Cortera’s approach to assessing risk is built around the insights we can draw from an accounts receivables picture of a company, as assembled from its suppliers. The primary benefit of this picture is that it draws on data from a multitude of companies, and does not rely on any company self-reporting on its financials. This avoids the problem in pursuing GAAP data, which is hard to get from privately held firms and can be open to interpretation (and even manipulation). Instead, Cortera builds an aggregated A/R picture which tells a fairly straightforward story about what a company buys, from whom, and how quickly they pay their bills – and the trends and changes in these data points over time.
Cortera – Looking at Supply Chain Risk Through the A/R Lens [PRO]
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