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Technical Considerations for Implementing International Credit ProjectsJay TchakarovDirector of Product ManagementHighRadiuswww.highradius.com
Company Overview
Founded 2006
fastest growing tech company
specialized expertise in credit operations
cloud-based and SAP-certified solutions
credit | cash app | deductions | collections
Credit Solutions Must-Haves
Effective Credit Decisions
minimize low-value manual work
focus analysts effort to maximum effect
enable streamlined communication
Credit Check
Check Rules
Scoring Engine
Scoring Model
3rd Party Assessment
Characteristics (Payment
History, Sales History)
Financial Information
Credit Cycle
New Credit Application
Periodic Reviews
Sales Order Processing
Credit Analyst Review
Credit Check
Check Rules
Scoring Engine
Scoring Model
3rd Party Assessment
Characteristics (Payment
History, Sales History)
Financial Information
Credit Cycle
New Credit Application
Periodic Reviews
Sales Order Processing
Credit Analyst Review
Electronic applications and review process
Credit Check
Check Rules
Scoring
Engine
Scoring Model
3rd Party
Assessment
Characteristics
(Payment History,
Sales History)
Financial Informati
on
Credit Cycle
New Credit Application
Periodic Reviews
Sales Order Processing
Credit Analyst Review
Identifies candidates for review based on periodic review, security expiring, credit limit, etc.
Credit Check
Check Rules
Scoring
Engine
Scoring Model
3rd Party
Assessment
Characteristics
(Payment History,
Sales History)
Financial Informati
on
Credit Cycle
New Credit Application
Periodic Reviews
Sales Order Processing
Credit Analyst Review
Automatically collect supporting facts• Integrate with ERP• Aggregate financials• Aggregate agency
reports
Credit Check
Check Rules
Scoring
Engine
Scoring Model
3rd Party
Assessment
Characteristics
(Payment History,
Sales History)
Financial Informati
on
Credit Cycle
New Credit Application
Periodic Reviews
Sales Order Processing
Credit Analyst Review
Credit risk scoring prioritizes at-risk customers • Predictive model• Configurable rules• Targeted strategies
Propose credit limit adjustments
Credit Check
Check Rules
Scoring
Engine
Scoring Model
3rd Party
Assessment
Characteristics
(Payment History,
Sales History)
Financial Informati
on
Credit Cycle
New Credit Application
Periodic Reviews
Sales Order Processing
Credit Analyst ReviewIntegration with order and
delivery systems
Credit Check
Check Rules
Scoring
Engine
Scoring Model
3rd Party
Assessment
Characteristics
(Payment History,
Sales History)
Financial Informati
on
Credit Cycle
New Credit Application
Periodic Reviews
Sales Order Processing
Credit Analyst Review
Credit check identifies orders and deliveries to be reviewed and/or blocked• Configurable rules• Targeted strategies
Credit Check
Check Rules
Scoring
Engine
Scoring Model
3rd Party
Assessment
Characteristics
(Payment History,
Sales History)
Financial Informati
on
Credit Cycle
New Credit Application
Periodic Reviews
Sales Order Processing
Credit Analyst Review
• Clear presentation of information
• Integrated cross-functional communication
• Integrated review and escalation workflows
• Role-based visibility and security at the user level
Meeting International Needs
Impact on Multi-nationals
organization and processes
varying levels of risk across countries
different drivers of risk
different regulations and compliance
different credit and insurance agencies
Credit Check
Check Rules
Scoring Engine
Scoring Model
3rd Party Assessment
Characteristics (Payment
History, Sales History)
Financial Information
Credit Cycle
New Credit Application
Periodic Reviews
Sales Order Processing
Credit Analyst Review
Credit Check
Check Rules
Scoring Engine
Scoring Model
3rd Party Assessment
Characteristics (Payment
History, Sales History)
Financial Information
Credit Cycle
New Credit Application
Periodic Reviews
Sales Order Processing
Credit Analyst Review
Easy to deploy model for multiple targeted application forms
Credit Check
Check Rules
Scoring Engine
Scoring Model
3rd Party Assessment
Characteristics (Payment
History, Sales History)
Financial Information
Credit Cycle
New Credit Application
Periodic Reviews
Sales Order Processing
Credit Analyst Review
Identify candidates for review based on insurance info
Insurance
Credit Check
Check Rules
Scoring Engine
Scoring Model
3rd Party Assessment
Characteristics (Payment
History, Sales History)
Financial Information
Credit Cycle
New Credit Application
Periodic Reviews
Sales Order Processing
Credit Analyst Review
Integration with multiple sources and agencies
Integration with insurance agencies
Insurance
Credit Check
Check Rules
Scoring Engine
Scoring Model
3rd Party Assessment
Characteristics (Payment
History, Sales History)
Financial Information
Credit Cycle
New Credit Application
Periodic Reviews
Sales Order Processing
Credit Analyst Review
• Targeted rules and strategies that take into account different factors with different weights
• Formulas to bring down risk to standard scale
Insurance
Credit Check
Check Rules
Scoring Engine
Scoring Model
3rd Party Assessment
Characteristics (Payment
History, Sales History)
Financial Information
Credit Cycle
New Credit Application
Periodic Reviews
Sales Order Processing
Credit Analyst Review
• Visibility from country-level to global-level
• Standard measure/scale of risk
• Global review workflow and escalation path
Conclusion
Requirements
minimize low-value manual work
focus analysts effort to maximum effect
enable streamlined communication
cross-country standardization
minimize need to insure customers
Must Haves
configurability
paper to electronic standardization
automatic credit data collection
country-/segment-targeted credit rules
integrated workflows and escalation
