Credit Risk Management Today, maintaining and improving long-term financial health is the name of the game. To satisfy shareholders, positive cash flow—combined with prudent invest- ment, balanced growth, and cost control—is absolutely essential. Enterprise-wide customer management practices and policies have never been more critical. With customer churn on the rise, the drive for market share is no longer the sole business objective. In many organizations, the number of accounts in collections is increasing, resulting in higher operational costs. Rising net bad debt, fraud, write- offs and increasing numbers of days sales outstanding (DSO) are eroding margins. The truth is, all customers are not the same, and a company’s organizational struc- ture and customer strategies and procedures need to reflect these
differences. The key to success is acquiring profitable, high-value customers and retaining them for the long term. Organizations must strike the balance between risk and reward. Risk management— balancing profit potential and customer service with the risks involved in extending credit to a customer—is a critical part of managing the customer life cycle. A credit policy that is too stringent causes customer relationships to suffer; one that is too lax causes profits to suffer. Rapid business benefits founded upon best practices Applying our extensive experience, CGI helps organizations implement integrated credit risk management solutions to achieve rapid business benefits including: • Increased product and customer profitability • Improved collection rates • Reduced net bad debt and operating costs • Enhanced customer management processes • Decreased receivables carrying costs • Improved bottom lines CGI’s holistic approach has been developed for more than 20 years by working with hundreds of industry leaders to envision and implement credit risk management strategies for protecting and improving their financial health. Our approach has three dimensions to minimize credit risk: customer analytics, design of strategies and business processes, and delivery of applicable technology tools. This approach enables a client organization to: • Manage credit risk through the implementation of intelligent credit strategies, work processes, and organizational design • Employ consistent treatment throughout the customer life cycle through the use of statistical techniques and decision analytics • Control operations costs through integration and automation • Invest in technology solutions with strong business cases and an impeccable track record for attaining business goals CGI’s engagements with organizations of all sizes and in different geographies and industries, has produced a credit risk management framework upon which all our work is based. No matter what stage in the credit management life cycle an organi- zation finds itself, CGI can devise an appropriate solution, relying on the best prac- tices most relevant to the desired business results. Sustaining shareholder value by maximizing customer profitability Why CGI Our blend of business expertise, end-to-end offerings, and customer-focused approach helps clients solve their credit risk management challenges. • Business expertise—CGI has 20 years of experience in working with leading credit risk manage- ment organizations worldwide, across industries. • Total solution—CGI provides the consulting services necessary to make operational improvements in credit and collections manage- ment, call centers, and marketing, as well as the software assets that support them. • Customer-based approach— CGI applies a...
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