit and supply chain managers. These products are sold predominantly to corporations located in the U.S.
The overall focus of the company’s Software-as-a-Service (SaaS) subscription products is on facilitating the analysis of business-to-business (B2B) corporate financial risk in the context of the extension of trade credit from a supplier to a bu...
CreditRiskMonitor.com, Inc. (CreditRiskMonitor.com) provides interactive business-to-business SaaS subscription products designed specifically for credit and supply chain managers. These products are sold predominantly to corporations located in the U.S.
The overall focus of the company’s Software-as-a-Service (SaaS) subscription products is on facilitating the analysis of business-to-business (B2B) corporate financial risk in the context of the extension of trade credit from a supplier to a buyer, the management by buyers of important supplier relationships, and the management of significant counterparty (i.e., buying and selling) relationships.
The company’s primary SaaS subscription products for analyzing commercial financial risk are CreditRiskMonitor and SupplyChainMonitor. These products help corporate credit and procurement professionals stay ahead of and manage financial risk.The company’s subscribers, including nearly 40% of the Fortune 1000 and well over a thousand other large corporations worldwide, use the company’s timely bankruptcy prediction scores, proactive email alerts, and business-level reports on public and private companies to make important financial risk decisions. The company’s comprehensive commercial financial risk information is published through its web-based platforms and features detailed analyses of financial statements, including ratio analyses & trend reports, and peer analyses.
To help subscribers prioritize and monitor counterparty financial risk, the company’s SaaS platforms offer the proprietary FRISK and PAYCE scores, the well-known Altman Z-score, agency ratings from key Nationally Recognized Statistical Rating Organizations (NRSROs), curated news, and detailed financial spreads & ratios. The company’s FRISK and PAYCE scores are financial distress classification models that measure a business’s probability of bankruptcy within a year. The FRISK score also includes a risk signal based on the aggregate research behaviors of the company’s subscribers, who control counterparty access to trade credit at some of the most sophisticated companies in the world. The inclusion of this risk signal boosts the overall accuracy of this bankruptcy analytic by lowering the false positive rate for the riskiest corporations. The FRISK score accurately identifies 96%1 of public companies that file for bankruptcy at least three months before filing. Given the importance of trade credit and supply relationships for corporations, CreditRiskMonitor.com’s SaaS subscription products, featuring its 96%-predictive FRISK bankruptcy analytic for public companies and its 80%1-predictive PAYCE bankruptcy analytic for private companies, are critical for its subscribers to accurately identify, evaluate, monitor, and mitigate counterparty bankruptcy risk.
CreditRiskMonitor.com’s commercial credit reports, on either platform, include company background information, trade payment information, as well as public filings (i.e., suits, liens, judgments, and bankruptcy information) on millions of companies around the world. To alert subscribers of changing risk conditions, the company uses email to push selected information to subscribers on businesses of their choosing.
The company’s namesake SaaS product, CreditRiskMonitor, is most often purchased to review the risks of extending trade credit by a company to its corporate customers. The platform features business reports and group dashboard views of counterparty risk, trade credit and financial information, as well as news notifications. Within a midsized or large corporation, there is often a professional whose responsibility is managing this credit (often together with managing collections of the company’s accounts receivable). CreditRiskMonitor.com believes that corporate credit professionals have been tasked with doing more with less, under reduced departmental budgets and personnel, while still making trade credit decisions under intense time pressure. CreditRiskMonitor.com’s products are designed to save subscribers time, money, and effort by prioritizing their attention and actions toward risky counterparties through its bankruptcy analytic scores, standardized financial reporting, and material alerts.
The company’s newest product, SupplyChainMonitor, leverages its expertise in financial risk analytics to create a risk management solution specifically built for procurement, sourcing, supply chain, and finance personnel to support supplier lifecycle decisions, risk assessment, and ongoing risk monitoring. Subscribers can assess counterparty risks at aggregate and granular levels under a variety of lenses, including geographic, industrial segment, and other customer-specified categories. The platform features supplier location mapping capabilities with real-time weather, natural disasters, and power outage event overlays. SupplyChainMonitor offers customizable news notifications, business risk reports, interactive charts, and more. To assist in strategic planning and save procurement resources, subscribers can limit bids and site inspections to financially durable suppliers by applying the intelligence of SupplyChainMonitor. Financially durable suppliers ensure a more robust supply chain overall, as they have the necessary resources to invest in key initiatives that support supply continuity and excellence, such as Research & Development (R&D); Quality Assurance/Quality Control (QA/QC); Capital Expenditure (maintenance and capacity expansion); Cybersecurity; and Environmental, Social, & Governance (ESG).
Dun & Bradstreet Holdings, Inc. (Dun & Bradstreet), the company’s major competitor, segments its revenue between the Finance & Risk and Sales & Marketing verticals.
The company’s SaaS subscription products represented over 99% of its fiscal 2024. These products are sold to a diverse subscriber base. The company has contractual agreements with its data suppliers, including leading NRSROs to redistribute their information as part of its services. The company also obtains financial statements and other data from the London Stock Exchange Group plc.
CreditRiskMonitor.com’s products are the result of management’s experience in the commercial credit industry, third-party financial risk assessment, and ongoing research concerning the information needs of corporate credit and purchasing/procurement departments. These factors have enabled the company to satisfy its subscribers’ needs for timely, efficient, and financial risk information services. CreditRiskMonitor.com sells the following SaaS subscription products for analyzing commercial financial risk: CreditRiskMonitor and SupplyChainMonitor.
CreditRiskMonitor: The CreditRiskMonitor product provides subscribers with unlimited usage and coverage of public and private business information featuring multi-period financial statements with ratio analyses and spreads, credit risk scores, historical payment behavior, trend and peer analyses, credit limit recommendations, as well as up-to-date material news screened specifically for credit evaluation. Another product feature is the user-customizable monitoring of subscriber-selected businesses for material changes and news, delivered automatically via email, so subscribers are always on their counterparties. This feature is supplemented with U.S. public-record filing information (i.e., suits, liens, judgments, and bankruptcy information) covering millions of public and private U.S. companies. The payment behavior scores are generated from trade receivable data contributed through the company’s Trade Contributor Program. The CreditRiskMonitor product is delivered via a web platform in a highly structured way, enabling the tracking of subscribers’ usage information for over 15 years, through many financial shifts. The CreditRiskMonitor product is sold to subscribers through an upfront annual payment.
Subscribers can purchase a more limited version of the CreditRiskMonitor product with coverage of just U.S., Canadian, Mexican, and Caribbean companies (the North American Service) for a lower annual fee. The flagship version of the product (the Worldwide Service) covers all public and millions of private non-financial companies internationally.
Subscribers can purchase expanded U.S. private company coverage (the U.S. Private Company Data Enhancement) for an additional annual fee. The U.S. Private Company Data Enhancement provides access to third-party financial distress scores on 3 million private U.S. companies.
Subscribers to the Worldwide Service can purchase expanded international private company coverage (the International Private Company Data Enhancement) for an additional annual fee. The International Private Company Data Enhancement provides access to data covering over 9 million private businesses with financial statements based in Europe and Japan, including over 325,000 private company FRISK scores and over 1.2 million Altman Z-scores.
SupplyChainMonitor. The SupplyChainMonitor product provides subscribers with interactive tools to monitor and manage their company’s supply chain risks at the aggregate and granular levels. With easy-to-use filtering and built-in views, the product offers concise dashboards with drill-down capabilities to examine counterparty risk across categories, including geographic, industrial segment, and financial risk level, plus subscriber-provided metadata classes, such as criticality and direct/indirect. The product provides functions to easily view supplier locations on a world map that supports real-time event overlays, including weather, natural disasters, and power outages. Material news, events, and other risk alerts can be configured as immediate or daily digest push notifications providing automatic monitoring. Fully customizable company reports offer rich financial insights and charts, including the industry-leading 96%-accurate FRISK score, analyst-informed financial questions for counterparties, NRSROs ratings, over 40 unique financial ratios, and more. With records on more than 30 million businesses worldwide, predictive risk scores on approximately 5 million, and payment data on about 4 million, the SupplyChainMonitor product provides actionable insights for procurement risk management. Enhanced peer analysis tools allow comparisons of up to 5 businesses over time across financial ratios and risk scores, simplifying bid reviews and alternative source investigations. Macro-level risk information on 180 countries across 10 risk categories, powered by the Economist Intelligence Unit, is included to assist in sourcing strategy when examining geopolitical, legal, labor, tax, and security risks. The SupplyChainMonitor product is sold to subscribers through an upfront annual payment.
This platform is only offered with worldwide coverage and includes the U.S. Private Company Data Enhancement with third-party financial distress scores on 3 million private U.S. businesses. Subscribers can purchase the International Private Company Data Enhancement for an additional annual fee, which provides the same enhanced coverage available in the CreditRiskMonitor product.
Credit Limit Service: The Credit Limit Service product, an add-on subscription service available on the CreditRiskMonitor product, helps subscribers establish, update, and manage credit limits for their customers based on the changing state of those customers’ financial strength. Available since 2007, this interactive product monitors daily changes in a customized and recommended credit limit for each customer, and generates alerts to subscribers so they can take immediate action when a customer’s circumstances change. The Credit Limit Service is fully integrated with the CreditRiskMonitor product, allowing subscribers to quickly engage in deep analysis when reviewing any specific credit line limit. The additional fee is based, in part, on the number of companies evaluated during the annual subscription period.
Confidential Financial Statements Solution: The Confidential Financial Statements Solution (CFSS) product is an available addition to the CreditRiskMonitor and SupplyChainMonitor products to help subscribers streamline the financial risk assessments of their private company counterparties. Subscribers, or their designated counterparty(ies), upload confidential financial statements to the company’s secure web portal to leverage Optical Character Recognition (OCR) and Artificial Intelligence (AI) technology that automates the extraction, standardization, analyses, and bankruptcy scoring of that financial statement data. As a result, the CFSS product eliminates the need for manual data entry and improves the consistency of financial risk assessments while supporting the quick turnarounds required for timely business decisions. Reports include standardized financial statements, comprehensive peer benchmarking against public and private company comparables, CFS FRISK score that leverages PAYCE score insights (where available), and the Altman Z-score. The CFSS product is sold in an initial block of 10 credits and subsequent credits in any quantity. Credits are only consumed when bankruptcy scores are produced, and expire at the end of each annual subscription period.
Confidential Financial Statement Tool: The Confidential Financial Statement Tool (CFS Tool) product was the precursor to the CFSS product and similarly delivers standardized private company financial statements, peer analyses, and bankruptcy risk scores. However, subscribers using the CFS Tool are responsible for the data entry of the private counterparty statements via forms on the company’s web-based platforms. Existing clients of the CFS Tool can maintain access to use the CFS Tool, but it is no longer available for purchase by new subscribers.
Both platform products feature the company’s proprietary bankruptcy risk scores: the FRISK score and the PAYCE score. These proprietary scores indicate a business’s level of financial distress, by predicting its probability of bankruptcy within the next 12 months. The scores provide subscribers with a fast, consistent method for identifying those companies at the greatest risk, serving as an exceptional workflow optimization tool.
FRISK: The FRISK score is a daily updating, structural statistical model that is backtested using Company data and bankruptcies for public companies. The model includes inputs from the stock market, financial statement ratios, agency ratings, and subscriber sentiment. Its calculation involves the preparation of data from multiple sources, the use of executable software created expressly by and owned by the company, as well as sophisticated algorithms and weighting techniques that are proprietary Company trade secrets. Many experienced and knowledgeable credit and risk professionals have incorporated the FRISK score into their fundamental analysis of companies with whom they do business. In 2024, the FRISK score covered over 350,000 public and private companies worldwide representing over $100 trillion in corporate revenue.
Sentiment of Trade Credit Experts: Since 2003, the company has collected usage information from its subscriber base, which represents financial risk management professionals from nearly 40% of the Fortune 1000 plus over a thousand other companies worldwide. Using an aggregated and anonymized version of this usage data, CreditRiskMonitor.com developed an independently predictive, corporate bankruptcy risk model.
At least three months prior to filing for bankruptcy, the FRISK score classifies 50% of these soon-to-file businesses in its highest risk FRISK 1 category and 67% of these soon-to file businesses in its combined FRISK 1 and FRISK 2 categories. This improved precision solidifies the FRISK score as the first line of defense for subscribers in workflow optimization by focusing review time on those counterparties with the greatest probability of going bankrupt within the next 12 months.
PAYCE: The PAYCE score provides a highly accurate measure of financial stress when no financial statements are available for private companies. It utilizes payment data collected and processed through the company’s Trade Contribution Program, U.S. federal tax lien data, and more to deliver an approximately 80% accurate score on over 330,000 private companies in the U.S. and Canada. The PAYCE score is unlike other payment-based models that infer bankruptcy risk from summarized past dollar-weighted payment performance. A PAYCE score is only calculated for a business when there are sufficient quantities of trade reporting suppliers and specific trade experiences. This group represents only 2.5% of the PAYCE score’s coverage population, reinforcing its use as a workflow optimization tool to focus subscriber attention on those businesses with the greatest chance of experiencing bankruptcy within the next 12 months.
Marketing and Sales
To gain market share for the company’s products, it will continue to use the Internet (at its website www.creditriskmonitor.com) as the primary mechanism for demonstrating and distributing its suite of products. To inform potential subscribers about its products, CreditRiskMonitor.com uses a combination of telephone sales, Internet demonstration, and inbound and outbound marketing, including but not limited to digital strategies, social media, media/PR outreach, trade show representation, and speaking engagements before credit and supply chain groups and associations.
Value Proposition
The company’s fundamental value proposition is to create and sell high-quality, industry-leading commercial financial risk information featuring bankruptcy analytics with the highest accuracy levels in the market to help busy risk professionals stay ahead of financial risk quickly, easily, and cost-effectively as compared to other leading providers. The company’s research shows that its subscribers overwhelmingly agree that CreditRiskMonitor.com products save them time, help them to make better financial risk decisions, and represent a significant value-to-cost ratio as compared to its competitors.
CreditRiskMonitor.com’s operational strategy is to deliver on its value proposition by continuing to be one of the industry’s lowest-cost producers of high-quality, accurate commercial financial risk information by continuously collecting data from a wide variety of sources and employing sophisticated, proprietary algorithms to process that data into an extensive database of valuable business records. Highly automated operations add to the reliability and consistency of these records while limiting costs. The company employs a small number of analysts who selectively review data at critical points in its processes to further enhance product quality and relevance to financial risk professionals.
Risks Related to Information Systems Security
The company’s information systems, and those of its third-party service providers and vendors, are vulnerable to an increasing threat of continually evolving cybersecurity risks. These risks may take the form of malware, computer viruses, cyber threats, extortion, employee error, malfeasance, system errors, or other types of risks, and may occur from inside or outside of the company’s organization. Cybersecurity risk is increasingly difficult to identify and quantify and cannot be fully mitigated because of the rapidly evolving nature of the threats, targets, and consequences. Additionally, unauthorized parties may attempt to gain access to these systems or the company’s information through fraud or other means of deceiving its third-party service providers, employees, or vendors. The company’s operations depend, in part, on how well it and its suppliers protect networks, equipment, information technology (IT) systems, and software against damage from several threats. The company has entered into agreements with third parties for hardware, software, telecommunications, and other services in connection with its operations. The company’s operations depend on the timely maintenance, upgrade, and replacement of networks, equipment, IT systems, and software.
In addition, targeted attacks on the company’s systems (or on systems of third parties that it relies on), failure or non-availability of a key IT system, or a breach of security measures designed to protect its IT systems could result in disruptions to its operations through delays or the corruption and destructions of its data, property damage, loss of confidential information or financial or reputational risks. As the threat landscape is ever-changing, the company must make continuous mitigation efforts, including risk-prioritized controls to protect against known and emerging threats; tools to provide automated monitoring and alerting; frequent employee training; and backup and recovery systems to restore systems and return to normal operations. However, there can be no assurance that the company’s ability to monitor or mitigate cybersecurity risks will be fully effective, and the company may fail to identify cybersecurity breaches or discover them in a timely way.
Any significant compromise or breach of the company’s data security, whether external or internal, or misuse of its data, could result in significant costs, lost sales, fines, and lawsuits, as well as damage to its reputation. In addition, as the regulatory environment related to information security, data collection, data use, and privacy becomes increasingly rigorous, with new and constantly changing requirements applicable to the company’s business, compliance with those requirements. As cyber threats continue to evolve, the company may be required to expend additional resources to continue modifying or enhancing protective measures or to investigate and remediate any security vulnerabilities.
History
CreditRiskMonitor.com, Inc. was founded in 1977. The company was incorporated in 1977.
