How is the Risk Score calculated?
The Risk Score calculation was created by analysing companies over a 12 month period. Using discrimination analysis, we identified the key data variables that are essential in predicting the probability of a company becoming insolvent within the next 12 month period. These variables were then run against our entire database of companies and through statistical analysis, an appropriate risk weighting was assigned to each variable. Through the calculation of these key variables, combined with current variables we generate the credit score.
