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Risk Management

More on Financial Stress Score

Introducing the enhanced Financial Stress Score v. 7.1

At D&B, we are dedicated to helping you make the best business decisions. Recently, unprecedented economic change has contributed to a shift in the pattern of business failures – most notably, an increase in the failure rate of large businesses. In response, we have enhanced the D&B Financial Stress Score, our most powerful predictor of business deterioration.

To enhance the Financial Stress Score, we've introduced financial overlay rules that more effectively leverage financial statement and national debt rating data. These rules use financial ratios and ratings to measure liquidity, efficiency, leverage and profitability. Ratios are compared to norms and downward or upward score adjustments are made on businesses with ratios significantly worse than or better than the norm. As a result, the enhanced FSS 7.1 now offers a 26% predictive performance boost over the previous FSS score model v.7.0.

In addition to significantly improving the predictiveness of the FSS score, we have also re-defined the FSS Risk Class scale. We have made the 1-5 risk scale more intuitive and actionable by ‘normalizing’ the distribution of companies across the risk classes. For example, Risk Class 3 now represents 'Average Risk'.

Learn more about the enhanced Financial Stress Score with these special resources

You may need to adjust your company’s decisioning process to accommodate the new score. To help you better understand what the change means for you and the businesses in your portfolio, click on the following:

  • Take 10 minutes to listen to a Live Meeting Recording where D&B Analytical Consultant, Sue Sheehey reviews the new score.

We are committed to supporting you with a smooth transition to the enhanced Financial Stress Score.