Drive Increased Profitability through Effective Risk Management

1
Drive Increased Profitability through Effective
Risk Management
Risk Management Solutions

• DB Proprietary Information provided to insert
  customer name for its internal use only and may
  not be provided to third parties without DB's
  written consent

2
In todays business environment, managing risk
and improving cash flow are more challenging than
ever before because

• The commercial bankruptcy rate is rising, putting
  your customers company at greater risk for
  incurring substantial losses
• Your customers need to increase cash flow at a
  time when economic pressure is causing companies
  to pay slower
• Your customers are under pressure to make credit
  function more efficient but do not want to take
  on increased risk to do so

3
Our Risk Management Solutions help your customers
to increase profitability while mitigating risks
by providing

• Visibility into how your customers receivable
  exposures are linked so they have a true picture
  of total risk exposure
• Deeper insight into how businesses are likely to
  perform in the coming months so your customer can
  proactively manage their cash flow
• Easy and fast assessment of the risk of all your
  customers receivables
• More efficient use of your customers credit
  resources to save money

4
Without DB, it is difficult to know if your
customers accounts are part of the same corporate
family
CUSTOMER 1 Clayco Inc
CUSTOMER 2 Ceramico Inc.
CUSTOMER 3 Glazetech Inc. (France)
5
In this example, your customer may assume that
their risk exposure to any one account is limited
to 500K
CUSTOMER 1 Clayco Inc 500K Credit
Outstanding
CUSTOMER 2 Ceramico Inc. 500K Credit
Outstanding
CUSTOMER 3 Glazetech Inc. (France) 500K
Credit Outstanding
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Our Risk Management Solutions uses our unique
Corporate Linkage capability to reveal how
companies are linked through corporate families
...
CCG Corp.
Ceramico Co.
Glazetech Co.
CUSTOMER 1 Clayco Inc. 500K Credit
Outstanding
CUSTOMER 3 Glazetech Inc. (France) 500K
Credit Outstanding
Ceramico Corp.
CUSTOMER 2 Ceramico Inc. 500K Credit
Outstanding
Glazetech Cie. France
7
... uncovering that your customers complete risk
exposure to the corporate family is 1.5M, not
500K
CCG Corp.
1.5M to the CCG corporate family
Ceramico Co.
Glazetech Co.
CUSTOMER 1 Clayco Inc. 500K Credit
Outstanding
CUSTOMER 3 Glazetech Inc. (France) 500K
Credit Outstanding
Ceramico Corp.
CUSTOMER 2 Ceramico Inc. 500K Credit
Outstanding
Glazetech Cie.. France
8
They may also discover that a financially
stressed company within a corporate family may
dramatically increase the risk level of one or
more of your customers
CCG Corp.
Declared Bankruptcy
Ceramico Co.
Glazetech Co.
CUSTOMER 1 Clayco Inc. 500K Credit
Outstanding
CUSTOMER 3 Glazetech Inc. (France) 500K
Credit Outstanding
Customer 3 risk dramatically increases
Ceramico Corp.
CUSTOMER 2 Ceramico Inc. 500K Credit
Outstanding
Glazetech Cie.. France
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In addition to understanding total exposure, your
customers can use our Predictive Scores to
understand the likelihood of future risk in two
areas

• Business Failure Our proprietary Financial
  Stress Score will tell you the likelihood of your
  customer filing for bankruptcy or going out of
  business with losses to creditors in the next 12
  months
• Payment Delinquency Our proprietary Commercial
  Credit Score predicts the likelihood of your
  customer paying slow or not at all during the
  next 12 months

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Predictive Scores can be applied quickly and
easily to your customers entire global customer
portfolio ...
Global Customer portfolio
Financial Stress Score
Commercial Credit Score
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... revealing high-risk companies upon which your
customer can take action by

• Aggressively collecting receivables, thus
  ensuring that they will keep the cash flowing in
• Changing contract terms
• Exiting the relationship where appropriate

12
Using our Risk Management Solutions to manage
their portfolio, your customers will be more
efficient than the manual review of accounts
because

• It requires fewer resources due to automation
• It can be done more frequently, dramatically
  cutting the lag time between reviews and thus
  reducing risk exposure
• It allows your customer to spend their limited
  resources on accounts that are marginal (i.e. not
  clearly good or bad risks) thus improving your
  cash flow

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Over 1500 customers are already benefiting from
our Risk Management Solutions including

• A large sugar refiner who was experiencing
  substantial losses from customers due to their
  inability to predict business failure within
  their customer base
• With DBs Risk Management Solutions and our
  Financial Stress Score, they recently avoided
  additional substantial losses which was a major
  factor in preventing them from filing for
  bankruptcy themselves
• A worldwide distributor of diagnostic products
  who was experiencing a cash flow crunch due to
  poor collection processes...
• With DBs Risk Management Solutions and our
  Commercial Credit Score, they now quickly
  identify companies likely to pay slow and collect
  the cash sooner
• A leading computer hardware provider who had
  large unknown risk exposure ...
• With DBs Risk Management Solutions and our
  Corporate Linkage, they are uncovering their
  corporate risk exposure and protecting themselves
  from potential losses

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Next Steps

• Apply Predictive Scores to your customers
  portfolio to see how easy and fast it is to
  assess risk
• Apply our Corporate Linkage capability to your
  customers portfolio to understand their total
  risk exposure
• See a side-by-side comparison of their risk
  distribution vs. the industry
• Send us a file with your customers portfolio and
  let us show you how to manage your risk and
  improve their cash flow today